HomeMy WebLinkAboutItem 04
M e
To:
From:
Date:
Subject:
Object
Seek
Policy
Backgr
The 201
balance.
excess of
1
2
3
4
e mo
Mayo
Justin
Denni
Febru
2014 G
tive
council dire
y.
round
5 General F
The approv
f the $9.6 m
. First $85,0
. Second $1
. Next $300
a. 20
b. Pa
. Remainin
Reconstru
ran d
r and City Co
Miller, City A
s Feller, Fina
ary 23, 2015
General Fund
ction and cla
Fund Budge
ved 2015 bu
illion would
000 to Park
100,000 app
0,000 to be a
015 Equipme
i. Police
ii. Fire
iii. Streets
iv. Parks
ark Improvem
i. Parks
g unencum
uction projec
d u m
ouncil
Administrato
nce Director
d Unencumb
arification o
et was prem
udget also in
be appropri
Improveme
propriated to
appropriate
ent Fund (no
Ma
s
ment Fund (
mbered bala
ct
1
m
or
r
bered Balanc
n 2014 Gene
mised on an
ncluded a pro
iated as follo
nt Fund for
o the 2015 S
d (prorated)
on‐funded eq
ximum Allot
$65,000
$25,000
$38,000
$22,000
(New)
$150,000
ances to b
e Policy
eral Fund Un
n assumed
oviso that a
ows:
Land of Ama
Street Recon
) as follows:
quipment)
t
21.7%
8.3%
12.7%
7.3%
50.0%
be appropr
Ci
Financ
nencumbere
$9,760,650
ny funds (un
azement
nstruction pr
iated to t
ity of Lake
ce Departm
ed Balance
0 beginning
nencumbere
roject
he 2015 S
eville
ment
fund
ed) in
Street
2
Discussion
Subsequent to adoption of the 2015 Budget and “Unencumber 2014 Fund Balance Policy, the
question was raised as to whether “Second and Fourth Priority”, are intended to be
appropriated to…
a) The 2015 Street Reconstruction Project or…
b) The City share of cost for the 2015 Street Reconstruction Project.
If the unencumbered funds are to be appropriated to the 2015 Street Reconstruction Costs,
60% of the unencumbered funds will reduce projects costs financed by debt thus reducing
future tax levies and future tax levies for interest expense. The remaining 40% will be
appropriated to reduction of special assessments.
If the unencumbered funds are to be appropriated to the City share of cost for the Street
Reconstruction Project, 100% of the unencumbered funds will reduce projects costs financed
by debt thus reducing future tax levies and future tax levies for interest expense.
Property
taxes
Special
Assessments
a) Street Reconstruction Project 60% 40%
b) City Share of cost for Street
Reconstruction Project 100% 0%
Appropriated to
Factors to Consider
Factors to consider when deliberating policy issues and outcomes include:
Sources of unencumbered funds.
In the near term, the primary sources of the unencumbered funds are non‐tax revenues
related to growth and expenditures financed primarily with property taxes.
3
o Does the City Council intend to have a nexus between the sources and uses of
the unencumbered funds? In other words is there a correlation between those
that contributed to the unencumbered funds and those who benefit?
Long term financial policy
o If the costs are appropriated to the 2015 Street Reconstruction Costs, will the
City Council be seeking to use future unencumbered funds to reduce special
assessments in 2016 and beyond?
o If the costs are appropriated to City share of cost for the Street Reconstruction
Project, is the appropriation consistent with the City Council intent with regard
to future tax levies for the repayment of debt and interest expense.
Recommendations
The 2015 Street Reconstruction Project bids will be obtained in the coming weeks. Project
financing as well as special assessments proposed to levied to benefited properties will be
calculated and distributed in advance of the April 6 public hearing.
Staff therefore seeks City Council direction and clarification on 2014 General Fund
Unencumbered Balance Policy as to whether “Second and Fourth Priority”, are intended to be
appropriated to…
a) The 2015 Street Reconstruction Project or…
b) The City share of cost for the 2015 Street Reconstruction Project.
4
PRELIMINARY ‐ FINANCIAL HIGHLIGHTS
GENERAL FUND
FISCAL YEAR ENDING DECEMBER 31, 2014
The following Preliminary Financial Report and analysis contained herein offers the Readers a
narrative overview of the financial activities of the City for the fiscal year ending December 31,
2014. Much of the data provided within this report is based on estimates and therefore is
subject to change. The Reader of this Report is therefore advised to use caution and due care
in drawing premature conclusions regarding the financial position and financial performance
until the publication of the final 2014 Comprehensive Annual Financial Report.
The Preliminary Financial Report and analysis only provides an elementary level of information.
The Reader is encouraged to also seek the more comprehensive background information
provided in the budget document.
OPERATIONS:
Unencumbered Fund Balances exceed expectations.
The 2015 budget anticipated a beginning fund balance of $9.7 million based on a estimated
revenues of $22.0 million and $22.7 million of expenditures. The estimate fund balance
however is $10.7 million which is $0.9 million more than previously anticipated.
Revenues exceeded estimates by $546,000 primarily as a result of residential growth and
engineering fees for public improvements. Expenditures are anticipated to end the year
$386,000 below estimates due to relatively mild weather and employee vacancies.
546,130 386,061
20,000,000
20,500,000
21,000,000
21,500,000
22,000,000
22,500,000
23,000,000
Revenues Expenses
5
Continued strong revenues
The General Fund is estimated to end 2014 with approximately $22.5 million of revenues.
The Revenues are $546,000 more than previously anticipated of which more than 79% is
due to fees related to residential growth and engineering fees for public improvements.
Taxes
$22,830
4%
Licenses and
permits
$206,861
38%
Charges for
services
$223,504
41%
Other
$92,935
17%
Lakeville remains one of the fastest growing communities in the twin cities metro area.
Developer confidence in future growth continues with 429 new residential lots approved.
Construction of new single family homes is down slightly from the previous year; however,
the construction value of the average new home is up 9.5%.
0
50
100
150
200
250
300
350
400
450
500
2006 2007 2008 2009 2010 2011 2012 2013 2014
PE
R
M
I
T
S
YEAR
RESIDENTIAL PERMITS
Total Residential Units Single Family
$546,000
6
Operation expenses remain favorable.
Operating expenditures are estimated to be $ 22.3 for fiscal year ending December 31,
2014. The relatively mild weather in November and December as well as personnel
vacancies were the major contributing factors which resulted in expenditures being
$386,000 less than previously anticipated.
Public Safety
$(154,217)
‐37%
Public Works
$17,350
4%
Parks &
Leisure
$(114,793)
‐27%
Other
$(134,401)
‐32%
$(386,000)
7
Variance
Previous Preliminary With Previous
Estimate Actual Estimate
Revenues
General property taxes 16,826,757$ 16,849,587$ 22,830$
Licenses and permits 1,951,991 2,158,852 206,861
Intergovernmental 735,034 780,192 45,158
Charges for services 2,170,999 2,394,503 223,504
Court fines 209,716 208,827 (889)
Investment income 40,376 96,576 56,200
Miscellaneous 77,468 69,934 (7,534)
Total revenues 22,012,341 22,558,471 546,130
Expenditures
General government
Mayor and Council 97,071 93,207 (3,864)
Committees and Commissions 66,013 61,712 (4,301)
City administration 432,675 431,201 (1,474)
City Clerk 199,761 183,445 (16,316)
Legal counsel 82,351 53,495 (28,856)
Planning 420,943 418,252 (2,691)
Community and econ. development 299,834 283,874 (15,960)
Inspections 902,770 893,963 (8,807)
General government facilities 443,493 418,607 (24,886)
Finance 637,287 639,684 2,397
Information systems 490,644 469,344 (21,300)
Human resources 357,611 349,268 (8,343)
Insurance 289,075 289,075 -
Public safet y
Police 9,064,199 8,939,419 (124,780)
Fire 1,559,677 1,530,240 (29,437)
Public works
Engineering 740,415 715,665 (24,750)
Operations and Maintenance 151,574 144,911 (6,663)
Streets 3,015,767 3,064,530 48,763
Parks and recreation
Parks 2,245,504 2,187,516 (57,988)
Recreation 607,668 602,788 (4,880)
Heritage Center 97,569 101,236 3,667
Arts Center 433,828 425,126 (8,702)
Other 46,890 - (46,890)
Total expenditures 22,682,619 22,296,558 (386,061)
Excess (deficiency) of revenues
over expenditures (670,278) 261,913 932,191
Other financing sources (uses)
Transfer from other funds 757,755 759,814 2,059
-Net change in fund balance 87,477 1,021,727 934,250$
Fund balance, January 1 9,666,560 9,666,560
Fund balance, December 31 9,754,037$ 10,688,287$
CITY OF LAKEVILLE, MINNESOTA
General Fund
Schedule of Preliminary Revenues, Expenditures and Changes in Fund Balances
For the Year Ending December 31, 2014