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Home My WebLink About4C - First Q. Budget Report AGENDA #: PREPARED BY: SUBJECT: DATE: STAFF AGENDA REPORT 4C RALPH TESCHNER, FINANCE DIRECTOR CONSIDER APPROVAL OF 1ST QUARTER BUDGET REPORT AND OVERVIEW APRIL 21, 1997 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 1st Quarter Budget Report is a document entitled "Budget Report Overview" that is intended to satisfy your request. INTRODUCTION: , I I I /1 Approved by: Attachment The "overview" provides information related to those areas within the budget that have experienced exceptions 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 sup rt to the Quarterly Budget Report and enhance your u rstanding of performance results. Please feel free to contact me a extension 204 for more information. R\BUDGEliBR.DOC 16200 Eagle Creek Ave. S.E., Prior Lake, Minnesota 55372-1714 / Ph. (612) 447-4230 / Fax (612) 447-4245 AN EQUAL OPPORTUNITY EMPLOYER BUDGET REPORT OVERVIEW (1997 1st Quarter Budget Report) Expenditures: General Government . Expenses associated with Boards and Commissions and Assessing are typically not incurred until the latter part of the budget year i.e., December planning commission per diems and mid-year contract assessing billing, therefore the zero amounts. Also, Internal Auditing shows little activity as audit billings have not yet been submitted for work completed on the 1996 audit report. . General Government totals are in general conformance with budget estimates. Public Safely . 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 . Engineering Department is under running during the 1st quarter due to position vacancies i.e., specifically the assistant city engineer (recently filled) and engineering tech 3 positions (still open). . 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. . Public Works totals are somewhat under budget estimates because we have not entered the construction season. 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 professional services line item which is reserved for the most part for BOPffIF packaging and is unexpended to date. Debt Service . The majority of general debt service bond payments are made during the months of June and December. Transit Services . This entire expenditure is associated with the City's tax levy which is scheduled to be paid in June and December. The Council has recently approved a 12Yz% advance to Minnesota Valley Transit Authority charge which will be forwarded shortly and is subject to an 8% interest financing charge. BROI97.DOC Contin~ent Reserve . Contingency expenditures to date are composed of two items; $6490 civil defense siren appropriation by the city council for placement along Spring Lake and $1200 for litigation settlement regarding Carolyn Abbot's claim for property loss due to artificially raised water levels of a pond located in Lakefront Park. Expenditure Summary: 1997 General Fund 1st Quarter operating expenditures are on track and represent 17% of the total $6,153,780 operating budget. This actually compares with 1996 1st quarter results of 20%. The main reason for the differential being the fact that we have not advanced any funding for Transit Services during this time period that was not part of last year's budget. 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 32% of revenue realized because we received the 2nd police and fire contract payment from the SMDC earlier than required which pushed quarterly results up by $60,000. . Fine revenue is averaging nearly $800 more per month than projected. . No development revenue has been initiated to date which is a major category within Miscellaneous Revenue. . Other Financing Sources primarily consists of the $175,000 enterprise fund contribution transfer which is recognized at year end. Revenue Summary: Revenues normally lag at this time of year and account for approximately 7.7% of budget, when adjusting out the extra SMDC contract installment, which is actually a little better on average but still representative of the past five years which have shown a spread of 5%-8%. 1ST QUARTER BUDGET RECAP: Overall, the 1997 1st quarter financial performance is fairly typical to past years with no significant expense variances or revenue shortfalls appearing other than noted. It is expected that in the upcoming months a additional expenditures are anticipated to be appropriated from the Contingent Reserve, i.e., cable televising expenses and Teamsters professional unit contract backpay. However it should be noted that a portion of the general fund balance reserve is due to the fact that salary levels did not approach budget the past two years because of the ongoing negotiations. * [1st Quarter Budget Report represents expenditures and revenues to date and do not include outstanding appropriations or receipt expectations.] BR0197.00c 1997 1st Quarter Budget Report Budget Amount Expended Percent General Government 1,279,758.00 281,001.00 22% Mayor & Council 25,075.00 7,342.00 29% Ordinance 14,850.00 1,839.00 12% City Manager 227,061.00 57,930.00 26% Boards & Commissions 5,409.00 0.00 0% Elections 5,245.00 1,268.00 24% Director of Finance 85,407.00 21,048.00 25% Accounting 81,256.00 18,106.00 22% Internal Auditing 9,930.00 125.00 1% Assessing 34,100.00 0.00 0% Law 200,800.00 39,285.00 20% Personnel 70,392.00 18,061.00 26% Planning & Zoning 232,473.00 48,939.00 21% Data Processing 90,570.00 22,081.00 24% Buildings & Plant 197,190.00 44,977 .00 23% Public Safety 2,146,723.00 444,451.00 21% Police 1,578,341.00 366,551.00 23% Fire & Rescue 190,993.00 19,237.00 10% Building Inspection 360,109.00 56,603.00 16% Civil Defense 6,050.00 234.00 4% Animal Control 11,230.00 1,826.00 16% Public Works 781,805.00 129,347.00 17% Engineering 443,756.00 67,246.00 15% Street 338,049.00 62,101.00 18% Culture-Recreation 957,155.00 180,780.00 19% Recreation 302,599.00 62,124.00 21% Parks 641,501.00 116,352.00 18% Libraries 13,055.00 2,304.00 18% Economic Development 52,146.00 10,593.00 20% Debt Service 484,960.00 2,190.00 0% Transit Services 301,171.00 0.00 0% Contingent Reserve 150,000.00 7,692.00 5% Revenues 6,153,718.00 531,086.00 9% General Property Taxes 3,171,148.00 0.00 0% Licenses & Permits 426,500.00 58,746.00 14% Intergovernmental Revenue 1,581,413.00 255,888.00 16% Charges for Services 599,750.00 193,080.00 32% Fines & Forfeits 60,000.00 11,583.00 19% Miscellaneous Revenue 128,200.00 6,414.00 5% Other Financing Sources 186,707.00 5,375.00 3% Total Budget Expenditures 6,153,718.00 1,056,054.00 17% Total Budget Revenues 6,153,718.00 531,086.00 9% BROI97.xLS 8: 10 AM4II6I97