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HomeMy WebLinkAbout3ai        FINANCIAL HIGHLIGHTS:   The following financial report and analysis offers readers a narrative overview of the financial activities  of the City for the nine‐month period ended September 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 nine months  of the year compares to the same period in 2017 and the 2018 Adopted Budget:      YTD 3rd 2018 YTD 3rd Quarter Adopted Quarter Permit Type 2017 Budget 2018 Single Family 346 350 353 Townhome 62 70 68 Apartments (Units) 2 (196 units) 1 (120 units) 1 (55 units) Commercial 7 10 6    Intergovernmental.   Police state aid revenue of $464,000 exceeds budget estimates by $13,000. Fire state aid  revenue of $348,000 exceeds budget estimates by $24,000.    Other grant revenues through the third quarter amounted to $239,000.     Charges for Services.   General government services are within budget estimates and are consistent with the prior  year.       ii    FINANCIAL HIGHLIGHTS (continued):    General Fund     ‐     Revenues (Continued)     Charges for Services. (Continued)   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 $40,000.    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 $52,000 over  the same period in 2017.      Court Fines  •  Revenues from court fines ($260,000) represent 61 percent of the budget estimates and  are down $63,000 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 September are at 84 percent of the 2018 Budget. Motor  fuels are $67,000 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. $2,000 tons of ice control materials ($166,520) were ordered  for the up coming winter season. This will be placed in inventory and expensed based on usage.      Utilities – Electric & Natural Gas. Costs of $322,000 are higher compared with the same period  in 2017. Total costs through the third quarter represent 75 percent of the adopted budget.  Utility costs are typically highest in the winter and summer months.     iii    FINANCIAL HIGHLIGHTS (continued):    General Fund     ‐     Expenditures (continued)     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 $10,000 for two thirds of the contract has been expended.      City Clerk‐Elections. 2018 is an election year. Cost for the elections will be incurred starting   late in the 3rd quarter (primary election) and into the 4th quarter (general election).      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 with $18,000 incurred year‐to‐date.      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 three quarters of 2018 compared to the same  period in 2017. Despite this increase, personnel expenses in 2018 are below budget. 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.     iv    FINANCIAL HIGHLIGHTS (continued):    General Fund     ‐     Expenditures (continued)     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.     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.  The department had one vacant position as of the end of the third quarter. 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.      General Fund Transfers Out.  The third phase of the fiber project will be starting in November  2018. Funds will be transferred after the project has commenced.     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 third 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.   v     FINANCIAL HIGHLIGHTS (continued):      Communications Fund (Continued)     Phase II of the fiber project ($234,000) was budgeted in 2017. The project was 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. Majority of the sites in phase II have been completed.  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. The project will be starting in November 2018. The project is funded by transfers from  the General Fund, Liquor Fund and the Utility Fund. Funds will be transferred after the project  has commenced.      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. The  revised estimate for this project is $106,000 and is anticipated to be completed by the end of  2018.     Capital  outlay  acquisitions  include  replacement  of  the  edit  station  and  council  chamber  cameras.      Liquor Fund       Sales for the first half amounted to $11.1 million which is a 4.8 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. Overall sales are trailing the year‐to‐date sales from 2013 by  $32,000 which was the largest volume year. The strong sales 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.     vi     FINANCIAL HIGHLIGHTS (continued):      Liquor Fund (Continued)     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 transfers out.     Water Fund     Water revenues are up $226,000 or 6.6 percent over the same period 2017. The summer of  2018 had hot dry periods contributing to the increase. The rate increase in February 2018 also  contributed to the increase in revenues.      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 ‐ $335,000; $399,000 has been spent year‐to‐date.    Well #3 rehabilitation will be postponed and rehabilitation of well #11 will be done in its  place ‐ $60,000.   Filter backwash pump rehabilitation project will begin in November ‐ $45,000.   Water  tower  cleaning,  inspection,  painting  and  repairs  (Michaud  Park  water  tower)  $395,000. Reducing the scope of the project results in actual costs amounting to $53,000.      Transfers out includes $230,000 to the Improvement Construction Fund for the Kenrick Avenue  watermain. $170,000 has been expended through the third quarter.     Sewer Fund     Sewer revenues are slightly above budget expectations and are up $442,000 or 10.5 percent  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.  vii     FINANCIAL HIGHLIGHTS (continued):     Sewer Fund (Continued)     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.      Street Lighting Fund     Revenues are exceeding budget estimates. Street light fees are also collected at the time of  final plat ($24,000).      Streetlight rates were increased effective February 1, 2018.       2018 electrical costs are in line with budget estimates.      Environmental Resources Fund     Revenues are tracking slightly above budget estimates. Environmental Resources fees are also  collected at the time of final plat ($27,000).     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 still in progress and will be completed in the 4th quarter. The South  Creek Restoration project ($130,000) will be accounted for in the Storm Water Infrastructure  Fund which is contributing to the lower cost in other charges and services for 2018.      The  2018  budget  estimates  $208,000  in  grant  funding  for  projects  within  the  Vermillion  Watershed. The grants will be received once the projects are completed in late fall.      Unaudited 2018 2018 Variance from Adopted Amended 9/30/18 Amended Budget Actual 9/30/17 Budget Budget Actual Positive (Negative)Percent Actual Revenues General property taxes 20,055,586$     20,055,586$     11,041,782$      (9,013,804)$                 55.1% 9,784,500$          1,257,282$          112.8% Licenses and permits 2,356,882          2,356,882          2,539,397           182,515                        107.7% 2,506,395            33,002                  101.3% Intergovernmental 1,005,921          1,005,921          1,050,623           44,702                           104.4% 1,002,078            48,545                  104.8% Charges for services 2,926,300          2,926,300          2,503,848           (422,452)                       85.6% 2,107,985            395,863               118.8% Court fines 425,000             425,000             260,021              (164,979)                       61.2% 323,044                (63,023)                80.5% Investment income 90,071               90,071               68,693                (21,379)                         76.3% 68,693                  (1)                          100.0% Miscellaneous 47,303               47,303               47,186                (117)                              99.8%37,888                  9,298                   124.5%   Total revenues 26,907,063       26,907,063       17,511,550        (9,395,514)                   65.1%15,830,583          1,680,967           110.6% Expenditures Mayor and Council 107,230             107,230             84,031                23,200                           78.4% 85,419                  1,389                    98.4% Committees and Commissions 87,600               87,600               94,691                (7,091)                            108.1% 91,387                  (3,304)                  103.6% City Administration 478,570             478,570             362,456              116,115                        75.7% 304,439                (58,017)                119.1% City Clerk 201,157             201,157             124,457              76,701                           61.9% 108,031                (16,426)                115.2% Legal Counsel 80,000               80,000               53,518                26,482                           66.9% 57,320                  3,802                    93.4% Planning 585,768             585,768             408,233              177,535                        69.7% 381,148                (27,085)                107.1% Community and Econ. Development 366,222             366,222             296,811              69,411                           81.0% 219,121                (77,690)                135.5% Inspections 1,225,953          1,225,953          907,102              318,852                        74.0% 831,761                (75,341)                109.1% General Government Facilities 557,962             557,962             435,252              122,710                        78.0% 377,444                (57,809)                115.3% Finance 781,534             781,534             583,971              197,563                        74.7% 570,002                (13,969)                102.5% Information Systems 673,236             673,236             517,954              155,282                        76.9% 461,653                (56,301)                112.2% Human Resources 511,685             511,685             368,560              143,125                        72.0% 337,972                (30,588)                109.1% Insurance 285,000             285,000             213,750              71,250                           75.0% 213,750                ‐                             100.0% Police 11,259,374       11,259,374       7,989,063           3,270,311                     71.0% 7,563,834            (425,229)              105.6% Fire 1,855,127          1,855,127          1,472,475           382,652                        79.4% 1,410,516            (61,960)                104.4% Engineering 974,588             974,588             642,817              331,772                        66.0% 586,257                (56,560)                109.6% Construction Services 587,152             587,152             375,832              211,320                        64.0% 331,104                (44,729)                113.5% Streets 3,194,298          3,194,298          2,464,407           729,892                        77.2% 2,320,906            (143,501)              106.2% Parks 2,643,982          2,643,982          1,999,941         644,041                      75.6% 1,840,473            (159,468)            108.7% Recreation 700,028             700,028             537,923              162,105                        76.8% 512,760                (25,163)                104.9% Heritage Center 129,549             129,549             90,427                39,122                           69.8% 85,438                  (4,989)                  105.8% Arts Center 510,370             510,370             396,293              114,077                        77.6% 386,782                (9,511)                  102.5% Other (43,090)              (43,090)            ‐                        (43,090)                      0.0%‐                            ‐                          0.0%   Total expenditures 27,753,295       27,753,295       20,419,961        7,333,334                    73.6%19,077,515          (1,342,446)         107.0% Excess (deficiency) of revenues over expenditures (846,232)            (846,232)            (2,908,412)         (2,062,180)                    (3,246,932)           338,521               Other financing sources (uses) Transfer from other funds 765,232             765,232             591,335              (173,897)                       77.3% 608,672                (17,337)                97.2% Transfer to other funds (660,864)            (787,664)            (526,800)             260,864                       66.9%(1,145,000)           618,200              46.0% Total other financing sources (uses) 104,368             (22,432)              64,535                86,967                           (536,328)               600,863              ‐12.0% Net change in fund balance (741,864)            (868,664)            (2,843,877)         (1,975,213)                    (3,783,260)           939,384               Beginning fund balance 14,288,353       14,288,353       15,217,019        928,666                        15,076,500          140,519               Ending fund balance 13,546,489$     13,419,689$     12,373,142$      (1,046,547)$                 11,293,240$        1,079,903$          Adj fund balance, Dec 31 (net of restricted )12,850,659$    12,723,859$    11,677,312$     10,597,410$       Net change in fund balance percentage (5.2%)(6.1%)(18.7%)(25.1%) Ratio: Fund balance to CY expenditures 48.8%48.4% Ratio: Fund balance to NY expenditures 48.7%48.3% Expense Summary: Personnel services 20,593,713      20,593,713      15,102,496       5,491,217                   73.3%14,097,075         (1,005,421)         107.1% Commodities 1,723,195         1,723,195         1,300,998          422,197                       75.5%1,367,362            66,364                95.1% Other charges and services 5,440,118         5,440,118         3,984,150          1,455,969                   73.2%3,569,773            (414,377)            111.6% Capital outlay 39,359              39,359            32,318            7,041                         82.1%43,305                 10,987              74.6% 27,796,385    27,796,385      20,419,961    7,376,424                 73.5%19,077,515         (1,342,446)       107.0% ‐                          ‐                          ‐                           ‐                                      ‐                             ‐                             Variance from 2017 Actual Positive (Negative) General Fund Summary Statement of Revenues, Expenditures and Changes in Fund Balances For the Nine Month Period Ended September 30, 2018 Comparative 1 Unaudited General Fund Schedule of Expenditures 2018 2018 Variance from Adopted Amended 9/30/18 Amended Budget Actual 9/30/17 Expenditures Budget Budget Actual Positive (Negative)Percent Actual Mayor and Council Personnel services 49,041$             49,041$             37,127$              11,915$                        76% 38,030$                904$                     97.6% Commodities 50                       50                       90                        (40)                                 180% ‐                         (90)                        0.0% Other charges and services 58,139               58,139               46,814                11,325                          81%47,389                  575                      98.8% Total 107,230             107,230             84,031                23,200                          78%85,419                  1,389                   98.4% Committees/Commissions Personnel services 71,902               71,902               70,679                1,223                             98% 69,832                  (847)                      101.2% Commodities 1,630                  1,630                  2,247                   (617)                               138% 1,646                    (601)                      136.5% Other charges and services 14,068               14,068               21,765                (7,697)                           155%19,909                  (1,856)                 109.3% Total 87,600               87,600               94,691                (7,091)                           108%91,387                  (3,304)                 103.6% City Administration Personnel services 423,716             423,716             316,191              107,526                        75% 290,063                (26,128)                109.0% Commodities 1,200                  1,200                  966                      234                                81% 679                        (287)                      142.3% Other charges and services 52,154               52,154               43,629                8,525                             84% 13,697                  (29,932)                318.5% Capital outlay 1,500                  1,500                  1,670                   (170)                              111%‐                         (1,670)                 0.0% Total 478,570             478,570             362,456              116,115                       76%304,439                (58,017)               119.1% City Clerk Personnel services 115,980             115,980             85,572                30,409                           74% 83,459                  (2,113)                  102.5% Commodities 1,000                  1,000                  3,659                   (2,659)                            366% 45                          (3,614)                  8131.1% Other charges and services 84,177               84,177               35,226                48,951                           42%24,527                  (10,699)                143.6% Total 201,157             201,157             124,457              76,701                          62%108,031                (16,426)               115.2% Legal Counsel Other charges and services 80,000               80,000               53,518                26,482                          67%57,320                  3,802                   93.4% Planning Personnel services 518,211             518,211             380,924              137,287                        74% 359,356                (21,568)                106.0% Commodities 2,291                  2,291                  1,141                   1,150                             50% 838                        (303)                      136.2% Other charges and services 65,266               65,266               26,168                39,098                           40%20,954                  (5,214)                  124.9% Total 585,768             585,768             408,233              177,535                       70%381,148                (27,085)               107.1% Community and Economic Development Personnel services 294,620             294,620             224,101              70,519                           76% 198,187                (25,914)                113.1% Commodities 250                     250                     203                      47                                   81% 129                        (74)                        157.4% Other charges and services 71,352               71,352               72,507                (1,155)                            102%20,805                  (51,702)                348.5% Total 366,222             366,222             296,811              69,411                          81%219,121                (77,690)               135.5% Inspection Personnel services 973,050             973,050             699,211              273,840                        72% 629,274                (69,937)                111.1% Commodities 13,792               13,792               8,071                   5,721                             59% 6,914                    (1,157)                  116.7% Other charges and services 239,111             239,111             199,820              39,291                           84% 194,297                (5,523)                  102.8% Capital outlay ‐                         ‐                         ‐                      ‐                                0%1,276                    1,276                   0.0% Total 1,225,953          1,225,953          907,102              318,852                       74%831,761                (75,341)               109.1% (continued) Comparative Variance from 2016 Actual Positive (Negative) 2 Unaudited General Fund Schedule of Expenditures 2018 2018 Variance from Adopted Amended 9/30/18 Amended Budget Actual 9/30/17 Expenditures (continued)Budget Budget Actual Positive (Negative)Percent Actual General Government Facilities Personnel services 353,190$           353,190$           284,509$            68,681$                        81% 235,475$              (49,035)$              120.8% Commodities 26,243               26,243               18,640                7,603                             71% 17,214                  (1,426)                  108.3% Other charges and services 178,529             178,529             132,103              46,426                          74%124,755                (7,348)                 105.9% Total 557,962             557,962             435,252              122,710                       78%377,444                (57,809)               115.3% Finance Personnel services 696,628             696,628             512,670              183,958                        74% 502,243                (10,427)                102.1% Commodities 3,500                  3,500                  1,619                   1,881                             46% 1,982                    363                       81.7% Other charges and services 81,406               81,406               69,682                11,724                           86%65,777                  (3,905)                  105.9% Total 781,534             781,534             583,971              197,563                       75%570,002                (13,969)               102.5% Information Systems Personnel services 430,046             430,046             309,494              120,552                        72% 273,893                (35,601)                113.0% Commodities 2,995                  2,995                  4,100                   (1,105)                            137% 2,220                    (1,880)                  184.7% Other charges and services 240,195             240,195             204,360              35,835                           85%185,540                (18,820)                110.1% Total 673,236             673,236             517,954              155,282                       77%461,653                (56,301)               112.2% Human Resources Personnel services 387,122             387,122             286,328              100,794                        74% 285,707                (621)                      100.2% Commodities 2,913                  2,913                  1,066                   1,847                             37% 1,549                    483                       68.8% Other charges and services 121,650             121,650             81,166                40,484                           67%50,716                  (30,450)                160.0% Total 511,685             511,685             368,560              143,125                       72%337,972                (30,588)               109.1% Insurance Other charges and services 285,000             285,000             213,750              71,250                          75%213,750               ‐                       100.0% Police Personnel services 8,843,216          8,843,216          6,214,742           2,628,474                     70% 5,919,514            (295,229)              105.0% Commodities 396,022             396,022             293,552              102,470                        74% 288,458                (5,094)                  101.8% Other charges and services 2,020,136          2,020,136          1,480,769           539,368                        73%1,355,862            (124,907)              109.2% Total 11,259,374       11,259,374       7,989,063           3,270,311                    71%7,563,834            (425,229)             105.6% Fire Personnel services 1,084,127          1,084,127          806,571              277,556                        74% 764,746                (41,826)                105.5% Fire Relief Contribution/State Aid 347,676             347,676             371,701              (24,025)                         107% 347,635                (24,066)                106.9% Commodities 151,407             151,407             91,624                59,783                           61% 97,151                  5,527                    94.3% Other charges and services 271,917             271,917             202,579              69,338                           75%200,984                (1,595)                  100.8% Total 1,855,127          1,855,127          1,472,475           382,652                       79%1,410,516            (61,960)               104.4% (continued) Variance from 2016 Actual Positive (Negative) Comparative 3 Unaudited General Fund Schedule of Expenditures 2018 2018 Variance from Adopted Amended 9/30/18 Amended Budget Actual 9/30/17 Expenditures (continued)Budget Budget Actual Positive (Negative)Percent Actual Engineering Personnel services 745,625$           745,625$           520,505$            225,120$                      70% 551,028$              30,523$               94.5% Commodities 8,476                  8,476                  5,999                   2,477                             71% 5,383                    (616)                      111.4% Other charges and services 220,487             220,487             116,313              104,175                        53%29,846                  (86,467)                389.7% Total 974,588             974,588             642,817              331,772                       66%586,257                (56,560)               109.6% Construction Services Personnel services 538,730             538,730             337,735              200,995                        63% 290,718                (47,018)                116.2% Commodities 8,515                  8,515                  5,226                   3,289                             61% 6,043                    817                       86.5% Other charges and services 11,348               11,348               4,119                   7,229                             36% 4,292                    173                       96.0% Capital outlay 28,559               28,559               28,752                (193)                              101%30,051                  1,299                   95.7% Total 587,152             587,152             375,832              211,320                       64%331,104                (44,729)               113.5% Streets Personnel services 2,120,785          2,120,785          1,627,522           493,263                        77% 1,406,965            (220,558)              115.7% Commodities 722,838             722,838             600,756              122,082                        83% 698,676                97,920                  86.0% Other charges and services 350,675             350,675             236,129              114,547                        67%215,265                (20,864)                109.7% Total 3,194,298          3,194,298          2,464,407           729,892                       77%2,320,906            (143,501)             106.2% Parks  Personnel services 1,854,298          1,854,298          1,458,861           395,437                        79% 1,321,026            (137,835)              110.4% Commodities 291,804             291,804             213,099              78,705                           73% 192,894                (20,205)                110.5% Other charges and services 492,080             492,080             326,085              165,995                        66% 323,828                (2,257)                  100.7% Capital outlay 5,800                  5,800                  1,896                   3,904                            33%2,725                    829                      69.6% Total 2,643,982          2,643,982          1,999,941           644,041                       76%1,840,473            (159,468)             108.7% Recreation Personnel services 399,504             399,504             301,205              98,299                           75% 283,302                (17,903)                106.3% Commodities 35,971               35,971               12,751                23,220                           35% 17,845                  5,094                    71.5% Other charges and services 264,553             264,553             223,967              40,586                           85%211,613                (12,354)                105.8% Total 700,028             700,028             537,923              162,105                       77%512,760                (25,163)               104.9% Heritage Center Personnel services 64,261               64,261               46,343                17,918                           72% 45,906                  (437)                      101.0% Commodities 12,578               12,578               6,084                   6,494                             48% 5,074                    (1,010)                  119.9% Other charges and services 52,710               52,710               38,000                14,710                           72%34,348                  (3,652)                  110.6% Total 129,549             129,549             90,427                39,122                          70%85,438                  (4,989)                 105.8% Arts Center Personnel services 281,985             281,985             210,506              71,479                           75% 200,718                (9,788)                  104.9% Commodities 39,720               39,720               30,105                9,615                             76% 22,622                  (7,483)                  133.1% Other charges and services 185,165             185,165             155,682              29,483                           84% 154,299                (1,383)                  100.9% Capital outlay 3,500                  3,500                 ‐                       3,500                            0%9,143                    9,143                   0.0% Total 510,370             510,370             396,293              114,077                       78%386,782                (9,511)                 102.5% Other financing uses ‐ transfers To Communications Fund (Fiber Project)260,864             260,864             ‐                           260,864                        0% ‐                             ‐                        0.0% To Building Fund 300,000             300,000             300,000              ‐                                      100% 200,000                (100,000)              150.0% To Equipment Fund ‐                          ‐                          ‐                           ‐                                      0% 945,000                945,000               0.0% To Park Improvement Fund ‐                          125,000             125,000              ‐                                      100% ‐                             (125,000)              0.0% To Trail Improvement Fund 100,000             100,000             100,000              ‐                                      100% ‐                             (100,000)              0.0% Work in Progress ‐ Property Acq ‐                          1,800                  1,800                  ‐                                      100%‐                             1,800                   0.0% Total 660,864             787,664             526,800              260,864                       67%1,145,000            621,800              46.0% Variance from 2016 Actual Positive (Negative) Comparative 4 Unaudited 2018 Percent Adopted 9/30/18 of 9/30/17 Budget Actual Variance Budget Actual Revenues Licenses franchise fee 688,473$   501,235$   (187,238)$   72.8% 507,770$      (6,535)$         98.7% PEG Fees 60,858       40,245       (20,613)       66.1% 46,304          (6,059)           86.9% Intergovernmental State aid  516            258            (258)             50.0% ‐                     258                0.0% Investment income 3,155         4,529         1,374          143.5%1,195             3,334            378.9% Total revenues 753,002     546,267     (206,735)    72.5%555,269        (9,002)          98.4% Expenditures ‐ General government Personnel services 446,728   321,677   125,052    72.0% 260,671      (61,006)         123.4% Commodities 9,279       7,385       1,894         79.6%8,425           1,040             87.7% Other charges and services 488,930   151,992   336,938    31.1% 101,336      (50,656)         150.0% Capital outlay 51,350       47,869       3,481          93.2%20,872          (26,997)        229.3% Total expenditures 996,287     528,923     467,365     53.1%391,304        (137,619)      135.2% Excess (deficiency) of revenues over  expenditures (243,285)   17,344       260,629     ‐7.1%163,966        (146,621)      10.6% Other financing (uses) ‐ Transfers From Liquor Fund (Comm/Mkt Position) 87,525       101,379     13,854         115.8%14,315          87,064          708.2% 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)      (58,997)      19,666         75.0%(56,572)         (2,425)           104.3% To Improvement Construction Fund (175,000)  ‐                  175,000     0.0%‐                    ‐                0.0% Total other financing (uses)176,322     42,382       (133,941)    24.0%(42,257)         84,639         ‐100.3% Net change in fund balance (66,963)      59,726       126,689      121,709        (61,983)         Beginning fund balance 331,226     603,825     272,599      318,696        285,129        Ending fund balance 264,263$  663,551$  399,288$   440,405$     223,146$      Variance from 2017 Actual Positive (Negative) Comparative CITY OF LAKEVILLE, MINNESOTA Statement of Revenues, Expenditures and Changes in Fund Balances For the Nine Month Period Ended September 30, 2018 Special Revenue ‐ Communications Fund 5 Unaudited 2018 Percent Adopted 9/30/18 of 9/30/17 Budget Actual Variance Budget Actual Sales and cost of sales Sales 15,003,435$      11,057,365$      (3,946,070)$      73.7% 10,553,525$   503,840$        104.8% Cost of sales 11,307,073         8,294,216           3,012,857         73.4%7,957,583        (336,633)        104.2% Gross profit 3,696,362           2,763,149           (933,213)           74.8%2,595,942        167,207         106.4% Gross profit % 24.6% 25.0% 24.6% Operating expenses Personnel services 1,575,765           1,171,385           404,380             74.3% 1,095,229        (76,156)           107.0% Commodities 77,818                37,789                40,029               48.6% 36,756             (1,033)             102.8% Other charges and services 1,037,408           709,433              327,975             68.4%577,186           (132,247)         122.9% Total operating expenses 2,690,991           1,918,607           772,384            71.3%1,709,171        (209,436)        112.3% Operating income 1,005,371           844,542              (160,829)           84.0%886,771           (42,229)          95.2% Non‐operating revenue (expense) Investment income 19,110                20,693                1,583                 108.3% 2,813               17,880            735.6% Miscellaneous 7,500                   3,764                   (3,736)                50.2% 1,881               1,883               200.1% Capital outlay acquisitions (7,300)                 (7,100)                 200                     97.3% (48,577)            41,477            14.6% Sale of assets 2,625,000           2,350,761           (274,239)            89.6% ‐                    2,350,761       0.0% Interest and bond expense ‐                            ‐                            ‐                          0.0% (294,469)          294,469          0.0% Transfers in (out) General Fund (194,866)             (146,150)             48,717               75.0% (149,114)          2,965               98.0% Communications (Mktg Spec) (87,525)               (101,379)             (13,854)              115.8% ‐                    (101,379)         0.0% Communications (Fiber) (13,136)               ‐                            13,136               0.0% ‐                    ‐                   0.0% Debt Service: HRA Lease Rev. Fund ‐                            (44,418)               (44,418)              0.0% ‐                    ‐                   0.0% 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)                 (2,178)                 872                    71.4%(2,483)              305                 87.7% Total non‐operating (net)1,795,733           1,523,993           (271,740)           84.9%(836,309)          2,360,302      ‐182.2% Change in working capital 2,801,104           2,368,535           (432,569)            50,462             2,318,073       Beginning working capital 1,348,541           1,223,019           (125,522)           1,289,347        (66,328)           Ending working capital 4,149,645$        3,591,554$        (558,091)$        1,339,809$    2,251,745$    CITY OF LAKEVILLE, MINNESOTA Enterprise ‐ Liquor Fund Statement of Revenues, Expenditures and Changes in Working Capital For the Nine Month Period Ended September 30, 2018 Variance from 2017 Actual Positive (Negative) Comparative 1 Unaudited 2018 Percent Adopted 9/30/18 of 9/30/17 Budget Actual Variance Budget Actual Operating revenues User charges for services 4,536,178$        3,671,205$       (864,973)$     80.9% 3,445,331$  225,874$        106.6% Other 153,137             120,308             (32,830)          78.6%212,425        (92,118)          56.6% Total operating revenue 4,689,315          3,791,513          (897,803)       80.9%3,657,756     133,757         ‐24.5% Operating expenses Personnel services 1,197,884          829,081           368,804        69.2%829,276       196                100.0% Commodities 326,275             223,801           102,474        68.6%203,031       (20,770)           110.2% Other charges and services 1,233,995          776,290           457,705        62.9%720,428       (55,862)           107.8% Major Maintenance 1,901,515          1,498,366          403,149         78.8%1,250,194     (248,172)       119.9% Total operating expenses 4,659,669          3,327,537          1,332,132     71.4%3,002,929     (324,608)       110.8% Operating income (loss)29,646                463,975             434,329          654,827        (190,852)       70.9% Non‐operating revenue (expense) Intergovernmental 1,632                 816                   (816)              50.0% 816               ‐                      100.0% Investment income 31,486               37,500              6,014            119.1%25,628         11,872            146.3% Disposal of assets 4,500                 7,183                2,683            159.6% ‐                    7,183             0.0% Capital outlay (139,078)            (94,498)            44,580          67.9%(44,671)        (49,827)           211.5% Bond proceeds 1,066,190          486,947           (579,243)      45.7% 960,898       (473,951)        50.7% Debt Service (1,109,305)         (986,891)          122,414        89.0%(759,668)      (227,223)        129.9% Transfers in (Capital Projects) ‐                         307,661           307,661        0.0% ‐                    307,661          0.0% Transfers (out)(425,605)            (296,637)            128,968         69.7%(104,433)       (192,204)       284.0% Total non‐operating (net)(570,180)            (537,919)            32,261           94.3%78,570          (616,489)       ‐684.6% Change in working capital (540,534)            (73,944)            466,590        733,397       (807,341)        ‐10.1% Beginning working capital 7,364,204          7,789,196          424,992          7,064,724     724,472         110.3% Ending working capital 6,823,670$        7,715,252$        891,582$        7,798,121$   (82,869)          98.9% Variance from 2017 Actual Positive (Negative) CITY OF LAKEVILLE, MINNESOTA Comparative For the Nine Month Period Ended September 30, 2018 Statement of Revenues, Expenditures and Changes in Working Capital Enterprise ‐ Utility Fund Water Operation 7 Unaudited 2018 Percent Adopted 9/30/18 of 9/30/17 Budget Actual Variance Budget Actual Operating revenue User charges for services 6,046,862$        4,650,130$        (1,396,732)$  76.9%4,208,511$   441,619$      110.5% Operating expenses Personnel services 782,828            515,606           267,222        65.9%549,100       33,495          93.9% Commodities 86,715               9,015                77,700          10.4%42,809         33,793          21.1% Other charges and services 349,770            187,489           162,281        53.6%158,321       (29,168)         118.4% Disposal charges 4,018,012          3,013,509        1,004,503     75.0% 2,632,185    (381,324)       114.5% Major maintenance projects 670,000             100,759             569,241         15.0%713,748        612,989       14.1% Total operating expenses 5,907,325          3,826,378          2,080,947      64.8%4,096,163     269,785       93.4% Operating income (loss)139,537             823,752             684,215          112,348        711,404       733.2% Non‐operating revenue (expense) Intergovernmental State aid 1,632                 816                   (816)              50.0% 816               ‐                    100.0% Grants 25,000               ‐                        (25,000)         0.0% ‐                    ‐                    0.0% Investment income 15,015               18,750              3,735            124.9%13,500         5,250            138.9% Disposal of assets 5,250                 ‐                        (5,250)           0.0% ‐                    ‐                    0.0% Capital outlay (52,072)             (38,793)            13,279          74.5%(36,800)        (1,993)           105.4% Debt service (74,325)             (65,700)            8,625            88.4%(21,425)        (44,275)         306.7% Transfers in 23,822               23,822              ‐                     100.0% 23,873         (51)                99.8% Transfers (out)(200,012)            (129,726)            70,286           64.9%(107,721)       (22,005)        120.4% Total non‐operating (net)(255,690)            (190,831)            64,859           74.6%(127,757)       (63,074)        149.4% Change in working capital (116,153)            632,921           749,074        (15,409)        648,330        ‐4107.6% Beginning working capital 1,853,064          2,677,180          824,116          2,351,239     325,941       113.9% Ending working capital 1,736,911$        3,310,101$        1,573,190$     2,335,830$  974,271$      141.7% Variance from 2017 Actual Positive (Negative) Comparative CITY OF LAKEVILLE, MINNESOTA Statement of Revenues, Expenditures and Changes in Working Capital For the Nine Month Period Ended September 30, 2018 Enterprise ‐ Utility Fund Sanitary Sewer Operation 8 Unaudited 2018 Percent Adopted 9/30/18 of 9/30/17 Budget Actual Variance Budget Actual Operating revenue User charges for services 850,000$      678,052$      (171,948)$   79.8%644,195$   33,857$       105.3% Operating expenses Personnel services 19,038         12,865        6,173          67.6%11,466     (1,399)          112.2% Commodities 33                 338              (305)            1024.2% 20              (318)              1689.9% Other charges and services 740,903        552,401        188,502        74.6%537,912     (14,489)        102.7% Total operating expenses 759,974        565,604        194,370       74.4%549,398     (16,206)       102.9% Operating income (loss)90,026          112,448        22,422          94,797       17,651        118.6% Non‐operating revenue (expense) Investment income 2,576           3,563          987              138.3%1,688       2,693            211.0% Bond proceeds ‐                    ‐                   ‐                   0.0%394,553   (394,553)      0.0% Debt service (15,075)        (9,593)         5,482          63.6% ‐                 (9,593)          0.0% Transfers out ‐ General Fund (4,407)           (3,505)           902               79.5%(3,288)        (217)             106.6% Total non‐operating (net)(16,906)         (9,536)           7,371           56.4%392,953     (401,670)     ‐2.4% Change in working capital 73,120          102,912        29,792          487,750     (384,838)      21.1% Beginning working capital 415,244        426,676        11,432          318,786     107,890      133.8% Ending working capital 488,364$      529,588$      41,224$        806,536$   (276,948)$   65.7% Variance from 2017 Actual Positive (Negative) Comparative CITY OF LAKEVILLE, MINNESOTA Statement of Revenues, Expenditures and Changes in Working Capital For the Nine Month Period Ended September 30, 2018 Enterprise ‐ Utility Fund Street Light Operation 9 Unaudited 2018 Percent Adopted 9/30/18 of 9/30/17 Budget Actual Variance Budget Actual Revenues User charges for services 1,137,435$      866,498$         (270,937)$    76.2% 742,650$      123,848$        116.7% Charges for services ‐ Recycling 4,592                7,740                3,148            168.6%2,660             5,080              291.0% Total revenues 1,142,027         874,238            (267,789)      76.6%745,310        128,928         ‐35.9% Expenditures ‐ Public works Personnel services 425,286            326,688          98,598         76.8%267,553       (59,135)           122.1% Commodities 33,367             24,304            9,063           72.8%23,829         (475)                102.0% Other charges and services 894,578            224,177            670,401       25.1%215,054        (9,123)             104.2% Total expenditures 1,353,231         575,169            778,062       42.5%506,436        (68,733)           113.6% Operating income (loss)(211,204)           299,069            510,273        238,874        60,195            125.2% Non‐operating revenue (expense) Intergovernmental 208,000            ‐                       (208,000)     0.0% ‐                    ‐                  0.0% Investment income 7,151               7,500              349              104.9%7,500            ‐                  100.0% Capital outlay (58,117)            (26,741)           31,376         46.0% ‐                    (26,741)           0.0% Transfers in (out)‐                  General Fund (153,255)           (132,352)         20,903         86.4%(147,753)      15,401             89.6% 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               2,178              (872)             71.4%2,483            (305)                87.7% Sanitary sewer operations (23,822)             (23,822)            ‐                    100.0%(23,873)        51                    99.8% Total other financing (uses)(993)                  (194,237)           (193,244)      19560.6%(82,643)         (111,594)         235.0% Change in working capital (212,197)           104,832          317,029      156,231       (51,399)           67.1% Beginning working capital 839,883            949,516            109,633        1,075,032     (125,516)         88.3% Ending working capital 627,686$         1,054,348$     426,662$     1,231,263$  (176,915)$      85.6% Variance from 2017 Actual Positive (Negative) Comparative CITY OF LAKEVILLE, MINNESOTA Statement of Revenues, Expenditures and Changes in Working Capital For the Nine Month Period Ended September 30, 2018 Enterprise ‐ Utility Fund Environmental Resources Operation 10