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HomeMy WebLinkAboutItem 5i        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, 2018. This report includes the General Fund,  Communications  Fund,  Liquor  Fund  and  Utility  Operating  Funds.  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 installments in June and December.  The General fund property tax revenues are anticipated to be $20.1 million for 2018.     Licenses and Permits.     Building permit revenue continues to be strong. The Lee Lake Subdivision is a 120‐unit  apartment complex that was budgeted in 2018, but the permit was issued at the end of  2017. The following chart shows how the number of permits issued in the first half of the  year compares to the same period in 2017 and the 2018 Adopted Budget:      First 2018 First Half Adopted Half Permit Type 2017 Budget 2018 Single Family 227 350 244 Townhome 36 70 33 Apartments (Units) 2 (195 units) 1 (120 units) 0 Commercial 4 10 3    Intergovernmental.   Revenues comprised of police and fire aid and various grants are typically received in the  third and fourth quarters.     Charges for Services.   General government services are within budget estimates and are consistent with the prior  year.   Public Safety revenues are exceeding budget estimates. The addition of a School Resource  Officer during a three‐week period at Century Middle School resulted in increased revenue  ($6,000) from ISD 194. Security services from Super Bowl LII amounted to $18,000. The fire  contract with Eureka Township is $40,170.   ii    FINANCIAL HIGHLIGHTS (continued):    General Fund     ‐     Revenues (Continued)     Charges for Services. (Continued)   Public works revenues are based on summer construction projects and are not recorded in  the General Fund until the projects are completed. Due to lower than anticipated staffing  levels and the need to utilize outside contractors, the estimated revenues ($727,000) are  anticipated to be $342,000 below budget.    Parks and Recreation revenues are exceeding budget estimates and are up $12,000 over  the same period in 2017.      Court Fines  •  Revenues from court fines ($179,000) represent 42 percent of the budget estimates and  are down $42,000 over the period in 2017. The decrease is a result of fewer traffic stops.  It should be noted that this also decreases the CAD call numbers used by the Dakota  Communications Center to allocate the membership fees in future years.      General Fund     ‐     Expenditures     Motor Fuels – Motor fuels through June are at 57 percent of the 2018 Budget. Motor fuels are  $52,000 higher than the same period in 2017. Increased snow events for the public works  departments contributed to the higher fuel expense.      Street Chemicals – Costs for ice control materials for the first part of 2018 are at 100 percent  of the budget. Unused chemicals are stored at the central maintenance facility and will be  utilized in the late fall if needed.       Utilities – Electric & Natural Gas. Costs of $194,000 are lower compared with the same period  in 2017. Total costs through the second quarter represent 45 percent of the adopted budget.      City  Administration.  The  community  survey  budgeted  in  2018  has  been  completed.  Appropriations ($15,000) for the Envision Lakeville update are also included in the 2018 budget  of which $4,900 has been expended.      City Clerk‐Elections. 2018 is an election year. Cost for the elections will not be incurred until  late in the 3rd quarter (primary election) and into the 4th quarter (general election).         iii    FINANCIAL HIGHLIGHTS (continued):    General Fund     ‐     Expenditures (continued)       Planning. Salaries are up over the same period in 2017 due to the new Planning Assistant/Code  Enforcement position that started the second quarter of 2017.      Community and Economic Development. Budget appropriations are included for the  Economic Development Guide ($34,500) as well as funding for the DARTS program ($10,200)  that began at the end of 2017. Both expenditures are covered 100% by grant funding.       Inspections. Salaries are up over the same period in 2017 due to creating a new Building  Inspector position that started in July 2017. Contractual electrical inspections are down slightly  over the same period in 2017. The first half of 2017 included a few commercial permits that  were finalized during that same time frame.      General Government Facilities. Personnel Services are up compared to 2017 due to the hiring  of an additional facility attendant in 2018.     Information Systems. Office 365 maintenance ($49,000) was added in 2018 and results in a  significant increase over the 2017 maintenance expenses during the same period. Also new for  2018 is the addition of the Dakota County Broadband JPA in the amount of $7,600.      Human  Resources.  Contractual  services  are  up  due to expenses for the Employee  Compensation and Classification Study.      Police. The department has been experiencing turnover in the recent years. Vacancies in early  2017 and the hiring of the two additional officer positions not taking place until late 2017  contribute to increase in expense for the first have of 2018 compared to the same period in  2017. DCC membership fees for the first half of the year are up $69,000 over the same period  in 2017 as a result of increased CAD events in prior years.      Engineering/GIS. Contractual services are up over the prior year due to increased outside  engineering services related to the Transportation Plan and the Transit ADA Plan updates as  well as consultant services for GIS.      iv    FINANCIAL HIGHLIGHTS (continued):    General Fund     ‐     Expenditures (continued)     Construction Services. The department has experienced employee turnover in recent years  resulting in personnel costs below budget estimates. Staffing levels have improved in 2018  resulting in a significant increase in personnel expenses compared to the same period in 2017.  Due to staffing levels some projects required the use of outside consultants that will result in  significant loss of revenues ($342,000) for the General Fund.     Streets. Personnel services are up compared to budget and the prior year due in part to the  increased snow events in 2018. Salt costs are at 100% of the budget and likely would have  exceeded budget by this time if it were not for the large inventory that was on hand from the  prior winter season.      Parks. Personnel services are up compared to the same period in 2017 and is the result a new  Park Maintenance II position added in the second quarter 2017, additional hours spent on  snow removal in the parks and trails and a longer ice rink season. Costs are in line with budget  appropriations.      Communications Fund       Revenues from Franchise fees are received on a quarterly basis. They are typically received by  the end of the month following the quarter. As of the date of this report, the second quarter  franchise fees have not been received and the amount was estimated based on historical  numbers. Revenues are anticipated to remain consistent with prior years.      Personnel expenses are up over the same period in 2017 due to the addition of a Marketing  Specialist in July of 2017. The position is 100 percent funded by a transfer from the Liquor Fund  for the first two years.     Phase II of the fiber project ($234,000) was budgeted in 2017. The project has been delayed to  2018. Funding from the General Fund, Liquor Fund and Utility Fund was transferred in 2017  and is reflected in the beginning fund balance. The budget does not reflect the expenses  associated with this phase. Staff will be recommending a budget amendment.     There are $342,000 in budget appropriations for the third phase of the fiber installation  project. This project is still in the planning phase and the project is funded by transfers from  the General Fund, Liquor Fund and the Utility Fund.   v     FINANCIAL HIGHLIGHTS (continued):      Communications Fund (Continued)     The budget also includes a transfer ($175,000) to the Improvement Construction Fund to fund  the  cost  of  fiber  installation  to  be  completed  in  conjunction  with  the  installation  of  an  advanced traffic management system along the 160th Street and Pilot Knob road corridors.      Capital  outlay  acquisitions  include  replacement  of  the  edit  station  and  council  chamber  cameras.        Liquor Fund       Sales for the first half amounted to $7.1 million which is a seven percent increase over the  same period in 2017. Construction on the Kenrick building and road construction in the area  kept sales down at this location, but overall sales are exceeding the year‐to‐date sales from  2013 which was the largest volume year. The overall increase can be attributed to the Super  Bowl in Minnesota and the Olympics.      Total expenditures are tracking slightly below budget appropriations.      The sale of the Kenrick store closed in the second quarter. Lease payments for the Kenrick  store began in May and is reflected in other charges and services.     2018 Transfers include a $250,000 transfer to the Equipment Fund. This transfer had been  eliminated in 2017 upon review of the Fund’s reserve level.       The 2007 liquor bonds were refunded in 2017. The 2017 liquor bonds are paid from annual  lease revenue payments from the Liquor Fund to the HRA debt service fund. These payments  are included in other charges and services.       vi     FINANCIAL HIGHLIGHTS (continued):      Water Fund     Water revenues are low in the first half which is typical for the first half of the year but are  exceeding revenues from the same period a year ago due mainly to the water rate increase  that went in affect February 1, 2018. Water usage increases as residents and businesses turn  on their irrigation systems in late spring.     The 2018 major maintenance projects are budgeted as follows:   Water Treatment Facility replacement of air‐handling units ‐ $74,000.   Water Treatment Facility building automation controls ‐ $13,500    2018 Street reconstruction project – watermain repair/replacement costs ‐ $1.07 million.  Updated costs following contract approval amounted to $1.23 million   Water meter replacement projects ‐ $335,357; $29,000 has been spent year‐to‐date.    Well #3 rehabilitation ‐ $60,000.   Filter backwash pump rehabilitation ‐ $45,000.   Water  tower  cleaning,  inspection,  painting  and  repairs  (Michaud  Park  water  tower)  $395,000.       Sewer Fund     Sewer revenues are tracking with budget expectations and are up over the same period in 2017  as a result of the increase in sewer rates for the base charge and discharge effective February  1, 2018.       Expenditures are below budget estimates and down compared to the same period in 2017.     Disposal  charges  paid  to  Metropolitan  Council  of  Environmental Services  increased  14.5  percent over the 2017 rates and are projected to be $4.0 million for 2018      The 2018 major maintenance projects are budgeted as follows:   Lift station rehabilitation ‐ $45,000.   Sewer line improvements ‐ $250,000.   I/I mitigation repairs ‐$375,000.     vii    FINANCIAL HIGHLIGHTS (continued):     Street Lighting Fund     Revenues are exceeding budget estimates. Street light fees are also collected at the time of  final plat but were minimal for the first half.     Streetlight rates were increased effective February 1, 2018.       2018 electrical costs are in line with budget estimates.        Environmental Resources Fund     Revenues are tracking with budget estimates.      Rates were increased effective February 1, 2018.     Personnel  services  increased  over  the  same  period  in  2017  due  to  the  hiring  of  an  Environmental Resources Technician to assist with the growing number of environmental  projects.      Majority of projects are completed in the spring, summer and fall months which results in  lower expenses during the first half of the year.     The  2018  budget  estimates  $208,000  in  grant  funding  for  projects  within  the  Vermillion  Watershed. The grants will be received once the projects are completed in late fall.              Unaudited 2018 Variance from Amended 6/30/18 Amended Budget Actual 6/30/17 Budget Actual Positive (Negative)Percent Actual Revenues General property taxes 20,055,586$     11,036,385$      (9,019,201)$                 55.0% 9,784,500$          1,251,885$          112.8% Licenses and permits 2,356,882          1,627,911           (728,971)                       69.1% 1,797,665            (169,754)              90.6% Intergovernmental 1,005,921          128,178              (877,743)                       12.7% 133,575                (5,397)                  96.0% Charges for services 2,926,300          1,030,570           (1,895,730)                    35.2% 975,608                54,962                  105.6% Court fines 425,000             179,008              (245,992)                       42.1% 221,382                (42,374)                80.9% Investment income 90,071               45,795                (44,276)                         50.8% 45,795                  ‐                             100.0% Miscellaneous 47,303               19,643                (27,660)                        41.5%21,118                  (1,475)                 93.0%   Total revenues 26,907,063       14,067,490        (12,839,573)                52.3%12,979,643          1,087,847           108.4% Expenditures Mayor and Council 107,230             38,856                68,374                           36.2% 40,121                  1,265                    96.8% Committees and Commissions 87,600               5,233                   82,367                           6.0% 7,724                    2,491                    67.8% City Administration 478,570             247,129              231,441                        51.6% 200,567                (46,563)                123.2% City Clerk 201,157             68,963                132,194                        34.3% 77,362                  8,399                    89.1% Legal Counsel 80,000               34,893                45,107                           43.6% 37,960                  3,067                    91.9% Planning 585,768             274,430              311,339                        46.8% 248,821                (25,609)                110.3% Community and Econ. Development 366,222             209,607              156,616                        57.2% 140,901                (68,706)                148.8% Inspections 1,225,953          588,184              637,769                        48.0% 535,118                (53,066)                109.9% General Government Facilities 557,962             281,192              276,770                        50.4% 262,770                (18,422)                107.0% Finance 781,534             393,626              387,909                        50.4% 374,610                (19,016)                105.1% Information Systems 673,236             420,682              252,555                        62.5% 346,847                (73,835)                121.3% Human Resources 511,685             239,324              272,362                        46.8% 226,735                (12,589)                105.6% Insurance 285,000             142,500              142,500                        50.0% 91,090                  (51,410)                156.4% Police 11,259,374       5,385,149           5,874,226                     47.8% 5,035,792            (349,357)              106.9% Fire 1,855,127          727,422              1,127,706                     39.2% 692,095                (35,327)                105.1% Engineering 974,588             439,686              534,902                        45.1% 370,844                (68,842)                118.6% Construction Services 587,152             240,372              346,781                        40.9% 160,364                (80,008)                149.9% Streets 3,194,298          1,792,531           1,401,767                     56.1% 1,711,726            (80,805)                104.7% Parks 2,643,982          1,283,036         1,360,947                   48.5% 1,157,062           (125,974)              110.9% Recreation 700,028             317,644              382,384                        45.4% 308,933                (8,712)                  102.8% Heritage Center 129,549             55,320                74,230                           42.7% 55,238                  (82)                        100.1% Arts Center 510,370             278,185              232,186                        54.5% 285,312                7,127                    97.5% Other (43,090)             ‐                        (43,090)                      0.0%‐                           ‐                           0.0%   Total expenditures 27,753,295       13,463,959        14,289,337                  48.5%12,367,988          (1,095,971)         108.9% Excess (deficiency) of revenues over expenditures (846,232)            603,531              1,449,763                     611,655                (8,124)                  Other financing sources (uses) Transfer from other funds 765,232             417,438              (347,795)                       54.6% 434,693                (17,256)                96.0% Transfer to other funds (662,664)            (401,800)             260,864                       60.6%(1,145,000)           743,200              35.1% Total other financing sources (uses) 102,568             15,638                (86,931)                         (710,307)               725,945              ‐2.2% Net change in fund balance (743,664)            619,169              1,362,833                     (98,652)                 717,820               Beginning fund balance 14,288,353       15,217,019        928,666                        15,076,500          140,519               Ending fund balance 13,544,689$     15,836,188$      2,291,499$                   14,977,848$        858,339$             Adj fund balance, Dec 31 (net of restricted )12,848,859$    15,140,358$     14,282,018$       Net change in fund balance percentage (5.2%)4.1%(0.7%) Ratio: Fund balance to CY expenditures 48.8% Ratio: Fund balance to NY expenditures 48.7% Expense Summary: Personnel services 20,593,713      9,792,262          10,801,452                 47.5%8,908,855            (883,407)            109.9% Commodities 1,723,195         942,404             780,791                       54.7%1,057,621            115,217             89.1% Other charges and services 5,440,118         2,698,996          2,741,122                   49.6%2,391,384            (307,612)            112.9% Capital outlay 39,359              30,297            9,062                         77.0%10,128                (20,169)             299.1% 27,796,385      13,463,959    14,332,427               48.4%12,367,988      (1,095,971)         108.9% Variance from 2017 Actual Positive (Negative) General Fund Summary Statement of Revenues, Expenditures and Changes in Fund Balances For the Six Month Period Ended June 30, 2018 Comparative 1 Unaudited General Fund Schedule of Expenditures 2018 Variance from Amended 6/30/18 Amended Budget Actual 6/30/17 Expenditures Budget Actual Positive (Negative)Percent Actual Mayor and Council Personnel services 49,041$             24,178$              24,863$                        49% 24,724$                546$                     97.8% Commodities 50                       90                        (40)                                 180% ‐                         (90)                        0.0% Other charges and services 58,139               14,588                43,551                          25%15,397                  809                      94.7% Total 107,230             38,856                68,374                          36%40,121                  1,265                   96.8% Committees/Commissions Personnel services 71,902               1,095                   70,807                           2% 2,013                    918                       54.4% Commodities 1,630                  ‐                       1,630                             0% ‐                         ‐                        0.0% Other charges and services 14,068               4,138                   9,930                            29%5,711                    1,573                   72.5% Total 87,600               5,233                   82,367                          6%7,724                    2,491                   67.8% City Administration Personnel services 423,716             211,731              211,985                        50% 191,481                (20,251)                110.6% Commodities 1,200                  947                      253                                79% 525                        (422)                      180.4% Other charges and services 52,154               32,781                19,373                           63% 8,561                    (24,220)                382.9% Capital outlay 1,500                  1,670                   (170)                              111%‐                         (1,670)                 0.0% Total 478,570             247,129              231,441                       52%200,567                (46,563)               123.2% City Clerk Personnel services 115,980             55,286                60,694                           48% 55,309                  23                          100.0% Commodities 1,000                  514                      486                                51% ‐                         (514)                      0.0% Other charges and services 84,177               13,163                71,014                           16%22,053                  8,890                    59.7% Total 201,157             68,963                132,194                       34%77,362                  8,399                   89.1% Legal Counsel Other charges and services 80,000               34,893                45,107                          44%37,960                  3,067                   91.9% Planning Personnel services 518,211             253,343              264,869                        49% 231,984                (21,359)                109.2% Commodities 2,291                  366                      1,925                             16% 476                        110                       76.9% Other charges and services 65,266               20,721                44,545                           32%16,361                  (4,360)                  126.6% Total 585,768             274,430              311,339                       47%248,821                (25,609)               110.3% Community and Economic Development Personnel services 294,620             148,029              146,592                        50% 130,373                (17,656)                113.5% Commodities 250                     164                      86                                   66% 84                          (80)                        195.2% Other charges and services 71,352               61,414                9,938                             86%10,444                  (50,970)                588.0% Total 366,222             209,607              156,616                       57%140,901                (68,706)               148.8% Inspection Personnel services 973,050             466,054              506,996                        48% 400,537                (65,517)                116.4% Commodities 13,792               5,887                   7,905                             43% 4,184                    (1,703)                  140.7% Other charges and services 239,111             116,243              122,868                        49% 129,412                13,169                  89.8% Capital outlay ‐                         ‐                      ‐                                0%985                        985                      0.0% Total 1,225,953          588,184              637,769                       48%535,118                (53,066)               109.9% (continued) Comparative Variance from 2016 Actual Positive (Negative) 2 Unaudited General Fund Schedule of Expenditures 2018 Variance from Amended 6/30/18 Amended Budget Actual 6/30/17 Expenditures (continued)Budget Actual Positive (Negative)Percent Actual General Government Facilities Personnel services 353,190$           186,300$            166,890$                      53% 162,636$              (23,664)$              114.6% Commodities 26,243               12,847                13,396                           49% 13,874                  1,027                    92.6% Other charges and services 178,529             82,045                96,484                          46%86,260                  4,215                   95.1% Total 557,962             281,192              276,770                       50%262,770                (18,422)               107.0% Finance Personnel services 696,628             337,903              358,726                        49% 332,865                (5,038)                  101.5% Commodities 3,500                  1,567                   1,933                             45% 1,363                    (204)                      115.0% Other charges and services 81,406               54,156                27,250                           67%40,382                  (13,774)                134.1% Total 781,534             393,626              387,909                       50%374,610                (19,016)               105.1% Information Systems Personnel services 430,046             204,107              225,940                        47% 189,769                (14,338)                107.6% Commodities 2,995                  2,999                   (4)                                    100% 907                        (2,092)                  330.7% Other charges and services 240,195             213,576              26,619                           89%156,171                (57,405)                136.8% Total 673,236             420,682              252,555                       62%346,847                (73,835)               121.3% Human Resources Personnel services 387,122             189,578              197,545                        49% 188,147                (1,431)                  100.8% Commodities 2,913                  885                      2,028                             30% 723                        (162)                      122.4% Other charges and services 121,650             48,861                72,789                           40%37,865                  (10,996)                129.0% Total 511,685             239,324              272,362                       47%226,735                (12,589)               105.6% Insurance Other charges and services 285,000             142,500              142,500                       50%91,090                  (51,410)               156.4% Police Personnel services 8,843,216          4,145,313           4,697,904                     46.9% 3,859,010            (286,303)              107.4% Commodities 396,022             196,364              199,658                        50% 213,385                17,021                  92.0% Other charges and services 2,020,136          1,043,472           976,664                        52%963,397                (80,075)                108.3% Total 11,259,374       5,385,149           5,874,226                    48%5,035,792            (349,357)             106.9% Fire Personnel services 1,084,127          525,052              559,076                        48% 497,406                (27,646)                105.6% Fire Relief Contribution/State Aid 347,676             10,000                337,676                        3% ‐                         (10,000)                0.0% Commodities 151,407             59,202                92,205                           39% 58,528                  (674)                      101.2% Other charges and services 271,917             133,168              138,749                        49%136,161                2,993                    97.8% Total 1,855,127          727,422              1,127,706                    39%692,095                (35,327)               105.1% (continued) Comparative Variance from 2016 Actual Positive (Negative) 3 Unaudited General Fund Schedule of Expenditures 2018 Variance from Amended 6/30/18 Amended Budget Actual 6/30/17 Expenditures (continued)Budget Actual Positive (Negative)Percent Actual Engineering Personnel services 745,625$           346,607$            399,018$                      46% 349,641$              3,034$                  99.1% Commodities 8,476                  2,938                   5,538                             35% 4,388                    1,450                    67.0% Other charges and services 220,487             90,141                130,346                        41%16,815                  (73,326)                536.1% Total 974,588             439,686              534,902                       45%370,844                (68,842)               118.6% Construction Services Personnel services 538,730             206,576              332,155                        38% 155,242                (51,334)                133.1% Commodities 8,515                  2,655                   5,860                             31% 3,439                    784                       77.2% Other charges and services 11,348               2,849                   8,499                             25% 1,683                    (1,166)                  169.3% Capital outlay 28,559               28,292                267                               99%‐                         (28,292)               0.0% Total 587,152             240,372              346,781                       41%160,364                (80,008)               149.9% Streets Personnel services 2,120,785          1,147,893           972,892                        54% 944,355                (203,538)              121.6% Commodities 722,838             503,794              219,044                        70% 600,741                96,947                  83.9% Other charges and services 350,675             140,844              209,831                        40%166,630                25,786                  84.5% Total 3,194,298          1,792,531           1,401,767                    56%1,711,726            (80,805)               104.7% Parks  Personnel services 1,854,298          987,259              867,040                        53% 843,392                (143,867)              117.1% Commodities 291,804             120,116              171,688                        41% 126,552                6,436                    94.9% Other charges and services 492,080             175,326              316,754                        36% 187,118                11,792                  93.7% Capital outlay 5,800                  335                      5,465                            6%‐                         (335)                     0.0% Total 2,643,982          1,283,036           1,360,947                    49%1,157,062            (125,974)             110.9% Recreation Personnel services 399,504             171,184              228,320                        43% 182,306                11,122                  93.9% Commodities 35,971               6,487                   29,484                           18% 9,369                    2,882                    69.2% Other charges and services 264,553             139,973              124,580                        53%117,258                (22,715)                119.4% Total 700,028             317,644              382,384                       45%308,933                (8,712)                 102.8% Heritage Center Personnel services 64,261               31,718                32,544                           49% 32,179                  461                       98.6% Commodities 12,578               4,467                   8,111                             36% 3,236                    (1,231)                  138.0% Other charges and services 52,710               19,135                33,575                           36%19,823                  688                       96.5% Total 129,549             55,320                74,230                          43%55,238                  (82)                       100.1% Arts Center Personnel services 281,985             143,061              138,925                        51% 135,490                (7,571)                  105.6% Commodities 39,720               20,115                19,605                           51% 15,847                  (4,268)                  126.9% Other charges and services 185,165             115,009              70,156                           62% 124,832                9,823                    92.1% Capital outlay 3,500                 ‐                       3,500                            0%9,143                    9,143                   0.0% Total 510,370             278,185              232,186                       55%285,312                7,127                   97.5% Other financing uses ‐ transfers To Communications Fund (Fiber Project)260,864             ‐                           260,864                        0% 260,864               0.0% To Building Fund 300,000             300,000              ‐                                      100% 200,000                (200,000)              150.0% To Equipment Fund ‐                           ‐                                      0% 945,000                (945,000)              0.0% To Trail Improvement Fund 100,000             100,000             ‐                                      100%‐                            ‐                            0.0% Total 660,864             400,000              260,864                       61%1,145,000            (884,136)             34.9% Variance from 2016 Actual Positive (Negative) Comparative 4 Unaudited 2018 Percent Adopted 6/30/18 of 6/30/17 Budget Actual Variance Budget Actual Revenues Licenses franchise fee 688,473$   337,085$   (351,388)$   49.0% 337,294$      (209)$            99.9% PEG Fees 60,858       30,023       (30,835)       49.3% 30,743          (720)              97.7% Intergovernmental State aid  516            258            (258)             50.0% 258                ‐                 100.0% Investment income 3,155         3,019         (136)            95.7%1,252             1,768            241.2% Total revenues 753,002     370,385     (382,617)    49.2%369,547        839               100.2% Expenditures ‐ General government Personnel services 446,728   213,093   233,635    47.7% 160,528      (52,565)         132.7% Commodities 9,279       4,798       4,481         51.7%5,822           1,024             82.4% Other charges and services 488,930   47,822     441,108    9.8% 51,548        3,726             92.8% Capital outlay 51,350       9,638         41,712        18.8%18,738          9,100            51.4% Total expenditures 996,287     275,351     720,936     27.6%236,636        (38,715)        116.4% Excess (deficiency) of revenues over  expenditures (243,285)   95,034       338,319     ‐39.1%132,911        (37,876)        71.5% Other financing (uses) ‐ Transfers From Liquor Fund (Comm/Mkt Position) 87,525       79,498       (8,028)         90.8% ‐                     79,498          0.0% From General Fund (fiber project) 260,864     ‐                  (260,864)     0.0% ‐                     ‐                 0.0% From Utility Fund (fiber project) 68,460       ‐                  (68,460)       0.0% ‐                     ‐                 0.0% From Liquor Fund (fiber project) 13,136       ‐                  (13,136)       0.0% ‐                     ‐                 0.0% To General Fund (expense allocations) (78,663)      (39,332)      39,332         50.0%(37,715)         (1,617)           104.3% To Improvement Construction Fund (175,000)  ‐                  175,000     0.0%‐                    ‐                0.0% Total other financing (uses)176,322     40,166       (136,156)    22.8%(37,715)         77,881         ‐106.5% Net change in fund balance (66,963)      135,200     202,163      95,196          40,005          Beginning fund balance 331,226     603,825     272,599      318,696        285,129        Ending fund balance 264,263$  739,025$  474,762$   413,892$     325,134$      Variance from 2017 Actual Positive (Negative) Comparative CITY OF LAKEVILLE, MINNESOTA Statement of Revenues, Expenditures and Changes in Fund Balances For the Six Month Period Ended June 30, 2018 Special Revenue ‐ Communications Fund 5 Unaudited 2018 Percent Adopted 6/30/18 of 6/30/17 Budget Actual Variance Budget Actual Sales and cost of sales Sales 15,003,435$      7,088,123$         (7,915,312)$      47.2% 6,629,843$     458,280$        106.9% Cost of sales 11,307,073         5,310,014           5,997,059        47.0%5,001,177        (308,837)        106.2% Gross profit 3,696,362           1,778,109           (1,918,253)       48.1%1,628,666        149,443         109.2% Gross profit % 24.6% 25.1% 24.6% Operating expenses Personnel services 1,575,765           764,322              811,443             48.5% 742,017           (22,306)           103.0% Commodities 77,818                24,503                53,315               31.5% 26,452             1,949               92.6% Other charges and services 1,037,408           451,477              585,931             43.5%382,778           (68,699)           117.9% Total operating expenses 2,690,991           1,240,302           1,450,689        46.1%1,209,479        (30,823)          102.5% Operating income 1,005,371           537,807              (467,564)          53.5%419,187           118,620         128.3% Non‐operating revenue (expense) Investment income 19,110                9,197                   (9,913)                48.1% 4,798               4,399               191.7% Miscellaneous 7,500                   ‐                            (7,500)                0.0% ‐                    ‐                   0.0% Capital outlay acquisitions (7,300)                 ‐                            7,300                 0.0% ‐                    ‐                   0.0% Sale of assets 2,625,000           2,349,283           (275,717)           89.5% ‐                    2,349,283       0.0% Interest and bond expense ‐                            ‐                            ‐                          0.0% (62,980)            62,980            0.0% Transfers in (out) General Fund (194,866)             (97,433)               97,433               50.0% (99,410)            1,977               98.0% Communications (Mktg Spec) (87,525)               (79,498)               8,028                 90.8% (79,498)           0.0% Communications (Fiber) (13,136)               ‐                            13,136               0.0% ‐                   0.0% Debt Service: CIP Bonds‐Police Station (300,000)             (300,000)             ‐                          100.0% (346,360)          46,360            86.6% Capital Projects: Equipment Fund (250,000)             (250,000)             ‐                          100.0% ‐                    (250,000)         0.0% Enterprise Fund: Environmental Resources ‐ Recycling (3,050)                ‐                            3,050                0.0%‐                   ‐                  0.0% Total non‐operating (net)1,795,733           1,631,549           (164,184)          90.9%(503,953)          2,135,502      ‐323.8% Change in working capital 2,801,104           2,169,356           (631,748)           (84,766)            2,254,122       Beginning working capital 1,348,541           1,571,666           223,125            1,289,347       282,319          Ending working capital 4,149,645$        3,741,022$        (408,623)$        1,204,582$    2,536,441$    CITY OF LAKEVILLE, MINNESOTA Enterprise ‐ Liquor Fund Statement of Revenues, Expenditures and Changes in Working Capital For the Six Month Period Ended June 30, 2018 Variance from 2017 Actual Positive (Negative) Comparative 6 Unaudited 2018 Percent Adopted 6/30/18 of 6/30/17 Budget Actual Variance Budget Actual Operating revenues User charges for services 4,536,178$        1,462,077$       (3,074,101)$  32.2% 1,360,446$   101,631$      107.5% Other 153,137             75,675                (77,462)          49.4%77,506          (1,831)          97.6% Total operating revenue 4,689,315          1,537,752          (3,151,563)    32.8%1,437,952     99,800         ‐219.2% Operating expenses Personnel services 1,197,884          553,616           644,268        46.2%548,383       (5,234)           101.0% Commodities 326,275            122,732           203,543        37.6%123,013       281               99.8% Other charges and services 1,233,995          386,857           847,138        31.3%362,008       (24,850)         106.9% Major Maintenance 1,901,515          112,268             1,789,247     5.9%204,497        92,229         54.9% Total operating expenses 4,659,669          1,175,474          3,484,195     25.2%1,237,900     62,427         95.0% Operating income (loss)29,646                362,279             332,633          200,052        162,227       181.1% Non‐operating revenue (expense) Intergovernmental 1,632                 (816)                  (2,448)           ‐50.0% 816               (1,632)           ‐100.0% Investment income 31,486               25,000              (6,486)           79.4%37,155         (12,155)         67.3% Disposal of assets 4,500                 7,016                2,516            155.9% ‐                    7,016            0.0% Capital outlay (139,078)            (46,133)            92,945          33.2%(2,472)          (43,661)         1866.2% Bond proceeds 1,066,190          ‐                        (1,066,190)   0.0% ‐                    ‐                    0.0% Debt Service (1,109,305)         (865,828)          243,477        78.1%(429,947)      (435,881)       201.4% Transfers (out)(425,605)            (91,467)              334,138         21.5%(69,622)         (21,845)        131.4% Total non‐operating (net)(570,180)            (972,228)            (402,048)       170.5%(464,070)       (508,158)      209.5% Change in working capital (540,534)            (609,949)          (69,415)         (264,018)      (345,931)       231.0% Beginning working capital 7,364,204          7,789,196          424,992          7,064,724     724,472       110.3% Ending working capital 6,823,670$        7,179,247$        355,577$        6,800,706$   378,541       105.6% Variance from 2017 Actual Positive (Negative) CITY OF LAKEVILLE, MINNESOTA Comparative For the Six Month Period Ended June 30, 2018 Statement of Revenues, Expenditures and Changes in Working Capital Enterprise ‐ Utility Fund Water Operation 7 Unaudited 2018 Percent Adopted 6/30/18 of 6/30/17 Budget Actual Variance Budget Actual Operating revenue User charges for services 6,046,862$        3,074,891$        (2,971,971)$  50.9%2,787,588$   287,303$      110.3% Operating expenses Personnel services 782,828            339,347           443,481        43.3%373,347       33,999          90.9% Commodities 86,715               22,290              64,425          25.7%34,069         11,778          65.4% Other charges and services 349,770            120,912           228,858        34.6%119,789       (1,123)           100.9% Disposal charges 4,018,012          2,009,006        2,009,006     50.0% 1,754,790    (254,216)       114.5% Major maintenance projects 670,000             31,810                638,190         4.7%28,682          (3,128)          110.9% Total operating expenses 5,907,325          2,523,366          3,383,959      42.7%2,310,677     (212,689)      109.2% Operating income (loss)139,537             551,525             411,988          476,911        74,614         115.6% Non‐operating revenue (expense) Intergovernmental State aid 1,632                 (816)                  (2,448)           ‐50.0% 816               (1,632)           ‐100.0% Grants 25,000               ‐                        (25,000)         0.0% ‐                    ‐                    0.0% Investment income 15,015               12,500              (2,515)           83.3%19,115         (6,615)           65.4% Disposal of assets 5,250                 ‐                        (5,250)           0.0% ‐                    ‐                    0.0% Capital outlay (52,072)             (29,624)            22,448          56.9%(2,472)          (27,152)         1198.4% Debt service (74,325)             (65,350)            8,975            87.9%(12,127)        (53,223)         538.9% Transfers in 23,822               23,822              ‐                     100.0% 23,873         (51)                99.8% Transfers (out)(200,012)            (93,670)              106,342         46.8%(71,814)         (21,856)        130.4% Total non‐operating (net)(255,690)            (153,138)            102,552         59.9%(42,609)         (110,529)      359.4% Change in working capital (116,153)            398,387           514,540        434,302       (35,915)         91.7% Beginning working capital 1,853,064          2,677,180          824,116          2,351,239     325,941       113.9% Ending working capital 1,736,911$        3,075,567$        1,338,656$     2,785,541$  290,026$      110.4% CITY OF LAKEVILLE, MINNESOTA Statement of Revenues, Expenditures and Changes in Working Capital For the Six Month Period Ended June 30, 2018 Enterprise ‐ Utility Fund Sanitary Sewer Operation Variance from 2017 Actual Positive (Negative) Comparative 8 Unaudited 2018 Percent Adopted 6/30/18 of 6/30/17 Budget Actual Variance Budget Actual Operating revenue User charges for services 850,000$      442,432$      (407,568)$   52.1%424,934$   17,498$       104.1% Operating expenses Personnel services 19,038         9,004          10,034        47.3%6,868       (2,136)          131.1% Commodities 33                 176              (143)            533.6% 12              (164)              1467.4% Other charges and services 740,903        370,659        370,244        50.0%356,017     (14,642)        104.1% Total operating expenses 759,974        379,840        380,134       50.0%362,897     (16,943)       104.7% Operating income (loss)90,026          62,592          (27,434)         62,037       555              100.9% Non‐operating revenue (expense) Investment income 2,576           2,375          (201)            92.2%2,693       2,693            88.2% Debt service (15,075)        (6,461)         8,614          42.9% ‐                 (6,461)          0.0% Transfers out ‐ General Fund (4,407)           (2,204)           2,203           50.0%(2,192)        (12)               100.5% Total non‐operating (net)(16,906)         (6,290)           10,616         37.2%501            (3,780)         ‐1255.4% Change in working capital 73,120          56,303          (16,817)         62,538       (6,235)          90.0% Beginning working capital 415,244        426,676        11,432          318,786     107,890      133.8% Ending working capital 488,364$      482,979$      (5,385)$         381,324$   101,655$    126.7% CITY OF LAKEVILLE, MINNESOTA Statement of Revenues, Expenditures and Changes in Working Capital For the Six Month Period Ended June 30, 2018 Enterprise ‐ Utility Fund Street Light Operation Variance from 2017 Actual Positive (Negative) Comparative 9 Unaudited 2018 Percent Adopted 6/30/18 of 6/30/17 Budget Actual Variance Budget Actual Revenues User charges for services 1,137,435$      569,735$         (567,700)$    50.1% 493,018$      76,717$          115.6% Charges for services ‐ Recycling 4,592                7,740                3,148            168.6%2,660             5,080              291.0% Total revenues 1,142,027         577,475            (564,552)      50.6%495,678        81,797            ‐113.9% Expenditures ‐ Public works Personnel services 425,286            216,417          208,869      50.9% 179,450       (36,967)           120.6% Commodities 33,367             27,140            6,227           81.3%21,520         (5,620)             126.1% Other charges and services 894,578            116,825            777,753       13.1%99,925          (16,900)           116.9% Total expenditures 1,353,231         360,383            992,848       26.6%300,895        (59,488)           119.8% Operating income (loss)(211,204)           217,092            428,296        194,783        22,309            111.5% Non‐operating revenue (expense) Intergovernmental 208,000            ‐                       (208,000)     0.0% ‐                    ‐                  0.0% Investment income 7,151               5,000              (2,151)          69.9%8,085            (3,085)             61.8% Capital outlay (58,117)            (1,226)             56,891         2.1% ‐                    (1,226)             0.0% Transfers in (out)‐                  General Fund (153,255)           (111,448)         41,807         72.7%(127,411)      15,963             87.5% Equipment Fund (31,000)            (31,000)           ‐                   100.0% (31,000)        ‐                  100.0% Storm Sewer Trunk Fund 47,000             10,000            (37,000)       21.3% 110,000       (100,000)         9.1% Liquor Fund 3,050               ‐                       (3,050)          0.0% ‐                    ‐                  0.0% Sanitary sewer operations (23,822)             (23,822)            ‐                    100.0%(23,873)        51                    99.8% Total other financing (uses)(993)                  (152,496)           (151,503)      15357.1%(64,200)         (88,297)           237.5% Change in working capital (212,197)           64,596            276,793      130,584       (65,987)           49.5% Beginning working capital 839,883            949,516            109,633        1,075,032     (125,516)         88.3% Ending working capital 627,686$         1,014,112$     386,426$     1,205,616$  (191,503)$      84.1% CITY OF LAKEVILLE, MINNESOTA Statement of Revenues, Expenditures and Changes in Working Capital For the Six Month Period Ended June 30, 2018 Enterprise ‐ Utility Fund Environmental Resources Operation Variance from 2017 Actual Positive (Negative) Comparative 10