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Home My WebLink About4F - Second Quarter Budget Report STAFF AGENDA REPORT MEETING DATE: AGENDA #: PREPARED BY: AGENDA ITEM: JULY 19, 1999 4F RALPH TESCHNER, FINANCE DIRECTOR CONSIDER APPROVAL OF 1999 2ND 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 1 st Quarter Budget Report is a document entitled "Budget Report Overview" that is intended to satisfy your request. The Second Quarter Budget Report shows the status of expenditures for the first 6 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. REVIEWED BY: Attachments: 1. 1999 2n Qu er Budget Report 2. Budget Re ort Overview 16200 Eagle Creek Ave. S.E., Prior Lake, Minnesota 55372-1714 / Ph. (612) 447-4230 / Fax (6121-447-4245 AN EQUAL OPPORTUNITY EMPLOYER H;\BUDGEl\BR.DOC 1999 2nd Quarter Budget Report Budget Amount Expended Percent General Government 1,583,232.00 789,113.00 50% Mayor & Council 23,910.00 12,492.00 52% Ordinance 20,500.00 5,286.00 26% City Manager 256,129.00 108,686.00 42% Boards & Commissions 10,038.00 357.00 4% Elections 3,371.00 0.00 0% Director of Finance 93,482.00 43,894.00 47% Accounting 85,468.00 41,830.00 49% Internal Auditing 10,685.00 10,560.00 99% Assessing 41,700.00 41,000.00 98% Law 231,000.00 122,794.00 53% Personnel 76,418.00 38,389.00 50% Planning & Zoning 280,321.00 124,270.00 44% Data Processing 138,543.00 56,660.00 41% Buildings & Plant 177,259.00 107,250.00 61% Central Garage 134,408.00 75,645.00 56% Public Safety 2,251,940.00 1,047,636.00 47% Police 1,718,488.00 838,977.00 49% Fire & Rescue 225,077.00 48,922.00 22% Building Inspection 290,045.00 154,473.00 53% Civil Defense 7,100.00 698.00 10% Animal Control 11,230.00 4,566.00 41% Public Works 866,133.00 358,801.00 41% Engineering 452,602.00 218,616.00 48% Street 413,531.00 140,185.00 34% Culture-Recreation 1,057,864.00 523,889.00 50% Recreation 366,516.00 194,004.00 53% Parks 674,583.00 325,435.00 48% Libraries 16,765.00 4,450.00 27% Economic Development 52,378.00 22,312.00 43% Debt Service 886,085.00 345,306.00 39% Transit Services 379,950.00 189,975.00 50% Contingent Reserve 50,000.00 14,392.00 29% Revenues 7,127,582.00 3,144,539.00 44% General Property Taxes 3,901,997.00 1,940,701.00 50% Licenses & Permits 410,200.00 262,887.00 64% Intergovernmental Revenue 1,745,900.00 412,690.00 24% Charges for Services 636,085.00 410,823.00 65% Fines & Forfeits 91,200.00 46,413.00 51% Miscellaneous Revenue 134,200.00 68,268.00 51% Other Financing Sources 208,000.00 2,757.00 1% Total Budget Expenditures 7,127,582.00 3,291,424.00 46% Total Budget Revenues 7,127,582.00 3,144,539.00 44% " _# BR0299.XLS 11:20 AM7/1I99 BUDGET REPORT OVERVIEW (1999 2nd Quarter Budget Report) Expenditures: General Government · Ordinance costs for re-codification of the City Code will take place later this year which is the main reason why the YTD percentage is at only 26%. · Expenses associated with Boards and Commissions and Assessing are typically not incurred until the latter part of the budget year i.e., December EDA and planning commission per diems and mid-year contract assessing billing, therefore the zero amounts. · 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 a little lower at 43% 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 67% 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. · 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 spent until the months of August-September. · Bldgs & Plant is above 1st quarter projections at 61 % 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 56% 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 50%. 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 expenditures of 53% are above budget because the data conversion from the old property management required a longer time than programmed which exceeded the dollars available in the temporary employee line item. . 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 47%. Public Works . Street Department expenses typically lag during the 1st half of the year due to the fact that a major share of it's operating expenses such as sealcoating, street patching salt and sand purchases are incurred during summer and fall. Culture-Recreation · 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 at 50%. BR0299.DOC ~-- 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 greatest amount of general debt service bond payments are made during the month of December. Transit Services . Transit Services totals are in general conformance with budget estimates at 50%. Contingent Reserve . Two Contingency expenditures have been incurred, and both involve insurance payments made to the LMCIT relating to the Traxler lift station encroachment claim ($4392) and the Mousel rights violation claim ($10,000). Expenditure Summary: 1999 General Fund 2nd Quarter operating expenditures are on track and represent 46% of the total $7,127,582 operating budget. This actually compares favorably with similar 1998 2nd quarter results of 45%. Revenues: . The current property tax settlement in June showed no apparent delinquency problem as collections approached 50%. The first half of the transit feathering tax reimbursement will be remitted the State during the first week of July. . License & Permit fees are considerably ahead of projection as building permit activity was on a very strong pace early in the year which resulted in all building related revenue sources to come in at 57% of estimates. . 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 65% 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 74% of estimated revenues have been' collected to date. 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. . Fine revenue is right at estimates with 51 % collected year to date. . Miscellaneous Revenue is right at estimates with 51 % collected year to date. . Other Financing Sources primarily consists of the $200,000 enterprise fund contribution transfer which is recognized at year end. Revenue Summary: Revenues realized are somewhat higher overall than typical at approximately 44% of budget which compares positively to the past five years which have shown a spread of 36-46% at mid year. 2ND QUARTER BUDGET RECAP: Overall, the 1999 2nd quarter financial performance is fairly typical to past years with no significant expense variances or revenue shortfalls appearing other than noted. * [2nd Quarter Budget Report represents expenditures and revenues to date and do not include outstanding appropriations or receipt expectations.] BR0299.DOC ~ --