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HomeMy WebLinkAbout1(B) Work Session Long Range Financial Planning Report 4646 Dakota Street SE Prior Lake, MN 55372 CITY COUNCIL WORKSHOP REPORT MEETING DATE: AGENDA ITEM: MAY 20, 2019 B PREPARED BY: MICHAEL PLANTE, CITY MANAGER CATHY ERICKSON, FINANCE DIRECTOR PRESENTED BY: CATHY ERICKSON TOPIC: LONG-RANGE FINANCIAL PLANNING DISCUSSION: Introduction The purpose of this workshop item is to provide information to the Council on six topics which, when taken together, represent our long term financial planning: 1) General Fund 2018 year-end results 2) Tax Levy Impacts 3) Five-year property tax projection assumptions 4) 2019-2023 CIP and Debt Impacts 5) Service Impacts 6) 2020 Preliminary Budget To prepare the 5-year property tax projections, 2020 preliminary budget and 2020- 2024 CIP the staff has made numerous assumptions which we will identify in the presentation. For this session to be most effective, we are asking that the city council discuss the assumptions and identify which you support. For those that are not supported by the city council, the staff will remove them from these documents and share the results in subsequent meetings. Does the Council support the following planning assumptions? • Maintain the 2020 tax rate equal to 2019 tax rate • Maintain the General Fund balance at 46% • Add one FTE per year based on the preliminary personnel plan • Include technology expenditures, debt service, and CIP funding as identified in the five-year capital improvement program History The updated Budget/CIP Adoption Schedule calls for Budget/CIP related work sessions on June 17(Budget/CIP), July 15(CIP) and September 3 (Preliminary 2020 Budget/Tax Levy Discussion). As a reminder, the preliminary 2020 budget/tax levy discussion work session has been changed to September 3 (previously scheduled for August 19). An updated budget schedule is included as attachment 1. The budget process typically begins with preliminary yearend results, a discussion of the factors which impact the property tax levy, and a review of a five-year tax projection. Current Circumstances Page 2 1. General Fund 2018 Year-End On April 15, staff prepared a workshop report detailing the preliminary 2018 results. There have been no changes between the preliminary and final 2018 results. A copy of April 15 work session report is included as Attachment 2. A summary of the year-end results is shown below. The following chart provides a summary of the changes in revenues and expenditures for 2018 and the impact on the fund balance: The 2019 amended budget includes the use of reserves for one-time purchases as follows: The following table shows the impact on the General Fund reserve balance at year ending 12/31/2018: The Comprehensive Financial Management Plan (CFMP) establishes the goal of maintaining a General Fund unrestricted fund balance of 40-50% of projected expenditures for the subsequent year. The policy recognizes that this need could 2018 Yr End Revenues/Transfers In $ 13,639,287 Expenditures/Transfers Out 13,115,121 Excess/(Deficiency) of revenues over expenditures $ 524,166 One time City Mgr severance funding $ 100,000 Phone system replacement 75,000 Salt/Ice Management replenishment due to significant 2017-2018 snow events 41,800 Subtotal 2019 budget planned use of reserves 216,800 2019 budget carryforward/budget amendments for Police equipment, Public Works asset management software and Finance professional services 64,835 Total 2019 Assigned Use of Funds $ 281,635 2019 Assigned Use of Funds General Fund Balance - Beginning of Year, as previously reported $ 6,840,928 Prior period adjustment (151,692) General Fund Balance - Beginning of year, as restated 6,689,236 2018 excess (deficiency) of revenues over expenditures 524,166 General Fund Balance - End of Year 7,213,402 2018 Assigned Use of Funds (281,635) 12/31/2018 Unrestricted General Fund Balance $ 6,931,767 2018 Unrestricted Fund Balance as a % of 2019 Expenditures 51% 2018 Unrestricted Fund Balance Page 3 fluctuate with each year’s budget objectives and appropriations such as large capital expenditures and variations in the collections of revenues. The above chart shows the General Fund reserves slightly higher than the range recommended in the CFMP. Staff does not recommend using the reserve balance to fund current operations as fund balance is rebuilt through 1) tax levy and/or 2) actual results favorable to budget. 2. Tax Levy Impacts When developing the tax levy and financial plan for the city, staff is providing both tax levy and tax rate information to the Council to aid in their understanding of the impact of growth and market value changes on the tax rate. The city property tax calculation is comprised of two tax rates • Tax Capacity Rate: The city’s general tax levy is spread across city properties based on property tax capacity • Market Value Tax Rate: The city’s market value tax levy is spread across city properties based on property market value. As shown in the table below, as the city has grown, it has added tax capacity through new construction and market value changes. A tool for funding city costs is to adjust the tax levy to capture the growth in tax capacity from new construction and market value changes. By doing this, the city can increase the tax levy dollars, but maintain the tax rate applied to an individual property. See below for 2019 actuals and 2020 proposed tax levy and tax rate calcs. As shown in the property tax calculation formulas above, the ability to levy and collect taxes is based on property market values, tax capacities and the City tax rates. The table below shows 2018 and 2019 history and a projection for 2020. City of Prior Lake City Tax Rate Calc: 2019:2020: $11,623,000 Tax Levy $12,743,000 Tax Levy $35,2000,000 Net Tax Capacity $38,593,000 Net Tax Capacityequals33% City Tax Rate equals 33% City Tax Rate Page 4 Annual Change in 2020 Total Taxes due to tax levy change only (assumes no change in MV): The table above shows that a property with no market value change in 2020 would see a decrease in their total city property taxes. This is because the MV tax rate is projected to decrease by about 4.4%. 2020 Planning Year Projected Tax Rates: City Tax Rate – Tax Capacity: 33.02% - For the 2020 planning year, staff has set the city tax levy to capture the 9.64% increase in adjusted net tax capacity. Based on Scott County preliminary pay 2020 tax capacity information, the city can increase its tax levy by $1.1M and maintain the same city tax rate as 2019. Projected 2019 2020 City Net Tax Levy - Tax Capacity 11,623,068 12,743,483 MV Tax Levy 234,418 242,057 Total Tax Levy 11,857,486 12,985,540 Market Value 3,463,715,300 3,740,536,700 Adjusted Net Tax Capacity 35,200,266 38,593,092 City Tax Rate 33.02%33.02% MV Tax Rate 0.006768%0.006471% Percent Change: City Net Tax Levy - Tax Capacity 6.05%9.64% Adjusted Net Tax Capacity 6.11%9.64% City Tax Rate -0.06%0.00% MV Tax Levy 3.02%3.26% MV Tax Rate -2.24%-4.38% Actual Annual Change in 2020 Total Taxes assuming a 5% increase in Market Value: $% Residential $338,100 60 5.3% Residential $400,000 69 5.1% Residential $500,000 101 4.8% Residential $1,000,000 203 4.8% Commercial $1,000,000 325 4.9% $% Residential $338,100 (2)$ -0.2% Residential $400,000 (3)$ -0.2% Residential $500,000 (3)$ -0.2% Residential $1,000,000 (7)$ -0.2% Commercial $1,000,000 (8)$ -0.1% Page 5 MV Tax Rate: .006471% - Based on Scott County preliminary pay 2020 valuation information, the city’s Referendum MV has increased 7.99%. Due to the market value increase, the MV tax rate is projected to decrease by about 4.4% due to the increase in property market values. (The MV tax levy set by the voters is spread across a larger market value so the rate is decreasing.) 3. Five-Year Property Tax Rate Projections: The table below shows that the projected city tax levy and tax rate based on the budget needs identified in the five-year plan. As mentioned above, due to the increase in city tax capacity, the proposed 2020 budget maintains the city tax rate of 33.02%. The assumptions in the five-year plan indicate an increase in tax rate for 2021-2024. CITY OF PRIOR LAKE PROPERTY TAX LEVY, TAX CAPACITY, AND TAX RATE 2019 BUDGET 2020 2021 2022 2023 2024 TAX LEVY General Fund 8,146,555 8,904,454 9,530,204 10,007,553 10,570,374 11,022,304 Debt Service Fund 3,262,770 3,353,593 3,736,998 4,104,776 4,155,836 4,231,201 Equip Revolv Fund 600,000 600,000 600,000 600,000 600,000 625,000 Revolv Park Equip Fund 289,292 450,885 375,149 417,832 449,294 589,072 EDA Fund 150,000 150,000 175,000 176,800 178,600 180,400 PIR Fund 95,000 175,000 195,000 205,000 205,000 205,000 Facilities Mgmt Fund - 30,000 80,000 80,000 105,000 130,000 Total Levy 12,543,617 13,663,932 14,692,351 15,591,961 16,264,104 16,982,978 Annual % Change 5.85%8.93%7.53%6.12%4.31%4.42% Fiscal Disparities Distribution 920,449 920,449 920,449 920,449 920,449 920,449 Net Tax Levy 11,623,168 12,743,483 13,771,902 14,671,512 15,343,655 16,062,529 Annual % Change 6.05%9.64%8.07%6.53%4.58%4.69% TAX CAPACITY Total Tax Capacity (TC) Before New Construction 37,003,207 39,509,919 41,485,415 43,144,831 44,439,176 45,772,351 TC from Projected New Construction - 886,112 720,826 737,729 711,875 607,500 Total TC with Projected New Construction 37,003,207 40,396,031 42,206,241 43,882,560 45,151,051 46,379,851 Fiscal Disparities TC Contribution 1,074,047 1,074,045 1,074,045 1,074,045 1,074,045 1,074,045 TIF TC 728,894 728,894 728,894 728,894 715,796 715,796 Net Tax Capacity (NTC)35,200,266 38,593,092 40,403,302 42,079,621 43,361,210 44,590,011 Annual % Change 6.11%9.64%4.69%4.15%3.05%2.83% TAX CAPACITY TAX RATE 33.020%33.020%34.086%34.866%35.386%36.023% Annual % Change -0.06%0.00%3.23%2.29%1.49%1.80% TAX LEVY (REFERENDUM)234,418 242,057 253,488 254,638 265,408 280,533 Annual % Change 3.02%3.26%4.72%0.45%4.23%5.70% MARKET VALUE (REFERENDUM)3,463,715,300 3,740,536,700 3,927,563,535 4,084,666,076 4,207,206,059 4,333,422,240 MARKET VALUE TAX RATE 0.006768%0.006471%0.006454%0.006234%0.006308%0.006474% Annual % Change -2.24%-4.38%-0.26%-3.41%1.19%2.62% Total Tax Levy % Change 5.80%8.83%6.33%6.23%4.32%4.45% Page 6 The five-year property tax projection includes the following assumptions that are driving the changes for 2020-2024: • One new FTE for each year • Commitments to long-term plans (CIP) • Debt obligations (existing and proposed) based on the projects in the CIP • Estimates for revenues/expenditures to maintain General Fund balance at 46% • Tax capacity and market value growth assumptions 4. 2019-2023 CIP and Debt Impacts: The City Council acknowledges that the most responsible course of action with infrastructure repair, replacement and new construction is to financially plan for development and incorporate it into the Capital Improvement Program (CIP). Maintaining the City’s existing infrastructure is expensive as evidenced by the City’s approved Transportation Plan which has over $25 million in projects planned over the next 5 years. About 40% of the funding will come from a property tax levy. Because of the City’s commitment to maintain infrastructure, annual debt service costs have increased. For 2020, the overall debt service to pay our existing debt (including proposed debt issued in 2019) is estimated to increase by approximately $98,000. The debt service levy is the total for debt issued in previous years as well as proposed 2019. 2019 debt service included the following projects: • 2019 Street Reconstruction Projects o CR 21/ TH 13 / Main Ave / Arcadia o Fish Point Road (Fawn Meadows to CR 21) • 2019 Street Mill and Overlay Project • Fire water tanker replacement Staff works to minimize the debt service levy changes, but we are confined by the Scott County/MNDot transportation plan, and past decisions to put off equipment replacements. When equipment starts to fail because of replacement delays, we are no longer able to follow our CIP equipment replacement plan which works to smooth the annual tax impact of equipment replacement. 5. Service Impacts In the past, we have updated the Council on the challenges of maintaining service levels within the constraints of available resources. Compounding this challenge is the desire to “catch-up” on deferred maintenance (streets, trails, etc.) and the Preliminary 2020 2021 2022 2023 2024 Change in Gross Tax Capacity before new Construction 9%5%4%3%3% (Constructed 2 yrs prior to tax year): New Residential Housing Units 135 135 125 125 New Apartment Housing Units 50 50 50 50 New Commercial Square Footage 50,000 50,000 50,000 50,000 Page 7 increasing need to provide services to a growing community. In addition, the City of Prior Lake is understaffed when compared to peer cities. Of metro area cities (population 20,000-30,000) the average number of FTEs is 113. Prior Lake’s headcount is currently at 96 FTEs. Capturing the increase in tax capacity, while maintaining our tax rate, is an opportunity to increase our funding to address our deferred maintenance and staffing needs. To the extent possible, our goal is to align Council priorities with the cities operational and capital needs as identified by staff and resident expectations. 6. 2020 Preliminary Budget The proposed tax levy for 2020 includes an increase of 6.5% in the tax levy for mandatory and capital improvement spending to maintain our current level of service. It also includes an additional 2.3% increase in the tax levy to enhance our current service levels. Due to the preliminary 2020 increase in tax capacity, the city can maintain the city tax rate at 33.02%. with the tax levy proposed. Focusing on 2020 only, the primary drivers of the tax levy increase are as follows: Please note that more detailed analysis and explanation of the 2020 proposed budget items will be provided during Council workshops dedicated to the 2020 budget this summer. Page 8 In 2018, the City Council adopted the 2040 Vision and Strategic Plan. The requests included in the 2020 preliminary budget reflect the priorities outlined in that plan and are highlighted below: STRATEGIC INITIATIVE: $105,000 for one-time funding for trails Goal: Transportation & Mobility 3. Integrate trails to link neighborhoods with city and regional assets. Goal: Environmental Stewardship & Recreation 4. Provide public spaces and amenities that attract the community to our natural enviro nment. TECHNOLOGY: $45,000 for new website redesign Goal: High-Value City Services 6. Seek community engagement through a variety of communication methods to reach all residents. PERSONNEL: $52,000 for part-time IT staffing (start January 1) Goal: High-Value City Services 3. Ensure sufficient resources and staffing to meet service demands. 4. Attract, retain and train high caliber workforce to ensure high -quality services. PERSONNEL: $34,000 for firefighter wage increase Goal: High-Value City Services 4. Attract, retain and train high caliber workforce to ensure high-quality services. PERSONNEL: $65,000 for deputy fire chief of training/fire marshal (start July 1) Goal: High-Value City Services 3. Ensure sufficient resources and staffing to meet service demands. 4. Attract, retain and train high caliber workforce to ensure high-quality services. Goal: Public Safety 4. Ensure a safe and quality built environment. CAPITAL IMPROVEMENT PROGRAM: $167,000 Goal: High-Value City Services 1. Establish financial stability for all funds. 2. Design a comprehensive funding strategy for capital needs. Goal: Transportation & Mobility 1. Maintain quality local street system based on a financially stable plant that meets Overall Condition Index targets. MANDATORY: $660,000 Goal: High-Value City Services 1. Establish financial stability for all funds. 2. Design a comprehensive funding strategy for capital needs. 3. Ensure sufficient resources and staffing to meet service demands. 4. Attract, retain and train high caliber workforce to ensure high-quality services. Page 9 Conclusion Our tax levy request includes funding to achieve the following objectives: • maintain the city’s tax rate at the 2019 level while achieving funding shortfalls for our long-term plans for trails, streets, and facilities • increase in technology spending to redesign the city’s website • maintain the General Fund balance in accordance with our Comprehensive Management Plan and in order to maintain/improve our S&P credit rating. Does the Council support the following planning assumptions? • Maintain the General Fund balance at 46% • Add one FTE per year based on the preliminary personnel plan • Include technology expenditures, debt service, and CIP funding as identified in the five-year capital improvement program • Maintain the 2020 tax rate equal to 2019 tax rate If the Council is considering a tax rate below the 2019 rate, this would result in a reduction of the proposed 2020 tax levy. If there is a reduction in the proposed tax levy below what we have projected for 2020, then Staff is seeking direction regarding the Council’s priorities for cutback in 2020. The more specific the direction, the better regarding: Levy change components to enhance current service levels: • Onetime funding for strategic initiatives: (placeholder for trails) • Website redesign • 2020 staffing – Increase paid on call firefighter hourly wage • 2020 staffing – Add part-time IT staff (.6 FTE) • 2020 staffing – Add Deputy Fire Chief – start mid-year (1 FTE) Levy change components to maintain current service levels: • Funding the CIP plans • Expenditure cuts? • Proposed revenue adds? Attachment 1 – Updated 2020 Budget & Capital Improvement Program Schedule Attachment 2 – 2018 Preliminary Year-End Financial Report – Agenda Report 4646 Dakota Street SE Prior Lake, MN 55372 2020 Budget & Capital Improvement Program Schedule NOTE: All Highlighted Meetings Open to the Public April 15 Dept. Heads submit large budget item requests to Finance May 1 Budget instructions provided to Dept. Heads Approximately May 15-31 (After 2019 Audit is Completed & Closed in BS&A.) Dept. Heads submit budget requests to Finance through the financial system May 20 Council Workshop – Personnel Plan and Long-Range Plan June 1 – June 15 City Manager, Finance and Staff budget review June 1 Deadline for Staff to complete CIP updates to the following: 1. Transportation Plan 2. Water Operating Plan 3. Sewer Operating Plan 4. Water Quality Operating Plan 5. Equipment Replacement Plan 6. Park Equipment Replacement Plan 7. Facilities Management Plan 8. Technology Plan June 17 Council Workshop – 2020 Budget Update/2020-2024 CIP Presentation part 1 of 2 July 15 Council Workshop – 2020-2024 CIP Presentation part 2 of 2 August 5 Council Meeting – Public Hearing on CIP/Street Reconstruction Plan/Adopt CIP September 3 Council Workshop – Preliminary 2020 Budget/Tax Levy Discussion September 16 Council Meeting – Adopt Preliminary Tax Levy and announce public budget hearing date November 4 Council Workshop – Yearend Budget Preview and Final 20202 Budget/Tax Levy Discussion November 6-8 Mayor’s Budget Video Message December 2 Council Meeting – Public Budget Hearing and Adopt 2020 Budget and Tax Levy 4646 Dakota Street SE Prior Lake, MN 55372 CITY COUNCIL AGENDA REPORT MEETING DATE: APRIL 15, 2019 AGENDA #: 5E PREPARED BY: CATHY ERICKSON, FINANCE DIRECTOR PRESENTER: CATHY ERICKSON, FINANCE DIRECTOR AGENDA ITEM: PRESENTATION OF THE PRELIMINARY YEAR-END 2018 FINANCIAL REPORTS GOAL AREA AND OBJECTIVE: High-Value City Services 1. Establish financial stability for all funds. DISCUSSION: Introduction Staff has prepared preliminary summary financial reports (attached) as of December 31, 2018, for the following funds: • General Fund • Debt Service Funds • Cable Fund • Capital Park Fund • Revolving Equipment Fund • Revolving Park Equipment Fund • Facilities Management Fund • Permanent Improvement Revolving (PIR) Fund • Water Fund • Sewer Fund • Water Quality Fund • Economic Development Authority Special Revenue Fund The reports reflect revenue and expenditure activity during 2018. The reports are preliminary, unaudited and may change. The attached memorandum provides a summary of the significant issues. As requested by the City Council, comparative information has been included for the same period of the prior year. ALTERNATIVES: 1. Motion and second as part of the consent agenda to accept the December 31, 2018 Financial Report as submitted. 2. Motion and second to remove the claims list from the consent agenda for additional discussion. RECOMMENDED MOTION: Alternative 1. Page 2 MEMORANDUM DATE: April 15, 2019 TO: Prior Lake City Council FROM: Cathy Erickson, Finance Director RE: Financial Report dated 12/31/2018 This report provides a summary of 12/31/18 financial results for the City of Prior Lake. Information is provided for the General Fund, Debt Service Funds, Cable Fund, Capital Park Fund, Revolving Equipment Fund, Revolving Parks Equipment Fund, Facilities Management Fund, PIR Fund, Water, Sewer, and Storm Water Funds, and the EDA. Some highlights for the year are summarized below. General Fund Summary Key points for 2018: • Preliminary financial information reflects revenues exceeding expenditures by $524,000. • General Fund reserve balance is projected at $7.2M as of 12/31/2018 which is equal to a 53% reserve balance. The 2018 original budget was approved with an anticipated use of reserve of $18,890. The budget was subsequently amended to reflect a use of fund balance reserves of $662,000 for the following items: • $15k – Carryforward of 2017 budget items for Fire turn out gear. • $18k – Use of reserves for professional services for the City Manager search. • $37k – Use of reserves for the Laserfiche software upgrade. • $300k – Transfer to the EDA Fund for EDA initiatives • $148k – Transfer to the PIR Fund for street overlay. Funding was previously budgeted in the General Fund, but now the street overlay activity is accounted for in the PIR fund. • $144k – Transfer to the Stormwater Fund for final easement cost per Scott County JPA agreement for property located along Cty Rd 21/stormwater pond. General Fund Revenues- 12/31/2018 Total revenues are $13,639,287 thru 12/31/18 or 107% of the annual amount budgeted. This compares to $13,364,938 or 105% collected in 2017. Preliminary reports show that General Fund actual revenues exceeded the 2018 budget by $890,509. The following table highlights the revenue categories that comprise the $891k favorable variance to budget: Revenue Category Revenues to Budget Favorable/(Unfavorable) Property Taxes $ (19,000) Licenses and Permits 387,000 Intergovernmental 160,000 Charges for Services (including franchise taxes) 286,000 Interest (loss) on Investments (31,000) Miscellaneous Revenue 108,000 Page 3 Estimated Total Revenues Exceeding Budget $ 891,000 Taxes Property tax revenue totaled $7,988,125 or 59% of the total General Fund revenue received in 2018. Current tax collections were at 99.8% compared to 99.7% in 2017. Delinquent collections totaled $37,448 which is about 15.6% lower than 2017 ($43,300). Fiscal Disparities revenue was about $15,000 less than budgeted due to tax petition valuation adjustments. Licenses and Permits License and Permit revenue consists of building permit and fees and other permits. Building permits and fees are the largest sources of revenue in this category with a budget of $517k. As of 12/31/18, $897k or 173% of the amount budgeted for building permits has been collected (Favorable to budget by $380k). Building permit and fees are $172k higher than last year. The following chart shows building permit activity and average values for years 2011 through 2018. 2011 2012 2013 2014 2015 2016 2017 2018 Permits Issued: Single Family 80 122 149 118 112 108 80 114 Townhomes 26 52 39 8 10 4 20 84 MF Units 3 (222 units) 5 (218 units) Commercial/ Industrial 0 2 5 5 10 4 11 5 Miscellaneous 1,778 2,115 2,099 1,935 2,063 1,904 1,909 2,378 Total Permits 1,884 2,291 2,292 2,066 2,195 2,022 2,075 2,581 Average Value: Single Family $282,400 $347,000 $344,000 $317,000 $331,000 $344,000 $326,000 $353,000 Townhomes $142,615 $174,000 $187,000 $138,000 $183,000 $169,000 $182,000 $172,000 MF Units $129,000 $159,000 Commercial/ Industrial $ 0 $547,000 $186,000 $17,000 $374,000 $1,405,000 $1,221,227 $1,064,000 The value of building permits issued decreased from $85 million in 2017 to $75 million in 2018. The following chart shows the building permit valuation changes by category from 2017 to 2018. Single Family and Townhome total valuation is up 83% from 2017. However, Multiple Unit and Industrial/Commercial category total valuation is down 88% from 2017. 2017 included the construction of the Lake Ridge and Pike Lake Marsh apartments and 170,000 sq. ft of new commercial space. Lastly, the city saw a $6.8M increase in commercial additions in 2018 for school related additions and alterations. Building Permit Valuation Increase/(Decrease) Single Family $ 14,051,000 Townhouses 10,776,000 Multiple Units (34,716,000) Industrial & Commercial (8,115,000) Additions & Alterations 8,220,000 Total Valuation Increase/(Decrease) $ (9,874,000) Page 4 Intergovernmental Revenue Intergovernmental revenue for 2018 totaled $1,835,750 which is $177,763 more than 2017. The SMSC increased their contribution from $510,000 in 2017 to $570,000 in 2018, a $60,000 increase in funding per 2018-2019 agreement with the SMSC. The annual funding also includes $70,000 for a Drug Task Force Officer for years 2017-2019. State Aid for Police was up 13% due to funding increases for additional patrol and drug taskforce officer and officer training reimbursement dollars based on increased training mandates imposed. State Aid for Fire is comparable to 2017. State Road Aid was up 12% based on funding set by the legislature. Charges for Services Charges for Services revenue for 2018 is comparable to 2017 and 17% higher than 2018 budget. The favorability to budget is due to 1) Additional plan check fees due to 198 bldg. permits as compared to a budget of 135 permits -$136k, 2) an increase in city contracted services for Police and Parks overtime as compared to budget totaling $110k, about $50k from police overtime at the SMSC and $11k for Parks contracted overtime. 3) additional tower lease revenue of $13k due to renewing leases negotiated at a higher rate than originally budgeted, and 4) Zoning and Subdivision fees are $19k higher than budget due to the additional plats and application fees than planned due to the Summit Preserve, Trillium Cove and Haven Ridge development phases. Recreation revenues (including Park admission fees and facility rental) are $16k higher than budget, primarily for park shelter rental. Other Revenue Interest earnings are $47k higher than budget. In previous years the market was at historically low rates, however the return on the City’s portfolio is finally increasing. The report also reflects a $58k decrease in the fair value of the securities. As rates increase, the market value of the lower yielding securities has decreased. This is a paper loss; no actual gain/loss is realized because the City holds the securities until maturity. Miscellaneous revenues were above budget by $107k. This is primarily due to increase in developer agreement revenue of $66k for two developments that came in during 2018 but were not planned (Maple Park Shores 2nd and Majestic) and revenue of $25k for contributions/ donations not budgeted/planned primary for recreation and fire departments. General Fund Expenditures General Fund expenditures of $ 13,115,121 equal 98% of the amended budget amounts. General categories vary in how they are impacted from employee turnover, insurance, utilities, fuel, equipment repairs, ability to complete capital projects etc. Total Personnel costs were favorable to budget by $16k. There were significant savings due to employee turnover, unpaid leave and delays in filling open positions in some of the departments including Finance and Police. The savings is not only due to positions being open for an extended period but also, when finally filled, the compensation package is typically lower for the new employee. However, overtime in some of these same departments was over budget to account for these open positions. The city engineer position was also included in the 2018 budget, as a formal decision to contract that position had not been made at the time the budget was set. Other 2018 budget to actual variances to highlight include the following: Page 5 • Club Prior Supplies – This account was over budget by $18k due to the 10-year anniversary party for Club Prior, which is a one-time event and some additional programs not anticipated. However, the city did receive sponsorships of about $7k to cover some of the cost. • Fuel – Budgeted at a lower rate and lower fuel use. A typical winter season includes 16 snow events. The 2017-2018 season had 24 snow events. • Cleaning Contract - Window and carpet cleaning contract negotiated at a lower cost than budgeted. • Building Maintenance – Less repairs than expected/in relation to prior year costs • Parks EAB treatment costs lower than anticipated. • Parks annual trail sealcoating delayed because the vendor ran out of time to do the trail within specifications due to weather. • Legal Fees – Favorable to budget by $50k as staff and legal counsel have worked to actively manage this expenditure line and nature of work can vary by year. • Professional Services – Building Dept seasonal assistance budgeted in professional services but paid via payroll seasonal wages of $22k, Police body cameras and related data storage contract spending less than anticipated by $20k. The following table highlights the variances expected in personnel, current expenditures and capital outlay: Expenditure Category Estimated Expenditures Compared to Budget* Favorable/(Unfavorable) Subtotals by Category Personnel: Savings from Employee Turnover, Hiring Delays, etc. $224,000 Overtime (260,000) Part-time/Seasonal Wages (8,000) Other Wages (Election Judges, Paid On-Call Fire) 3,000 Health Insurance Savings 11,000 Workers Comp Insurance 46,000 Total Personnel $ 16,000 Current Expenditures: Supplies (12,000) Fuel (23,000) Uniforms 5,000 Repair & Maintenance Supplies 9,000 Small Equipment 7,000 Maintenance Agreements – Buildings 15,000 Maintenance Agreements - Cleaning 28,000 Maintenance Agreements – General/Equipment/ Heavy Equipment Rental 32,000 Maintenance Agreements – Trees & Native Veg 34,000 Maintenance Agreements – Trails/Sidewalks 48,000 Maintenance Agreements – All Other 8,000 Legal / Prosecution Fees 50,000 Professional Services 70,000 Insurance (4,000) Memberships and Subscriptions 10,000 Training and Employee Development 8,000 Utilities 8,000 Other 3,000 Total Current Expenditures 286,000 Capital Outlay Expenditures: Machinery & Equipment 11,000 Page 6 Furniture & Office Equipment 1,000 Total Capital Outlay Expenditures 12,000 Total Expenditures $ 314,000 *positive = budget savings; negative = expenditure exceeds budget General Fund Reserves-2019 use of reserves Looking forward to 2019, the 2019 original budget was approved with an anticipated use of reserve of $216,800. The budget was subsequently amended to reflect a carryforward of 2018 budget items/use of fund balance reserves of $65,000 for the following items: • $5k – Finance professional services • $10k – Police equipment • $30k – Parks trail sealcoating • $19k– Public Works asset management software replacement The 2019 planned use of reserves and budget amendments will reduce the reserve to $6.9M which is equal to a 51% reserve balance. Prior Period Adjustments A prior period adjustment occurs when there is an accounting change that requires adjustment to a prior period. The 2017 fund balance was adjusted for two different accounting items: accrued wages and utility receivables. Accrued Wages - The City has always accrued the first payroll in January of the subsequent year because the wages earned were for work that occurred in December of the prior year. Starting in 2018, we accrued the December portion of the second payroll in January. This required an entry at 12/31/17 to reduce fund balance in the General Fund by $151k, the Water Fund by $14k, the Water Quality Fund by $4k and the Sewer Fund by $7k. Utility Receivables – The City has never recorded the portion of the February utility bill that pertains to the prior year. Starting in 2018, we recorded the December portion of the February utility bill allocating it based on number of days. This required an entry at 12/31/17 to increase fund balance in the Water Fund by $309k, the Water Quality Fund by $110k and the Sewer Fund by $346k. Each year there will be an entry to reverse the prior period amount and accrue the current period amount. The net impact of these two accounting adjustments at the end of 2018 is as follows: • Accrued Wages: The fund balance will decrease in each fund: The General Fund by $30k, the Water Fund by $2k, the Water Quality Fund by $314, and the Sewer Fund by $1.4k. • Utility Receivable: The fund balance will increase in each fund: The Water Fund by $30k, the Water Quality Fund by $5k and the Sewer Fund by $55k. Debt Service Funds Property taxes and special assessments are received in June, December and January (final tax settlement). There is an overall reduction in 2018 special assessment revenue of $216k as compared to 2017 because 2017 included a one-time $380k property assessment payoff for the Bolger property. 2017 also included a payment of funds held in escrow to refund the 2007A water treatment plant bonds. Scheduled bond payments were made in June and December. Page 7 Cable Fund 2018 activity included revenue from cable franchise companies of $36k and planned expenditures of $60k for the replacement of the Council Chambers cable production equipment. Capital Park Fund Park Dedication Fees of $486k were received including fees for Summit Preserve & Haven Ridge development phases. Expenditures included minor repair work done on the Kinney House property. Revolving Equipment Fund Property taxes, the primary funding source, were received in June, December and January (final tax settlement) totaling $549,823. Equipment purchases totaled $900,892 which is less than the budget by $493,135. This was due to the following: • Work on the Fire pumper truck was only partially completed in 2018. The work on the pumper was delayed because US Government contract work done by the vendors was required to take priority over other contracts. • Due to Police staff turnover, the emergency siren replacement and some equipment replacement was not completed in 2018 Budget amendments were approved to carryforward these expenditure and funding to 2019. Facilities Management Fund Revenue for this fund comes primarily from Transfers In (Water and Storm Water), Interest, and bond proceeds. In 2018 $629,643 of debt was issued for the Fire Station #1 Self Contained Breathing Apparatus equipment and parking lot improvements. In addition to expenditures for the SCBA equipment and parking lot improvements, carpeting at Fire Station #1 was also replaced. Permanent Improvement Revolving Fund Revenue from this fund consists mainly of special assessments and bond proceeds. Total assessment revenue in 2018 was $269,976, consisting of $223,401 of prepaids. Bond proceeds were received for $490,000. $148,000 was also received as a transfer in from the General Fund as a funding source for the 2018 mill and overlay project. The 2018 project cost was $623,378. Water Fund The financial report for the Water Fund reflects six billing cycles. Operating revenue totaled $3,967,678 which is an increase of $173,959 or 4.4% from 2017. Revenue increased due to an increase in the rates. During 2018, rates were increased from $4.53 to $4.67 for the base rate and from $6.25 to $6.44 for the rate above 25,000 gallons per billing cycle. Water usage decreased from 709.1 million gallons to 700.1 million gallons. In 2018 $1,320,000 of debt was issued for the Automated Meter Reading System (AMRS) Replacement and 2018 Huron Area street reconstruction project. Since the Water Fund operates on the accrual basis of accounting, the bond proceeds are reclassed to a long-term liability account on the fund’s balance sheet. Total operating expenses were $2,680,073 which is 130% of the $2,055,772 budget and $58,624 more than 2017. Unbudgeted depreciation expense makes up $804,126 (30%) of the operating expenses. Water Meters and Repair and Maintenance Supplies were below budget in total by $70,000. Less meter purchases were needed due to the implementation of the Page 8 automated meter reading replacement project in 2019. Water purchases from the SMSC increased from $268,440 in 2017 to $301,987 in 2018. On a cash basis, capital expenses this year total $3,445,605. 2018 expenditures for the SMSC Joint Water Treatment Facility Filter Cells, the Automated Meter Reading System (AMRS) Replacement and 2018 street reconstruction projects are reflected in the capital improvements. The final work on the Summit Preserve Booster station (two yr. project) and a portion of the work to extend the raw water main to the Joint Water Treatment Facility are also included in the 2018 expenditures. The status of the capital improvement costs is shown below: Water Improvement Projects CIP Ref Budget Actual Comments Water Treatment Facility Equipment Replacement CIP #14 $106,090 $0 Project Deferred Cartegraph Upgrade CIP #25 18,890 0 Project Deferred Total $124,980 $0 Infrastructure Projects CIP Ref Budget Actual Comments Franklin Trl (CR44 to Summer) CIP #10 360,000 220,439 Transfer funds to F501 Huron Area Streets CIP #10 775,000 556,461 Transfer funds to F501 CSAH 42/TH13 CIP #10 $100,000 Project Deferred Park Avenue CIP #10 49,500 Project Deferred Watermain Extension CR82 47,580 SMSC Joint Water Treatment Facility Filter Cells CIP #14 1,500,000 1,492,167 AMRS Replacement CIP #11 850,000 634,293 Project will carry over into 2019 Summit Preserve Booster Station CIP #14 556,552 Project budgeted in 2017/project completed in 2018 Raw watermain extension project CIP #13 711,557 Project budgeted in 2019 but portion of work completed in 2018 by the SMSC as part of another project Non-capital expenditures 3,456 Total $3,634,500 $3,445,605 Transfers out include $845,545 for operating transfers and $776,000 for street project transfers. Sewer Fund The financial report for the Sewer Fund reflects six billing cycles. Operating revenue totaled $3,270,527 which is an increase of $179,754 or 5.8% over 2017. Consumption decreased from 531.7 million gallons to 528.6. million gallons. Revenue increase is due to the rate increase. During 2018, rates were increased from $2.69 to $2.94 for the City and from $2.57 to $2.67 for the MCES. In 2018 $1,320,000 of debt was issued for the Automated Meter Reading System (AMRS) Replacement and 2018 Huron Area street reconstruction project. Since the Sewer Fund operates on the accrual basis of accounting, the bond proceeds are reclassed to a long-term liability account on the fund’s balance sheet. Total operating expenses were $2,891,121, which is 112% of the $2,589,836 budget and $119,975 more than 2017. Unbudgeted depreciation expense makes up $511,909 (17%) of the operating expenses. Disposal charges are the largest expense totaling $1,390,443. The Page 9 monthly payment to the Metropolitan Council Environmental Services is $115,870 which is a 5.0% increase over from last year. On a cash basis, capital expenses this year total $730,831. Authorized expenditures for 2018 Street Reconstruction projects are reflected in the capital improvements. The status of the capital improvement costs is shown below: Sewer Improvement Projects CIP Ref Budget Actual Comments Sewer System Equipment Replacement CIP#19 $62,407 $92,079 Sewer televising camera and trailer Cartegraph Upgrade CIP#25 18,890 0 Project Deferred Total $81,297 92,079 Street Reconstruction Projects CIP Ref Budget Actual Comments Franklin Trl (CR44 to Summer) CIP#10 330,000 378,748 Transfer funds to F501 Huron Area Streets CIP#10 550,000 467,176 Transfer funds to F501 Inflow/Infiltration Improvements CIP#18 100,000 Project deferred AMRS Replacement CIP#11 850,000 634,293 Project will carry over into 2019 Non-capital expenditures 4,459 Total $1,830,000 $638,752 Transfers out include $271,109 for operating transfers and $845,924 for street project transfers. Storm Water Fund The financial report for the Water Quality Fund reflects six billing cycles. Storm water operating revenue totaled $986,338 which is an increase of $60,350 or 6.1% over 2017. This is due primarily to a rate increase from $13.93 to $14.34. Storm Water revenues are based on flat rates per billing cycle. Total operating expenses were $577,396 which is 109% of the $532,064 budget and $36,112 more than 2017. Unbudgeted depreciation expense makes up $121,889 (21%) of the operating expenses. The status of the capital improvement costs is shown below: Storm Sewer Improvement Projects CIP Ref Budget Actual Comments Stormwater Infrastructure Maintenance CIP #20 $60,000 $15,035 Pond Maintenance & Retrofit CIP #21 357,751 447,630 Sand Point Beach Stormwater Infrastructure Project 2017/2018 funding; 2018 expenditures Breezy Point Improvements 5,900 Non-capital expenditures CIP #22 25,000 24,412 Contract BMP Maintenance Total $442,751 $492,977 Street Reconstruction Projects CIP Ref Budget Actual Comments Franklin Trl (CR44 to Summer) CIP#10 89,590 Huron Area Streets CIP#10 190,015 347,831 Transfer funds to F501 Rolling Oaks 56,836 Transfer funds to F501 Stormwater Easement CIP#10 143,612 143,612 Total $423,217 $143,612 Page 10 Transfers out include $77,000 for operating transfers and $403,667 for street project transfers. Economic Development Authority Special Revenue Fund Funding for the EDA comes primarily from property taxes and facility rental payments from the Technology Village Business Incubator. In 2018, the Council approved a transfer of $300,000 from the General Fund to the EDA for economic development initiatives. Revenues of $453,909 exceeded expenditures of $149,853 by $304,056 due to the transfer in from the General Fund. Personnel, commissioner per diems, professional services and Technology Village Business Incubator expenditures comprise most of the expenditures. City of Prior Lake General Fund Summary As of 12/31/2018 (Preliminary & Unaudited) Variance from Variance 2018 2018 2018 Amended Budget - % BDGT Actual from 2017 Budget Amended Actual Positive (Negative)USED 12/31/2017 Positive (Negative) Revenues Taxes 8,006,734 8,006,734 7,988,125 (18,609) 100%8,158,560 (170,435) Licenses and Permits 607,798 607,798 994,613 386,815 164%820,432 174,180 Intergovernmental 1,675,986 1,675,986 1,835,750 159,764 110%1,657,987 177,763 Charges for Services 1,702,315 1,702,315 1,987,982 285,667 117%1,967,145 20,837 Fines and Forfeitures - - 1,448 1,448 n/a 2,250 (802) Interest (losses) on investments 86,000 86,000 54,716 (31,284) 64%11,149 43,567 Other 226,945 226,945 333,653 106,708 147%317,414 16,238 Transfers in 443,000 443,000 443,000 - 100%430,000 13,000 Total Revenues 12,748,778 12,748,778 13,639,287 890,509 107%13,364,938 274,349 Expenditures General Government 2,844,193 2,898,749 2,815,389 83,360 97%2,846,882 31,493 Public Safety 5,733,489 5,748,489 5,746,524 1,965 100%5,233,840 (512,684) Public Works 2,063,803 2,060,129 1,882,970 177,159 91%1,798,921 (84,049) Culture and Recreation 1,898,731 1,902,405 1,850,588 51,818 97%1,687,550 (163,038) Transfer to other funds 227,552 819,651 819,651 (0) 100%1,636,121 816,470 Contingent Reserve - - - - n/a 5,616 5,616 Total Expenditures 12,767,768 13,429,423 13,115,121 314,302 98%13,208,930 93,809 Net Change (18,990) (680,645) 524,166 156,008 COMPARATIVE City of Prior Lake General Fund Revenues As of 12/31/2018 (Preliminary & Unaudited) Variance from Variance 2018 2018 2018 Amended Budget - % BDGT Actual from 2017 Budget Amended Actual Positive ( Negative)USED 12/31/2017 Positive (Negative) Taxes 101 31010.00 Current Property Taxes - General Purpos 7,116,875 7,116,875 7,075,018 (41,857) 99%7,377,894 (302,876) 101 31020.00 Delinquent Property Taxes - General Purp - - 37,448 23,782 n/a 43,300 (5,852) 101 31040.00 Fiscal Disparities 889,859 889,859 874,720 (15,139) 98%736,541 138,179 101 33423.00 Market Value Credit Aid - - 940 940 n/a 825 114 Taxes 8,006,734 8,006,734 7,988,125 (18,609) 100%8,158,560 (170,435) Licenses and Permits 101 32100.00 Business Licenses 900 900 600 (300) 67%1,200 (600) 101 32110.00 Liquor Licenses 74,790 74,790 77,115 2,325 103%75,840 1,275 101 32160.00 Refuse Haulers 4,150 4,150 4,790 640 115%4,400 390 101 32180.00 Cigarette Licenses 2,500 2,500 2,250 (250) 90%2,500 (250) 101 32210.00 Building Permits 421,498 421,498 692,661 271,163 164%602,394 90,267 101 32211.00 Retainage Forfeiture - - 1,500 1,500 n/a - 1,500 101 32215.00 Mechanical Permits 47,408 47,408 107,559 60,151 227%55,931 51,628 101 32230.00 Plumbing Permits 39,983 39,983 80,686 40,703 202%53,762 26,924 101 32231.00 Sewer/Water Inspection 6,994 6,994 14,339 7,345 205%12,611 1,728 101 32232.00 Plumbing Registrations 1,200 1,200 1,438 238 120%800 638 101 32240.00 Animal Licenses 3,750 3,750 4,170 420 111%4,045 125 101 32260.00 Burning Permits 2,625 2,625 4,070 3,000 155%3,000 1,070 101 32270.00 Short-term Rental Fee 2,000 2,000 2,455 455 123%3,000 (545) 101 32175.00 Public Private Gathering Permit - - 780 780 n/a 600 180 101 32190.00 Community Event Application - - 200 200 n/a 350 (150) Licenses and Permits 607,798 607,798 994,613 386,815 164%820,432 174,180 Intergovernmental 101 33160.11 Fed Aids/Grants - Operating Police 17,850 17,850 7,504 (10,346) 42%8,458 (954) 101 33401.00 Local Government Aid 11,905 11,905 11,905 - 100%11,905 - 101 33416.01 State Aid - Police Train 10,600 10,600 23,925 13,325 226%7,948 15,977 101 33416.02 State Police Aid-Ins Prem 192,000 192,000 217,502 25,502 113%202,935 14,568 101 33417.00 State Aid - Fire Training 7,000 7,000 12,579 5,579 180%12,435 144 101 33418.00 State Road & Bridge Aid 325,213 325,213 376,210 50,997 116%335,077 41,133 101 33420.00 State Fire Aid-Ins. Prem.215,000 215,000 225,610 10,610 105%216,182 9,428 102 33422.11 State Aids/Grants - Operating Police 3,850 3,850 2,959 (891) 77%900 2,059 101 33610.11 County Aids/Grants - Operating Police - - - - n/a 6,000 (6,000) 101 33620.00 Township Fire & Resc Aid 297,775 297,775 296,559 (1,216) 100%298,076 (1,517) 101 33621.00 Liaison Aid 48,793 48,793 48,793 - 100%48,072 721 101 33631.00 Payment in Lieu of Taxes 510,000 510,000 570,000 60,000 112%510,000 60,000 101 33700.11 Miscellaneous Grants - Operating Police 36,000 36,000 42,204 6,204 117%- 42,204 Intergovernmental 1,675,986 1,675,986 1,835,750 159,764 110%1,657,987 177,763 Charges for Services 101 31810.00 Franchise Taxes 615,000 615,000 630,932 15,932 103%620,469 10,463 101 34103.00 Zoning & Subdivision Fees 20,650 20,650 39,712 19,062 192%55,064 (15,351) 101 34104.00 Plan Check Fees 255,028 255,028 390,827 135,799 153%342,541 48,286 101 34105.00 Sale of Maps/Publications - Reports 1,000 1,000 510 (490) 51%320 190 101 34107.00 Assessment Searches - Reports 400 400 490 90 123%300 190 101 34109.00 Project Admin/Eng Fees 236,000 236,000 199,189 (36,811) 84%309,324 (110,134) 101 34203.00 Accident/Warrant Reports - Reports 200 200 143 (57) 72%492 (349) 101 34731.00 Adult League Fees 13,000 13,000 14,237 1,237 110%14,573 (336) 101 34735.00 Recreation Program Fees 47,000 47,000 42,409 (4,591) 90%60,195 (17,786) 101 34735.01 Recreation Program Fees Regular - - 12,311 12,311 n/a - 12,311 101 34740.00 Concessions - Park Fees - - 822 822 n/a 1,074 (252) 101 34760.01 Facility Rental - Regular 74,941 74,941 52,217 (22,724) 70%74,454 (22,237) 101 34761.00 Studio/Pavilion Rental 18,000 18,000 19,848 1,848 110%25,733 (5,885) 101 34762.00 Park Shelter Rental 42,500 42,500 54,242 11,742 128%36,677 17,565 101 34763.13 Facility Usage Fee (not taxable)3,000 3,000 - (3,000) 0%300 (300) 101 34765.01 Tower Leases 277,596 277,596 290,462 12,866 105%282,189 8,274 101 34780.00 Park Admission Fees 39,000 39,000 34,861 (4,139) 89%20,746 14,116 101 34783.00 City Contract Services 59,000 59,000 168,925 109,925 286%99,612 69,313 101 36220.16 Prof Services Fee Deposit Bldg Inspectio - - 35,841 35,841 n/a 23,082 12,759 Charges for Services 1,702,315 1,702,315 1,987,982 285,667 117%1,967,145 20,837 Fines and Forfeitures 101 35101.00 County Court Fines - - 1,000 1,000 n/a 1,700 (700) 101 35104.00 Prosecution Restitution - - 448 448 n/a 550 (102) Fines and Forfeitures - - 1,448 1,448 n/a 2,250 (802) COMPARATIVE City of Prior Lake General Fund Revenues As of 12/31/2018 (Preliminary & Unaudited) Variance from Variance 2018 2018 2018 Amended Budget - % BDGT Actual from 2017 Budget Amended Actual Positive ( Negative)USED 12/31/2017 Positive (Negative) COMPARATIVE Interest (losses) on investments 101 36210.00 Interest Earnings 86,000 86,000 133,312 47,312 155%91,836 41,477 101 36215.00 Amortization - Premium/Discount - - (20,302) (20,302) n/a (35,864) 15,562 101 36225.00 Unrealized Inv.Gain(Loss)- - (58,293) (58,293) n/a (44,822) (13,471) Interest (losses) on investments 86,000 86,000 54,716 (31,284) 64%11,149 43,567 Other Miscellaneous Revenues 101 36101.00 City Assess. Collection - - (2,518) (2,518) n/a 1,859 (4,378) 101 36102.00 County Assess. Collection 2,500 2,500 7,209 4,709 288%(12,519) 19,728 101 36211.00 Developer Agreements 195,000 195,000 260,975 65,975 134%275,310 (14,336) 101 36212.00 Miscellaneous Revenue 29,445 29,445 39,285 9,840 133%39,132 153 101 36230.00 Contributions & Donations - - 25,380 25,380 n/a 9,992 15,388 101 39102.00 Sale of Property - - 3,323 3,323 n/a 3,640 (317) Other Miscellaneous Revenues 226,945 226,945 333,653 106,708 147%317,414 16,238 Other financing sources 101 39203.00 Transfer from Other Funds 443,000 443,000 443,000 - 100%430,000 13,000 Other financing sources 443,000 443,000 443,000 - 100%430,000 13,000 Total Revenues 12,748,778 12,748,778 13,639,287 890,509 107%13,364,938 274,349 City of Prior Lake General Fund Expenditures As of 12/31/2018 (Preliminary & Unaudited) Variance from Variance from 2018 2018 2018 Amended Budget - % BDGT Actual from 2017 Budget Amended Actual Positive (Negative)USED 12/31/2017 Positive (Negative) Function: General Government 41110.00 MAYOR & COUNCIL 58,196 58,196 63,173 (4,977) 109%68,445 5,272 41130.00 ORDINANCE 7,500 7,500 7,091 409 95%7,533 442 41320.00 ADMINISTRATION 428,305 436,970 442,163 (5,193) 101%436,766 (5,397) 41330.00 BOARDS & COMMISSIONS 10,689 10,689 9,811 878 92%11,227 1,415 41410.00 ELECTIONS 23,984 23,984 20,558 3,426 86%- (20,558) 41520.00 FINANCE 464,052 464,052 446,862 17,190 96%413,277 (33,585) 41540.00 INTERNAL AUDITING 30,700 30,700 30,615 85 100%31,240 625 41550.00 ASSESSING 194,700 194,700 194,716 (16) 100%187,378 (7,338) 41610.00 LEGAL 212,000 212,000 162,462 49,538 77%217,039 54,576 41820.00 HUMAN RESOURCES 184,443 202,443 194,356 8,087 96%193,252 (1,104) 41830.00 COMMUNICATIONS 124,717 124,717 116,934 7,783 94%114,787 (2,147) 41910.00 COMMUNITY DEVELOPMENT 326,475 326,475 329,122 (2,647) 101%336,899 7,777 41920.00 INFORMATION TECHNOLOGY 317,145 345,036 344,208 828 100%348,954 4,746 41940.00 FACILITIES - CITY HALL 461,287 461,287 453,316 7,971 98%480,084 26,768 Total - Function General Government 2,844,193 2,898,749 2,815,389 83,360 97%2,846,882 31,493 Function: Public Safety 42100.00 POLICE 4,172,825 4,172,825 4,172,589 236 100%3,742,452 (430,137) 42200.00 FIRE 929,460 944,460 960,918 (16,458) 102%845,669 (115,249) 42400.00 BUILDING INSPECTION 593,926 593,926 577,534 16,392 97%608,073 30,539 42500.00 EMERGENCY MANAGEMENT 10,830 10,830 9,083 1,747 84%11,246 2,163 42700.00 ANIMAL CONTROL 26,448 26,448 26,400 48 100%26,400 - Total - Function Public Safety 5,733,489 5,748,489 5,746,524 1,965 100%5,233,840 (512,684) Function: Public Works 43050.00 ENGINEERING 466,739 463,065 351,133 111,932 76%379,994 28,861 43100.00 STREET 1,175,385 1,175,385 1,130,272 45,113 96%1,002,601 (127,671) 43400.00 CENTRAL GARAGE 421,679 421,679 401,565 20,114 95%416,326 14,761 Total - Function Public Works 2,063,803 2,060,129 1,882,970 177,159 91%1,798,921 (84,049) Function: Culture and Recreation 45100.00 RECREATION 427,696 427,696 435,613 (7,917) 102%390,707 (44,907) 45200.00 PARKS 1,407,937 1,411,611 1,366,193 45,418 97%1,237,422 (128,771) 45500.00 LIBRARIES 63,098 63,098 48,781 14,317 77%59,421 10,640 Total - Function Culture and Recreation 1,898,731 1,902,405 1,850,588 51,818 97%1,687,550 (163,038) 00000.00 Transfer to Other Funds 227,552 819,651 819,651 (0) 100%1,636,121 816,470 Function: Contingent Reserve 49999.00 CONTINGENT RESERVE - - - - n/a 5,616 5,616 Total - Function Contingent Reserve - - - - n/a 5,616 5,616 Total Expenditures 12,767,768 13,429,423 13,115,121 314,302 98%13,208,930 93,809 COMPARATIVE City of Prior Lake Debt Service Funds As of 12/31/2018 (Preliminary & Unaudited) Variance from Variance 2018 2018 2018 Amended Budget - % BDGT Actual from 2017 Budget Amended Actual Positive (Negative)USED 12/31/2017 Positive (Negative) Revenues Property Taxes Current Property Taxes 3,142,620 3,142,620 3,139,950 (2,670) 100%2,637,724 502,226 Special Assessments City Assess. Collections - - 457,725 457,725 n/a 804,984 (347,259) County Assess. Collection 586,355 586,355 539,559 (46,796) 92%408,981 130,578 Interest (losses) on investments Interest Earnings 30,491 30,491 67,237 36,746 221%175,012 (107,775) Unrealized Inv.Gain(Loss)- - (25,187) (25,187) n/a (87,015) 61,827 Miscellaneous Revenues Miscellaneous Revenues - - - - n/a (7,440) (7,440) Other Financing Sources Transfer from Other Funds 870,365 870,365 1,171,696 301,331 135%1,731,544 (559,848) Total Revenues 4,629,831 4,629,831 5,350,980 721,149 116%5,663,790 (327,690) Expenditures Debt Service Principal 3,953,016 3,953,016 3,953,016 - 100%3,987,634 34,618 Interest and Other 938,256 938,256 938,255 1 100%1,192,483 254,228 Bond Issuance Costs 4,728 4,728 6,165 (1,437) 130%8,595 2,430 Refunded Bond Escrow Pmts - - - - n/a 6,790,000 6,790,000 Transfers to Other Funds - - 58,024 (58,024) n/a 433,528 375,504 Total Expenditures 4,896,000 4,896,000 4,955,460 (59,460) 101%12,412,241 7,456,781 Net Change (266,169) (266,169) 395,520 (6,748,450) COMPARATIVE City of Prior Lake Cable Fund As of 12/31/2018 (Preliminary & Unaudited) Variance from Variance 2018 2018 2018 Amended Budget - % BDGT Actual from 2017 Budget Amended Actual Positive (Negative)USED 12/31/2017 Positive (Negative) Revenues Charges for Services 210-41340.00-34304.00 PEG Access Fees 32,000 32,000 36,081 4,081 113%36,815 (734) Interest (losses) on investments 210-41340.00-36210.00 Interest Earnings - - 1,698 1,698 n/a 856 842 210-41340.00-36225.00 Unrealized Inv. Gain (Loss)- - (878) (878) n/a (723) (155) Total Revenues 32,000 32,000 36,901 4,901 115%36,949 (48) Expenditures Current Expenditures 210-41340.00-52400.20 Small Equipment - Technology - - 4,607 (4,607) n/a 41 (4,567) Capital Outlay 210-41340.00-55570.00 Machinery and Equipment 80,000 80,000 60,530 19,470 76%57,480 (3,050) Total Expenditures 80,000 80,000 65,137 14,863 81%57,521 (7,616) Net Change (48,000) (48,000) (28,236) (20,572) COMPARATIVE City of Prior Lake Capital Park Fund As of 12/31/2018 (Preliminary & Unaudited) Variance from Variance 2018 2018 2018 Amended Budget - % BDGT Actual from 2017 Budget Amended Actual Positive (Negative)USED 12/31/2017 Positive (Negative) Revenues Charges for Services 225-45200.00-34760.01 Facility Rental - Regular 24,000 24,000 20,300 (3,700) 85%24,000 (3,700) 225-45200.00-34791.00 Dedication Fees 405,000 405,000 486,426 81,426 120%603,808 (117,382) Charges for Services 429,000 429,000 506,726 77,726 118%627,808 (121,082) Interest (losses) on investments 225-00000.00-36210.00 Interest Earnings 17,000 17,000 33,034 16,034 194%16,629 16,405 225-00000.00-36225.00 Unrealized Inv.Gain(Loss)- - (13,090) (13,090) n/a (9,539) (3,551) Interest (losses) on investments 17,000 17,000 19,944 2,944 117%7,090 12,854 Contributions and donations 225-00000.00-36230.00 Contributions & Donations - - 6,375 6,375 n/a 5,930 445 Contributions and donations - - 6,375 6,375 n/a 5,930 445 Total Revenues 446,000 446,000 533,045 87,045 120%640,828 (107,783) Expenditures 54320.00 Miscellaneous 3,700 3,700 7,545 (3,845) 204%- (7,545) 59203.00 Transfers to Other Funds - - - - n/a 21,052 21,052 53100.80 Professional Services-General - - 49,420 (49,420) n/a - (49,420) 55530.00 Infrastructure - - 7,953 (7,953) n/a 86,719 78,765 Total Expenditures 3,700 3,700 64,918 (61,218) 1755%107,771 42,853 Net Change 442,300 442,300 468,127 533,057 COMPARATIVE City of Prior Lake Revolving Equipment Fund As of 12/31/2018 (Preliminary & Unaudited) Variance from Variance 2018 2018 2018 Amended Budget - % BDGT Actual from 2017 Budget Amended Actual Positive (Negative)USED 12/31/2017 Positive (Negative) Revenues Taxes 410-00000.00-31010.00 Current Property Taxes 550,000 550,000 549,823 (178) 100%375,905 173,918 Taxes 550,000 550,000 549,823 (178) 100%375,905 173,918 Intergovernmental 410-00000.00-33422.10 State Aids/Grants - Operating Grants 30,000 30,000 - (30,000) 0%- - 410-00000.00-33633.20 Watershed Dist Grants/Aid-Capital Grants - - 10,000 10,000 n/a - 10,000 Intergovernmental 30,000 30,000 10,000 (20,000) - - 10,000 Interest (losses) on investments 410-00000.00-36210.00 Interest Earnings 6,000 6,000 16,224 10,224 270%7,457 8,767 410-00000.00-36225.00 Unrealized Inv.Gain(Loss)- - (2,484) (2,484) n/a (3,070) 586 Interest (losses) on investments 6,000 6,000 13,740 7,740 229%4,387 9,353 Sale of assets 410-00000.00-39102.00 Sale of Property - - 19,435 19,435 n/a - 19,435 Sale of assets - - 19,435 19,435 n/a - 19,435 Other 410-42100.06-39104.00 Forfeiture Property Sales 12,000 12,000 7,195 (4,805) 60%- 7,195 Other 12,000 12,000 7,195 (4,805) 60%- 7,195 Transfers in 410-00000.00-39203.00 Transfer from Other Funds 155,000 155,000 155,000 - 100%341,000 (186,000) Transfers in 155,000 155,000 155,000 - 100%341,000 (186,000) OTHER FINANCING SOURCES Debt Issued 410-00000.00-39310.00 G.O. Bond Proceeds 665,000 665,000 605,000 (60,000) 91%- 605,000 Premium on debt issued 410-43100.00-55110.00 Projects - Bond Discount/Premium - - 69,562 69,562 n/a - 69,562 665,000 665,000 674,562 9,562 101%- 674,562 Total Revenues 1,418,000 1,418,000 1,429,755 11,755 101%721,292 708,463 Expenditures Public Safety Police 410-42100.00-55550.00 Vehicles 191,690 191,690 133,212 58,478 69%101,657 (31,555) 410-42100.00-55570.00 Machinery & Equipment 46,350 46,350 - 46,350 0%- - Fire 410-42200.00-55070.00 Projects - Bond Issuance Costs - - 8,129 (8,129) n/a - (8,129) 410-42200.00-55550.00 Vehicles 678,770 678,770 300,897 377,873 44%- (300,897) Total Public Safety 916,810 916,810 442,239 474,571 48%101,657 (340,581) Public Works Street 410-43100.00-55550.00 Vehicles - - - - n/a 199,355 199,355 410-43100.00-55570.00 Machinery & Equipment - - - - n/a 12,374 12,374 Central Garage 410-43400.00-55550.00 Vehicles 20,000 20,000 21,118 (1,118) 106%19,999 (1,119) Total Public Works 20,000 20,000 21,118 (1,118) 106%231,728 210,609 Culture and Recreation/Parks 410-45200.00-55550.00 Vehicles 218,154 218,154 232,057 (13,903) 106%110,650 (121,407) 410-45200.00-55570.00 Machinery and Equipment 18,849 18,849 3,711 15,138 20%73,157 69,446 Total Culture & Recreation 237,003 237,003 235,768 1,235 99%183,807 (51,960) Water 410-49400.00-55570.00 Machinery and Equipment 10,094 10,094 10,464 (370) 104%- (10,464) Water Quality 410-49420.00-55550.00 Vehicles 210,120 210,120 191,303 18,817 91%- (191,303) Sewer 410-49450.00-55550.00 Vehicles - - - - n/a 373,178 373,178 Total Utility 220,214 220,214 201,768 18,446 92%373,178 171,410 Total Expenditures 1,394,027 1,394,027 900,892 493,135 65%890,370 (10,522) Net Change 23,973 23,973 528,862 (169,078) COMPARATIVE City of Prior Lake Facilities Management Fund As of 12/31/2018 (Preliminary & Unaudited) Variance from Variance 2018 2018 2018 Amended Budget - % BDGT Actual from 2017 Budget Amended Actual Positive (Negative)USED 12/31/2017 Positive (Negative) Revenues Interest (losses) on investments 440-00000.00-36210.00 Interest Earnings 5,400 5,400 10,357 4,957 192%10,303 54 440-00000.00-36225.00 Unrealized Inv.Gain(Loss)- - (4,312) (4,312) n/a (5,157) 844 Interest (losses) on investments 5,400 5,400 6,044 644 112%5,147 898 Transfers in 440-00000.00-39203.00 Transfer from Other Funds 58,350 58,350 58,350 - 100%56,650 1,700 Transfers in 58,350 58,350 58,350 - 100%56,650 1,700 Debt Issued 440-00000.00-39310.00 G.O. Bond Proceeds 620,000 620,000 - (620,000) 0%370,000 (370,000) 440-42200.00-39310.00 G.O. Bond Proceeds-FIRE - - 560,000 560,000 n/a - 560,000 440-42200.00-39315.00 Projects-Bond Premium - - 69,643 69,643 n/a Debt Issued 620,000 620,000 629,643 9,643 102%370,000 190,000 Total Revenues 683,750 683,750 694,037 10,287 102%431,797 192,598 Expenditures Function: General Government 41940-55050.00 Projects Professional Svcs- FACILITIES - CITY HALL - - 10,048 (10,048) n/a - (10,048) 41940-55570.00 Machinery & Equipment-FACILITIES - CITY HALL - - - - n/a 10,690 10,690 Total - Function General Government - - 10,048 (10,048) n/a 10,690 642 Function: Public Safety 42100-55520.00 Building & Building Improvements-POLICE 8,000 8,000 - 8,000 0%10,785 10,785 42100-55570.00 Machinery and Equipment-POLICE - - - - n/a 10,690 10,690 42200-55070.00 Projects-Bond Inssuance Costs-FIRE - - 7,524 (7,524) n/a - (7,524) 42200-55520.00 Projects-Publication-FIRE - - 229 (229) n/a - (229) 42200-55520.00 Building & Building Improvements-FIRE 843,204 843,204 422,908 420,296 50%9,505 (413,403) 42200-55570.00 Machinery & Equipment-FIRE - - 320,456 (320,456) n/a - (320,456) 43100-55070.00 Machinery & Equipment-STREET - - - - n/a 7,472 7,472 43100-55110.00 Bond Discount/Premium-STREET - - - - n/a (9,913) (9,913) Total - Function Public Safety 851,204 851,204 751,118 100,086 88%28,539 (722,579) Function: Culture and Recreation 45500.00 LIBRARIES - 79,961 - 79,961 0%- - Total - Function Culture and Recreation - 79,961 - 79,961 0%- - Function: Water 49400.00 Building & Building Improvements 22,500 22,500 23,096 (596) 103%478,870 455,774 49400-80000.00 Transfers to Other Funds - - - - n/a 83,829 83,829 Total - Function Culture and Recreation 22,500 22,500 23,096 (596) 103%562,699 539,603 Total Expenditures 873,704 953,665 784,262 169,403 82%601,928 (182,334) Net Change (189,954) (269,915) (90,224) (170,131) COMPARATIVE City of Prior Lake Permanent Improvement Revolving Fund As of 12/31/2018 (Preliminary & Unaudited) Variance from Variance 2018 2018 2018 Amended Budget - % BDGT Actual from 2017 Budget Amended Actual Positive (Negative)USED 12/31/2017 Positive (Negative) Revenues Special Assessments 450-00000.00-36101.00 City Assess. Collections - - 223,401 223,401 n/a 157,933 65,468 450-00000.00-36102.00 County Assess. Collection 83,314 83,314 46,575 (36,739) 56%- 46,575 83,314 83,314 269,976 186,662 324%157,933 112,043 Interest (losses) on investments 450-00000.00-36210.00 Interest Earnings 1,538 1,538 8,055 6,517 524%1,967 6,088 450-00000.00-36225.00 Unrealized Inv.Gain(Loss)- - (2,069) (2,069) n/a (1,536) (534) Interest (losses) on investments 1,538 1,538 5,986 4,448 389%431 5,555 Transfers in 450-00000.00-39203.00 Transfer from Other Funds - 148,000 148,000 - 100%120,000 28,000 Transfers in - 148,000 148,000 - 100%120,000 28,000 Debt Issued 450-00000.00-39310.00-PIR17-000001 G.O. Bond Proceeds - - - - n/a 355,000 (355,000) 450-00000.00-39310.00-PIR18-000001 G.O. Bond Proceeds 600,000 600,000 490,000 (110,000) 82%- 490,000 Debt Issued 600,000 600,000 490,000 (110,000) 82%355,000 135,000 Total Revenues 684,852 832,852 913,961 81,109 110%633,364 280,597 Expenditures Function: Public Works 450-43100.00-54010.01 STREET 650,000 650,000 623,378 26,622 96%- (623,378) 450-43100.00-55070.00-PIR17-000001 Projects - Bond Issuance Costs - - - - n/a 7,169 7,169 450-43100.00-55070.00-PIR18-000001 Projects - Bond Issuance Costs - - 6,584 (6,584) n/a - (6,584) 450-43100.00-55110.00-PIR17-000001 Projects - Bond Discount/Premium - - - - n/a (9,601) (9,601) 450-43100.00-55110.00-PIR18-000001 Projects - Bond Discount/Premium - - (34,493) 34,493 n/a - 34,493 450-43100.00-55530.00-PIR17-000001 Infrastructure - - - - n/a 377,020 377,020 Total - Function Public Works 650,000 650,000 595,468 54,532 92%374,587 (220,881) OTHER FINANCING USES Transfers out 450-80000.00-59203.00 Transfers to Other Funds 75,374 75,374 75,374 - 100%- (75,374) Total Expenditures 725,374 725,374 670,842 54,532 92%374,587 (296,255) Net Change (40,522) 107,478 243,119 258,777 COMPARATIVE City of Prior Lake Water Fund As of 12/31/2018 (Preliminary & Unaudited) Variance from Variance 2018 2018 2018 Amended Budget - % BDGT Actual from 2017 Budget Amended Actual Positive (Negative)USED 12/31/2017 Positive (Negative) Revenues Water Charges 601-49400.00-37100.00 Utility Receipts - Water 3,691,044 3,691,044 3,535,919 (155,125) 96%3,435,639 100,280 601-49400.00-37160.00 Penalties - - 22,108 22,108 n/a 18,496 3,612 3,691,044 3,691,044 3,558,026 (133,018) 96%3,454,135 103,892 Capital Facility charges 601-49400.00-37110.00 Capital Facility Revenue 268,680 268,680 263,705 (4,975) 98%260,147 3,558 268,680 268,680 263,705 (4,975) 98%260,147 3,558 Meter Sales 601-49400.00-37170.00 Water Meter Sales 82,750 82,750 106,138 23,388 128%62,134 44,004 601-49400.00-37175.00 Pressure Reducers 32,700 32,700 31,826 (874) 97%17,303 14,523 601-49400.00-37185.00 AMRS Brass Recycling - - 7,983 7,983 n/a - 7,983 115,450 115,450 145,947 30,497 126%79,437 66,510 Intergovernmental 601-00000.00-33422.15 State Aids/Grants - Operating Public Wor - - - - n/a 2,770 (2,770) 601-00000.00-33422.25 State Aids/Grants - Capital Public Works - - - - n/a 500 (500) 601-494.00-33610.10 County-City Aids/Grants-Operations - - 500 500 n/a - 500 - - 500 500 n/a 3,270 (2,770) Interest (losses) on investments 601-00000.00-36210.00 Interest Earnings 35,900 35,900 74,954 39,054 209%42,100 32,854 601-00000.00-36225.00 Unrealized Inv.Gain(Loss)- - (16,238) (16,238) n/a (20,589) 4,351 35,900 35,900 58,716 22,816 164%21,512 37,205 Miscellaneous Revenues 601-00000.00-36212.00 Miscellaneous Revenue - - 11,938 11,938 n/a 10,219 1,719 601-00000.00-36102.00 County Assess Collection - - 54,401 54,401 n/a 2,378 52,024 601-00000.00-36231.00 PERA Pension Contributions - - - - n/a 193 (193) 601-49400.00-37190.00 Miscellaneous Revenue Adj - - 27 27 n/a 95 (68) - - 66,367 66,367 n/a 12,884 53,483 Contribution of assets 601-00000.00-37901.00 Contribution (Other Fund)- - 2,691,005 2,691,005 n/a 2,590,740 100,265 601-00000.00-37902.00 Contribution (Developers)- - 507,943 507,943 n/a 145,449 362,494 - - 3,198,948 3,198,948 n/a 2,736,189 462,759 Transfers in 39203.00 Transfer from Other Funds 1,500,000 1,888,000 2,608,474 720,474 138%250,000 2,358,474 1,500,000 1,888,000 2,608,474 720,474 138%250,000 2,358,474 Sale of Assets 601-00000.00-39102.00 Sale of Property - - 1,185 1,185 n/a - 1,185 - - 1,185 1,185 n/a - 1,185 Debt Issued 601-49400.00-39310.00-CAP18-000001 G.O. Bond Proceeds 1,180,000 1,180,000 - (1,180,000) 0%- - 1,180,000 1,180,000 - (1,180,000) 0%- - Total Revenues 6,791,074 7,179,074 9,901,867 2,722,793 138%6,817,574 3,084,294 Operating Expenditures Personnel and current expenditures 41520.00 Finance 82,682 82,682 98,023 (15,341) 119%79,520 (18,503) 49400.00 Water 1,971,817 1,973,090 2,582,050 (608,960) 131%2,541,929 (40,121) 2,054,499 2,055,772 2,680,073 (624,301) 130%2,621,449 (58,624) Interest & other 49400.00 Water - - 42,173 (42,173) n/a - (42,173) - - 42,173 (42,173) n/a - (42,173) Capital improvements 55530.00 Infrastructure 3,634,500 3,634,500 3,456 3,631,044 0%- (3,456) 55570.00 Machinery and equipment 124,980 124,980 - 124,980 0%- - 3,759,480 3,759,480 3,456 3,756,024 0%- (3,456) 59203.00 Transfers to other funds 845,545 845,545 1,622,445 (776,900) 192%2,151,421 528,976 Total Expenditures 6,659,524 6,660,797 4,348,147 2,312,650 65%4,772,870 424,723 Net Change 131,550 518,277 5,553,720 2,044,704 COMPARATIVE City of Prior Lake Sewer Fund As of 12/31/2018 (Preliminary & Unaudited) Variance from Variance 2018 2018 2018 Amended Budget - % BDGT Actual from 2017 Budget Amended Actual Positive (Negative)USED 12/31/2017 Positive (Negative) Revenues Sewer Charges 604-49450.00-37102.00 Utility Receipts - Sewer 1,664,040 1,664,040 1,576,644 (87,396) 95%1,453,443 123,201 604-49450.00-37104.00 Utility Recpt-Sewer MCES 1,511,220 1,511,220 1,405,830 (105,390) 93%1,358,520 47,310 3,175,260 3,175,260 2,982,474 (192,786) 94%2,811,963 170,511 Capital Facility charges 604-49450.00-37110.00 Capital Facility Revenue 268,680 268,680 263,712 (4,968) 98%260,156 3,557 268,680 268,680 263,712 (4,968) 98%260,156 3,557 Water Charges 604-49450.00-37160.00 Penalties 10,000 10,000 24,340 14,340 243%18,654 5,687 10,000 10,000 24,340 14,340 243%18,654 5,687 Interest (losses) on investments 604-00000.00-36210.00 Interest Earnings 18,500 18,500 33,833 15,333 183%20,709 13,124 604-00000.00-36225.00 Unrealized Inv.Gain(Loss)- - (9,270) (9,270) n/a (8,352) (918) 18,500 18,500 24,563 6,063 133%12,357 12,206 Miscellaneous Revenues 604-00000.00-36231.00 PERA Pension Contributions - - - - n/a 161 (161) - - - - n/a 161 (161) Contribution of assets 604-00000.00-37901.00 Contribution (Other Fund)- - 576,051 576,051 n/a 3,619,544 (3,043,493) 604-00000.00-37902.00 Contribution (Developers)- - 487,277 487,277 n/a 133,351 353,926 - - 1,063,328 1,063,328 n/a 3,752,895 (2,689,567) Debt Issued 604-00000.00-39310.00 G.O. Bond Proceeds 1,400,000 1,400,000 - (1,400,000) 0%- - 1,400,000 1,400,000 - (1,400,000) 0%- - Sale of Property 604-00000.00-39310.00 Sale of Property - - 1,185 1,185 n/a - 1,185 - - 1,185 1,185 n/a - (1,185) Transfers in 39203.00 Transfer from Other Funds - - 17,434 17,434 n/a - 17,434 - - 17,434 17,434 n/a - 17,434 Total Revenues 4,872,440 4,872,440 4,377,036 (495,404) 90%6,856,186 (2,481,518) Operating Expenditures Personnel and current expenditures 41520.00 Finance 82,682 82,682 97,405 (14,723) 118%78,129 (19,276) 49450.00 Sewer 2,477,879 2,507,154 2,793,716 (286,562) 111%2,693,017 (100,699) 2,560,561 2,589,836 2,891,121 (301,285) 112%2,771,146 (119,975) Interest & other 49450.00 Sewer - - 42,173 (42,173) n/a - (42,173) - - 42,173 (42,173) n/a - (42,173) Capital improvements 55530.00 Infrastructure 1,830,000 1,830,000 4,459 1,825,541 0%- (4,459) 55570.00 Machinery and equipment 81,297 81,297 - 81,297 0%- - 1,911,297 1,911,297 4,459 1,906,838 0%- (4,459) 59203.00 Transfers to other funds 271,109 271,109 1,117,033 (845,924) 412%1,232,910 115,877 Total Expenditures 4,742,967 4,772,242 4,054,786 717,456 85%4,004,056 (50,730) Net Change 129,473 100,198 322,250 2,852,130 COMPARATIVE City of Prior Lake Water Quality Fund As of 12/31/2018 (Preliminary & Unaudited) Variance from Variance 2018 2018 2018 Amended Budget - % BDGT Actual from 2017 Budget Amended Actual Positive (Negative)USED 12/31/2017 Positive (Negative) Revenues Storm Water Charges 602-49420.00-37120.00 Storm Water Revenue 916,326 916,326 982,174 65,848 107%922,304 59,870 916,326 916,326 982,174 65,848 107%922,304 59,870 Water Charges 602-49420.00-37160.00 Penalties - - 4,164 4,164 n/a 3,684 481 - - 4,164 4,164 n/a 3,684 481 Intergovernmental 602-00000.00-33422.10 State Aids/Grants - - 5,002 5,002 n/a 5,407 (405) 602-49420.00-33633.00 Watershed Dist Grants/Aid - 130,000 130,000 - 100%- 130,000 602-49420.00-32250.00 Wetland Application Fee - - 900 900 n/a - 900 - 130,000 135,902 5,902 105%5,407 130,495 Interest (losses) on investments 602-00000.00-36210.00 Interest Earnings 12,000 12,000 16,688 4,688 139%14,872 1,816 602-00000.00-36225.00 Unrealized Inv.Gain(Loss)- - (9,288) (9,288) n/a (7,060) (2,228) 12,000 12,000 7,400 (4,600) 62%7,812 (412) Contribution of assets 602-00000.00-37901.00 Contribution (Other Fund)- - 361,550 361,550 n/a 323,553 37,997 602-00000.00-37902.00 Contribution (Developers)- - 66,473 66,473 n/a 19,600 46,873 - - 428,023 428,023 n/a 343,153 84,870 Transfers in 602-00000.00-39203.00 Transfer from Other Funds - 143,612 143,612 (0) 100%42,093 101,519 - 143,612 143,612 (0) 100%42,093 101,519 Miscellaneous Revenues 602-00000.00-36212.00 Miscellaneous Revenue - - - - n/a 120 (120) 602-00000.00-36231.00 PERA Pension Contributions - - - - n/a 80 (80) - - - - n/a 200 (200) Total Revenues 928,326 1,201,938 1,701,274 499,336 142%1,324,653 376,621 Operating Expenditures Personnel and current expenditures 49420.00 Sewer 532,064 532,064 577,396 (45,332) 109%613,508 36,112 532,064 532,064 577,396 (45,332) 109%613,508 36,112 Capital improvements 55040.00 ROW & property acquisition - 143,612 - 143,612 0%- - 55530.00 Infrastructure 389,605 722,356 24,412 697,944 3%20,052 (4,360) 389,605 865,968 24,412 841,556 3%20,052 (4,360) 59203.00 Transfers to other funds 77,000 77,000 480,666 (403,666) 624%455,215 (25,451) Total Expenditures 998,669 1,475,032 1,082,474 392,558 73%1,088,775 6,301 Net Change (70,343) (273,094) 618,800 235,878 COMPARATIVE City of Prior Lake Economic Development Authority Special Revenue Fund As of 12/31/2018 (Preliminary & Unaudited) Variance from Variance 2018 2018 2018 Amended Budget - % BDGT Actual from 2017 Budget Amended Actual Positive (Negative)USED 12/31/2017 Positive (Negative) Revenues Taxes 240-00000.00-31010.00 Current Property Taxes 140,000 140,000 139,511 (489) 100%139,358 154 Taxes 140,000 140,000 139,511 (489) 100%139,358 154 Charges for Services 240-46503.00-34760.02 Facility Rental - EDA 7,820 7,820 8,018 198 103%8,293 (275) Charges for Services 7,820 7,820 8,018 198 103%8,293 (275) Interest (losses) on investments 240-00000.00-36210.00 Interest Earnings 2,700 2,700 8,544 5,844 316%3,093 5,451 240-00000.00-36225.00 Unrealized Inv.Gain(Loss)- - (2,163) (2,163) n/a (1,570) (593) Interest (losses) on investments 2,700 2,700 6,380 3,680 236%1,523 (4,857) Transfers In 240-00000.00-39203.00 Transfer from Other Funds - 300,000 300,000 - 100%- 300,000 Transfers In - 300,000 300,000 - 100%- (300,000) Total Revenues 150,520 450,520 453,909 3,389 101%149,174 304,736 Expenditures Function: Economic Development 46500.00 ECONOMIC DEVELOPMENT 145,777 145,777 145,491 286 100%97,161 (48,330) 46503.00 TECH VILLAGE INCUBATOR 7,820 7,820 4,362 3,458 56%1,336 (3,026) Total Expenditures 153,597 153,597 149,853 3,744 98%98,497 (51,356) Net Change (3,077) 296,923 304,056 50,676 COMPARATIVE