HomeMy WebLinkAbout5D - Third Quarter Budget Report
MEETING DATE:
AGENDA #:
PREPARED BY:
AGENDA ITEM:
DISCUSSION:
RECOMMENDED
MOTION:
CITY COUNCIL AGENDA REPORT
OCTOBER 15,2007
5D
Ralph Teschner, Finance Director
CONSIDER APPROVAL OF 2007 3rd 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 3rd Quarter Budget Report is a document entitled
"Budget Report Overview" for the General Fund that is intended to satisfy your
request. The 3rd Quarter Budget Reports shows the status of expenditures for
the first 9 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 :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 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 3rd Quarter
Budget Report as submitted.
1. 2007 3rd Quarter Budget Summary Reports
2. Budget Report Overview (General Fund)
www.cityofpriorlake.com
Phone 952.447.9800 / Fax 952.447.4245
2007 3rd Quarter General Fund Budget Summary Report
Budget Amount Expended Percent
General Government 2,221,528.00 1,701,076.00 77%
Mayor & Council 61,927.00 47,940.00 77%
Ordinance 12,000.00 5,702.00 48%
City Manager 384,438.00 250,372.00 65%
Boards & Commissions 13,337.00 7,023.00 53%
Elections 5,565.00 85.00 2%
Director of Finance 126,848.00 95,416.00 75%
Accounting 168,240.00 124,616.00 74%
Internal Auditing 18,200.00 18,190.00 100%
Assessing 102,200.00 100,000.00 98%
Law 298,000.00 252,211.00 85%
Personnel 75,799.00 45,032.00 59%
Communications 131,974.00 82,161.00 62%
Planning & Zoning 350,713.00 265,077.00 76%
Data Processing 142,550.00 87,408.00 61%
Buildings & Plant 329,737.00 319,843.00 97%
Public Safety 4,058,132.00 2,662,471.00 66%
Police 2,802,295.00 1,990,624.00 71%
Fire & Rescue 668,649.00 338,864.00 51%
Building Inspection 526,660.00 308,731.00 59%
Civil Defense 27,300.00 2,100.00 8%
Animal Control 33,228.00 22,152.00 67%
Public Works 1,709,200.00 1,417,549.00 83%
Engineering 542,430.00 394,190.00 73%
Street 883,527.00 809,786.00 92%
Central Garage 283,243.00 213,573.00 75%
Culture-Recreation 1,732,122.00 1,317,609.00 76%
Recreation 391,115.00 307,081.00 79%
Parks 1,243,522.00 947,580.00 76%
Libraries 97,485.00 62,948.00 65%
Economic Development 167,141.00 83,669.00 50%
Debt Service 1,547,684.00 472,991.00 31%
Contingent Reserve 250,000.00 107,497.00 43%
Revenues 11,685,807.00 6,459,259.00 55%
General Property Taxes 7,526,814.00 3,691,382.00 49%
Licenses & Permits 752,275.00 457,660.00 61%
Intergovernmental Revenue 1,223,537.00 1,109,233.00 91%
Charges for Services 1,506,581.00 864,834.00 57%
Fines & Forfeits 189,600.00 132,446.00 70%
Miscellaneous Revenue 225,000.00 193,763.00 86%
Other Financing Sources 262,000.00 9,941.00 4%
Total Budget Expenditures 11,685,807.00 7,762,862.00 66%
Total Budget Revenues 11,685,807.00 6,459,259.00 55%
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Enterprise Funds
2007 3rd Quarter Enterprise Funds Budget Summary Report
Budget Amount Expended Percent
Utility Fund 3,678,724.00 2,994,347.00 81%
Water 1,107,693.00 949,055.00 86%
Sewer 2,331,031.00 1,861,508.00 80%
Lift Station Upgrade 240,000.00 128,141.00 53%
CIPP Slip Lining 0.00 29,649.00 nla
Transfers 506,987.00 25,994.00 5%
Water Quality 330,454.00 183,386.00 55%
Transit Services 581,579.00 402,684.00 69%
Revenues 5,474,949.00 4,241,190.00 77%
Water Utility Revenues 4,554,870.00 3,476,156.00 76%
Water Quality Utility Revenues 338,500.00 247,677.00 73%
Transit Revenues 581,579.00 517,357.00 89%
Total Budget Expenditures 5,097,744.00 3,580,417.00 70%
Total Budget Revenues 5,474,949.00 4,241,190.00 77%
BUDGET REPORT OVERVIEW
(2007 3rd Quarter Budget Report)
Expenditures:
General Government
· Ordinance costs for legal notices are down because only a few ordinance publications
occurred during the first nine months, which is the main reason why the YTD percentage
is at only 48%.
· City Manager costs are under at 65% because the professional services account has been
under-expended to date.
· Expenses associated with Boards and Commissions are less due to the fact that a
number of planning commission meeting have been canceled this year.
· 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 85% 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 59% 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 62% because expenses
associated with professional consultant services for web casting have not yet been
expended.
· Data Processing is below estimates at 61 % because technical support and hardware
service costs have been relatively low for the year.
· Bldgs & Plant expenditures are running significantly over at 97% 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 marginal~y above budget estimates at 77%.
Public Safety
· Police Department expenses were slightly below at 71 % because the department has
had two open patrol officer positions, which temporarily reduced personnel expenses
within the department.
· Fire Department expenses are fairly low at 51 % because the pension contribution
payment which represents nearly a third of the department's budget is paid next
quarter.
· Building Inspection expenditures are under at 59% due to the open building inspector
position which was 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 later 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 66%.
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Public Works
· Street Department expenses of 92% are significantly above budget because the
department incurred higher expenses in several repair and maintenance categories i.e.,
crack sealing, sealcoating and bituminous overlays (Council appropriated an
additional $10,000 worth of bituminous overlay work).
· Public Works totals are above budget estimates at 83%.
Culture-Recreation
· Due to the seasonal nature of recreation programs and park activities, their
expenditures normally exceed budget levels during the SUInmer months which
accounts for their budget performance levels of 79% & 76% respectively.
Recreation's major activity levels occur during the summer months that involve park
programs, community events and instructor fees.
· Library budget totals are below at 65% because the $5,000 allocated for building
modifications has not been needed to date.
· Culture-Recreation totals are near seasonal expectations and budget estimates at
76%.
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 50%.
Debt Service
· All general debt service bond payments are made during the months of June (interest
only) and December (principal/interest).
· Debt Service totals are in general conformance y"ith budget estimates at 31%.
Contingent Reserve
· Five Contingency expenditures totaling $107,497 have occurred so far this year;
1. $425 LMCIT insurance reimbursement payment.
2. $1,050 OSHA safety fine.
3. $6,359 Kopp farm demolition expenses.
4. $9,663 Dept. of Revenue sales tax audit.
5. $90,000 dump clean-up restitution to Scott County.
Expenditure Summary:
2007 General Fund 3rd Quarter operating expenditures are on track and represent 66% of
the total $11,685,807 operating budget. This actually compares with similar 2006 3rd
quarter results of 64%.
Revenues:
· The current property tax settlement in June showed no apparent delinquency problem
as collections reached 49%.
· License & Permit fees are notably below total projection at 61 % as building permits
have fallen off which reflects the housing market decline regionally throughout the
metropolitan area.
· Intergovernmental revenue is over at 91 % of the quarterly budget estimate because
100% of all State Aid category (roadlbridge, fire & police) payments for the year
have now been received and recognized.
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. Charges for services are significantly lower at 57% 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 actually averaging approximately $1000/mo. above projections at
70% as payments are in arrears by one month.
. Miscellaneous Revenue is above budget at 86% due to an increase in interest earnings
and contribution donations during the quarter.
. Other Financing Sources primarily consists of the $250,000 enterprise fund
contribution transfer, which is recognized at year-end.
Revenue Summary:
Revenues realized are approximately 55% of budget and is on average weaker in relative
comparison to the past five years that have shown a typical spread of 58-66% at the end
of the third quarter. This is primarily the result of the slowdown in residential housing
construction.
3rd QUARTER BUDGET RECAP:
Overall, the 2007 3rd 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.
* [3rd Quarter Budget Report represents expenditures and revenues to date and do not
include outstanding appropriations or receipt expectations.]
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