HomeMy WebLinkAbout5G - 2006 3rd Q. Budget & General Fund Reports
MEETING DATE:
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16200 Eagle Creek Avenue S.E.
Prior Lake, MN 55372-1714
CITY COUNCIL AGENDA REPORT
OCTOBER 16, 2006
5G
Ralph Teschner, Finance Director
CONSIDER APPROVAL OF 2006 3rd 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 3rd Quarter Budget Report is a document entitled
"Budget Report Overview" for the General Fund that is intended to satisfy your
request. The 3rd Quarter Budget Reports shows the status of expenditures for
the first 9 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 :t: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 3rd Quarter
Budget Report as submitted.
Reviewed by:
1. 2006 3rd Quarter Budget Summary Reports
2. Budget Report Overview (General Fund)
www.cityofpriorlake.com
H\BUDGET\BRdoc
Phone 952.447.4230 / Fax 952.447.4245
2006 3rd Quarter General Fund Budget Summary Report
Budget Amount Expended Percent
(;eneral(;overnment 2,145,109.00 1,490,379.00 69%
Mayor & Council 61,487.00 45,626.00 74%
Ordinance 12,000.00 7,475.00 62%
City Manager 347,407.00 239,735.00 69%
Boards & Commissions 13,337.00 404.00 3%
Elections 15,356.00 5,974.00 39%
Director of Finance 125,666.00 93,965.00 75%
Accounting 162,658.00 116,615.00 72%
Internal Auditing 17,100.00 17,223.00 101%
Assessing 92,100.00 90,000.00 98%
Law 283,000.00 245,612.00 87%
Personnel 98,478.00 44,046.00 45%
Communications 129,131.00 79,126.00 61%
Planning & Zoning 333,259.00 225,974.00 68%
Data Processing 160,735.00 99,549.00 62%
Buildings & Plant 293,395.00 179,055.00 61%
Public Safety 3,773,432.00 2,394,578.00 63%
Police 2,603,682.00 1,871,165.00 72%
Fire & Rescue 611,261.00 127,347.00 21%
Building Inspection 499,989.00 372,414.00 74%
Civil Defense 27,300.00 1,500.00 5%
Animal Control 31,200.00 22,152.00 71%
Public Works 1,603,914.00 1,037,065.00 65%
Engineering 556,403.00 383,049.00 69%
Street 775,672.00 472,173.00 61%
Central Garage 271,839.00 181,843.00 67%
Culture-Recreation 1,655,038.00 1,317,022.00 80%
Recreation 380,113.00 308,130.00 81%
Parks 1,185,130.00 949,953.00 80%
Libraries 89,795.00 58,939.00 66%
Economic Development 173,206.00 86,246.00 50%
Debt Service 1,290,035.00 458,330.00 36%
Contingent Reserve 200,000.00 127,006.00 64%
Revenues 10,840,734.00 7,151,136.00 66%
General Property Taxes 6,931,236.00 3,390,408.00 49%
Licenses & Permits 819,950.00 701,344.00 86%
Intergovernmental Revenue 1,127,864.00 1,045,627.00 93%
Charges for Services 1,349,784.00 816,167.00 60%
Fines & Forfeits 152,400.00 139,907.00 92%
Miscellaneous Revenue 197,500.00 630,964.00 319%
Other Financing Sources 262,000.00 426,719.00 163%
Total Budget Expenditures 10,840,734.00 6,910,626.00 64%
Total Budget Revenues 10,840,734.00 7,151,136.00 66%
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Enterprise Funds
2006 3rd Quarter Enterprise Funds Budget Summary Report
Budget Amount Expended Percent
Utility Fund 2,956,304.00 2,049,446.00 69%
Water 1,001,802.00 783,209.00 78%
Sewer 1,954,502.00 1,266,237.00 65%
Water Quality 355,926.00 82,068.00 23%
Transit Services 592,068.00 331,189.00 56%
Transfers 500,141.00 0.00 0%
Revenues 5,429,638.00 4,145,014.00 76%
Water Utility Revenues 4,500,750.00 3,430,973.00 76%
Water Quality Utility Revenues 336,820.00 255,641.00 76%
Transit Revenues 592,068.00 458,400.00 77%
Total Budget Expenditures 4,404,439.00 2,462,703.00 56%
Total Budget Revenues 5,429,638.00 4,145,014.00 76%
BUDGET REPORT OVERVIEW
(2006 3rd Quarter Budget Report)
Expenditures:
General Governrnent
· Ordinance costs are running a little less as legal notices and publications represent only
eight months of activity to date, which is the main reason why the yrD percentage is at
62%.
· City Manager costs are marginally under at 69% because the Miscellaneous expense
category of $25,000 remains largely unspent.
. Expenses associated with Boards and Commissions and Elections are typically not
incurred until the latter part of the budget year i.e., December EDA and planning
commission per diems. The 39% amount in Elections represents results of the state
primary election.
. Internal Auditing results are complete at 101 %.
. Assessing contract service expenditures are complete for the year and represent 98%
of budget.
. Legal fees in the general service area are running higher at 89% than projected
because of litigation associated with the special assessment appeals. In addition, Scott
Joint Prosecution expenses for the 3rd quarter billing are up at 84%. This occurred
because the budget for the prosecution did increase more than expected for this year.
Also, our activity level for Prior Lake has been higher than that of the other cities
percentage wise and because quarterly costs are distributed on a percentage basis, our
share for the fIrst quarter of the year was more. The overall legal expense category
outcome is 87% of the year to date budget.
. Personnel expenses of 45% are somewhat less than normal as expenditures associated
with professional consultant services, specifIcally for the City's updated Comparable
Worth salary study, have not yet been expended.
. Communication expenditures are lower than budget at 61 % because postage and
expenses associated with the proposed annual report and miscellaneous brochure
mailings have not been incurred yet.
. Planning & Zoning expenses of 68% is lower than budget because the professional
services category has not been used to date.
. Data Processing is below estimates at 62% because software and hardware service
costs have been relatively low for the year.
. Bldgs & Plant is less at 61 % because our repair and maintenance service and utility
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
69%.
Public Safety
. Police Department expenses were slightly below at 72% because earlier in the year
the department had an open patrol officer and CSO position, which temporarily
reduced personnel expenses within the department.
. 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.
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· Public Safety totals are in general conformance with budget estimates at 63%.
Public Works
· Engineering Department expenses were slightly below at 69% because of less
utilization of professional consultant services.
· Street Department expenses of 61 % are low primarily because the bituminous overlay
expense has not yet been billed to the City.
· Central Garage is below projections at 67% because we are fortunate that no major
equipment service contract repairs within fleet operations have occurred.
. Public Works totals are in general conformance with budget estimates at 65%.
Culture-Recreation
. Due to the seasonal nature of recreation programs and park activities, their
expenditures normally exceed budget levels during the summer months which
accounts for their budget performance levels of 81 & 80% respectively. Recreation's
major activity levels occur during the summer months that involve park programs,
community events and instructor fees.
. Library budget totals are below at 66% because the $5,000 allocated for building
modifications have not been needed to date.
. Culture-Recreation totals are near seasonal expectations and budget estimates at
80%.
Economic Development
. The budget expenditures are significantly under as the general professional services
and land options appropriation are unexpended to date.
. Economic Development totals are under budget estimates at 50%.
Debt Service
. All general debt service bond payments are made during the months of June (interest
only) and December (principal/interest).
. Debt Service totals are in general conformance with budget estimates at 36%.
Contingent Reserve
. Three Contingency expenditures have occurred so far this year;
1. $8,500.00 land use defense payment to LMCIT.
2. $28,506.00 has for the LMCIT insurance reimbursement payment for the Ryan
conditional use permit litigation.
3. $90,000 dump clean-up restitution to Scott County.
Expenditure Summary:
2006 General Fund 3rd Quarter operating expenditures are on track and represent 64% of
the total $10,840,734 operating budget. This actually compares with similar 2005 3rd
quarter results of 62% when you allow for the temporary expenditure reduction measures
that were incorporated early in last year's budget.
Revenues:
. The current property tax settlement in June showed no apparent delinquency problem
as collections reached 49%. However the market value credit aid will not be paid
again by the State this year.
. License & Permit fees are somewhat above total projection at 86% as all business
license revenue has for the most part been received for the year. Also, building permit
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revenue has exceeded projections despite a decline in the number of permits because
of high valuation.
· Intergovernmental revenue is over at 93% of the quarterly budget estimate because
100% of all State Aid category (road/bridge, fire & police) payments for the year
have now been received and recognized.
· Charges for services are near expectations at 60% with the difference due to the
timing of franchise fee payments which occur shortly after the end of each quarter
and the project administration/engineering transfer which is recognized at year end.
· Fine revenue is actually averaging appreciably above projections at 92% when
considering payments are in arrears by one month.
· Miscellaneous Revenue is significantly above budget at 319% 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 one-time real estate sale transactions related to the downtown Hastings
Avenue property and the former TJ Towing site that pushed the performance outcome
to 163%.
Revenue Summary:
Revenues realized are approximately 66% of budget and is on average a little stronger in
relative comparison when compared to the past five years that have shown a spread of
58-66% at the end of the third quarter.
3rd QUARTER BUDGET RECAP:
Overall, the 2006 3rd quarter fmancial performance is fairly typical to past years with no
significant expense variances or revenue shortfalls appearing other than noted. Building
related revenues are expected to fall off as permit activity is anticipated to continue its
short-term decline for the remainder of the year.
... [3rd Quarter Budget Report represents expenditures and revenues to date and do not
include outstanding appropriations or receipt expectations.]
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