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Home My WebLink About01(A) - Presentation of Preliminary Year-End 2020 Financial Report ReportApril 19, 2021 1 2020 Preliminary Year-End Funds Highlighted: General Fund Other Governmental Funds Enterprise Funds Discuss regarding proposed use of General Fund Reserves Agenda 2 Total Revenues -$16,495,000 Total Expenditures -$14,284,000 Revenues exceeded expenditures by $2,211,000 Components of Net Increase in Fund Balance: $1,691,000 CARES Act 518,000 Budgeted activity $2,211,000 Total 2020 General Fund 3 General Fund Summary 4 CARES Act Funding: $1,969,018 Federal 13,304 Scott County for election needs $1,982,322 Total CARES Act funding $1,951,401 General Fund 30,921 Enterprise Funds $1,982,322 Total General Fund Summary - 2020 Total Budgeted Activity Unbudgeted CARES $ Activity Only Total Revenues 16,494,000$ 14,543,000$ 1,951,000$ Total Expenditures 14,283,000$ 14,023,000 260,000 Net Change-Add to Fund Balance 2,211,000$ 520,000$ 1,691,000$ 2020 Year End Fund Balance Reserve % 67.1%55.9%11.2% Components of Add to Fund Balance: Revenue above budget 2,039,000$ 88,000$ 1,951,000$ Expenditures less than budget 532,000 792,000 (260,000) Planned Use of Reserves (360,000) (360,000) Net Change-Add to Fund Balance 2,211,000$ 520,000$ 1,691,000$ Comprised of: Revenues 5 positive = revenue above budget; negative = revenue less than budget Revenue Category 2020 Amended Budget 2020 Actual Revenues to Budget Favorable/(Unfavorable) Total Budgeted Unbudgeted CARES Property Taxes $8,953,000 $8,924,000 $ (29,000)$ (29,000) Licenses and Permits 831,000 901,000 70,000 70,000 Intergovernmental 2.126,000 4,092,000 1,966,000 14,000 1,951,000 Charges for Services (including franchise taxes) 1.808,000 1,752,000 (56,000)(56,000) Interest (loss) on Investments 103,000 188,000 85,000 85,000 Miscellaneous Revenue 164,000 167,000 3,000 3,000 Transfers In 470,000 470,000 Estimated Total Revenues Exceeding Budget $14,455,000 $16,494,000 $ 2,039,000 $88,000 $1,951,000 Expenditures 6 positive = budget savings; negative = expenditure exceeds budget Expenditure Function 2020 Amended Budget 2020 Actual Expenditures to Budget Favorable/(Unfavorable) Total Budgeted Unbudgeted CARES General Government $3,334,000 $3,377,000 $ (44,000)$ 193,000 (237,000) Public Safety 6,614,000 6,740,000 (126,000)(114,000)(12,000) Public Works 2,216,000 1,999,000 217,000 219,000 (2,000) Culture and Recreation 2,214,000 1,629,000 585,000 594,000 (9,0000 Transfer to other Funds 438,000 538,000 (100,000)(100,000) Total Expenditures less than Budget $14,815,000 $14,284,000 $ 532,000 $792,000 $(260,000) General Fund Reserve 7 ➢Reserve at 50% of 2022 expenditures (CFMP range of 40%-50%): $7,948,000 ➢Reserve above CFMP range/Identify Proposed Uses of these Funds: $2,029,000 General Fund Reserve Proposed Use of Funds above Recommended Reserve Range 8 Proposed uses: Assistant Fire Chief -one time funding use for 2021 mid-yr start/Position will be incorporated into 2022 budget $ 41,000 Receptionist -tentative May 1, 2021 hire date 41,000 Maintain an additional 5% in the General Fund-unplanned items/resiliency/sustain GF balance at the upper end of the CFMP range 747,000 Facilities Fund 1,000,000 Equipment Replacement Fund 200,000 Total Proposed Use of Reserves above CFMP range of 40%-50%$2,029,000 Staff to bring 2021 Transfers Agenda Item for Council approval as part of the May 3 agenda packet. Debt Service Funds –Planned payment of debt service in June and December. Special Revenue Funds: Cable Fund: •Revenue source is PEG Access Fees •Live streaming service and equipment costs for Council meeting live stream capability. 2020 Other Funds 9 Special Revenue Funds (continued): Capital Park Fund: •Revenue source is Park Dedication Fees from new development •Planned Expenditures follow the Capital Improvement Program (Primarily new neighborhood parks) •Pickleball Courts -$353k for 2020 portion of Spring Lake Park pickleball court construction •2020 Year-End Fund Balance -$1.6M 2020 Other Funds 10 Capital Project Funds: Revolving Equipment Fund –equipment purchases of $1.1M Revolving Park Equipment Fund –Hold on ’20 projects as a cost saving measure. Projects will be carried forward and identified as future expenditures on the 2022-2026 CIP. Facilities Management Fund-Expenditures included Library irrigation system and carpet replacement at Club Prior & Library. PIR/Street Overlay Fund –’20 Street overlay project completed ➢Revenue source: ▪Primarily property tax ▪Transfers in from the Utility Funds for equipment and facilities 2020 Other Funds 11 Water Fund 2020 Revenue and Other Financing Sources 5,896,203 Expense and Other Financing Uses 4,513,093 Revenue Over (Under) Expense 1,383,110 Cash by Purpose For future capital improvements 2,020,951 For following year pay-go capital 2,097,250 For 3-months of operating cash 750,929 For following year debt service 735,350 Ending Cash 5,604,480 12 Current Year 2020 Use of Cash: Operations & Maintenance 2,580,356 Capital Improvement Projects 925,622 Interfund Transfer 369,110 Debt Service 728,300 Total Use of Cash 4,603,388 Source of Cash: Water Charges 5,596,437 Other Revenues 299,766 Total Source of Cash 5,896,203 Net Change in Other Assets and Liabilities (1,463,699) Beginning Cash Balance 5,775,364 Change in Cash Balance (170,884) Ending Cash 5,604,480 Water Fund Ending Cash by Purpose: For future capital improvements 2,020,951 For following year pay-go capital 2,097,250 For 3-months of operating cash 750,929 For following year debt service 735,350 Ending Cash 5,604,480 13 Sewer Fund 2020 Revenue and Other Financing Sources 5,389,568 Expense and Other Financing Uses 4,046,646 Revenue Over (Under) Expense 1,342,922 Cash by Purpose For future capital improvements 612,334 For following year pay-go capital 1,008,649 For 3-months of operating cash 844,476 For following year debt service 169,650 Ending Cash 2,635,109 14 Ending Cash by Purpose: For future capital improvements 612,334 For following year pay-go capital 1,008,649 For 3-months of operating cash 844,476 For following year debt service 169,650 Ending Cash 2,635,109 15 Current Year 2020 Use of Cash: Operations & Maintenance 1,425,656 MCES Fees 1,658,137 Capital Improvement Projects 1,008,649 Interfund Transfer 294,110 Debt Service 174,250 Total Use of Cash 4,560,802 Source of Cash: Wastewater Collection Revenue 5,303,332 Other Revenues 86,236 Total Source of Cash 5,389,568 Net Change in Other Assets and Liabilities (185,956) Beginning Cash Balance 1,992,299 Change in Cash Balance 642,810 Ending Cash Balance 2,635,109 Sewer Fund Storm Water Fund 2020 Revenue and Other Financing Sources 1,288,753 Expense and Other Financing Uses 717,425 Revenue Over (Under) Expense 571,328 Cash by Purpose For future capital improvements 1,430,018 For following year pay-go capital 360,000 For 3-months of operating cash 150,219 For following year debt service - Ending Cash 1,940,237 16 Ending Cash by Purpose: For future capital improvements 1,430,019 For following year pay-go capital 360,000 For 3-months of operating cash 150,219 Ending Cash 1,940,237 17 2020 Use of Cash: Operations & Maintenance 515,095 Capital Improvement Projects 137,772 Interfund Transfer 85,780 Total Use of Cash 738,647 Source of Cash: Charges for service 1,231,013 Other Revenues 57,740 Total Source of Cash 1,288,753 Net Change in Other Assets and Liabilities (14,649) Beginning Cash Balance 1,404,780 Change in Cash Balance 535,457 Ending Cash Balance 1,940,237 Storm Water Fund EDA: 2020 Economic Development Authority 18 Economic Development Authority Special Revenue Fund As of 12/31/2020 (Preliminary & Unaudited) Variance from 2020 2020 Amended Budget - % BDGT Amended Actual Positive (Negative)USED Revenues Taxes 274,750 273,460 (1,290) 100% Charges for Services Facility Rental - EDA 9,575 7,617 (1,958) 80% Interest (losses) on investments 7,560 12,366 4,806 164% Contributions and Donations 240-00000.00-37901 Contribution (Other Fund)- 180,868 180,868 n/a 240-00000.00-36230.00 Contributions and Donations - 4,900 4,900 n/a Contributions and Donations - 185,768 185,768 n/a Transfers In Transfer from Other Funds 161,250 161,250 - 100% Total Revenues 453,135 640,461 187,326 141% Expenditures Function: Economic Development 46500.00 ECONOMIC DEVELOPMENT 448,035 254,757 193,278 57% 46503.00 TECH VILLAGE INCUBATOR 5,100 2,900 2,200 57% Total Expenditures 453,135 257,657 195,478 57% Net Change-Add to Fund Balance - 382,804 EDA (continued): Components of the $382k increase in fund balance are as follows: •Council approved property transfer from the City to the EDA.This is accounted for as a contribution.$180k increase in Fund Balance. •EDA properties held for resale -GAAP accounting standards require that the assets are accounted for as “Assets Held for Resale”at net realizable value.This “moves”the cost to the balance sheet and reduces expenditures.$237k add to Fund Balance. •Write-off of Plate on Main forgivable loan –($46k)reduction in Fund Balance •Donations for the downtown mural -$5k increase in Fund Balance 2020 Economic Development Authority 19 American Rescue Plan Act -$1.9 trillion Below are some highlights of state and local aid included in the bill: The state portion of the funding -$195 billion The local portion of the funding -$130 billion, equally divided between cities and counties Funding available through and must be spent by end of calendar year 2024. Eligible uses include: Revenue replacement for the provision of government services to the extent the reduction in revenue due the COVID -19 public health emergency relative to revenues collected in the most recent fiscal year prior to the emergency Premium pay for essential workers Assistance to small businesses, households, and hard -hit industries, and economic recovery Investments in water, sewer and broadband infrastructure. Looking Ahead 20 21