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Home My WebLink About4G - 1999 First Quarter Budget Report & Overview MEETING DATE: AGENDA #: PREPARED BY: AGENDA ITEM: DISCUSSION: REVIEWED BY: Attachments: ST AFF AGENDA REPORT APRIL 19, 1999 4G RALPH TESCHNER CONSIDER APPROVAL OF 1999 1ST 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 1 st Quarter Budget Report is a document entitled "Budget Report Overview" that is intended to satisfy your request. The First Quarter Budget Report shows the status of expenditures for the first 3 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 performance results. Please feel free to contact me at 447-9841 for mo e inti ation. H;\BUDGETlBR.DOC 16200 Eagle Creek Ave. S.E., Prior Lake, Minnesota 55372-1714 / Ph. (612) 447-4230 / Fax (612) 447-4245 Aj\; EQUAL OPPORTUNITY EMPLOYER 1999 1st Quarter Budget Report Budget Amount Expended Percent General Government 1,583,232.00 359,039.00 23% Mayor & Council 23,910.00 6,476.00 27% Ordinance 20,500.00 1,638.00 8% City Manager 256,129.00 51,838.00 20% Boards & Commissions 10,038.00 69.00 1% Elections 3,371.00 0.00 0% Director of Finance 93,482.00 21,882.00 23% Accounting 85,468.00 20,375.00 24% Internal Auditing 10,685.00 0.00 0% Assessing 41,700.00 0.00 0% Law 231,000.00 56,240.00 24% Personnel 76,418.00 16,156.00 21% Planning & Zoning 280,321.00 65,393.00 23% Data Processing 138,543.00 28,581.00 21% Buildings & Plant 177,259.00 50,762.00 29% Central Garage 134,408.00 39,629.00 29% Public Safety 2,251,940.00 487,204.00 22% Police 1,718,488.00 391,353.00 23% Fire & Rescue 225,077.00 19,712.00 9% Building Inspection 290,045.00 73,938.00 25% Civil Defense 7,100.00 375.00 5% Animal Control 11,230.00 1,826.00 16% Public Works 866,133.00 174,346.00 20% Engineering 452,602.00 106,292.00 23% Street 413,531.00 68,054.00 16% Culture-Recreation 1,057,864.00 210,737.00 20% Recreation 366,516.00 88,238.00 24% Parks 674,583.00 120,361.00 18% Libraries 16,765.00 2,138.00 13% Economic Development 52,378.00 11,541.00 22% Debt Service 886,085.00 3,745.00 0% Transit Services 379,950.00 0.00 0% Contingent Reserve 50,000.00 14,392.00 29% Revenues 7,127,582.00 682,484.00 10% General Property Taxes 3,901,997.00 0.00 0% Licenses & Permits 410,200.00 79,720.00 19% Intergovernmental Revenue 1,745,900.00 331,370.00 19% Charges for Services 636,085.00 248,118.00 39% Fines & Forfeits 91,200.00 19,097.00 21% Miscellaneous Revenue 134,200.00 3,853.00 3% Other Financing Sources 208,000.00 326.00 0% Total Budget Expenditures 7,127,582.00 1,261,004.00 18% Total Budget Revenues 7,127,582.00 682,484.00 10% BROI99.XLS 3:39 PM4/5/99 BUDGET REPORT OVERVIEW (1999 1st Quarter Budget Report) Expenditures: General Government . Mayor & Council expenditure level of 27% is the result of the open meeting law insurance premium payment for the entire year. . 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 8%. . 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. Also, Internal Auditing shows no activity as audit billings have not yet been submitted for work completed on the 1998 audit report. . Personnel budget of 21 % is under because the dollars allocated under the professional service account for drug testing, EAP and special employee training have not yet been used. . Bldgs & Plant is above 1st quarter projections at 29% due to the fact that the quarterly LMCIT insurance premium does 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 29% because typically vehicle and equipment repairs run higher during the winter months than for the remainder of the year. . General Government totals are in general conformance with budget estimates. 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. . 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. Public Works . Street Department expenses typically lag during the 1st quarter due to the fact that a major share of it's operating expenses are incurred during summer and fall. Culture-Recreation . Due to the seasonal nature of recreation and park expenditures, budget results are normally lower during the 1st quarter. Their major activity levels occur during the spring and summer months. . 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. 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 months of June and December. BROI99.DOC rr--- Transit Services . This entire expenditure is associated with the City's tax levy which is scheduled to be paid in June and December. 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 1st Quarter operating expenditures are on track and represent 18% of the total $7,127,582 operating budget. This actually compares with similar 1998 1st quarter results of 17%. Expenditures during the 1st quarter are typically less than the remaining fiscal quarters. Revenues: . Property tax settlements are scheduled for June and December thereby no tax revenue has been received. . Building permit activity is lagging behind projections which is normal at this time but is expected to pick up as we enter the spring building season. . 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 39% 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 41 % 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 averaging over $600 more per month than projected. . No development contract revenue has been received to date which is a major category within Miscellaneous Revenue. . Other Financing Sources primarily consists of the $200,000 enterprise fund contribution transfer which is recognized at year end. Revenue Summary: Revenues normally lag at this time of year and account for approximately 10% of budget, which is actually a little better on average but still representative of the past five years which have shown a spread of 6%-9%. 1ST QUARTER BUDGET RECAP: Overall, the 1999 1st quarter financial performance is fairly typical to past years with no significant expense variances or revenue shortfalls appearing other than noted. * [1st Quarter Budget Report represents expenditures and revenues to date and do not include outstanding appropriations or receipt expectations.] BRDI99.DOC