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Home My WebLink About5C - 1Q Budget Report MEETING DATE: AGENDA #: PREPARED BY: AGENDA ITEM: DISCUSSION: RECOMMENDED MOTION: Reviewed by: CITY COUNCIL AGENDA REPORT APRIL 16, 2007 5C Ralph Teschner, Finance Director CONSIDER APPROVAL OF 20071stQUARTER 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 1 st Quarter Budget Report is a document entitled "Budget Report Overview" for the General Fund that is intended to satisfy your request. The 1 st Quarter Budget Reports shows the status of expenditures for the first 3 months of activity in 2007 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 :f: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 2007 1 st Quarter Budget Report as submitted. 1. 2007 1 sl Quarter Budget Summary Reports 2. Budget Report Overview (General Fund) www.cityofpriorlake.com H\BU[)GET\BF~ Phone 952,447.9800 / Fax 952.447.4245 2007 1st Quarter General Fund Budget Summary Report Budget Amount Expended Percent General Government 2,221,528.00 454,044.00 20% Mayor & Council 61,927.00 14,624.00 24% Ordinance 12,000.00 640.00 5% City Manager 384,438.00 96,551.00 25% Boards & Commissions 13,337.00 3,472.00 26% Elections 5,565.00 0.00 0% Director of Finance 126,848.00 32,097.00 25% Accounting 168,240.00 38,985.00 23% Internal Auditing 18,200.00 2,190.00 12% Assessing 102,200.00 0.00 0% Law 298,000.00 77,909.00 26% Personnel 75,799.00 14,268.00 19% Communications 131,974.00 22,794.00 17% Planning & Zoning 350,713.00 86,080.00 25% Data Processing 142,550.00 19,727.00 14% Buildings & Plant 329,737.00 44,707.00 14% Public Safety 4,058,132.00 763,995.00 19% Police 2,802,295.00 615,180.00 22% Fire & Rescue 668,649.00 39,510.00 6% Building Inspection 526,660.00 102,850.00 20% Civil Defense 27,300.00 917.00 3% Animal Control 33,228.00 5,538.00 17% Public Works 1,709,200.00 368,280.00 22% Engineering 542,430.00 128,245.00 24% Street 883,527.00 171,242.00 19% Central Garage 283,243.00 68,793.00 24% Culture-Recreation 1,732,122.00 288,647.00 17% Recreation 391,115.00 49,718.00 13% Parks 1,243,522.00 219,701.00 18% Libraries 97,485.00 19,228.00 20% Economic Development 167,141.00 33,001.00 20% Debt Service 1,547,684.00 0.00 0% Contingent Reserve 250,000.00 425.00 0% Revenues 11,685,807.00 719,876.00 6% General Property Taxes 7,526,814.00 0.00 0% Licenses & Permits 752,275.00 119,096.00 16% IntergovennnentalRevenue 1,223,537.00 330,427.00 27% Charges for Services 1,506,581.00 181,920.00 12% Fines & Forfeits 189,600.00 28,889.00 15% Miscellaneous Revenue 225,000.00 54,960.00 24% Other Financing Sources 262,000.00 4,584.00 2% Total Budget Expenditures 11,685,807.00 1,908,392.00 16% Total Budget Revenues 11,685,807.00 719,876.00 6% BROlO? 11:50 AM4/4/2007 Enterprise Funds 2007 1st Quarter Enterprise Funds Budget Summary Report Budget Amount Expended Percent Utility Fund 3,678,724.00 762,630.00 21% Water 1,557,693.00 279,837.00 18% Sewer 2,121,031.00 456,365.00 22% Lift Station Upgrade 240,000.00 26,428.00 11% Water Quality 330,454.00 27,233.00 8% Transit Services 581,579.00 136,359.00 23% Transfers 506,987.00 0.00 0% Revenues 5,474,949.00 851,410.00 16% Water Utility Revenues 4,554,870.00 668,032.00 15% Water Quality Utility Revenues 338,500.00 68,352.00 20% Transit Revenues 581,579.00 115,026.00 20% Total Budget Expenditures 5,097,744.00 926,222.00 18% Total Budget Revenues 5,474,949.00 851,410.00 16% BUDGET REPORT OVERVIEW (2007 1 st Quarter Budget Report) Expenditures: General Government · Ordinance costs for legal notices is largely unspent because only a few ordinance publications occurred during the first three months, which is the main reason why the YTD percentage is at only 5%. · Expenses associated with Elections and Assessing are typically not incurred until the latter part of the budget year i.e., fall election judge salaries and mid-year contract assessing billing, therefore the zero amounts. Also, Internal Auditing shows minimal activity, as audit billings will occur later for work completed on the 2006 audit report. · Personnel expenses of 19% are somewhat less than nonnal as expenditures associated with professional consultant services and public infonnation categories have not been expended. · Communication expenditures are lower than budget at 17% because postage and expenses associated with professional services, the proposed annual report and miscellaneous brochure mailings have not been incurred yet, plus only two Wavelength publication invoices have been processed to date. · Data Processing is below estimates at 14% because we have not yet expended any capital dollars for our scheduled computer replacements. · Bldgs & Plant is less at 14% because our LMCIT liability and property casualty insurance premiums were billed late by the League of Minnesota Cities and will show up in next quarter's budget analysis. · General Government totals are in general conformance with budget estimates at 20%. Public Safety · Police Department expenses were slightly below at 22% because the new squad cars have not yet been purchased and the department has an open patrol officer position, which temporarily reduces personnel expenses within the department. · Fire Department expenses are fairly low because 62% of department costs are attributed to volunteer compensation and pension contribution, both of which are paid as an annual lump sum near year-end. · Building Inspection expenditures are under at 20% due to the open building inspector position that is scheduled to be filled with a code enforcement officer. · Civil Defense costs are relatively low because the new annexation area siren has not yet been installed. · 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 at 19%. Public Works · Street Department expenses typically lag during the 1 st quarter due to the fact that a major share of its operating expenses is incurred during summer and fall. · Public Works totals are in general conformance with budget estimates at 22%. Culture-Recreation · Due to the seasonal nature of recreation and park expenditures, budget results (13% & 18%) are normally lower during the 1st quarter. Their major activity levels occur during the spring and summer months. · Culture-Recreation totals are near seasonal budget expectation at 17%. BRO 107 Economic Development · The budget expenditures are slightly under as the general professional services and land options appropriation are unexpended to date. · Economic Development totals are under budget estimates at 20%. Debt Service · All general debt service bond payments are made during the months of June and December. Contingent Reserve · One Contingency expenditure of $425.00 has occurred which is attributed to an LMCIT insurance accident reimbursement payment. Expenditure Summary: 2007 General Fund] st Quarter operating expenditures are on track and represent] 6% of the total $] 1,685,807 operating budget. This actually compares with similar 2006 1 st quarter results of 17%. Expenditures during the 1 st quarter are typically less than the remaining fiscal quarters, Revenues: · Property tax settlements are scheduled for June and December therefore no tax revenue has been received. · License & Permit fees are under total projection at 16% as building permit activity is lagging and is not expected to pick up appreciably until next year with a metro-wide slowdown in the overall housing market · Intergovernmental revenue is at the quarterly budget estimate. · Charges for services is under expectations at 12% primarily due to the fall off in building permit plan check fees, 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. Also, all park service fees are not collected until the summer months. · Fine revenue is actually averaging slightly below projections as payments are in arrears by one month. · Miscellaneous Revenue is near budget at 24% of estimates. · Other Financing Sources primarily consists of the $250,000 enterprise fund contribution transfer, which is recognized at year-end. Revenue Summary: Revenues normally lag at this time of year and account for approximately 6% of budget, which is at the lower end of what the City has averaged in the past five years, which have shown a spread of6%-12%. 1 ST QUARTER BUDGET RECAP: Overall, the 2007 151 quarter financial performance is fairly typical to past years with no significant expense variances or revenue shortfalls appearing other than noted. Revenues are a little soft as building activity is anticipated to continue its short-term decline as the construction season begins. * [1st Quarter Budget Report represents expenditures and revenues to date and do not include outstanding appropriations or receipt expectations.] BRO 107