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Home My WebLink About5F - 1Q 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: Frank Boyl , ATTACHME CITY COUNCIL AGENDA REPORT APRIL17,2006 SF Ralph Teschner, Finance Director CONSIDER APPROVAL OF 2006 1st 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 1 st Quarter Budget Report is a document entitled "Budget Report Overview" for the General Fund that is intended to satisfy your request. The 1 st Quarter Budget Reports shows the status of expenditures for the first 3 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 :f: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 2006 1 sl Quarter Budget Report as submitted. 1. 2006 1 sl Quarter Budget Summary Reports 2. Budget Report Overview (General Fund) www.cityofpriorlake.com H\BUCCET\.BRdcc Phone 952.447.4230 / Fax 952.447.4245 2006 1st Quarter General Fund Budget Summary Report Budget Amount Expended Percent General Government 2,145,109.00 411,591.00 19% Mayor & Council 61,487.00 14,839.00 24% Ordinance 12,000.00 1,973.00 16% City Manager 347,407.00 81,699.00 24% Boards & Commissions 13,337.00 161.00 1% Elections 15,356.00 0.00 0% Director of Finance 125,666.00 32,098.00 26% Accounting 162,658.00 37,664.00 23% Internal Auditing 17,100.00 4,823.00 28% Assessing 92,100.00 0.00 0% Law 283,000.00 24,929.00 9% Personnel 98,478.00 13,134.00 13% Communications 129,131.00 24,615.00 19% Planning & Zoning 333,259.00 75,371.00 23% Data Processing 160,735.00 40,976.00 25% Buildings & Plant 293,395.00 59,309.00 20% Public Safety 3,773,432.00 738,272.00 20% Police 2,603,682.00 576,768.00 22% Fire & Rescue 611,261.00 36,034.00 6% Building Inspection 499,989.00 119,477.00 24% Civil Defense 27,300.00 455.00 2% Animal Control 31,200.00 5,538.00 18% Public Works 1,603,914.00 320,829.00 20% Engineering 556,403.00 133,916.00 24% Street 775,672.00 134,451.00 17% Central Garage 271,839.00 52,462.00 19% Culture-Recreation 1,655,038.00 282,355.00 17% Recreation 380,113.00 46,439.00 12% Parks 1,185,130.00 214,390.00 18% Libraries 89,795.00 21,526.00 24% Economic Development 173,206.00 36,166.00 21% Debt Service 1,290,035.00 0.00 0% Contingent Reserve 200,000.00 28,506.00 14% Revenues 10,840,734.00 1,069,564.00 10% General Property Taxes 6,931,236.00 0.00 0% Licenses & Permits 819,950.00 174,273.00 21% Intergovernmental Revenue 1,127,864.00 291,241.00 26% Charges for Services 1,349,784.00 251,949.00 19% Fines & Forfeits 152,400.00 36,511.00 24% Miscellaneous Revenue 197,500.00 116,673.00 59% Other Financing Sources 262,000.00 198,917.00 76% Total Budget Expenditures 10,840,734.00 1,817,719.00 17% Total Budget Revenues 10,840,734.00 1,069,564.00 10% BROI06 10:16 AM4/312006 Enterprise Funds 2006 1st Quarter Enterprise Funds Budget Summary Report Budget Amount Expended Percent Utility Fund 2,956,304.00 602,656.00 20% Water 1,001,802.00 209,002.00 21% Sewer 1,954,502.00 393,654.00 20% Water Quality 355,926.00 23,789.00 7% Transit Services 592,068.00 54,265.00 9% Transfers 500,141.00 0.00 0% Revenues 5,429,638.00 871,979.00 16% Water Utility Revenues 4,500,750.00 699,797.00 16% Water Quality Utility Revenues 336,820.00 66,046.00 20% Transit Revenues 592,068.00 106,136.00 18% Total Budget Expenditures 4,404,439.00 680,710.00 15% Total Budget Revenues 5,429,638.00 871,979.00 16% BUDGET REPORT OVERVIEW (2006 15t Quarter Budget Report) Expenditures: General Government · Ordinance costs for legal notices is largely unspent because only a few ordinance publications occurred during the first three months, which is the main reason why the YTD percentage is at only 16%. · Expenses associated with Boards and Commissions, Elections and Assessing are typically not incurred until the latter part of the budget year Le., December EDA and planning commission per diems, fall election judge salaries and mid-year contract assessing billing, therefore the zero amounts. · Legal fees in the general service area is running lower at 15% than projected at this point of the budget cycle due to the fact that city attorney costs represent only two months of billings in the quarter. Also, Scott Joint Prosecution Services omitted sending out the 15t quarter billing for prosecution services which understates our incurred legal costs. As a result the total overall legal expense category outcome is only 9% of the year to date budget. · Personnel expenses of 13% are somewhat less than normal as expenditures associated with professional consultant services and public information categories have not been expended. . Communication expenditures are lower than budget at 19% because postage and expenses associated with the proposed annual report and miscellaneous brochure mailings have not been incurred yet, plus only two Wavelength publication invoices has been processed to date. . Bldgs & Plant is less at 20% because of our repair and maintenance service accounts have largely been unexpended due to the demolition of the old city hall and will continue to be abated until the new building is ready for move-in. . General Government totals are in general conformance with budget estimates at 19%. Public Safety . Police Department expenses are slightly below at 22% because the new patrol cars have not yet been purchased. . Fire Department expenses are fairly low because 65% 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 Brooksville Hills 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 20%. Public Works . Street Department expenses typically lag during the l5t quarter due to the fact that a major share of its operating expenses is incurred during summer and fall. Also, the new street maintenance position has not yet been filled. They largely account for the Street department budget position of 17%. · Central Garage is below projections at 19% because we are fortunate that no major equipment service contract repairs occurred during the 1 st quarter of operations. In addition operating supplies came in lower as well. . Public Works totals are in general conformance with budget estimates at 20%. BR0106 Culture-Recreation · Due to the seasonal nature ofrecreation and park expenditures, budget results (12% & 18%) are normally lower during the 1 st quarter. Their major activity levels occur during the spring and summer months. · Culture-Recreation totals are less than seasonal expectations and budget estimates at 17%. Economic Development · The budget expenditures are slightly under as the general professional services and land options appropriation are unexpended to date. . Economic Development totals are under budget estimates at 21%. Debt Service · All general debt service bond payments are made during the months of June and December. Contingent Reserve · One Contingency expenditure of $28,506.00 has occurred which is attributed to the LMCIT insurance reimbursement payment for the Ryan conditional use permit litigation. Expenditure Summary: 2006 General Fund I st Quarter operating expenditures are on track and represent 17% of the total $10,840,734 operating budget. This actually compares with similar 2005 1st quarter results of 17%. Expenditures during the I st quarter are typically less than the remaining fiscal quarters. Revenues: . Property tax settlements are scheduled for June and December therefore no tax revenue has been received. . License & Permit fees are under total projection at 21 % as building permit activity is lagging and is not expected to pick up appreciably until next year with a metro-wide slowdown in the overall housing market . Intergovernmental revenue is at the quarterly budget estimate. . Charges for services is under expectations at 19% primarily 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. Also, all park service fees are not collected until the summer months. . Fine revenue is actually averaging slightly above projections as payments are in arrears by one month. . Miscellaneous Revenue is above budget at 59% due to an increase in development contract revenue during the quarter. . Other Financing Sources primarily consists of the $250,000 enterprise fund contribution transfer, which is recognized at year-end. However, this year the City did recognize a one-time real estate sale transaction related to the downtown Hastings Avenue property that pushed the performance outcome to 76%. Revenue Summary: Revenues normally lag at this time of year and account for approximately 10% of budget, which is representative of what the City has averaged in the past five years, which have shown a spread of6%-12%. BROI06 1 ST QUARTER BUDGET RECAP: Overall, the 2006 1 st quarter fmancia1 performance is fairly typical to past years with no significant expense variances or revenue shortfalls appearing other than noted. Revenues are a little soft as building activity is anticipated to continue its short-term decline as the construction season begins. * [1st Quarter Budget Report represents expenditures and revenues to date and do not include outstanding appropriations or receipt expectations.] BRO! 06