HomeMy WebLinkAbout5C - 2nd Quarter Budget Report & Overview
MEETING DATE:
AGENDA #:
PREPARED BY:
AGENDA ITEM:
DISCUSSION:
RECOMMENDED
MOTION:
Reviewed by:
Frank Boyles,
ATTACHMEN :
CITY COUNCIL AGENDA REPORT
JULY 16,2007
5C
Ralph Teschner, Finance Director
CONSIDER APPROVAL OF 2007 2ND QUARTER 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 2nd Quarter Budget Report is a document entitled
"Budget Report Overview" for the General Fund that is intended to satisfy your
request. The 2nd Quarter Budget Reports shows the status of expenditures for
the first 6 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 :t5% 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 2nd Quarter
Budget Report as submitted.
1. 2007 2nd Quarter Budget Summary Reports
2. Budget Report Overview (General Fund)
www.cityofpriorlake.com
Phone 952.447.9800 / Fax 952.447.4245
2007 2nd Quarter General Fund Budget Summary Report
Budget Amount Expended Percent
General Government 2,221,528.00 1,205,717.00 54%
Mayor & Council 61,927.00 31,164.00 50%
Ordinance 12,000.00 4,041.00 34%
City Manager 384,438.00 167,480.00 44%
Boards & Commissions 13,337.00 3,821.00 29%
Elections 5,565.00 -144.00 -3%
Director of Finance 126,848.00 63,955.00 50%
Accounting 168,240.00 81,432.00 48%
Internal Auditing 18,200.00 18,190.00 100%
Assessing 102,200.00 100,000.00 98%
Law 298,000.00 195,616.00 66%
Personnel 75,799.00 31,357.00 41%
Communications 131,974.00 52,735.00 40%
Planning & Zoning 350,713.00 171,757.00 49%
Data Processing 142,550.00 72,442.00 51%
Buildings & Plant 329,737.00 211,871.00 64%
Public Safety 4,058,132.00 1,649,778.00 41%
Police 2,802,295.00 1,343,314.00 48%
Fire & Rescue 668,649.00 83,419.00 12%
Building Inspection 526,660.00 207,584.00 39%
Civil Defense 27,300.00 1,616.00 6%
Animal Control 33,228.00 13,845.00 42%
Public Works 1,709,200.00 857,136.00 50%
Engineering 542,430.00 260,151.00 48%
Street 883,527.00 458,994.00 52%
Central Garage 283,243.00 137,991.00 49%
Culture-Recreation 1,732,122.00 732,667.00 42%
Recreation 391,115.00 137,177.00 35%
Parks 1,243,522.00 551,966.00 44%
Libraries 97,485.00 43,524.00 45%
Economic Development 167,141.00 59,975.00 36%
Debt Service 1,547,684.00 498,985.00 32%
Contingent Reserve 250,000.00 105,718.00 42%
Revenues 11,685,807.00 5,239,225.00 45%
General Property Taxes 7,526,814.00 3,691,382.00 49%
Licenses & Permits 752,275.00 335,319.00 45%
Intergovernmental Revenue 1,223,537.00 437,778.00 36%
Charges for Services 1,506,581.00 549,071.00 36%
Fines & Forfeits 189,600.00 76,861.00 41%
Miscellaneous Revenue 225,000.00 142,316.00 63%
Other Financing Sources 262,000.00 6,498.00 2%
Total Budget Expenditures 11,685,807.00 5,109,976.00 44%
Total Budget Revenues 11,685,807.00 5,239,225.00 45%
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Enterprise Funds
2007 2nd Quarter Enterprise Funds Budget Summary Report
Budget Amount Expended Percent
Utility Fund 3,678,724.00 1,533,909.00 42%
Water 1,107,693.00 578,966.00 52%
Sewer 2,331,031.00 888,396.00 38%
Lift Station Upgrade 240,000.00 36,898.00 15%
CIPP Slip Lining 0.00 29,649.00 nla
Water Quality 330,454.00 79,928.00 24%
Transit Services 581,579.00 256,262.00 44%
Transfers 506,987.00 0.00 0%
Revenues 5,474,949.00 2,631,401.00 48%
Water Utility Revenues 4,554,870.00 2,149,823.00 47%
Water Quality Utility Revenues 338,500.00 186,777.00 55%
Transit Revenues 581,579.00 294,801.00 51%
Total Budget Expenditures 5,097,744.00 1,870,099.00 37%
Total Budget Revenues 5,474,949.00 2,631,401.00 48%
BUDGET REPORT OVERVIEW
(2007 2ND Quarter Budget Report)
Expenditures:
General Government
. Ordinance costs for legal notices are largely unspent because only a few ordinance
publications occurred during the first six months, which is the main reason why the YTD
percentage is at only 34%.
. City Manager costs are under at 44% because our AMM and League of Minnesota Cities
dues have not yet been billed to the City which total more than $21,000.
. Expenses associated with Elections i.e., fall election judge salaries are not incurred
until the November general election.
. Internal Auditing results are complete at 100%.
. Assessing contract service expenditures are complete for the year and represent 98%
of budget.
. Legal expenditures have exceeded budget projections at 66% because of litigation
associated with the special assessment appeals while prosecution expenses were
higher as the Scott Joint Prosecution budget increased more than expected for this
year. Also, our activity level for Prior Lake was higher than that of the other cities
percentage wise and since costs are distributed on a percentage basis, our share for
the year was more.
. Personnel expenses of 41 % are somewhat less than normal as expenditures associated
with professional consultant services for employee training have not yet been expended.
. Communication expenditures are lower than budget at 40% because expenses
associated with professional consultant services for web casting have not yet been
expended.
. Bldgs & Plant expenditures are running over at 64% primarily because of higher
energy costs for gas and electric utilities. Also repair and maintenance supplies are
nearly double our expense allocation to date because of a number of building
accessory needs that were not anticipated with the new city hall move-in.
. General Government totals are running marginally above budget estimates at 54%.
Public Safety
. Police Department expenses were slightly below at 48% because the department has
had two open patrol officer positions, which temporarily reduced 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 39% due to the open building inspector
position that is scheduled to be filled with a code enforcement officer within the
Planning Department.
. Civil Defense costs are relatively low because the new siren in the annexation area is
not scheduled to be installed until this Fall.
. 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 41%.
Public Works
. Street Department expenses of 52% are higher because the department is ahead of
schedule in several repair and maintenance categories i.e., crack sealing, sealcoating
and bituminous overlay due to favorable early weather conditions.
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· Public Works totals are in general conformance with budget estimates at 50%.
Culture-Recreation
· Due to the seasonal nature of recreation programs and parks maintenance, their
budget expenditures normally lag during the 1 st half of the year that accounts for their
budget performance levels of only 35% and 44% respectively. Recreation's major
activity levels occur during the summer months that involve park programs,
community events and instructor fees.
· Culture-Recreation totals are less than seasonal expectations and budget estimates at
42%.
Economic Development
. The budget expenditures are significantly under as the general professional services
and land options appropriation are unexpended to date.
. Economic Development totals are under budget estimates at 36%.
Debt Service
. All general debt service bond payments are made during the months of June (interest
only) and December (principal/interest).
Contingent Reserve
. Four Contingency expenditures totaling $105,718 have occurred so far this year;
1. $425 LMCIT insurance reimbursement payment.
2. $5,630 Kopp farm demolition expenses.
3. $9,663 Dept. of Revenue sales tax audit.
4. $90,000 dump clean-up restitution to Scott County.
Expenditure Summary:
2007 General Fund 2nd Quarter operating expenditures are on track and represent 44%
of the total $11,685,807 operating budget. This actually compares with similar 2006 2nd
quarter results of 43%.
Revenues:
. The current property tax settlement in June showed no apparent delinquency problem
as collections reached 49%.
. License & Permit fees are somewhat below total projection at 45% as building
permits have fallen off which reflects the housing market decline regionally
throughout the metropolitan area.
. Intergovernmental revenue is under at 36% of the quarterly budget estimate because
the Fire and Police aid funded by the 2% surcharge on property and casualty
insurance premiums is not paid until September by the State of Minnesota.
. Charges for services are lower at 36% because of a similar reduction in plan check
fees as building activity continues to slow. The difference is also attributed to the
timing of franchise fee payments which occurs shortly after the end of each quarter
and the project administration/engineering transfer which is recognized at year end.
. Fine revenue is averaging approximately $400/mo. less than projections at 41 % as
payments are in arrears by one month.
. Miscellaneous Revenue is above budget at 63% due to an increase in miscellaneous
revenue and development contract revenue during the quarter.
. Other Financing Sources primarily consists of the $250,000 enterprise fund
contribution transfer, which is recognized at year-end.
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Revenue Summary:
Revenues realized are approximately 45% of budget and is on average a little weaker in
relative comparison to the past five years that have shown a typical spread of 48-53% at
midyear. This is primarily the result of the slowdown in residential housing construction.
2nd QUARTER BUDGET RECAP:
Overall, the 2007 2nd quarter financial performance is fairly typical to past years with no
significant expense variances or revenue shortfalls appearing other than noted. Building
related revenues are expected to fall off as permit activity is anticipated to continue its
decline for the remainder of the year.
* [2nd Quarter Budget Report represents expenditures and revenues to date and do not
include outstanding appropriations or receipt expectations.]
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