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Home My WebLink About5J - 1998 Firest Quarter Budget Report AGENDA #: PREPARED BY: SUBJECT: DATE: INTRODUCTION: ru; Approved by: V Attachment STAFF AGENDA REPORT 5'J RALPH TESCHNER, FINANCE DIRECTOR CONSIDER APPROVAL OF 1998 1ST QUARTER BUDGET REPORT AND OVERVIEW April 20, 1998 The City Council has directed Staff to prepare an accompanying written narrative that would serve as an informational excerpt to the quarterly budget reports. Attached to the 1 st Quarter Budget Report is a document entitled "Budget Report Overview" that is intended to satisfy your request. The First Quarter Budget Report shows the status of expenditures for the first 3 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. The "Budget Report Overview" is intended to serve as narrative upport to the Quarterly Budget Report and enhance your understanding of performance results. Please feel free to contact me at 447-9841 for more information. H:\BUDGET\BR.DOC 16200 Eagle Creek Ave. S.E., Prior Lake, Minnesota 55372-1714 / Ph. (612) 447-4230 / Fax (612) 447-4245 AN EQUAL OPPORTUNITY EMPLOYER 1998 1st Quarter Budget Report Budget Amount Expended Percent General Government 1,477,700.00 302,864.00 20% Mayor & Council 25,125.00 7,975.00 32% Ordinance 15,000.00 1,624.00 11% City Manager 254,369.00 57,452.00 23% Boards & Commissions 7,993.00 0.00 0% Elections 6,238.00 0.00 0% Director of Finance 90,281.00 21,063.00 23% Accounting 83,562.00 22,491.00 27% Internal Auditing 10,385.00 0.00 0% Assessing 37,425.00 0.00 0% Law 232,600.00 36,895.00 16% Personnel 70,546.00 16,718.00 24% Planning & Zoning 225,125.00 50,514.00 22% Data Processing 95,750.00 23,611.00 25% Buildings & Plant 192,895.00 44,230.00 23% Central Garage 130,406.00 20,291.00 16% Public Safety 2,249,180.00 474,801.00 21% Police 1,675,327.00 388,171.00 23% Fire & Rescue 221,388.00 20,614.00 9% Building Inspection 334,235.00 63,904.00 19% Civil Defense 7,000.00 286.00 4% Animal Control 11,230.00 1,826.00 16% Public Works 788,270.00 172,469.00 22% Engineering 441,739.00 107,693.00 24% Street 346,531.00 64,776.00 19% Culture-Recreation 1,004,142.00 195,274.00 19% Recreation 341,237.00 75,058.00 22% Parks 650,050.00 117,718.00 18% Libraries 12,855.00 2,498.00 19% Economic Development 54,842.00 9,655.00 18% Debt Service 854,895.00 1,530.00 0% Transit Services 301,171.00 0.00 0% Contingent Reserve 100,000.00 0.00 0% Revenues 6,830,200.00 531,086.00 8% General Property Taxes 3,695,732.00 0.00 0% Licenses & Permits 429,975.00 58,746.00 14% Intergovernmental Revenue 1,674,941.00 255,888.00 15% Charges for Services 618,150.00 193,080.00 31% Fines & Forfeits 70,200.00 11,583.00 17% Miscellaneous Revenue 138,202.00 6,414.00 5% Other Financing Sources 203,000.00 5,375.00 3% Total Budget Expenditures 6,830,200.00 1,156,593.00 17% Total Budget Revenues 6,830,200.00 531,086.00 8% BR0198JeLS 3:25 PM4I8/98 BUDGET REPORT OVERVIEW (1998 1st Quarter Budget Report) Expenditures: General Govem~ . Mayor & Council expenditure level of 32% is the result of the open meeting law insurance premium payment for the entire year plus the Travel & Conference account is at 55% due to the annual workshop expense. . Expenses associated with Boards and Commissions and Assessing are typically not incurred until the latter part of the budget year i.e., December planning commission per diems and mid-year contract assessing billing, therefore the zero amounts. Also, Internal Auditing shows no activity as audit billings have not yet been submitted for work completed on the 1997 audit report. . General Government totals are in general conformance with budget estimates. Puhlic 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. . Animal control does not represent a full quarter of service because they are billed one month in arrears. . Public Safety totals are in general conformance with budget estimates. Public Works . Street Department expenses typically lag during the 1st quarter due to the fact that a major share of it's operating expenses are incurred during summer and fall. .Culture-Recreation . Due to the seasonal nature of recreation and park expenditures, budget results are normally lower during the 1st quarter. Their major activity levels occur during the spring and summer months. . Library results are favorable due to the fact that virtually no repair and maintenance costs were incurred during the quarter. . Culture-Recreation totals are consistent with seasonal expectations and budget estimates. .Economic Develonmenj . The budget expenditure variance occurs within the professional services line item which is reserved for the most part for BOPffIF packaging and is unexpended to date. Debt Service . The majority of general debt service bond payments are made during the months of June and December. Inms.it Servm . This entire expenditure is associated with the City's tax levy which is scheduled to be paid in June and December. Cont~eserve. . No Contingency expenditures to date have been incurred, however we do anticipate an upcoming cost of approximately $20,000 to re-roof the City Hall South Addition. Last year we did the north roof of City. This will complete the required roofing replacement of the entire City Hall building. BROI98.DOC Expenditure Summary: 1998 General Fund 1 st Quarter operating expenditures are on track and represent 17% of the total $6,830,200 operating budget. This actually compares with virtually identical 1997 1st quarter results of 17%. Expenditures during the 1st quarter are typically less than the remaining fiscal quarters. Revenues: . Property tax settlements are scheduled for June and December thereby no tax revenue has been received. . Building permit activity is lagging behind projections which is normal at this time but is expected to pick up as we enter the spring building season. . Intergovernmental revenue in the form of state aids and homestead and agricultural credit (HACA) is received in two installments in late July and end of December. . Charges for services is somewhat above expectations at 31 % of revenue realized because we receive the entire cable franchise fee payment during this period and park program registrations, particularly in the dance program, have been strong as 45% of estimated revenues have been collected to date. . Fine revenue is averaging nearly $575 more per month than projected. . Development revenue is down to date which is a major category within Miscellaneous Revenue. . Other Financing Sources primarily consists of the $200,000 enterprise fund contribution transfer which is recognized at year end. Revenue Summarv: Revenues normally lag at this time of year and account for approximately 8% of budget, which is actually a little better on average but still representative of the past five years which have shown a spread of 5%-8%. 1ST QUARTER BUDGET RECAP: Overall, the 1998 1st quarter financial performance is fairly typical to past years with no significant expense variances or revenue shortfalls appearing other than noted. * [1st Quarter Budget Report represents expenditures and revenues to date and do not include outstanding appropriations or receipt expectations.] BR0198.DOC