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Home My WebLink About5F - Third Q. Budget Report 16200 Eagle Creek Avenue S.E. Prior Lake, MN 55372-1714 MEETING DATE: AGENDA #: PREPARED BY: AGENDA ITEM: DISCUSSION: RECOMMENDED MOTION: Reviewed by: ~ CITY COUNCIL AGENDA REPORT OCTOBER 17, 2005 5F Ralph Teschner, Finance Director CONSIDER APPROVAL OF PRELIMINARY 2005 3RD QUARTER BUDGET SUMMARY REPORTS AND GENERAL FUND OVERVIEW I ntrod uction 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 3rd Quarter Budget Report is a document entitled "Budget Report Overview" for the General Fund that is intended to satisfy your request. The 3rd 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 :!::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 highlight the performance results of the General Fund budget. Please feel free to contact me at 447-9841 for more information. A motion as part of the consent agenda to approve the 2005 3rd Quarter Budget Report as submitted anager 1. 2005 3rd Quarter Budget Summary Reports 2. Budget Report Overview (General Fund) www.cityofpriorlake.com Phone 952.447.4230 / Fax 952.447.4245 2005 3rd Quarter General Fund Budget Summary Report Budget Amount Expended Percent General Government 1,974,348.00 1,355,409.00 69% Mayor & Council 52,066.00 36,279.00 70% Ordinance 14,000.00 9,140.00 65% City Manager 323,213.00 251,589.00 78% Boards & Commissions 9,074.00 1,879.00 21% Elections 5,320.00 0.00 0% Director of Finance 120,649.00 90,149.00 75% Accounting 139,388.00 104,029.00 75% Internal Auditing 14,750.00 14,740.00 100% Assessing 82,800.00 81,000.00 98% Law 264,000.00 167,300.00 63% Personnel 67,000.00 48,426.00 72% Communications 119,146.00 82,770.00 69% Planning & Zoning 317,939.00 172,489.00 54% Data Processing 145,020.00 94,103.00 65% Buildings & Plant 299,983.00 201,516.00 67% Public Safety 3,527,057.00 2,177,632.00 62% Police 2,435,588.00 1,723,391.00 71% Fire & Rescue 569,980.00 100,126.00 18% Building Inspection 476,529.00 343,097.00 72% Civil Defense 27,750.00 662.00 2% Animal Control 17,210.00 10,356.00 60% Public Works 1,463,764.00 1,043,559.00 71% Engineering 565,817.00 401,946.00 71% Street 649,391.00 458,006.00 71% Central Garage 248,556.00 183,607,00 74% Culture-Recreation 1,532,392.00 1,068,968.00 70% Recreation 374,831.00 227,582.00 61% Parks 1,079,251.00 775,592,00 72% Libraries 78,310.00 65,794.00 84% Economic Development 178,292.00 97,661.00 55% Debt Service 790,180.00 190,268.00 24% Contingent Reserve 250,000.00 129,414.00 52% Revenues 9,716,033.00 5,739,309.00 59% General Property Taxes 5,912,669.00 2,863,483.00 48% Licenses & Permits 869,000.00 551,159.00 63% Intergovemmental Revenue 1,058,791.00 823,984,00 78% Charges for Services 1,278,573.00 738,989.00 58% Fines & Forfeits 150,000.00 102,659.00 68% Miscellaneous Revenue 185,000.00 641,452.00 347% Other Financing Sources 262,000.00 17,583.00 7% Total Budget Expenditures 9,716,033.00 6,062,911.00 62% Total Budget Revenues 9,716,033.00 5,739,309.00 59% Br0305.xls 12:31 PM10/7/05 __~ .'~,_'....'_...._______..........",. .,_.'__'_ ...._. ;..........._~m.~.'.._+-,.., ~~ ... . .~..__..,._"......"___'__.".+'~_~___.,~~._"_~'_____,._~.-.,_...,__^~",,___"--<._.c,.._.h_ .. .._-"..,..__.,_._*.._--~- ~-^"..,.--~--'-------'-"- Enterprise Funds 2005 3rd Quarter Enterprise Funds Budget Summary Report Budget Amount Expended Percent Utility Fund 3,138,306.00 2,063,861.00 66% Water 986,623.00 689,461.00 70% Sewer 2,151,683.00 1,374,400.00 64% Water Quality 287,939.00 82,217.00 29% Transit Services 540,038.00 251,544.00 47% Transfers 637,025.00 307,000.00 48% Revenues 4,814,778.00 3,734,528.00 78% Water Utility Revenues 3,948,250.00 3,105,307.00 79% Water Quality Utility Revenues 326,490.00 226,007.00 69% Transit Revenues 540,038.00 403,214.00 75% Total Budget Expenditures 4,603,308.00 2,397,622.00 52% Total Budget Revenues 4,814,778.00 3,734,528.00 78% ~-,--"",~-",-~..-...,~_....~--,_. .-...,-"~.~.,...~-~"._--'-"-~-,.."._-_.,_....._-~--"---"__,_,,~,,,-~"--,--,.,------""'-_.'-'-"-"'-'-'--""-,.-,...._-,_.._,~.,.,._" BUDGET REPORT OVERVIEW (2005 3rd Quarter Budget Report) Expenditures: General Government . Ordinance costs are running a little less as legal notices and publications represent only eight months of activity to date, which is the main reason why the YTD percentage is at 65%. . Expenses associated with Boards and Commissions and Elections are typically not incurred until the latter part of the budget year i.e., December planning commission per diems and fall election judge salaries therefore the 21 % represents EDA per diems only. . 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 58% than projected at this point of the budget cycle due to the fact that city attorney costs represent only 7 of the 9 months of billings. The overall legal expense category (prosecution and city attorney) outcome is 63% ofthe year to date budget. . Communications is somewhat below estimates at 69% as a number of equipment repair and supply categories have been under-spent to date. . Planning & Zoning expenses of 54% 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 65% because hardware service costs have been relatively low for the year. . Bldgs & Plant is less at 67% 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 69%. Public Safety . Police Department expenses are slightly below at 71 % because the department has 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 lower than budget estimates at 62%. Public Works . Street Department expenses of 71 % are somewhat low primarily because the bituminous overlay cost has not yet been paid out as the work has recently been completed. . Public Works totals are in general conformance with budget estimates at 71%. Culture-Recreation . Recreation expenditures are down at 61 % for the 3rd quarter because the filling of both the Recreation Coordinator's and Programmer positions were delayed due to Brtl305.doc revenue concerns, which temporarily reduced personnel expenses within the department. . Parks expenses of 72% is slightly lower than budget because the appropriation for both the new maintenance position and the filling of the open regular part-time parks position were deferred due to revenue concerns, which has temporarily reduced personnel expenses within the department. . Library budget totals are above at 84% due to a number of mechanical repair issues that have occurred during the summer, plus natural gas usage was substantially higher for this past heating season. . Culture-Recreation totals are consistent with seasonal expectations and budget estimates subject to the approved expense reductions at 70%. 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 55%. Debt Service . All general debt service bond payments are made during the months of June (interest only) and December (principallinterest). . Debt Service totals are in general conformance with budget estimates at 24%. Contingent Reserve . Four Contingency expenditures have occurred of which include, $2600 attributed to two LMCIT insurance deductible payments, $6,071 for the LBJ Grain downtown parcel and $120,743 for the Arndt parcel adjacent to the VFW. Expenditure Summary: 2005 General Fund 3rd Quarter operating expenditures are on track and represent 62% of the total $9,716,033 operating budget. This actually compares favorably with similar 2004 3rd quarter results of 66% upon allowing for 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 will not be paid by the State this year. . License & Permit fees fell off at 63% because building permit activity is weaker than projected 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 right on pace at 78% of projections. . Charges for services is also lower at 58% 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 347% due to revenue from five (5) development contracts. BrtJ30S.doc . Other Financing Sources primarily consists of the $250,000 enterprise fund contribution transfer, which is recognized at year-end. Revenue Summary: Revenues realized are at the lower end trend-wise at approximately 59% of budget (net of market value cut) when compared to the past five years that have shown a spread of 58-66% at the end of the third quarter. 3RD QUARTER BUDGET RECAP: Overall, the 2005 3rd 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 concludes and our lot inventory decreases further. However recent development approvals will provide in excess of 1000 lots and annexation requests continue to come in. * [3rd Quarter Budget Report represents expenditures and revenues to date and do not include outstanding appropriations or receipt expectations.] Br0305.doc ..~ ,~~-,..~...-.d>..__-.-,_..-...-.,--_._--""t-._..~~--,._-'+--;"_.__._"--'-~'~'-~'-'-""""~-----~-----'~-~---~"