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HomeMy WebLinkAboutItem 03.ci FINANCIAL HIGHLIGHTS: The following financial report and analysis offers readers a narrative overview of the financial activities of the City for the six month period ended June 30, 2015. The readers are encouraged to consider the information presented here in conjunction with the unaudited financial statements attached to this report, the adopted budget and the five year Capital Improvement Plan.  General Fund - Revenues  Property tax revenues • Tax payments from Dakota County are received in two annual installments in June and December. The General fund received $9.2 million in property tax revenues for the first half of 2015. Revenues are anticipated to be $17.8 million for 2015.  Licenses and Permits. • Building permit revenue continues to be strong exceeding 2014 by 33.6%. During the first half of 2015, one new industrial and six new commercial permits were issued with a combined valuation of $13.5 million. 187 New residential building permits were issued in the first half of the year which is up compared to 161 during the same period last year.  Intergovernmental. • Revenues are typically received in the third and fourth quarters.  Charges for Services. • General government services are exceeding budget due largely to increases in planning activities related to new development plans. • Public Safety services are exceeding the same period a year ago as a result of the fee increases going into effect April 1, 2015. • Public works revenues for engineering related services in connection with developer construction administration have already exceeded budget expectations. The largest source of revenues that are derived from City improvement projects are typically not recognized until later in the construction season. • Parks and Recreation revenues are constant with budget and the prior year.  Court Fines • Revenues from court fines are showing a significant increase over this period last year due to filling vacant positions allowing increased police patrols. ii FINANCIAL HIGHLIGHTS (continued):  General Fund - Expenditures  Utilities – Natural Gas. Due to the milder temps (specifically March), all municipal building are realizing significant savings over the same period 2014.  Inspections. The department is exceeding budget appropriations due to adding an additional inspector as well as increased contractual electrical inspections resulting from the growth in construction.  Finance. Personnel services were impacted by the retirement of the Finance Director at the end of February. A portion of the overage is offset with the delay in filling the position.  Police Department. Personnel services are showing an increase over the same period last year as the department filled vacant positions as well as realizing a full year for positions created during the 2014 reorganization.  Fire Department. Personnel services are typically low due to not recognizing the Fire Relief contribution for state aid until the fourth quarter. 2015 personnel services are up over the same period last year due to the addition of the Assistant Fire Chief. The number of fire calls are consistent with prior year.  Engineering Department. Personnel services are trailing budget due in part to employee transitions for positions that were vacant during the same period last year.  Operations & Maintenance. Personnel services are on track with budget expectations. Overtime is expected to increase as the construction season is in full force. Any shortfalls will be covered by revenues. The Operations and Maintenance division was created in late July 2014 and therefore there are no year to date amounts for 2014. Capital acquisitions consist of two new Ford Escapes placed into service in May.  Streets. As a result of the fewer snow events during the first quarter of 2015, the department’s expenditures continue to trail expenditures in 2012, 2013 and 2014 during the first half of 2015. iii FINANCIAL HIGHLIGHTS (continued):  General Fund - Expenditures (continued)  Parks. Personnel services are in line with budget appropriations, but are up over 2014 due to the exceptional rink season as well as less time devoted to assisting the Street Department’s snow removal. Other charges and services are up over 2014 due to one-time major maintenance projects appropriated in 2015.  Heritage Center. Personnel services are up slightly over budget due to increases in Heritage Center rentals.  Recreation/Arts Center. Expenditures are in line with budget appropriations as they are starting their busy summer schedules. Unaudited 2015 2015 Variance from Variance from Adopted Amended 6/30/2015 Amended Budget Actual 6/30/2014 2014 Actual Budget Budget Actual Positive (Negative) Percent Actual Positive (Negative) Revenues General property taxes 17,811,502 $ 17,811,502 $ 9,180,691 $ (8,630,811) $ 51.5% 8,701,468 $ 479,223 $ Licenses and permits 1,968,416 1,968,416 1,340,908 (627,508) 68.1% 1,037,647 303,261 Intergovernmental 827,661 827,661 65,445 (762,216) 7.9% 17,159 48,286 Charges for services 2,939,577 2,939,577 1,307,894 (1,631,683) 44.5% 1,029,576 278,318 Court fines 288,001 288,001 180,304 (107,697) 62.6% 116,057 64,247 Investment income 40,376 40,376 20,033 (20,343) 49.6% 18,235 1,798 Miscellaneous 46,145 46,145 24,692 (21,453) 53.5% 26,346 (1,654) Total revenues 23,921,678 23,921,678 12,119,967 (11,801,711) 50.7% 10,946,488 1,173,479 Expenditures Mayor and Council 97,411 97,411 40,058 57,354 41.1% 39,381 (677) Committees and Commissions 71,096 71,096 8,928 62,169 12.6% 12,869 3,942 City Administration 414,285 414,285 194,001 220,284 46.8% 204,329 10,328 City Clerk 127,401 127,401 67,633 59,768 53.1% 74,118 6,485 Legal Counsel 82,351 82,351 36,766 45,585 44.6% 30,332 (6,434) Planning 429,809 429,809 216,193 213,616 50.3% 201,756 (14,437) Community and Econ. Development 300,526 300,526 134,558 165,968 44.8% 129,213 (5,345) Inspections 854,922 854,922 442,971 411,951 51.8% 410,241 (32,730) General Government Facilities 433,123 433,123 211,982 221,141 48.9% 208,547 (3,435) Finance 665,298 665,298 384,280 281,019 57.8% 324,435 (59,845) Information Systems 530,931 530,931 300,885 230,046 56.7% 309,759 8,874 Human Resources 378,472 378,472 223,062 155,410 58.9% 166,194 (56,868) Insurance 322,100 322,100 161,050 161,050 50.0% 144,538 (16,512) Police 9,211,309 9,211,309 4,607,585 4,603,725 50.0% 4,415,177 (192,408) Fire 1,639,147 1,639,147 606,847 1,032,301 37.0% 577,510 (29,337) Engineering 712,273 712,273 322,126 390,147 45.2% 415,640 93,514 Operations and Maintenance 553,796 553,796 293,792 260,004 53.1% - (293,792) Streets 2,994,209 2,994,209 1,419,033 1,575,177 47.4% 1,665,162 246,130 Parks 2,388,645 2,388,645 1,140,504 1,248,142 47.7% 1,061,781 (78,723) Recreation 608,476 608,476 283,058 325,418 46.5% 303,705 20,647 Heritage Center 104,516 104,516 38,139 66,377 36.5% 47,054 8,915 Arts Center 448,505 448,505 207,027 241,478 46.2% 213,889 6,862 Other 105,000 105,000 - 105,000 0.0% - - Total expenditures 23,473,601 23,473,601 11,340,475 12,133,126 48.3% 10,955,630 (384,845) Excess (deficiency) of revenues over expenditures 448,077 448,077 779,492 331,415 (9,142) (788,634) Other financing sources (uses) Transfer from other funds 809,935 809,935 404,968 (404,968) 50.0% 379,908 25,060 Transfer to other funds (727,000) (1,612,000) (1,612,000) - 100.0% - (1,612,000) Total other financing sources (uses) 82,935 (802,065) (1,207,033) (404,968) 379,908 (1,586,941) Net change in fund balance 531,012 (353,988) (427,540) (73,552) 370,766 (798,306) Beginning fund balance 9,754,037 11,071,769 11,071,769 - 9,666,560 1,405,209 Ending fund balance 10,285,049 $ 10,717,781 $ 10,644,229 $ (73,552) $ 10,037,326 $ 606,903 $ Net change in fund balance percentage 5.4% (3.2%) (3.9%) 3.8% Ratio: Fund balance to CY expenditures 43.8% 45.7% 93.9% 91.6% General Fund Summary Statement of Revenues, Expenditures and Changes in Fund Balances For the Six Month Period Ended June 30, 2015 Comparative 1 Unaudited General Fund Schedule of Expenditures 2015 2015 Variance from Variance from Adopted Amended 6/30/2015 Amended Budget Actual 6/30/2014 2014 Actual Expenditures Budget Budget Actual Positive (Negative) Percent Actual Positive (Negative) Mayor and Council Personnel services 49,776 $ 49,776 $ 24,250 $ 25,527 $ 49% 24,870 $ 621 $ Commodities 50 50 - 50 0% - - Other charges and services 47,585 47,585 15,808 31,777 33% 14,511 (1,297) Total 97,411 97,411 40,058 57,354 41% 39,381 (677) Committees/Commissions Personnel services 57,336 57,336 1,312 56,025 2% 3,724 2,413 Commodities 1,530 1,530 115 1,415 8% 1,118 1,003 Other charges and services 12,230 12,230 7,501 4,729 61% 8,027 526 Total 71,096 71,096 8,928 62,169 13% 12,869 3,942 City Administration Personnel services 395,760 395,760 184,592 211,168 47% 195,935 11,343 Commodities 734 734 159 575 22% 217 58 Other charges and services 17,791 17,791 9,250 8,541 52% 8,177 (1,073) Total 414,285 414,285 194,001 220,284 47% 204,329 10,328 City Clerk Personnel services 104,429 104,429 54,269 50,160 52% 51,378 (2,891) Commodities 282 282 39 243 14% 3 (36) Other charges and services 22,690 22,690 13,325 9,365 59% 22,737 9,412 Total 127,401 127,401 67,633 59,768 53% 74,118 6,485 Legal Counsel Other charges and services 82,351 82,351 36,766 45,585 45% 30,332 (6,434) Planning Personnel services 406,215 406,215 205,324 200,891 51% 192,461 (12,863) Commodities 2,248 2,248 776 1,472 35% 765 (11) Other charges and services 21,346 21,346 9,677 11,669 45% 7,631 (2,046) Capital outlay - - 416 (416) 0% 899 483 Total 429,809 429,809 216,193 213,616 50% 201,756 (14,437) Community and Economic Development Personnel services 266,506 266,506 123,761 142,745 46% 120,752 (3,009) Commodities 192 192 105 87 55% 26 (79) Other charges and services 33,248 33,248 10,392 22,856 31% 8,435 (1,957) Capital outlay 580 580 300 280 52% - (300) Total 300,526 300,526 134,558 165,968 45% 129,213 (5,345) Inspection Personnel services 674,114 674,114 346,344 327,770 51% 321,645 (24,699) Commodities 10,255 10,255 5,910 4,345 58% 4,328 (1,582) Other charges and services 169,303 169,303 88,230 81,073 52% 60,860 (27,370) Capital outlay 1,250 1,250 2,487 (1,237) 199% 23,408 20,921 Total 854,922 854,922 442,971 411,951 52% 410,241 (32,730) (continued) Comparative 2 Unaudited General Fund Schedule of Expenditures 2015 2015 Variance from Variance from Adopted Amended 6/30/2015 Amended Budget Actual 6/30/2014 2014 Actual Expenditures (continued) Budget Budget Actual Positive (Negative) Percent Actual Positive (Negative) General Government Facilities Personnel services 204,108 $ 204,108 $ 108,781 $ 95,327 $ 53% 109,048 $ 267 $ Commodities 22,084 22,084 8,094 13,990 37% 8,538 444 Other charges and services 206,931 206,931 95,107 111,824 46% 90,961 (4,146) Total 433,123 433,123 211,982 221,141 49% 208,547 (3,435) Finance Personnel services 568,092 568,092 334,475 233,618 59% 280,774 (53,701) Commodities 5,034 5,034 2,305 2,729 46% 3,142 837 Other charges and services 74,004 74,004 43,334 30,670 59% 40,519 (2,815) Capital outlay 18,168 18,168 4,166 14,002 23% - (4,166) Total 665,298 665,298 384,280 281,019 58% 324,435 (59,845) Information Systems Personnel services 311,448 311,448 161,061 150,387 52% 150,057 (11,004) Commodities 5,847 5,847 3,155 2,692 54% 1,157 (1,998) Other charges and services 213,636 213,636 135,800 77,836 64% 158,545 22,745 Capital outlay - - 869 (869) 0% - (869) Total 530,931 530,931 300,885 230,046 57% 309,759 8,874 Human Resources Personnel services 294,193 294,193 172,877 121,316 59% 131,383 (41,494) Commodities 2,577 2,577 640 1,937 25% 640 - Other charges and services 81,122 81,122 43,905 37,217 54% 34,171 (9,734) Capital outlay 580 580 5,640 (5,060) 972% - (5,640) Total 378,472 378,472 223,062 155,410 59% 166,194 (56,868) Insurance Other charges and services 322,100 322,100 161,050 161,050 50% 144,538 16,512 Police Personnel services 7,156,691 7,156,691 3,493,528 3,663,164 49% 3,318,786 (174,742) Commodities 342,976 342,976 218,873 124,103 64% 219,029 156 Other charges and services 1,711,642 1,711,642 890,659 820,983 52% 877,362 (13,297) Capital outlay - - 4,525 (4,525) 0% - (4,525) Total 9,211,309 9,211,309 4,607,585 4,603,725 50% 4,415,177 (192,408) Fire Personnel services 886,045 886,045 406,850 479,196 46% 393,661 (13,189) Fire Relief Contribution/State Aid 315,515 315,515 7,000 308,515 2% 35,000 28,000 Commodities 150,568 150,568 61,157 89,411 41% 38,172 (22,985) Other charges and services 287,019 287,019 131,840 155,179 46% 110,677 (21,163) Total 1,639,147 1,639,147 606,847 1,032,301 37% 577,510 (29,337) (continued) Comparative 3 Unaudited General Fund Schedule of Expenditures 2015 2015 Variance from Variance from Adopted Amended 6/30/2015 Amended Budget Actual 6/30/2014 2014 Actual Expenditures (continued) Budget Budget Actual Positive (Negative) Percent Actual Positive (Negative) Engineering Personnel services 604,526 $ 604,526 $ 268,661 $ 335,865 $ 44% 323,648 $ 54,987 $ Commodities 9,274 9,274 2,157 7,117 23% 2,700 543 Other charges and services 86,891 86,891 32,182 54,709 37% 27,484 (4,698) Capital outlay 11,582 11,582 19,126 (7,544) 165% 61,808 42,682 Total 712,273 712,273 322,126 390,147 45% 415,640 93,514 Operations and Maintenance Personnel services 437,398 437,398 216,936 220,462 50% - (216,936) Commodities 4,870 4,870 3,859 1,011 79% - (3,859) Other charges and services 15,828 15,828 6,449 9,379 41% - (6,449) Capital outlay 95,700 95,700 66,548 29,152 70% - (66,548) Total 553,796 553,796 293,792 260,004 53% - (293,792) Streets Personnel services 1,840,324 1,840,324 844,882 995,443 46% 943,443 98,562 Commodities 830,911 830,911 389,689 441,222 47% 512,038 122,349 Other charges and services 322,974 322,974 184,462 138,512 57% 209,681 25,219 Total 2,994,209 2,994,209 1,419,033 1,575,177 47% 1,665,162 246,130 Parks Personnel services 1,616,595 1,616,595 795,311 821,285 49% 762,113 (33,198) Commodities 271,081 271,081 129,826 141,255 48% 133,609 3,783 Other charges and services 500,969 500,969 215,367 285,602 43% 166,059 (49,308) Total 2,388,645 2,388,645 1,140,504 1,248,142 48% 1,061,781 (78,723) Recreation Personnel services 348,735 348,735 164,261 184,474 47% 194,921 30,660 Commodities 25,146 25,146 13,199 11,947 52% 7,576 (5,623) Other charges and services 215,096 215,096 103,456 111,640 48% 101,208 (2,248) Capital outlay 19,499 19,499 2,142 17,357 11% - (2,142) Total 608,476 608,476 283,058 325,418 47% 303,705 20,647 Heritage Center Personnel services 32,779 32,779 17,261 15,518 53% 15,033 (2,228) Commodities 12,388 12,388 3,050 9,338 25% 1,777 (1,273) Other charges and services 56,892 56,892 17,828 39,064 31% 22,832 5,004 Capital outlay 2,457 2,457 - 2,457 0% 7,412 7,412 Total 104,516 104,516 38,139 66,377 36% 47,054 8,915 Arts Center Personnel services 254,081 254,081 115,539 138,542 45% 121,686 6,147 Commodities 16,010 16,010 11,145 4,865 70% 5,609 (5,536) Other charges and services 173,974 173,974 80,343 93,631 46% 86,594 6,251 Capital outlay 4,440 4,440 - 4,440 0% - - Total 448,505 448,505 207,027 241,478 46% 213,889 6,862 Comparative 4