HomeMy WebLinkAbout5C - 2005 4Q Budget Report
2005 4th Quarter General Fund Budget Summary Report
Budget Amount Expended Percent
General Government 1,974,348.00 1,807,522.00 92%
Mayor & Council 52,066.00 47,876.00 92%
Ordinance 14,000.00 11,958.00 85%
City Manager 323,213.00 313,143.00 97%
Boards & Commissions 9,074.00 12,644.00 139%
Elections 5,320.00 4,898.00 92%
Director of Finance 120,649.00 119,540.00 99%
Accounting 139,388.00 141,120.00 101%
Internal Auditing 14,750.00 14,740.00 100%
Assessing 82,800.00 82,912.00 100%
Law 264,000.00 287,150.00 109%
Personnel 67,000.00 73,816.00 110%
Communications 119,146.00 110,984.00 93%
Planning & Zoning 317,939.00 244,599.00 77%
Data Processing 145,020.00 116,912.00 81%
Buildings & Plant 299,983.00 225,230.00 75%
Public Safety 3,527,057.00 3,354,954.00 95%
Police 2,435,588.00 2,359,609.00 97%
Fire & Rescue 569,980.00 510,141.00 90%
Building Inspection 476,529.00 461,767.00 97%
Civil Defense 27,750.00 3,488.00 13%
Animal Control 17,210.00 19,949.00 116%
Public Works 1,463,764.00 1,575,299.00 108%
Engineering 565,817.00 531,794.00 94%
Street 649,391.00 787,739.00 121%
Central Garage 248,556.00 255,766.00 103%
Culture- Recreation 1,532,392.00 1,409,332.00 92%
Recreation 374,831.00 273,291.00 73%
Parks 1,079,251.00 1,034,185.00 96%
Libraries 78,310.00 101,856.00 130%
Economic Development 178,292.00 107,564.00 60%
Debt Service 790,180.00 790,009.00 100%
Contingent Reserve 250,000.00 140,146.00 56%
Revenues 9,716,033.00 9,972,569.00 103%
General Property Taxes 5,912,669.00 5,654,704.00 96%
Licenses & Permits 869,000.00 772,792.00 89%
Intergovernmental Revenue 1,058,791.00 1,097,356.00 104%
Charges for Services 1,278,573.00 1,257,570.00 98%
Fines & Forfeits 150,000.00 158,242.00 105%
Miscellaneous Revenue 185,000.00 752,996.00 407%
Other Financing Sources 262,000.00 278,909.00 106%
Total Budget Expenditures 9,716,033.00 9,184,826.00 95%
Total Budget Revenues 9,716,033.00 9,972,569.00 103%
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BUDGET REPORT OVERVIEW
(2005 4th Quarter Budget Report)
Expenditures:
General Government
· Mayor & Council per diem and conference expenses were less this year which accounted for
the 92% year-end outcome.
· Ordinance expenses were down at 85% because of lower publication expenses as fewer legal
notices were required this past year.
· Boards and Commissions expenses were up at 139% of budget because planning commission
per diems were increased after budget consideration.
· Elections cost was down at 92% because we were able to cost-share a number of publication
requirements with both school districts.
· General legal expenditures of nearly $175,000 were above the $149,000 budget estimate as
litigation costs increased while prosecution expenses were near projections with the overall
legal expense category outcome at 109% of the year to date budget.
· Personnel was over at 110% because of the open number of employee positions that occurred
during the year, which resulted in higher employment advertisement costs.
· Planning & Zoning expenses of 77% ended lower than budget because the new planner
position was delayed due to revenue concerns along with the deferment of professional
consultant services which reduced overall expenditures within the department.
· Data Processing was under estimates at 81% as both the city's computer hardware service and
support contract costs were reduced this year. Also our software expenditures were limited.
· Bldgs & Plant expenditures of 75% came in significantly under budget because the City
received a property casualty insurance rebate in excess of $32,000 as a result of our excellent
claims experience with the LMCIT.
· Remaining categories were in conformance with budget estimates with overall General
Government budget performance of92%.
Public Safety
· Fire Department expenses were fairly low at 90% because of a new response call policy that
reduced total response hours and overall volunteer compensation at year-end.
· Civil Defense costs were relatively low because the new Willows siren replacement was
deferred this year as one of the expenditure reduction measures to offset the loss of the state
market value aid.
· Animal control came in higher at 116% as a result of our new contract with 4 Paws Animal
Control Services.
· Public Safety total budget performance was a favorable 95% for the year in view of the fact
that it accounts for the major public service category and more than a third of the city's entire
general operating budget.
Public Works
· Engineering Department expenses were slightly below at 94% because of personnel
reorganization within the department which resulted in lower salary costs and less utilization of
professional consultant services.
· Street Department totals exceeded projections at 121% because operating expenses in snow &
ice removal, general operating supplies and repair & maintenance service categories were up
sharply. The major increase was for the extra bituminous overlay program that was authorized
by the Council.
. Public Works totals were above budget estimates at 108%.
Culture-Recreation
· Recreation expenditures were fairly low at 73% because the filling of both the Recreation
Coordinator's and Programmer positions were delayed due to revenue concerns, which reduced
personnel expenses within the department.
· Parks expenses of 96% 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 delayed
due to revenue concerns, which reduced personnel expenses within the department.
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. Library budget totals ended substantially above at 130% due to three (3) primary reasons; a
number of mechanical repair issues that occurred during the summer, natural gas usage was
substantially higher for this past heating season and the installation of an additional door at the
entrance of the library.
. Culture-Recreation totals of92% were below budget estimates.
Economic Development
. The budget expenditures are somewhat under as the economic director position was
temporarily open and the capital account appropriation for land purchase options was
unexpended.
. Economic Development totals are under budget estimates at 60%.
Debt Service
. Debt Service totals were in general conformance with budget estimates at 100%.
Contingent Reserve
. The following Contingency related expenditures occurred in 2005:
1. $4,600 - LMCIT insurance deductible payments (4).
2. $120,743 -Arndt parcel adjacent to the VFW (RS 05-142).
3. $6,071 - LBJ Grain downtown parcel purchase (RS 05-145)
4. $8,732 - Greene foundation demolition
On an aggregate basis all Contingency expenditures totaled just over $140,000 when compared to
the Contingent Reserve appropriation of$250,000.
Expenditure Summary:
Total unaudited 2005 General Operating Budget expenditures are projected to be $9,184,826 when
including outstanding encumbrances. This amount represents 95% of the approved 2005 City of
Prior Lake Operating Budget ($9,716,033). These totals compare with actual budgetary
performance of 98%, 100%, and 102% for the preceding years of2004, 2003, and 2002.
Revenues:
. Current property tax collections resulted in a 94% collections rate. This low collections rate is
the result of the non-payment by the State of Minnesota of the market value credit aid. When
adding in delinquent receipts of past years the City realized 96% of its 2005 property tax levy.
. License & Permit fees were under projections at 89% as building permit activity declined with
220 units constructed in 2005 compared with 300 units last year.
. Intergovernmental revenue was above budget projection at 104% basically due to an increase
in our municipal state aid construction (MSA) funds.
. 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 of 105% was the result of higher prosecution restitution payments.
. Miscellaneous Revenue was up considerably due to the continued strength of developer
agreement revenue of nearly $544,000 that exceeded the standard budget estimate of $50,000.
This was the result of a handful of large developments.
. Other Financing Sources revenue matched budget estimate at 100%.
Revenue Summary:
Total 2005 General Operating Budget revenues are projected to be $9,972,569. This amount
represents 103% of the City of Prior Lake's $9,716,033 General Operating Budget. These totals
compare with actual budgetary performance of 104%, 104%, and 120% respectively for the
preceding years of2004, 2003 and 2002.
4TH QUARTER BUDGET RECAP:
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Overall, the 2005 budgetary [mandaI perfonnance was very close to expectations on both the
revenue and expense side, as the City's General Fund balance will have increased by an estimated
net amount of $504,000 (includes $283,639 Building Fund contribution authorized by RS 05-158)
to a preliminary unaudited position of $4.375 million as the results of revenues exceeding
expenditures. This general fund balance amount represents a reserve of 40% based upon the
current annual budget. The above figures are not [mal. As soon as the City's 2005 [mandaI audit is
completed in May, Staff will report the actual General Fund balance increase.
The majority of the General Fund increase was attained because of planned expenditure reductions
due to the Market Value state aid loss and the regional building slowdown. Because of this market
uncertainty, and the certainty that Prior Lake will once again experience a state aid shortfall in
2006, it is especially important that the City of Prior Lake maintain its [mandaI strength through a
healthy general fund balance.
MEETING DATE:
AGENDA #:
PREPARED BY:
AGENDA ITEM:
DISCUSSION:
RECOMMENDED
MOTION:
Reviewed by:
16200 Eagle Creek Avenue S.E.
Prior Lake, MN 55372-1714
CITY COUNCIL AGENDA REPORT
MARCH 6, 2006
5C
Ralph Teschner, Finance Director
CONSIDER APPROVAL OF PRELIMINARY 2005 4TH QUARTER BUDGET
SUMMARY REPORTS AND GENERAL FUND OVERVIEW
Introduction
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 4th Quarter Budget Report is a document entitled
"Budget Report Overview" for the General Fund that is intended to satisfy your
request. The 4th Quarter Budget Reports shows the status of expenditures for
all 12 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 :t5% 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 4th Quarter
Budget Report as submitted
ATTACHMENTS:
Frank Boyles, City Manager
1 . 2005 4th Quarter Budget Summary Reports
2. Budget Report Overview (General Fund)
www.cityofpriorlake.com
H:\BUDGET\8R.doc
Phone 952.447.4230 / Fax 952.447.4245