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HomeMy WebLinkAbout5G - 3rd Quarter Budget Report STAFF AGENDA REPORT MEETING DATE: AGENDA #: PREPARED BY: AGENDA ITEM: OCTOBER 19, 1998 5 e. RALPH TESCHNER CONSIDER APPROVAL OF 1998 3RD QUARTER BUDGET REPORT AND OVERVIEW DISCUSSION: 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" that is intended to satisfy your request. The Third Quarter Budget Report shows the status of expenditures for the first 9 months in 1998. The "overview" provides information related to those areas within the budget that have experienced exceptions (normally :1:5% 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. Attachments: The "Budget Report Overview" is intended to serve as narrative support to the Quarterly Budget Report and enhance your understanding of perf~~ance results. Please feel free to contact me at 447-9841 for more 'l ormation. r:J V- V 1. 1998 3r Q er Budget Report 2. Budget ort Overview REVIEWED BY: 16200 Eagle Creek Ave. S.E., Prior Lake, Minnesota 55372-1714 / Ph. (612) 447-4230 / Fax (612) 447-4245 AN EQUAL OPPORTUNITY EMPLOYER H:\BUDGEl\BRDOC 1998 3rd Quarter Budget Report Budget Amount Expended Percent General Government 1,477,700.00 1,062,026.00 72% Mayor & Council 25,125.00 18,389.00 73% Ordinance 15,000.00 7,0~2.00 47% City Manager 254,369.00 173,853.00 68% Boards & Commissions 7,993.00 2,301.00 29% Elections 6,238.00 . 2,211.00 35% Director of Finance 90,281.00 64,718.00 72% Accounting 83,562.00 61,383.00 73% Internal Auditing 10,385.00 10,260.00 99% Assessing 37,425.00 37,481.00 100% Law 232,600.00 146,747.00 63% Personnel 70,546.00 52,755.00. 75% Planning & Zoning 225,125.00 158,110.00 70% Data Processing 95,750.00 100,755.00 105% Buildings & Plant 192,895.00 149,924.00 78% Central Garage 130,406.00 76,057.00 58% Public Safety 2,249,180.00 1,490,263.00 66% Police 1,675,327.00 1,192,925.00 71% Fire & Rescue 221,388.00 72,588.00 33% Building Inspection 334,235.00 215,278.00 64% Civil Defense 7,000.00 2,167.00 31% Animal Control 11,230.00 7,305.00 65% Public Works 788,270.00 587,855.00 75% Engineering 441,739.00 323,496.00 73% Street 346,531.00 264,359.00 76% Culture-Recreation 1,004,142.00 835,862.00 83% Recreation 341,237.00 334,625.00 98% Parks 650,050.00 493,669.00 76% Libraries 12,855.00 7,568.00 59% Economic Development 54,842.00 35,047.00 64% Debt Service 854,895.00 321,449.00 38% Transit Services 301,171.00 150,586.00 50% Contingent Reserve 100,000.00 99,308.00 99% Revenues 6,830,200.00 3,831,365.00 56% General Property Taxes 3,695,732.00 1,871,879.00 51% Licenses & Permits 429,975.00 320,329.00 74% Intergovernmental Revenue 1,674,941.00 1,012,801.00 60% Charges for Services 618,150.00 452,084.00 73% Fines & Forfeits 70,200.00 62,240.00 89% Miscellaneous Revenue 138,202.00 111,480.00 81% Other Financing Sources 203,000.00 552.00 0% Total Budget Expenditures 6,830,200.00 4,582,396.00 67% Total Budget Revenues 6,830,200.00 3,831,365.00 56% BR0398XLS 12:05 PM1012l98 BUDGET REPORT OVERVIEW (1998 3rd Quarter Budget Report) Expenditures: General Government . Ordinance expenditures are less than budget due to the fact that the costs associated with the zoning ordinance summary publication have not yet been incurred. · Expenses associated with Boards and Commissions and Elections are typically not incurred until the latter part of the budget year i.e., December Planning Commission and Economic Development per diems and fall elections. The amount expended is actually for EDA per diems for the previous year (1997) which were not submitted for payment until April. . City Manager budget to date of 68% is less than the 75% year to date allowance due to the fact that expenditures within professional services have been limited. · Internal Auditing and Assessing totals represent completion of expenditures for the year with no further remaining activity. . Legal fees in both the general service and prosecution areas are running a little lower than projected at this point of the budget cycle even after considering the fact that general legal costs represent only 8 months of billings which accounts for a combined 63% budget year to date figure. In the prosecution area, restitution efforts have produced a higher level of reimbursement dollars than expected which has reduced the net prosecution cost budget to date figure to 60%. · Data Processing will show excessive expenditures for the remainder of the year because the city contracted out for computer support services with a consultant during the first quarter before the MIS position was filled. Also the payments for the MIS cost-sharing position will be accounted for as an intergovernmental revenue (Municipal Aid category) versus a reimbursement offset to the personnel expenditure category within Data Processing. . Central Garage overall totals are low at 58% because the Fleet Maintenance Coordinator position has only recently been filled. However in the area of current maintenance expenses, expenditures for the first three quarters of the year have exceeded their total budget line item by 25% which is attributed to above normal contract services for body work and engine repairs for the police and fire departments. This category also represents the first year of budgeting experience which will account for above normal line item fluctuations. . General Government totals are in general conformance at 72% of budget estimates. Public Safety . Fire Department expenses are fairly low because nearly 50% of department costs are attributed to volunteer and pension contribution which is paid as an annual lump sum at year end. . Building Inspection expenses are lagging at 64% for the year because of position openings relating to the zoning code enforcement officer and seasonal building inspector which proved difficult to fill due to the availability of very few qualified candidates and the market demand for these positions. Both positions are now filled. Also the professional service category for contracting out plan reviews for commercial building permits has not been utilized to date. . Animal control does not represent a full quarter of service because they are billed one month in arrears. . Public Safety totals are in general conformance at 66% with budget estimates upon factoring in the year end volunteer compensation within the Fire Department. BR0398.DOC Public Works · Public Works totals are in general conformance at 75% of budget estimates. Culture-Recreation · Recreation Department dance program activities have exceeded expectations and have reached nearly 98% of YTD budget level. However park program registrations have also exceeded 100% of estimated revenue and Recreation staff expect that revenues realized in the fourth quarter will exceed those expenditures that are revenue supported for the year. · Library results are favorable due to the fact that very little repair and maintenance costs were incurred during the first three quarters of the year. · Culture-Recreation totals are above seasonal expectations at 83% of budget estimates. Economic Develooment · The budget expenditure variance occurs within the printed service category for EDA promotional materials that have not been spent and professional services line item which is reserved for the most part for BOPITIF packaging and is largely unexpended to date. Debt Service · The majority of general debt service bond payments are made during the month of December. Transit Services . Transit Services totals are in general conformance at 50% with budget estimates as the second half payment is not scheduled to be made to the Minnesota Valley Transit Authority until December. Continl!ent Reserve · Contingency expenditures to date have been limited for insurance settlements and a portion of the re-roofing of City Hall. There remains a balance of $13 ,000 to be paid for the roofing job which will complete the required roofing replacement of the entire City Hall building. The remaining funds within the Contingency Reserve have been expended on the 5/30 storm cleanup efforts. For the most part these costs will be recovered from Federal disaster aid emergency funds. Expenditure Summary: 1998 General Fund 3rd Quarter operating expenditures are on track and represent 67% of the total $6,830,200 operating budget. This actually compares with 1997 3rd quarter results of 66%. Expenditures during the 3rd quarter of the year amounted to 22% of budget allocation which is a little less than a normal fiscal quarter. . Revenues: · Property tax collection receipts are right at 51 % which is on target since settlements basically occur only twice a year. No apparent tax delinquency problem exists. · Building permit activity rebounded to near seasonal expectations. Overall License & Permits revenue is at 74% of budget. · Intergovernmental revenue in the form of state aids and homestead and agricultural credit (HACA), which account for almost 57% of aids, are received in two installments in late July and end of December which would account for our current receipt level of 60%. BR0398.DOC . Charges for services is slightly below expectations at 73% of revenue realized. . Fine revenue is averaging nearly $1,900 more per month than projected. . Development revenue has pushed Miscellaneous Revenue totals to 81 % of budget. . Other Financing Sources primarily consists of the $200,000 enklpl~se fund contribution transfer which is recognized as a fund transfer at year end. Revenue Summarv: Revenue totals realized are typical at approximately 56% of budget which compares positively to the norm of the past five years which have shown a spread of 51-59% at the end ofthe third quarter. 3RD QUARTER BUDGET RECAP: Overall, the 1998 3rd quarter financial performance is fairly typical to past years with no significant expense variances or revenue shortfalls appearing other than noted. Contingency expenditures are running higher and will be completely utilized by the year end as a result of the spring storms. However, FEMA funds will reimburse the City for virtually all out of pocket costs not covered by insurance. Our first reimbursement check from FEMA is expected by the end of October. * [3rd Quarter Budget Report represents expenditures and revenues to date and do not include outstanding appropriations or receipt expectations.] a BR0398.DOC .1i!