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Home My WebLink About4H - Third Quarter Budget Report <I AGENDA #: PREPARED BY: SUBJECT: DATE: INTRODUCTION: / Attachment...,,/' STAFF AGENDA REPORT 4H RALPH TESCHNER, FINANCE DIRECTOR CONSIDER APPROVAL OF 3RD QUARTER BUDGET REPORT AND OVERVIEW OCTOBER 20, 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 3rd 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 identifies revenue shortfalls and surpluses and includes a short explanation as to the various reasons. Expenditures are also summarized on this basis. ~e "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:\BUDGET\BR.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 3rd Quarter Budget Report Budget Amount Expended Percent General Government 1,279,758.00 939,786.00 73% Mayor & Council 25,075.00 15,490.00 62% Ordinance 14,850.00 6,062.00 41% City Manager 227,061.00 167,261.00 74% Boards & Commissions 5,409.00 370.00 7% Elections 5,245.00 1,268.00 24% Director of Finance 85,407.00 63,847.00 75% Accounting 81,256.00 57,256.00 70% Internal Auditing 9,930.00 10,005.00 101% Assessing 34,100.00 33,500.00 98% Law 200,800.00 179,600.00 89% Personnel 70,392.00 53,498.00 76% Planning & Zoning 232,473.00 154,152.00 66% Data Processing 90,570.00 61,591.00 68% Buildings & Plant 197,190.00 135,886.00 69% Public Safety 2,146,723.00 1,430,166.00 67% Police 1,578,341.00 1,138,249.00 72% Fire & Rescue 190,993.00 71,703.00 38% Building Inspection 360,109.00 212,081.00 59% Civil Defense 6,050.00 828.00 14% Animal Control 11,230.00 7,305.00 65% Public Works 781,805.00 520,178.00 67% Engineering 443,756.00 270,991.00 61% Street 338,049.00 249,187.00 74% Culture-Recreation 957,155.00 771,734.00 81% Recreation 302,599.00 255,348.00 84% Parks 641,501.00 508,708.00 79% Libraries 13,055.00 7,678.00 59% Economic Development 52,146.00 36,338.00 70% Debt Service 484,960.00 112,186.00 23% Transit Services 301,171.00 150,586.00 50% Contingent Reserve 150,000.00 102,352.00 68% Revenues 6,153,718.00 3,535,811.00 57% General Property Taxes 3,171,148.00 1,598,232.00 50% Licenses & Permits 426,500.00 280,967.00 66% Intergovernmental Revenue 1,581,413.00 974,375.00 62% Charges for Services 599,750.00 419,150.00 70% Fines & Forfeits 60,000.00 52,092.00 87% Miscellaneous Revenue 128,200.00 196,044.00 153% Other Financing Sources 186,707.00 14,951.00 8% Total Budget Expenditures 6,153,718.00 4,063,326.00 66% Total Budget Revenues 6,153,718.00 3,535,811.00 57% BR0397XLS I \:55 AM 10/3/97 BUDGET REPORT OVERVIEW (1997 3rd 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. . Internal Auditing and Assessing costs are at 101 % and 98% respectively as these activities are closed out for the year. . General legal fees are running close to 96% compared to nominal year to date variance of 75% of budget estimates as litigation costs are higher than expected. Prosecution is at 76% which when combined with general legal fees results in the overall City Attorney costs at 89% of budget. . Planning department expenditures are down by nearly 9% because their professional service account balance of $14,000 remains unexpended to date. A portion of these dollars are anticipated to be used in the last quarter during the process of amending and printing the subdivision and zoning ordinances. · Data Processing expenses are somewhat lower than projected because approximately 50% of the capital dollars remain for equipment and building improvements which will be spent by year end. . Buildings & Plant expenses are somewhat lower than projected as insurance and utility costs are running somewhat lower plus the lease payment for the municipal parking lot is scheduled to be made during this fmal quarter. . General Government totals are at 73% of budget estimates. Public Safety . Police Department totals are slightly below variance because of the police chief vacancy which will be filled on November 1st of this year. . 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. . Building Inspection Department totals are under projections due to the three month building official vacancy plus the fact that the professional service category typicany used for outside plan inspections oflarge complex commercial projects has not been expended. . Animal control does not represent a full quarter of service because they are billed one month in arrears. . Public Safety totals are running lower than normal at 67% with budget estimates primarily due to position vacancies and the fact that personnel expenses associated with the Fire Department are deferred until the end of the year. 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. . Public Works totals are somewhat under budget estimates at 67% mainly due to the underunning of personnel expenses within the Engineering Department. BR0397,DOC Culture-Recreation · Recreation program expenditures represent a budget performance of 84% that is higher than the 75% variance as a result of increased recreation program participation especially in the dance program area which has been extremely popular and has produced higher revenues as well. · Park Department expenditures of 79% are somewhat higher than budget projections because a fairly significant share of expenditures are incurred during the summer in upgrading and maintaining equipment and community/neighborhood park structures. · Library results are favorable due to the fact that virtually no repair and maintenance costs were incurred during the first three quarters of the year. · Culture-Recreation totals are at 81 % and are fairly consistent with seasonal expectations and budget estimates. Economic Development · Printing allocation within the department for EDA promotional materials have not been used to date which is the reason Economic Development totals are at 70% of budget estimates. Contin~ent Reserve · Contingency expenditures to date in excess of $102,000 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 3rd Quarter operating expenditures are on track and represent 66% of the total $6,153,718 operating budget. This actually compares with 1997 3rd quarter results of 67%. Expenditures during the 3rd quarter of the year amounted to 21 % of budget allocation which is a little less than a normal fiscal quarter. Revenues: · Property tax collection receipts are right at 50% which is on target since settlements basically occur only twice a year. No apparent tax delinquency problem exists. · Building permit activity is down compared to projections as is evident by revenue collections of 57% compared to the 75% nominal for the third quarter. Overall License & Permits revenue is down for the year at 66% of budget. · Intergovernmental revenue in the form of state aids and homestead and agricultural credit (HACA) is normally received in two installments in late July and end of December. This year the State of Minnesota remitted the 1st halfHACA payment one month early in June to help those cities with flood restoration projects. · Charges for Services is near expectations at 70% 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 $6500 or $1500 more per month than projected. · Development revenue in excess of $143,450 earned through the first three quarters exceeds 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. BR0397.DOC Revenue Summary: Revenues realized are somewhat higher than typical at approximately 57% of budget which compares positively to the past five years which have shown a spread of 51-59% at the end of the third quarter. 3RD QUARTER BUDGET RECAP: Overall, the 1997 3rd 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. *[3rd Quarter Budget Report represents expenditures and revenues to date and does not include outstanding appropriations or receipt expectations.] BR0397.DOC -_...-- .~