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HomeMy WebLinkAbout4G - 1999 3rd Quarter Budget Report MEETING DATE: AGENDA #: PREPARED BY: AGENDA ITEM: DISCUSSION: REVIEWED BY: Attachments: STAFF AGENDA REPORT OCTOBER 18, 1999 4G RALPH TESCHNER, FINANCE DIRECTOR CONSIDER APPROVAL OF 1999 3RD QUARTER BUDGET REPORT AND OVERVIEW 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 1999. 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 support to the Quarterly Budget Report and enhance your understanding of perfo ance results. Please feel free to contact me at 447-9841 for more i rmation. c; 1. 1999 3rd er Budget Report 2. Budget Report Overview H:\BUDGET\BR.DOC 16200 Eagle Creek Ave. S.E., Prior Lake, Minnesota 55372-1714 / Ph. (612) 447-4230 / Fax (612) 447-4245 A:\ EQUAL OPPORTUNITY EMPLOYER .., 1999 3rd Quarter Budget Report Budget Amount Expended Percent General Government 1,583,232.00 1,169,488.00 74% Mayor & Council 23,910.00 17,217.00 72% Ordinance 20,500.00 10,508.00 51% City Manager 256,129.00 164,837.00 64% Boards & Commissions 10,038.00 357.00 4% Elections 3,371.00 0.00 0% Director of Finance 93,482.00 66,022.00 71% Accounting 85,468.00 63,128.00 74% Internal Auditing 10,685.00 10,560.00 99% Assessing 41,700.00 41,000.00 98% Law 231,000.00 168,877.00 73% Personnel 76,418.00 58,942.00 77% Planning & Zoning 280,321.00 215,103.00 77% Data Processing 138,543.00 89,149.00 64% Buildings & Plant 177,259.00 152,451.00 86% Central Garage 134,408.00 111,337.00 83% Public Safety 2,251,940.00 1,502,059.00 67% Police 1,718,488.00 1,217,648.00 71% Fire & Rescue 225,077.00 80,083.00 36% Building Inspection 290,045.00 195,482.00 67% Civil Defense 7,100.00 1,541.00 22% Animal Control 11,230.00 7,305.00 65% Public Works 866,133.00 624,647.00 72% Engineering 452,602.00 329,738.00 73% Street 413,531.00 294,909.00 71% CuIture- Recreation 1,057,864.00 894,168.00 85% Recreation 366,516.00 356,155.00 97% Parks 674,583.00 530,311.00 79% Libraries 16,765.00 7,702.00 46% Economic Development 52,378.00 34,507.00 66% Debt Service 886,085.00 412,322.00 47% Transit Services 379,950.00 189,975.00 50% Contingent Reserve 50,000.00 22,682.00 45% Revenues 7,127,582.00 4,184,927.00 59% General Property Taxes 3,901,997.00 1,970,812.00 51% Licenses & Permits 410,200.00 404,329.00 99% Intergovernmental Revenue 1,745,900.00 1,041,570.00 60% Charges Ll1' Services 636,085.00 544,448.00 86% Fines & Forfeits 91,200.00 78,297.00 86% Miscellaneous Revenue 134,200.00 142,864.00 106% Other Financing Sources 208,000.00 2,607.00 1% Total Budget Expenditures 7,127,582.00 4,849,848.00 68% Total Budget Revenues 7,127,582.00 4,184,927.00 59% BR0399XLS 10 11 AMIOII/99 BUDGET REPORT OVERVIEW (1999 3rd Quarter Budget Report) Expenditures: General Government . Ordinance costs for re-codification of the City Code were considerably reduced because the City achieved a significant savings by preparing the document in-house which is the main reason why the YTD percentage is at only 51 %. . 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 and fall elections. . Internal Auditing and Assessing totals represent completion of expenditures for the year with no further remaining activity. . Legal fees in the general service area is running lower at 56% than projected at this point of the budget cycle even after considering the fact that city attorney costs represent only 5 months of billings. However, costs are considerably higher in the prosecution category which is at 97% of the year to date budget. There are two reasons for this increase. The first is attributed to a capital equipment purchase adjustment in the Scott Joint Prosecution budget. The second cause is that the activity level for Prior Lake is above that of the other cities percentage wise and because quarterly costs are distributed on a percentage basis, our share for the first half of the year is more. When combining the two categories though, our legal expenses are on budget. . Data Processing is somewhat under because the dollars associated with the Y2K conversion of the city's utility water billing software upgrade is not scheduled to be completely spent until the end of October. . Bldgs & Plant is above 3rd quarter projections at 86% due to the fact that the LMCIT insurance premiums paid to date do not reflect our anticipated year end dividend return premium. Also, our refuse disposal contract and municipal parking lot lease payments are both 100% pre-paid for the entire year. . Central Garage is above projections at 83% because of higher than expected vehicle and equipment repairs that occurred during the winter months . General Government totals are in general conformance with budget estimates at 74% Public Safety . Police Department expenses are a little below at 71 % because the department experienced two position openings during the summer which resulted in temporarily reducing personnel expenses within the department. . 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 expenditures of 67% are below budget because the second secretarial position has remained vacant since the early part of the year and due to restructuring will not be filled. . Animal control does not represent a full quarter of service because they are billed one month in arrears. . Public Safety totals are less than conformance with budget estimates at 67% Public Works . Street Department expenses typically lag during the first three quarters of the year due to the fact that a major share of it's operating expenses such as salt and sand purchases associated with the snow season are incurred during late fall. . Public Works totals are in general conformance with budget estimates at 72% BR0399.DOC Culture-Recreation . Recreation Department dance program activities have exceeded expectations and have reached 97% of YTD budget level. However park program registrations are also matched at 97% 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 virtually no repair and maintenance costs have occurred. . Culture-Recreation totals are above seasonal expectations and budget estimates at 85%. Economic Development . The budget expenditure variance occurs within the category of printed forms which is reserved for EDA promotional materials that is 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. Contingent Reserve . Three Contingency expenditures have been incurred, two involving insurance payments made to the LMCIT relating to the Traxler lift station encroachment claim ($4392) and the Mousel rights violation claim ($10,000). The third was for replacing two roof top air conditioning coils ($8290) at the Fire Station which were damaged by hail during last year's spring storms. Expenditure Summary: 1999 General Fund 3rd Quarter operating expenditures are on track and represent 68% of the total $7,127,582 operating budget. This actually compares favorably with similar 1998 3rd quarter results of 67%. 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. . License & Permit fees are considerably ahead of projection as building permit activity has been very strong which resulted in all building related revenue sources to come in at 99% of estimates. . Intergovernmental revenue in the form of state aids and homestead and agricultural credit (HACA), which account for almost 55% of aids, are received in two installments in late July and end of December which would account for our current receipt level of 60%. . Charges for services is somewhat above expectations at 86% of revenue realized because we have received our entire franchise fee payment plus park program registrations, along with admission/concession receipts have already approached 100% of estimates. Also, the City entered into another (No.5) water tower antennae lease agreement with APT (American Portable Telecom) which generated an additional $26,250 of facility rental revenue. . Court Fine revenue is averaging nearly $1,200 more per month than projected and our prosecution restitution recovery efforts have been very successful at almost double our initial projection ($1950 vs. $1000/mo.) BR0399.DOC . Development revenue as a result of final plat approvals this past month has pushed Miscellaneous Revenue totals to 106% of budget. . Other Financing Sources primarily consists of the $200,000 enterprise fund contribution transfer which is recognized at year end. Revenue Summary: Revenue totals realized are somewhat higher overall than typical at approximately 59% of budget which compares positively to the norm of the past five years which have shown a spread of 51-59% at the end of the third quarter. 3RD QUARTER BUDGET RECAP: Overall, the 1999 3rd quarter financial performance is fairly representative of past years with no significant expense variances or revenue shortfalls appearing other than noted. * [3rd Quarter Budget Report represents expenditures and revenues to date and do not include outstanding appropriations or receipt expectations.] BR0399.DOC .,,' .iij"'-