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Home My WebLink About4E - 3Q Budget Report CONSENT AGENDA #: 4 (E) PREPARED BY: RALPH TESCHNER FINANCE DIRECTOR SUBJECT: CONSIDER APPROVAL OF 3RD QUARTER BUDGET REPORT AND OVERVIEW DATE: OCTOBER 16, 1995 REVIEWED BY: The City Council directed Staff to prepare an accompanying writt~n narrative that would serve as an informational excerpt to the quarterfy budget reports. Attached to the 3rd Quarter Budget Report is a document entitled "Budget Report Overview" that is intended to satisfy your request. The review provides information related to those areas within the budget that have experienced exceptions to the approved budgeted levels. The report identifies revenue shortfalls and surpluses and includes a short explanation as to the various reasons. Also, expenditures are summarized on this basis as well.fThe "Budget Report Overview" is intended to serve as narrative ppo 'to the quarterly numbers performance and enhance you n!t. di i of those results. INTRODUCTION: BR2,WRT 16200 Eagle Creek Ave. S.E., Prior Lake. Minnesota 55372-1714 / Ph. (612) 447-4230 / Fax (612) 447-4245 AN EQUAL OPPORTUNITY EMPLOYER 1995 3RD QUARTER BUDGET REPORT GENERAL GOVERNMENT Mayor & Council Ordinance City Manager Boards and Commission Elections Director of Finance Accounting Internal Auditing Assessing Law Personnel Planning and Zoning Data Processing Buildings and Plant PUBLIC SAFETY police Fire and Rescue Building Inspection Civil Defense Animal Control PUBLIC WORKS Engineering Street CULTURE-RECREATION Recreation Parks Libraries URBAN ECONOMIC DEVELOPMENT DEBT SERVICE CONTINGENT RESERVE REVENUES General Property Taxes Licenses and Permits Intergovernmental Revenue Charges for Services Fines and Forfeits Misc. Revenues Other Financing Sources TOTAL BUDGET EXPENDITURES TOTAL BUDGET RECEIPTS BR0395.WRT Budget Amount 1,141,005.00 24,760.00 15,175.00 217,470.00 5,155.00 2,205.00 80,725.00 52,995.00 9,785.00 27,600.00 158,900.00 54,665.00 240,975.00 70,710.00 179,885.00 1,846,130.00 1,389,300.00 190,335.00 250,315.00 4,950.00 11,230.00 715,620.00 422,370.00 293,250.00 787,250.00 206,800.00 567,185.00 13,265.00 54,750.00 486,010.00 100,000.00 5,130,765.00 2,431,710.00 339,085.00 1,450,575.00 576,395.00 60,000.00 93,000.00 180,000.00 5,130,765.00 5,130,765.00 Expended 834,463.00 16,143.00 8,045.00 163,947.00 241.00 436.00 59,354.00 39,882.00 9,785.00 27,000.00 130,102.00 32,097.00 146,904.00 42,938.00 157,589.00 1,267,690.00 993,491.00 100,284.00 163,336.00 4,187.00 6,392.00 479,801.00 312,283.00 167,518.00 568,495.00 166,108.00 395,752.00 6,635.00 23,713.00 119,002.00 36,055.00 2,971,534.00 1,242,457.00 261,096.00 889,357.00 357,620.00 42,541.00 172,873.00 5,590.00 3,329,219.00 2,971,534.00 Percent 73.0% 65.0% 53.0% 75.0% 5.0% 20.0% 74.0% 75.0% 100.0% 98.0% 82.0% 59.0% 61.0% 61.0% 88.0% 69.0% 72.0% 53.0% 65.0% 85.0% 57.0% 67.0% 74.0% 57.0% 72.0% 80.0% 70.0% 50.0% 43.0% 24.0% 36.0% 58.0% 51.0% 77.0% 61.0% 62.0% 71.0% 186.0% 3.0% 65.0% 58.0% BUDGET REPORT OVERVIEW (3rd Quarter Budget Report)* Expenditures: General Government · Mayor & Council expenditures are under budget because the allowance ($3400) for the professional services has not been used due to the fact that a facilitator for the Council annual workshop was not utilized. · Ordinance expenses are running under because legal publication costs have been less than anticipated. · While overall City Attorney costs are marginally above projections at 82% versus the 75% variance expectation, general service legal fees are running at 98% of budget while prosecution costs are lagging at 63% due to positive restitution cost recovery. There are two reasons as to why general legal fees are so high at this time. The City has had to reimburse the, LMCIT over $13,000 for defense costs associated with the Prindle and Priorview road litigation plus an additional $10,000 to Larkin Hoffman for the Police department assessment. · Expenses associated with Boards and Commissions, Elections and Assessing are typically not incurred until the latter part of the budget year ie; December planning commission per diems, fall election and mid-year contract assessing billing, therefore the low percentages. · Personnel Department costs are down at 59% because of the position vacancy during this past quarter. · Planning department budget to date is under at 61 % which is the result of $25,000 remaining in the consultant service account which is anticipated to be contracted for comprehensive plan studies during the last budget quarter. · Total Buildings and Plant costs are a higher than the nominal year to date primarily due to the fact that we in general liability insurance premiums of almost $16,000. However, we anticipate receiving a premium refund latter in the year which will more than offset this increase due to our favorable claims experience which occurred during the previous year. · Remaining categories within General Government are in conformance with budget estimates. Public Safety · Overtime and temporary expenses within the Police Department are running higher than expected however it is being offset by other expenditure categories thereby maintaining an overall budget outcome of 72%. But an unsuccessful arbitration ruling to reinstate a former employee with full backpay and benefits will have an adverse affect and will probably push budget totals above 100% at year-end. · Fire Department expenses are fairly low because over 50% of department costs are attributed to volunteer compensation which is paid as an annual lump sum at year end. · Building Inspection is nearly 10% under budget because vehicle maintenance and operating supply costs have yet to be incurred which is the main reason the budget to date is 65%. · Animal Control does not represent a full quarter of service because they are billed one month in arrears. Public Works · Engineering expenses are very near budget expectations with a relatively small variance in the professional service line-item category which is at 85% while greater utilization of temporary employees has increased the costs within this category. · Street Department expenses are significantly under budget (57%) because the repair and maintenance supply and service category remains largely unused at this time but will be utilized for street repairs during the upcoming months and for stockpiling sand and gravel for winter snowplowing. Culture-Recreation · Recreation program expenditures represent a budget performance of 80% due to the high level of summer program activity. · Parks Department is somewhat under their projections at 70%, again due partially to the position vacancy of nearly 4 months. · Library results remain favorable due to the fact that virtually no repair and maintenance costs have incurred during the first 3/4ths of the year. Economic Development · Employee service categories are underexpended because of a position vacancy plus virtually the full allocation remains within general professional services for structuring business office park sales. Because these dollars have not yet been utilized the overall department results were only 43% of budget. Contingent Reserve . Contingency expenditures to date are largely associated with the Police Annex project (formerly old fire hall) and represent 36% of the Contingency account balance. Expenditure Summary' 1995 General Fund 3rd Quarter operating expenditures were on track and represented 65% of the total $5,130,765 operating budget. This actually compares favorably with 1994 3rd quarter results of 64%. Expenditures during the 2nd quarter of the year amounted to 24% of budget allocation which is representative of a normal fiscal quarter. Revenues: . Property tax collection receipts are slightly above 50% which is representative since tax settlements basically only occur twice a year. No apparent tax delinquency problems exist. . Upon factoring in retainage forfeitures of nearly $8,000, building permit activity in terms of dollars is very near budget at this time as evident by 76% of revenue receipts. However, the number of permits (108) is off substantially from projections of 187 thru the third quarter. While the number is down significantly, overall revenue is on line because commercial and industrial activity has been higher than anticipated and also the fact that a few very large residential homes have been constructed. . Intergovernmental revenue in the form of state aids and homestead and agricultural credit aid (HACA) is received in two installments in late July and end of December. Also of some concern at this time is that the police and fire contract between the SMDC Community and the City is still under negotiation. As such is the case, payment installments for the first two quarters have been delayed. . Charges for Services revenue slowed during the quarter because we typically do not account for the project management administration charge from the Construction Fund until year end. Also, Fire and Rescue revenue will be substantially off as accident responses have not occurred at the level originally anticipated. We expect to receive only $15,000 of the $55,000 budgeted with the difference largely offset by lower volunteer compensation on the expenditure side. . Fine revenue is averaging $5300/mo. which is very close to budget estimate of $5000. . Development revenue of $112,000 exceeds the budget figure of $35,000 by more than triple. . Other Financing Sources primarily consists of the $175,000 enterprise fund contribution transfer which is recognized at year end. Revenue Summary: Revenues realized are fairly typical at approximately 58% of budget which is quite representative of the past five years which have shown a spread of 51-58% at the end of the 3rd quarter. 3RD QUARTER BUDGET RECAP: Overall, the 1995 financial results over the first three quarters of the year reflect expectations with no significant expense variances or revenue shortfalls appearing other than noted. It appears that overall performance of expenditures is on track to come in under budget by an approximate 5% margin. On the revenue side while our local government aids for this year have been restored by the State Legislature, it would be prudent for the City to reserve a major portion of the remaining Contingency balance to restore the City's general fund balance back to the 30% level and to build reserve funds for capital acquisition purposes. * [3rd Quarter Budget Report represents expenditures and revenues to date and do not include outstanding appropriations and receipts.] BR3.wRT ~.O.._._;__~",,,._.,.,,.,""~.~,__..,....,.,_~,~""_'_h~"""",_"""~,,,.,_,_,,~~,~,,'_'~~_f-~""'"'""_"""'-'''''--~~'~'' ._,....~_.>...................___"...~M~.."""'-~'....M__-.-_"'.~.......~..._"_~....~