HomeMy WebLinkAbout4B - 4th Quarter Budget Report
ST AFF AGENDA REPORT
MEETING DATE:
AGENDA #:
PREPARED BY:
AGENDA ITEM:
MARCH 1, 1999
4B
RALPH TESCHNER
CONSIDER APPROVAL OF 1998 PRELIMINARY 4TH
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 preliminary 4th Quarter
Budget Report is a document entitled "Budget Report Overview"
that is intended to satisfy your request. The Fourth Quarter Budget
Report shows the status of expenditures for 12 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
support to the Quarterly Budget Report and enhance your
understanding of perfo ance results. Please feel free to contact me
at 447-9841 for ore i formation.
Attachments:
reli nary 4th Quarter Budget Report
eport 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:\BUDGET\BR.DOC
1998 Preliminary 4th Quarter Budget Report
Budget Amount Expended Percent
General Government 1,477,700.00 1,429,747.00 97%
Mayor & Council 25,125.00 23,825.00 95%
Ordinance 15,000.00 10,210.00 68%
City Manager 254,369.00 233,560.00 92%
Boards & Commissions 7,993.00 8,116.00 102%
Elections 6,238.00 3,579.00 57%
Director of Finance 90,281.00 89,777.00 99%
Accounting 83,562.00 82,993.00 99%
Internal Auditing 10,385.00 10,260.00 99%
Assessing 37,425.00 37,483.00 100%
Law 232,600.00 213,734.00 92%
Personnel 70,546.00 70,750.00 100%
Planning & Zoning 225,125.00 212,475.00 94%
Data Processing 95,750.00 131,301.00 137%
Buildings & Plant 192,895.00 164,614.00 85%
Central Garage 130,406.00 137,070.00 105%
Public Safety 2,249,180.00 2,163,072.00 96%
Police 1,675,327.00 1,627,348.00 97%
Fire & Rescue 221,388.00 215,429.00 97%
Building Inspection 334,235.00 299,639.00 90%
Civil Defense 7,000.00 9,699.00 139%
Animal Control 11,230.00 10,957.00 98%
Public Works 788,270.00 797,960.00 101%
Engineering 441,739.00 430,377.00 97%
Street 346,531.00 367,583.00 106%
Culture-Recreation 1,004,142.00 1,033,682.00 103%
Recreation 341,237.00 393,618.00 115%
Parks 650,050.00 630,202.00 97%
Libraries 12,855.00 9,862.00 77%
Economic Development 54,842.00 51,921.00 95%
Debt Service 854,895.00 854,464.00 100%
Transit Services 301,171.00 301,171.00 100%
Contingent Reserve 100,000.00 7,081.00 7%
Revenues 6,830,200.00 7,106,367.00 104%
General Property Taxes 3,695,732.00 3,690,789.00 100%
Licenses & Permits 429,975.00 453,827.00 106%
Intergovernmental Revenue 1,674,941.00 1,810,451.00 108%
Charges for Services 618,150.00 667,507.00 108%
Fines & Forfeits 70,200.00 95,024.00 135%
Miscellaneous Revenue 138,202.00 184,861.00 134%
Other Financing Sources 203,000.00 203,908.00 100%
Total Budget Expenditures 6,830,200.00 6,639,098.00 97%
Total Budget Revenues 6,830,200.00 7,106,367.00 104%
BR0498.XlS 9:52 AM2/23/99
BUDGET REPORT OVERVIEW
(1998 Preliminary 4th Quarter Budget Report)
Expenditures:
General Government
. Ordinance expenditures were less than budget due to the fact that the costs associated
with the zoning ordinance summary publication will not be incurred until this year
since the new zoning ordinance was just recently approved.
. City Manager total of 92% was the result of reducing professional services expenses
by 50% of the approved level which provided a savings of nearly $14,000.
. Election costs ran a bit under because we cut back on the number of judges and used
volunteer students for certain election activities instead.
. Cumulative finance activities in the areas of finance, accounting, auditing and
assessing totaled 99% of the budget estimate.
. Legal fees attributed to general city attorney services came in at $150,767 which
compares well with the budgeted amount of $148,000. This includes litigation,
negotiations, cable T.V. and retainer. In the prosecution area, restitution efforts were
very successful which reduced the net prosecution cost budget to 74%, a savings
return in excess of $20,000.
. Data Processing shows an excess of 37% in expenditures 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 were
accounted for as an intergovernmental revenue (Municipal Aid category) versus a
reimbursement offset to the personnel expenditure category within Data Processing.
Revenues of $29,300 were received to offset this expenditure.
. Buildings and Plant costs were favorable this past year mainly due to the fact that the
City once again received a significant dividend insurance premium refund from the
League of Minnesota Cities Insurance Trust Fund of almost $29,000.
. Central Garage exceeded budget somewhat as above normal contract services
occurred for body work and engine repairs for the police and fire departments. Also
setup expenditures for small tools and equipment plus initial parts stocking pushed
expenses higher. This category also represents the first year of budgeting experience
which will account for above normal line item fluctuations.
. Remaining categories were in conformance with budget estimates with overall
General Government budget performance of 97%.
Public Safety
. Police Department outcome at 4th quarter was at 97%. The major contributing factor
for their underrun was that the additional secretary position was not filled in a cost
cutting effort to reduce expenditures.
. Fire Department expenses also came in at 97%. The single largest variable was gas
utilities which came in at less than half of expectations due to the mild 1998 winter
and the extremely warm month of December leading into this winter season. The next
highest variance was in the area of training expenses which was $4,000 less than
appropriated.
. Building Inspection Department totals were under projections due to the late filling 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. Also the professional
service category for contracting out plan reviews for large commercial building
BR0498.DOC
permits was not utilized since no large commercial buildings were constructed this
past year that required this assistance.
· Public Safety total budget performance was a favorable 96% for the year in view of
the fact that it accounts for the major public service category and nearly a third of the
city's entire general operating budget.
Public Works
· Engineering year to date expenses were 97%. Again, the major reason responsible for
the 3% savings was the effort to reduce the contracting out of professional services as
much as possible which accounted for a savings of $6,000 out of the $10,000 that was
available for use.
· Street Department costs which came in at 106% of budget were exceeded for the
most part in two line items; $11,000 more in striping was spent than originally
planned for and electric utilities for street lighting escalated by more than 19%
($13,778) which was the result of a significant number of street lights coming on line
due to county road and new subdivision projects.
· Public Works overall total of 101 % was consistent with budget estimates.
CuI ture- Recrea ti on
· Recreation Department program expenditures represented a budget performance of
115% as activities exceeded expectations, especially the dance program. These
expenses are offset by park program registrations which reached 130% of estimated
revenue.
· Park Department expenditures were at 97% primarily because the use of temporary
employees was less utilized than in past years as a result of the tight youth labor
market.
· Culture-Recreation totals of 103% was slightly above budget estimates.
Economic Development
· Economic Development expenditure activity of 95% was under budget estimates. The
budget expenditure variance occurs within the printed service category for EDA
promotional materials that went largely unspent.
Contingent Reserve
· While gross expenditures within the Contingency approached $163,000 we credited
insurance proceeds of $156,000 to this account as a result of the damage settlements
that the City received for the two May storms. Therefore the Contingent Reserves
reflects a net expenditure activity of only 7% for the entire year.
Exvenditure Summary:
Total unaudited 1998 General Operating Budget expenditures are projected to be
$6,669,253 when including outstanding encumbrances. This amount represents 98% of
the approved 1998 City of Prior Lake Operating Budget ($6,830,198). These totals
compare with actual budgetary performance of 98%, 98% and 95% for the preceding
years of 1997, 1996 and 1995.
Revenues:
· Current property tax collections resulted in a 99% collections rate which is somewhat
higher than previous years on average. When adding in delinquent receipts of past
years the City realized nearly 100% of its 1998 property tax levy.
BR0498.DOC
. License & Permits revenue was up, ending the year at 106% of budget. This occurred
as building permit activity rebounded the last half of the year to exceed our estimates
by 5%.
. Intergovernmental revenue was significantly higher (108%) due to the receipt of
approximately $90,000 of FEMA aid, a $10,000 comp plan grant from the
Metropolitan Council and the creation of a municipal aid revenue account to track the
$30,000 of reimbursements received from Savage and Shakopee for the joint powers
funded MIS position.
. Charges for Services was above expectations at 108% of revenue realized. The entire
difference was the result of increased park recreation program receipts in the amount
of $48,000 more than the level anticipated of$160,600.
. Fine revenue averaged $7900 monthly or $2050 more per month than projected.
. Development revenue of $45,000 was earned for the year which was $10,000 greater than
budgeted. In addition, interest earnings increased by over $30,000 (from $75,000 to
$105,196) as well due to longer term investing and combined with a $10,000 jump in
contributions and donations to the city accounted for the 34% increase in Miscellaneous
Revenues.
. Other Financing Sources primarily consisted of the $200,000 enterprise fund contribution
transfer and property sales which generated an additional $3900.
Revenue Summary:
Total 1998 General Operating Budget revenues are projected to be $7,116,071. This amount
represents 104% of the City of Prior Lake's $6,830,198 General Operating Budget. These
totals compare with actual budgetary performance of 102%, 105% and 105% respectively for
the preceding years of 1997, 1996 and 1995.
4TH QUARTER BUDGET RECAP:
Overall, the 1998 budgetary financial performance was very good as the City's General Fund
balance will have increased by approximately $447,000 from $1,815,122 to a preliminary
unaudited position of $2,261,940 as the results of revenues exceeding expenditures. This
general fund balance amount represents a reserve of 32%. The above figures are not final. As
soon as the City's 1998 financial audit is completed in May, Staff will report the actual fund
balance increase.
If not for the federal disaster aid of $89,808 and insurance reimbursement of $156,073
for costs associated with equipment depreciation, damage sustained by buildings that do
not warrant immediate repair, tree loss allowance, all of which are not offset by actual
out of pocket expenditures, our revenues over expenditures would have been closer to
$200,000.
BR0498.DOC