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Home My WebLink About5G - 2nd Q. Budget Overview 16200 Eagle Creek Avenue S.E. Prior Lake, MN 55372-1714 STAFF AGENDA REPORT MEETING DATE: AGENDA #: PREPARED BY: AGENDA ITEM: JULY 18, 2005 5G RALPH TESCHNER, FINANCE DIRECTOR CONSIDER APPROVAL OF PRELIMINARY 2005 2ND QUARTER BUDGET SUMMARY REPORTS AND GENERAL FUND OVERVIEW DISCUSSION: The City Council has directed Staff to prepare an accompanying written narrative that would serve as an informational excerpt to the quarterly budget reports. Attached to the 2nd Quarter Budget Report is a document entitled "Budget Report Overview" for the General Fund that is intended to satisfY your request. The 2nd Quarter Budget Reports shows the status of expenditures for the first three months of activity for the General Fund and Enterprise Funds consisting of the water & sewer, water quality and transit funds. The "overview" provides information related to those areas within the general fund budget that have experienced exceptions (normally ::1::5% variation) to the approved budget levels. The report identifies revenue shortfalls and surpluses and includes a short explanation as to the various reasons. Expenditures are also summarized on this basis. The "Budget Report Overview" is intended to serve as narrative support to the Quarterly Budget Report and enhance your understanding of performance esults. Please feel free to contact me at 447-9841 for more in rma ion. REVIEWED BY: Attachments: 1. 2005 2nd Q arter udg Summary Reports 2. Budget Rep verview (General Fund) www.cityofpriorlake.com H:IBUDGE1\BR.DOC Phone 952.447.4230 / Fax 952.447.4245 2005 2nd Quarter General Fund Budget Summary Report Budget Amount Expended Percent General Government 1,974,348.00 928,252.00 47% Mayor & Council 52,066.00 25,236.00 48% Ordinance 14,000.00 5,628.00 40% City Manager 323,213.00 169,921.00 53% Boards & Commissions 9,074.00 1,211.00 13% Elections 5,320.00 0.00 0% Director of Finance 120,649.00 60,563.00 50% Accounting 139,388.00 67,528.00 48% Internal Auditing 14,750.00 14,740.00 100% Assessing 82,800.00 81,000.00 98% Law 264,000.00 113,405.00 43% Personnel 67,000.00 28,853.00 43% Communications 119,146.00 54,008.00 45% Planning & Zoning 317,939.00 112,816.00 35% Data Processing 145,020.00 58,232.00 40% Buildings & Plant 299,983.00 135,111.00 45% Public Safety 3,527,057.00 1,419,000.00 40% Police 2,435,588.00 1,120,355.00 46% Fire & Rescue 569,980.00 64,664.00 11% Building Inspection 476,529.00 226,908.00 48% Civil Defense 27,750.00 572.00 2% Animal Control 17,210.00 6,501.00 38% Public Works 1,463,764.00 639,492.00 44% Engineering 565,817.00 285,251.00 50% Street 649,391.00 230,201.00 35% Central Garage 248,556.00 124,040.00 50% Culture-Recreation 1,532,392.00 543,930.00 35% Recreation 374,831.00 64,581.00 17% Parks 1,079,251.00 440,166.00 41% Libraries 78,310.00 39,183.00 50% Economic Development 178,292.00 73,786.00 41% Debt Service 790,180.00 190,268.00 24% Contingent Reserve 250,000.00 2,600.00 1% Revenues 9,716,033.00 4,655,854.00 48% General Property Taxes 5,912,669.00 2,863,483.00 48% Licenses & Permits 869,000.00 399,110.00 46% Intergovernmental Revenue 1,058,791.00 381,593.00 36% Charges for Services 1,278,573.00 515,834.00 40% Fines & Forfeits 150,000.00 63,398.00 42% Miscellaneous Revenue 185,000.00 418,028.00 226% Other Financing Sources 262,000.00 14,408.00 5% Total Budget Expenditures 9,716,033.00 3,797,328.00 39% Total Budget Revenues 9,716,033.00 4,655,854.00 48% Br0205.xls 4:05 PM6/30/05 . ....._...~..,.,."...".---.----'---~-~"'- f r ....------. Enterprise Funds 2005 2nd Quarter Enterprise Funds Budget Summary Report Budget Amount Expended Percent Utility Fund 3,138,306.00 1,188,868.00 38% Water 986,623.00 421,122.00 43% Sewer 2,151,683.00 767,746.00 36% Water Quality 287,939.00 52,686.00 18% Transit Services 540,038.00 132,178.00 24% Transfers 637,025.00 0.00 0% Revenues 4,814,778.00 2,429,050.00 50% Water Utility Revenues 3,948,250.00 2,044,009.00 52% Water Quality Utility Revenues 326,490.00 169,454.00 52% Transit Revenues 540,038.00 215,587.00 40% Total Budget Expenditures 4,603,308.00 1,373,732.00 30% Total Budget Revenues 4,814,778.00 2,429,050.00 50% ",.~~"~"__+...,,..--.._._,,,__.4_"",,,~_~_~',_,,_ ",,-,._,-.._~,...~__.._.._. ,_ ...._-~,..._'-""t~._u.,.__...,_' BUDGET REPORT OVERVIEW (2005 2nd Quarter Budget Report) Expenditures: General Government · Ordinance costs are running a little less as legal notices and publications represent only five months of activity to date, which is the main reason why the YTD percentage is at 40%. · Expenses associated with Boards and Commissions and Elections are typically not incurred until the latter part of the budget year i.e., December EDA and planning commission per diems, fall election judge salaries therefore the zero amounts. · Internal Auditing results are complete at 100%. · Assessing contract service expenditures are complete for the year and represent 98% of budget. · Legal fees in the general service area is running lower at 39% than projected at this point of the budget cycle due to the fact that city attorney costs represent only five months of billings. The overall legal expense category (prosecution and city attorney) outcome is 43% of the year to date budget. · Personnel expenditures are lagging at 43% because the Misc. Expense category is unspent. · Planning & Zoning expenses of 35% is lower than budget because the new planner position was delayed due to revenue concerns, which has temporarily reduced personnel expenses within the department. · Data Processing is below estimates at 40% because hardware service costs have been relatively low for the 1 st half of the year. · Bldgs & Plant is less at 45% because the allocation for capital expenditures on City Hall has been reserved due to the planned construction of a new building. · General Government totals are in general conformance with budget estimates at 47%. Public Safety · Police Department expenses were slightly below at 46% because the department had an open patrol officer position, which temporarily reduced personnel expenses within the department. · Fire Department expenses are fairly low because 63% of department costs are attributed to volunteer compensation and pension contribution, both of which are paid as an annual lump sum near year-end. . Civil Defense costs are relatively low because the new Willows siren replacement has not yet been installed. · Animal control does not represent a full quarter of service because they are billed one month in arrears. · Public Safety totals are in general conformance with budget estimates at 40%. Public Works . Street Department expenses of 35% are low primarily because the bituminous overlay and street sea1coating account allocation has not yet been spent. · Public Works totals are in general conformance with budget estimates at 44%. Culture-Recreation · Due to the seasonal nature of recreation programs, their budget expenditures normally lag during the 1 st half of the year that accounts for their budget performance level of only 17%. Recreation's major activity levels occur during the summer months that involve park programs, community events and instructor fees. Also the filling of the Br0205.doc Recreation Coordinator's posItIon was delayed due to revenue concerns, which temporarily reduced personnel expenses within the department. . Parks expenses of 41 % is lower than budget because the appropriation for both the new maintenance position and the filling of the open regular part-time parks position has been deferred until later in the year due to revenue concerns, which has temporarily reduced personnel expenses within the department. · Culture-Recreation totals are consistent with seasonal expectations and budget estimates subject to the approved expense reductions at 35%. Economic Development · The budget expenditures are somewhat under as the capital account appropriation for land purchase options is unexpended to date. · Economic Development totals are under budget estimates at 41 %. Debt Service · All general debt service bond payments are made during the months of June (interest only) and December (principal/interest). · Debt Service totals are in general conformance with budget estimates at 24%. Contingent Reserve · Two small Contingency expenditures have occurred totaling $2600, both attributed to LMCIT insurance deductible payments. Expenditure Summary: 2005 General Fund 2nd Quarter operating expenditures are on track and represent 39% of the total $9,716,033 operating budget. This actually compares favorably with 2004 mid-year results of 43% as a result of the expenditure reduction measures that have been put in place because of anticipated revenue shortfalls i.e., potential loss of state aid (market value credit) and reduction in building permit revenue. Revenues: · The current property tax settlement in June showed no apparent delinquency problem as collections reached 48%. However the market value credit aid may not be paid by the State this year. · License & Permit fees were near total projection at 46% even with building permit activity weaker than projected as our lot inventory has been nearly exhausted and is not expected to pick up appreciably until next year as a number of developments have experienced a variety of delays that will result in our lowest number of building permits during the past five years. · Intergovernmental revenue is under at 36% of the quarterly budget estimate because the Fire and Police aid funded by the 2% surcharge on property and casualty insurance premiums is not paid until September by the State of Minnesota. · Charges for services is near expectations at 40% with the difference due to the fall off in building permit plan check fees, the timing of franchise fee payments which occur shortly after the end of each quarter and the project administration/engineering transfer which is recognized at year end. · Fine revenue is averaging slightly below projections as payments are in arrears by one month. · Miscellaneous Revenue is considerably above budget at 226% due to revenue from four (4) development contracts. Br0205.doc .... ,_..~..",w_..,.~;..>...:_,,_;... "--r---------'---- . Other Financing Sources primarily consists of the $250,000 enterprise fund contribution transfer, which is recognized at year-end. Revenue Summary: Revenues realized are approximately 48% of budget and is a representative comparison to the past five years that have shown a spread of 38-53% at midyear. 2ND QUARTER BUDGET RECAP: Overall, the 2005 2nd quarter financial performance is fairly typical to past years with no significant expense variances or revenue shortfalls appearing other than noted. Building related revenues are a little soft as permit activity is anticipated to continue its short-term decline as the construction season progresses and our lot inventory decreases further. However recent development approvals will provide in excess of 1000 lots and annexation requests continue to come in. * [2nd Quarter Budget Report represents expenditures and revenues to date and do not include outstanding appropriations or receipt expectations.] Br0205.doc