HomeMy WebLinkAbout4D - 2nd Quarter Budget Report
AGENDA #:
PREPARED BY:
SUBJECT:
DATE:
INTRODUCTION:
Attachment
STAFF AGENDA REPORT
4D
RALPH TESCHNER, FINANCE DIRECTOR
CONSIDER APPROV AL OF 2ND QUARTER BUDGET
REPORT AND OVERVIEW
ruL Y 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 2nd Quarter Budget
Report is a document entitled "Budget Report Overview" that is
intended to satisfy your request.
The "overview" provides information related to those areas within
the budget that have experienced exceptions to the approved budget
levels. The report identities 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
pport to the Quarterly Budget Report and enhance your
nderstanding of performance results. Please feel free to contact me
at extension 204 for more information.
H:\BUDGETlBR.DOC
16200 Eagle Creek Ave. S.E., Prior Lake, Minnesota 55372-1714 / Ph. (612) 447-4230 / Fax (612) 447-4245
AN EQUAL OPPORTUNITY EMPLOYER
1997 2nd Quarter Budget Report
Budget Amount Expended Percent
General Government 1,279,758.00 632,359.00 49%
Mayor & Council 25,075.00 11,464.00 46%
Ordinance 14,850.00 3,040.00 20%
City Manager 227,061.00 111,469.00 49%
Boards & Commissions 5,409.00 186.00 3%
Elections 5,245.00 1,268.00 24%
Director of Finance 85,407.00 42,978.00 50%
Accounting 81,256.00 38,034.00 47%
Internal Auditing 9,930.00 10,005.00 101%
Assessing 34,100.00 33,500.00 98%
Law 200,800.00 110,765.00 55%
Personnel 70,392.00 38,573.00 55%
Planning & Zoning 232,473.00 102,133.00 44%
Data Processing 90,570.00 44,155.00 49%
Buildings & Plant 197,190.00 84,789.00 43%
Public Safety 2,146,723.00 970,262.00 45%
Police 1,578,341.00 789,399.00 50%
Fire & Rescue 190,993.00 42,632.00 22%
Building Inspection 360,109.00 133,106.00 37%
Civil Defense 6,050.00 559.00 9%
Animal Control 11,230.00 4,566.00 41%
Public Works 781,805.00 303,488.00 39%
Engineering 443,756.00 164,796.00 37%
Street 338,049.00 138,692.00 41%
Culture-Recreation 957,155.00 478,086.00 50%
Recreation 302,599.00 141,944.00 47%
Parks 641,501.00 331,335.00 52%
Libraries 13,055.00 4,807.00 37%
Economic Development 52,146.00 28,035.00 54%
Debt Service 484,960.00 112,186.00 23%
Transit Services 301,171.00 150,586.00 50%
Contingent Reserve 150,000.00 101,611.00 68%
Revenues 6,153,718.00 2,811,486.00 46%
General Property Taxes 3,171,148.00 1,328,237.00 42%
Licenses & Permits 426,500.00 188,563.00 44%
Intergovernmental Revenue 1,581,413.00 838,463.00 53%
Charges for Services 599,750.00 327,939.00 55%
Fines & Forfeits 60,000.00 29,344.00 49%
Miscellaneous Revenue 128,200.00 93,530.00 73%
Other Financing Sources 186,707.00 5,410.00 3%
Total Budget Expenditures 6,153,718.00 2,776,613.00 45%
Total Budget Revenues 6,153,718.00 2,811,486.00 46%
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BUDGET REPORT OVERVIEW
(1997 2nd Quarter Budget Report)
Expenditures:
General Government
. Ordinance expenditures are somewhat under budget due to the fact that ordinance
codification costs have yet to be billed to the City plus legal notice expenses are down
from the previous year.
. Expenses associated with Boards and Commissions and Elections are typically not
incurred until the latter part of the budget year i.e., December planning commission per
diems, fall elections, therefore the minimal amounts.
. Both general legal and prosecution are running close to 55% of budget estimates as
litigation costs are higher than expected. It appears that prosecution costs will exceed
budget estimates for the first time in the City's 6 year joint city association.
. Personnel expenditures are slightly above due to substantial employment hiring costs i.e.,
advertisements, testing etc.
. Planning department expenditures are down by nearly 6% because their professional
service account balance of $14,000 remains unexpended to date. These dollars are
scheduled to be used later in the year during the process of amending the subdivision and
zoning ordinances.
. Buildings & Plant expenses are somewhat lower than projected because the majority of
the capital dollars for equipment and building improvements have not been spent to date.
. General Government totals are in general conformance at 49% with budget estimates.
Public Safety
. Fire Department expenses are fairly low because over 50% of department costs are
attributed to volunteer compensation 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 at 45% with budget estimates.
Public Works
. Engineering expenses are lagging primarily due to pOSItIon vacancies relating to the
assistant city engineer and engineering tech 3 positions which were open for an extended
period of time.
. Street Department expenses typically lag during the 1 st half of the year due to the fact that
a major share of its operating expenses are incurred during summer and fall.
. Public Works totals are somewhat under budget estimates because we are in the beginning
of the construction season.
Culture-Recreation
. Recreation program expenditures represent a budget performance of 47%.
. Park Department expenditures of 52% are a little higher than the no~inal year to date
. Library results are favorable due to the fact that virtually no repair and maintenance costs
were incurred during the first half of the year.
. Culture-Recreation totals are at 50% and are fairly consistent with seasonal expectations
and budget estimates.
Economic Development
. Economic Development totals are slightly above variance at 54% of budget estimates
which for the most part was due to the recent labor settlement.
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Contingent Reserve
. Contingency expenditures to date in excess of $10 1,000 are primarily associated with the
civil defense siren appropriation of $6,490 by the City Council which was installed along
Northwood Road & Center Street in cooperation with Spring Lake Township and labor
settlement backpay for the past three years for the Teamsters professional manager's
bargaining unit.
Expenditure Summary:
1997 General Fund 2nd Quarter operating expenditures are on track and represent 45% of the
total $6,153,718 operating budget. This actually compares with 1996 2nd quarter results of
43%. The main reason for the differential being the contract settlement expenditures within
the Contingent Reserve.
Revenues:
. The current property tax settlement in June showed no apparent delinquency problem as
collections were slightly above 48%. The first half of fiscal disparities will be remitted by
the County to Prior Lake during the first week of July.
. Building permit activity is down compared to projections as is evident by revenue
collections of 36% compared to the 50% nominal for mid-year. Overall License & Permits
revenue is down for the year at 44% of budget.
. Intergovernmental revenue in the form of state aids and homestead and agricultural credit
(HAC A) is normally received in two installments in late July and end of December. This
year the State of Minnesota remitted the I st half HACA payment one month early in June
to help those cities with flood restoration projects.
. Charges for Services is above expectations at 55% of revenue realized. Although building
activity in the area of plan check fees is down, several categories such as the cable
franchise fee, tower antenna rental fees, zoning and subdivision fees etc. have already
exceeded initial projections for the year.
. Fine revenue is averaging almost $5900 or $900 more per month than projected.
. Development revenue in excess of $73,000 was earned during the first half which IS
greater than the entire $35,000 budgeted for the year.
. Other Financing Sources primarily consists of the $175,000 enterprise fund contribution
transfer which will be transferred at year end.
Revenue Summary:
Revenues realized are somewhat higher than typical at approximately 46% of budget because
of the statewide flood relief situation which resulted in the HACA aids to cities being
released in June rather than July by the State of Minnesota. If the normal payment schedule
would have been followed the revenue percentage would be 38% which compares positively
to the past five years which have shown a spread of 32-38% at mid year.
2ND QUARTER BUDGET RECAP:
'Overall, the 1997 2nd quarter financial performance is fairly typical to past years.
Contingency expenditures are running higher and will be completely utilized by the end of
the year. The present Contingency balance of $48,000 will be exceed by approximately
$11,000 as an additional $35,000 has been allocated by the Council for council meeting cable
televising plus $24,000 has been programmed for entry monuments. In summary midyear
revenues have remained slightly ahead of expenditures by a 46% to 45% margin.
*[2nd Quarter Budget Report represents expenditures and revenues to date and do not include
outstanding appropriations or receipt expectations.]
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