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Home My WebLink AboutItem 06.mApri127, 2010 -- / Item No.l RECEIVE MARCH 31, 2010 CITY OF LAKEVILLE FINANCIAL REPORT Proposed Action Staff recommends adoption of the following motion: Move to receive the March 31, 2010 City of Lakeville financial report. Passage of this motion will result in acknowledging receipt of the March 31, 2010 City of Lakeville financial report. Overview The City of Lakeville financial report for the three months ending March 31, 2010 is attached hereto. The report contains financial information relating to the General, Special Revenue, Proprietary and Capital Project Funds. Primary Issues to Consider • Budget status of the individual funds. The Report provides a succinct overview of the financial status of the various funds. • Salient financial issues. The cover memo provides an overview of salient financial issues. Supporting Information City of Lakeville Financial Report for the three months ending March 31, 2010. D s Feller,irec r Financial Impact: $ N.A. Budgeted: N.A. Source: N.A. Related Documents (CIP, ERP, etc.): Notes: Lakev�t`te Memorandum To: Mayor and City Council From: David Lang, Senior Accountant Copy: Dennis Feller, Finance Director Date: April 26, 2010 City of Lakeville Finance Department Subject: City of Lakeville March 31, 2010 Quarterly Financial Report (unaudited) The March 31, 2010 quarterly financial report is hereby submitted for council review. This report is intended to provide its readers with a comparison of the first quarter actual financial results with the 2010 annual adopted budget. The report contains financial information relating to the General, Special Revenue, Proprietary Funds and two Capital Project Funds, (Equipment Fund and Building Fund). The Debt Service Funds as well as the Capital Project Improvement Construction Funds are not included in this report. The City of Lakeville had a cash and investment balance of $44,427,673 at the end of the first quarter of 2010 comprised of the following: Checking Savings Money Market Accounts Investments The investments are comprised of the following: Investment Type Fannie Mae Federal Home Loan Bank Federal Home Loan Mortg. Corp. Certificates of Deposit G.O. Municipal Bonds Freddie Mac Total $ 561,127 1,064,493 87,784 42,714,269 $ 44,427,673 Book Value $ 4,238,332 9,299,023 4,991,284 20,655,000 2,027,330 1,503,300 $ 42,714,269 1 Interest Rate Ranee 1.10% - 2.70% 0.80% - 4.62% 0.10% - 0.13% 0.20% - 3.00% 0.80% - 1.81% 0.25% The investments mature as follows: General Fund A summary of the General Fund revenues and expenditures annual budget vs. first quarter actual is found on Page 6. During the first quarter, expenditures ($5,077,951) exceeded revenues ($835,853) by $4,242,098. Significant comments related to the financial activities are as follows: General Fund Revenues (Pages 6-14) General Property Taxes The first half property tax revenues will not be received until late June. Licenses and Permits Licenses are tracking significantly below budget estimates due mainly to the fact that licenses are renewed annually toward the end of the fiscal year. As of March 31, 42 single family building permits were issued with a combined valuation of $11,301,000; the adopted budget is anticipating a total of 100 single family building permits. Townhouse units totaled 2 for the first quarter; the budget estimates 20 for the year. Intergovernmental Majority of the State aid payments are received in the third quarter of the fiscal year. Charges for Services — General Government Revenues are slightly below budget estimates due to no significant planning activities in the first quarter. Fiscal agent fees collected monthly from the Dakota Communications Center amounted to $14,851 in the first quarter and are consistent with budget estimates. Fiscal agent fees collected from the Lakeville Arenas amounted to $16,000 which represents the contract total for 2010. Charges for Services — Public Safety Revenues are slightly below budget estimates, but are expected to be in line with budget as the year progresses. OA Book Percent of Maturity Value Total 2010 $ 18,942,975 44% 2011 13,152,925 31% 2012 2,513,080 6% 2013 4,097,599 10% 2014 4,007,690 9% Total $ 42,714,269 1001 General Fund A summary of the General Fund revenues and expenditures annual budget vs. first quarter actual is found on Page 6. During the first quarter, expenditures ($5,077,951) exceeded revenues ($835,853) by $4,242,098. Significant comments related to the financial activities are as follows: General Fund Revenues (Pages 6-14) General Property Taxes The first half property tax revenues will not be received until late June. Licenses and Permits Licenses are tracking significantly below budget estimates due mainly to the fact that licenses are renewed annually toward the end of the fiscal year. As of March 31, 42 single family building permits were issued with a combined valuation of $11,301,000; the adopted budget is anticipating a total of 100 single family building permits. Townhouse units totaled 2 for the first quarter; the budget estimates 20 for the year. Intergovernmental Majority of the State aid payments are received in the third quarter of the fiscal year. Charges for Services — General Government Revenues are slightly below budget estimates due to no significant planning activities in the first quarter. Fiscal agent fees collected monthly from the Dakota Communications Center amounted to $14,851 in the first quarter and are consistent with budget estimates. Fiscal agent fees collected from the Lakeville Arenas amounted to $16,000 which represents the contract total for 2010. Charges for Services — Public Safety Revenues are slightly below budget estimates, but are expected to be in line with budget as the year progresses. OA Charges for Services - Public Works Revenues are low due to their seasonal nature especially as it relates to engineering fees derived from construction activities. Charges for Services - Parks, Recreation and Arts Center Park rental and related fees are not typically collected until late spring and summer. Recreation charges are exceeding budget estimates which may be due to early registration for programs that begin after school is out for the summer. Arts Center charges also exceed budget estimates for the first quarter. General Fund Expenditures (Pates 15-18) Personnel costs account for 69% of the total General Fund expenditure budget. For a majority of the departments, personnel costs are incurred evenly throughout the year. With some exceptions, personnel costs will fluctuate from quarter to quarter due to seasonal activities which incur over time and/or seasonal personnel costs. The following table shows the various General Fund department's annual budget vs. year-to- date expenditures. Human Resources Insurance Police Fire Engineering Streets Parks Recreation Arts Center Other 293,923 278,698 8,362,945 1,371,591 720,216 2,357,056 2,152,234 600,075 430,182 309,069 $ 20,753,967 c 79,866 69,675 2,070,432 241,818 181,532 734,400 441,496 157,660 129,335 $ 5,077,951 Variance $ 71,931 78,513 234,305 139,453 49,173 324,550 207,840 681,567 415,275 403,257 300,376 214,057 209,024 6,292,513 1,129,773 538,684 1,622,656 1,710,738 442,415 300,847 309,069 $ 15,676,016 35% 1% 25% 17% 25% 25% 24% 24% 22% 27% 34% 27% 25% 25% 18% 25% 31% 21% 26% 30% 0% 24% Annual First Adopted Quarter Department Budget Expenditures Mayor and Council $ 110,726 $ 38,795 Committees and Commissions 79,254 741 City Administration 313,502 79,197 City Clerk 167,664 28,211 Legal Counsel 65,132 15,959 Planning 431,982 107,432 Community & Econ. Development 274,817 66,977 Inspections 891,468 209,901 General Government Facilities 534,008 118,733 Finance 555,084 151,827 Information Systems 454,341 153,965 Human Resources Insurance Police Fire Engineering Streets Parks Recreation Arts Center Other 293,923 278,698 8,362,945 1,371,591 720,216 2,357,056 2,152,234 600,075 430,182 309,069 $ 20,753,967 c 79,866 69,675 2,070,432 241,818 181,532 734,400 441,496 157,660 129,335 $ 5,077,951 Variance $ 71,931 78,513 234,305 139,453 49,173 324,550 207,840 681,567 415,275 403,257 300,376 214,057 209,024 6,292,513 1,129,773 538,684 1,622,656 1,710,738 442,415 300,847 309,069 $ 15,676,016 35% 1% 25% 17% 25% 25% 24% 24% 22% 27% 34% 27% 25% 25% 18% 25% 31% 21% 26% 30% 0% 24% The following are some of the more significant budget items: • Motor fuels are running at approximately 20% of the 2010 budget of $466,877. Gas prices are 30%-35% higher than this same period last year. • The General Fund budget provided $248,567 for natural gas. Historically 45% of the natural gas costs are incurred in the first three months of the year. However, only $55,082 (22.2%) has been incurred in the first three months. The lower costs can be attributed to (a) a warmer than normal winter and (b) lower natural gas prices. • Electricity costs are 20% of the annual expenditures. However, the summer months typically incur higher usages. • Overtime is approximately $67,000 less than the same period a year ago. The primary cause of the labor cost reduction is due to favorable weather conditions resulting in less cost for snow removal and ice control. • Many of the departments major activities are conducted on a seasonal basis. Actual financial results are dependent on when these activities occur during the year. In addition, many expenditures are paid on an annual basis. As a result, payment of these expenditures will result in a higher (or lower) budget to actual percentage. Some of these scenarios are as follows. ■ Mayor and Council expenditures include $25,232 in dues paid for 2010. ■ Funds are appropriated in the Committees and Commissions program to account for the annual Panorama of Progress celebration in July; the annual committee member appreciation dinner held in December. ■ City Clerk — Appropriations for the 2010 elections are $59,852 to be held in the fall. ■ Information Systems expends a significant portion of their budget in the first quarter of the fiscal year on maintenance and service contracts on all the City's technology equipment and software for the current year. ■ Fire salaries for pay -for -call and pay -for -training are computed and paid twice a year in June and December. The fire relief municipal contribution is also paid in July and December. The reimbursement for the state fire aid isn't paid to the Fire Relief Association until after it is received from the State of Minnesota in October. ■ Streets incur a significant portion of their costs in the first quarter of the year as a result of winter road maintenance. 2010 was a unique year where the department didn't have a single snow event during the month of March. However, with the rising cost of Clearlane and salt, year-to-date expenditures for chemicals used amounted to approximately $159,900. The annual chemical budget is $340,119. Overtime hours are down significantly over the same period in the prior year. ■ A significant portion of the Parks department expenditures are incurred during the spring and summer months. 4 Special Revenue Funds The Special Revenue Funds are found on pages 19 - 22. The Special Revenue Funds include Public Communications, Benefit Accrual, Surface Water Management and Economic Development funds. Notes related to significant items are found on the bottom of each fund's budget to actual statement. Equipment and Building Funds For this report, the Equipment and Building Funds are the only two capital project funds included in this report. The budget to actual statements is found on pages 23 - 24. Proprietary Funds The Proprietary Funds are found on pages 25 - 28 and include Liquor, Water, Sewer and Street Light Operating Funds. Notes related to significant items are found on the bottom of each fund's budget to actual statement. RECOMMENDATION Acknowledge receipt of the March 31, 2010 Quarterly Financial Report. GENERAL FUND The General Fund accounts for all revenues and expenditures necessary in maintaining governmental activities of the City. The major revenues include property taxes, licenses and permits, intergovernmental revenue, and charges for services. The expenditures include providing for general government services, public safety, public works, and parks and recreation to the Citizens of Lakeville. CITY OF LAKEVILLE, MINNESOTA General Fund Statement of Revenues, Expenditures and Changes in Fund Balances For the Period Ended March 31, 2010 Revenues General property taxes Licenses and permits Intergovernmental Charges for services Court fines Investment income Miscellaneous Total revenues Exyenditures Mayor and Council Committees and Commissions City Administration City Clerk Legal Counsel Planning Community and Econ. Development Inspections General Government Facilities Finance Information Systems Human Resources Insurance Police Fire Engineering Streets Parks Recreation Arts Center Other Total expenditures Excess (deficiency) of revenues over expenditures Other financing sources (uses) Transfer from other funds Net change in fund balance Adopted YTD Budget Actual Variance $ 16,117,882 $ - $ (16,117,882) 0% 902,341 193,888 (708,453) 21% 1,070,554 263,659 (806,895) 25% 1,298,419 266,536 (1,031,883) 21% 273,055 74,831 (198,224) 27% 104,096 17,082 (87,014) 16% 96,769 19,857 (76,912) 21% 19,863,116 835,853 (19,027,263) 4% 110,726 38,795 71,931 35% 79,254 741 78,513 1% 313,502 79,197 234,305 25% 167,664 28,211 139,453 17% 65,132 15,959 49,173 25% 431,982 107,432 324,550 25% 274,817 66,977 207,840 24% 891,468 209,901 681,567 24% 534,008 118,733 415,275 22% 555,084 151,827 403,257 27% 454,341 153,965 300,376 34% 293,923 79,866 214,057 27% 278,698 69,675 209,024 25% 8,362,945 2,070,432 6,292,513 25% 1,371,591 241,818 1,129,773 18% 720,216 181,532 538,684 25% 2,357,056 734,400 1,622,656 31% 2,152,234 441,496 1,710,738 21% 600,075 157,660 442,415 26% 430,182 129,335 300,847 30% 309,069 - 309,069 0% 20,753,967 5,077,951 15,676,016 24% (890,851) (4,242,098) (3,351,247) 668,238 167,060 (501,179) 25% (222,613) (4,075,039) (3,852,426) General Fund Schedule of Revenues and Other Financing Sources (Uses) General property taxes Ad valorem taxes - current Ad valorem taxes - delinquent Fiscal disparities Penalties and interest Mobile home tax Mobile home tax credit Total general property taxes VA 2010 Adopted Budget Actual Variance $ 14,133,759 $ - $ (14,133,759) 0% 155,909 - (155,909) 0% 1,760,094 - (1,760,094) 0% 7,550 - (7,550) 0% 41,500 - (41,500) 0% 19,070 - (19,070) 0% 16,117,882 - (16,117,882) 0% General Fund Schedule of Revenues and Other Financing Sources (Uses) 2010 Adopted Budizet Actual Variance Licenses and permits Licenses 160,862 37,218 (123,644) 23% Cigarette $ 16,800 $ 300 $ (16,500) 2% Trash removal 3,150 - (3,150) 0% Dog 20,000 5,702 (14,298) 29% Signs 3,550 875 (2,675) 25% On -sale liquor 107,000 100 (106,900) 0% Sunday liquor 3,800 - (3,800) 0% Club license 500 - (500) 0% Non -intoxicating liquor on sale 1,200 - (1,200) 0% Non -intoxicating liquor off sale 900 - (900) 0% Wine 1,000 - (1,000) 0% Tree removal 700 100 (600) 14% Arcade 2,490 300 (2,190) 12% Tattoo/Piercing 900 900 193,888 Fireworks 900 - (900) 0% Massage 1,500 325 (1,175) 22% Miscellaneous - 25 25 Total licenses 163,490 8,627 (154,863) 5% Permits Plan review fees 160,862 37,218 (123,644) 23% Building 384,840 112,142 (272,698) 29% Plumbing 55,671 9,753 (45,918) 18% Water/sewer 9,174 3,989 (5,185) 43% Mechanical 43,257 8,330 (34,927) 19% Grading/filling 250 - (250) 0% Driveway 600 100 (500) 17% Zoning 100 100 Right-of-way 18,000 1,050 (16,950) 6% Fire burning 550 70 (480) 13% Electrical 65,347 12,384 (52,963) 19% Miscellaneous 300 125 (175) 42% Total permits 738,851 185,261 (553,590) 25% Total licenses and permits 902,341 193,888 (708,453) 21% 1.1 General Fund Schedule of Revenues and Other Financing Sources (Uses) Intergovernmental State aid police State aid fire relief State aid streets State aid pensions State POST Board grant State Drug Task Force grant State snowmobile trail maint. grant State, Fed. Cnty., traffic safety grants Fed. CDBG community development Federal energy grant Dakota Communications+A204 Center rebate County Police protective vests grant County recycling grant Total intergovernmental a. First half of state aid streets b. Federal police grants for speed enforcement 2010 Adopted Budget Actual Variance $ 335,887 $ - $ (335,887) 0% 190,209 (190,209) 0% a 374,962 187,167 (187,795) 50% 21,303 (21,303) 0% 19,864 (19,864) 0% 12,000 (12,000) 0% 200 (200) 0% b 10,963 10,963 5,000 - (5,000) 0% 1,600 (1,600) 0% 65,529 65,529 - 100% 2,100 (2,100) 0% 41,900 - (41,900) 0% 1,070,554 263,659 (806,895) 25% 9 General Fund Schedule of Revenues and Other Financing Sources (Uses) Charges for services General government Rezoning fees Platting fees Variance fees CUP fees Home occupation fees Planner fees Administrative permit fees Inspection department fees County private septic system fees General government service charges Tree escrow fund administration Lodging tax fees Fiscal Agent - DCC Fiscal Agent - Arenas Investment management fees Sale of maps/copies Sale of printed materials Finance charges Total general government 2010 Adopted Budeet Actual Variance $ 750 $ - $ (750) 0% 1,850 1,670 (180) 90% 750 200 (550) 27% 2,400 - (2,400) 0% 450 250 (200) 56% 32,001 1,824 (30,177) 6% - 600 600 7,679 874 (6,805) 11% - 956 956 15,057 921 (14,136) 6% 8,000 - (8,000) 0% 7,474 813 (6,661) 11% 59,400 14,850 (44,550) 25% 16,000 16,000 - 100% 26,597 - (26,597) 0% 400 38 (362) 10% 50 - (50) 0% 200 136(64) 68% 179,058 39,132 (139,926) 22% No significant planning activities in the first quarter of 2010. 10 General Fund Schedule of Revenues and Other Financing Sources (Uses) Public safety Police department charges SRO - ISD 194 contributions Animal pickup Animal storage Animal rabies Restitution Forfeiture - sale of assets Fire contracts Fire department charges ALF Ambulance - admin. charge Total public safety 2010 Adopted Budget Actual Variance $ 70,122 $ 9,851 $ (60,271) 14% 150,804 38,869 (111,935) 26% 3,910 545 (3,365) 14% 8,320 900 (7,420) 11% a 2,540 1,197 (1,343) 47% 3,000 1,170 (1,830) 39% 5,000 - (5,000) 0% b 32,265 - (32,265) 0% 1,750 445 (1,305) 25% 11,600 2,972 (8,628) 26% 289,311 55,949 (233,362) 19% a. Rabies clinic is held in the first quarter. b. Eureka fire contract is typically billed out in the middle of the year. 11 General Fund Schedule of Revenues and Other Financing Sources (Uses) Charges for services (continued) Public works Engineering platting - preliminary Engineering platting - final Engineering plan review Engineering developer cont. admin. Engineering Imp. Proj. design variable Engineering Imp. Proj. const. inspect. Engineering G.I.S. fees Special assessment admin. charge Special assessment searches Document/map sales Bid plan/spec. deposits Street department charges Credit River - Judicial Road maint. Developer street signs installation Total public works 2010 Adopted Budget Actual Variance b $ 1,500 $ 500 $ (1,000) 33% b 1,200 770 (430) 64% b 5,000 - (5,000) 0% b 6,000 135 (5,865) 2% b 81,900 - (81,900) 0% b 102,700 - (102,700) 0% b 1,200 375 (825) 31% b 79,252 - (79,252) 0% 220 75 (145) 34% 910 53 (857) 6% 1,500 420 (1,080) 28% a 4,530 5,674 1,144 125% 6,635 339 (6,296) 5% 7,000 - (7,000) 0% 299,547 8,341 (291,206) 3% a. Street department charges are related to snow plowing reimbursements from the City of Burnsville. b. Construction projects are minimal in the first quarter of the fiscal year. 12 General Fund Schedule of Revenues and Other Financing Sources (Uses) Parks, recreation and arts center Brochure advertising Youth activities Youth sport surcharge Youth special events Youth special events donations Adult activities Puppet wagon donations Safety Camp Safety Camp donations Senior Center donations Senior Center excursions Ritter Farm Park ELC Excursions Tennis lessons Total recreation programs Park rental/maint./tournament fees Tree sales (net) Senior Center membership surcharge Senior Center rentals Total parks and recreation Arts Center Arts center program fees Arts center rental/event admissions Total arts center Total parks, recreation and arts center 2010 Adopted Budget Actual Variance $ 5,000 $ 4,375 $ (625) 88% 108,745 48,454 (60,291) 45% 36,700 - (36,700) 0% 13,391 2,355 (11,036) 18% 1,400 100 (1,300) 7% 70,450 29,968 (40,482) 43% 3,870 - (3,870) 0% 3,000 384 (2,616) 13% 1,100 - (1,100) 0% 470 - (470) 0% 20,000 720 (19,280) 4% 6,682 2,265 (4,417) 34% 7,920 4,447 (3,473) 56% 12,582 853 (11,729) 7% 291,310 93,921 (197,389) 32% 29,903 1,481 (28,422) 5% 4,500 1,872 (2,628) 42% 4,010 - (4,010) 0% 440 - (440) 0% 330,163 97,274 (232,889) 29% 73,500 24,130 (49,370) 33% 126,840 41,710 (85,130) 33% 200,340 65,840 (134,500) 33% 530,503 163,114 (367,389) 31% Total charges for services 1,298,419 266,536 (1,031,883) 21% 13 Court fines General Fund Schedule of Revenues and Other Financing Sources (Uses) Total court fines Investment income Miscellaneous Disposal of assets Park rental farming (Berres) Donations Antenna site leases Other Total miscellaneous Other financiniz sources (uses) - Transfers from (to) Special Revenue: Communications Fund Surface Water Management Fund Storm Sewer Fund Internal Service - Muni. Res. Fund Liquor Fund Utility Fund Total other fmancing (net) 2010 12,044 (36,133) 25% Adopted 28,399 (85,198) 25% Budget Actual Variance 25% $ 273,055 $ 74,831 $ (198,224) 27% 273,055 74,831 (198,224) 27% 280,461 70,115 104,096 17,082 (87,014) 16% (501,179) 25% 2,939 1,725 (1,214) 59% 400 400 - 100% 48,411 10,283 (38,128) 21% 44,990 7,449 (37,541) 17% 29 - (29) 0% 96,769 19,857 (76,812) 21% 48,177 12,044 (36,133) 25% 113,597 28,399 (85,198) 25% 40,827 10,207 (30,620) 25% 43,140 10,785 (32,355) 25% 142,036 35,509 (106,527) 25% 280,461 70,115 (210,346) 25% 668,238 167,060 (501,179) 25% 14 General Fund Schedule of Expenditures 2010 Adopted Expenditures Budget Actual Variance Mayor and Council Personnel services Commodities Other charges and services Total Committees/Commissions Personnel services Commodities Other charges and services Total City Administration Personnel services Commodities Other charges and services Total City Clerk Personnel services Commodities Other charges and services Capital outlay Total Legal Counsel Other charges and services (continued) $ 50,224 $ 13,165 $ 37,059 26% 50 - 50 0% 60,452 25,630 34,822 42% 110,726 38,795 71,931 35% 40,441 309 40,132 1% 908 - 908 0% 37,905 432 37,473 1% 79,254 741 78,513 1% 297,465 76,623 220,842 26% 850 44 806 5% 15,187 2,530 12,657 17% 313,502 79,197 234,305 25% 105,056 26,121 78,935 25% 1,700 - 1,700 0% 60,458 1,721 58,737 3% 450 369 81 82% 167,664 28,211 139,453 17% 65,132 15,959 49,173 25% 15 General Fund Schedule of Expenditures 2010 Adopted Expenditures (continued) Budget Actual Variance Plannin Personnel services Commodities Other charges and services Total Community and Economic Development Personnel services Commodities Other charges and services Total Inspection Personnel services Commodities Other charges and services Capital outlay Total General Government Facilities Personnel services Commodities Other charges and services Capital outlay Total $ 354,020 $ 95,884 $ 258,136 27% 27,571 403 27,168 1% 50,391 11,145 39,246 22% 431,982 107,432 324,550 25% 249,979 62,671 187,308 25% 350 - 350 0% 24,488 4,306 20,182 18% 274,817 66,977 207,840 24% 791,529 186,000 605,529 23% 20,464 1,412 19,052 7% 76,703 19,742 56,961 26% 2,772 2,747 25 99% 891,468 209,901 681,567 24% 200,567 54,556 146,011 27% 43,406 3,242 40,164 7% 287,263 58,188 229,075 20% 2,772 2,747 25 99% 534,008 118,733 415,275 22% 16 General Fund Schedule of Expenditures Information Svstems Personnel services 2010 75,925 219,841 26% Commodities Adopted 3,984 4,970 44% Expenditures (continued) Budget Actual Variance 47% Finance 9,468 8,702 766 92% Personnel services $ 489,359 $ 135,073 $ 354,286 28% Commodities 3,750 1,113 2,637 30% Other charges and services 61,422 15,641 45,781 25% Capital outlay 553 - 553 0% Total 555,084 151,827 403,257 27% Information Svstems Personnel services 295,766 75,925 219,841 26% Commodities 8,954 3,984 4,970 44% Other charges and services 140,153 65,354 74,799 47% Capital outlay 9,468 8,702 766 92% Total 454,341 153,965 300,376 34% Human Resources Personnel services 245,336 61,718 183,618 25% Commodities 2,010 144 1,866 7% Other charges and services 46,577 18,004 28,573 39% Total 293,923 79,866 214,057 27% Total Insurance 2,070,432 6,292,513 25% Other charges and services 278,698 69,675 209,024 25% Police Personnel services 6,223,339 1,517,501 4,705,838 24% Commodities 347,810 75,098 272,712 22% Other charges and services 1,782,485 477,125 1,305,360 27% Capital outlay 9,311 708 8,603 8% Total 8,362,945 2,070,432 6,292,513 25% Fire Personnel services 940,681 155,600 785,081 17% Commodities 145,424 36,043 109,381 25% Other charges and services 285,486 50,175 235,311 18% Total 1,371,591 241,818 1,129,773 18% UFA General Fund Schedule of Expenditures Streets Personnel services 1,429,994 2010 1,010,504 29% Commodities 681,945 276,872 Adopted 41% Other charges and services 245,117 38,038 Expenditures (continued) Budget Actual Variance 1,622,656 Engineering 2,082 1,373 709 66% Personnel services $ 647,833 $ 172,333 $ 475,500 27% Commodities 15,292 2,142 13,150 14% Other charges and services 57,091 7,057 50,034 12% Total 720,216 181,532 538,684 25% Streets Personnel services 1,429,994 419,490 1,010,504 29% Commodities 681,945 276,872 405,073 41% Other charges and services 245,117 38,038 207,079 16% Total 2,357,056 734,400 1,622,656 31% Parks Personnel services 1,494,618 336,274 1,158,344 22% Commodities 270,730 37,533 233,197 14% Other charges and services 386,886 67,689 319,197 17% Total 2,152,234 441,496 1,710,738 21% Recreation Personnel services 325,814 88,187 237,627 27% Commodities 25,700 5,593 20,107 22% Other charges and services 246,479 62,507 183,972 25% Capital outlay 2,082 1,373 709 66% Total 600,075 157,660 442,415 26% Arts Center Personnel services 215,803 57,921 157,882 27% Commodities 23,425 4,826 18,599 21% Other charges and services 190,954 66,588 124,366 35% Total 430,182 129,335 300,847 30% it-] SPECIAL REVENUE FUNDS These funds are used to account for revenues and expenditures that have a legally restricted use for a specific purpose. Cable TV Fund This fund accounts for franchise fees from cable TV operations. Expenditures and other financing uses are used to finance the City's Cable TV and Public Communications budgets, including long-term replacement of equipment. Benefit Accrual Fund This fund accounts for the accrued liability of employee benefits attributed to severance compensation. Funding is provided by property taxes and interest earnings on investments. Surface Water Management Fund This fund accounts for those expenditures that are directly related to storm water maintenance, education, lake/stream monitoring, and treatment. Economic Development Fund This fund accounts for a $125,000 Economic Recovery Grant received from the State of Minnesota Department of Trade and Economic Development in 1995. The grant purpose is to provide loans to businesses expanding in or locating to Lakeville. CITY OF LAKEVILLE, MINNESOTA Special Revenue - Communications Fund Statement of Revenues, Expenditures and Changes in Fund Balances For the Period Ended March 31, 2010 Revenues Licenses franchise fee Intergovernmental State aid Investment income Total revenues Expenditures - General government Personnel services Commodities Other charges and services Capital outlay Total expenditures Excess (deficiency) of revenues over expenditures Other financing (uses) - Transfers To General Fund To Sp. Rev. - Benefit Accrual Fund Total other financing (uses) Net change in fund balance Adopted YTD Budget Actual Variance $ 550,654 $ 137,664 $ (412,991) 25% 516 - (516) 0% 9,017 1,346 (7,671) 15% 560,187 139,010 (421,177) 25% 312,848 82,527 230,321 26% 10,337 335 10,002 3% 86,842 22,577 64,265 26% (a) 22,205 92,190 (69,985) 415% 432,232 197,629 234,603 46% 127,955 (58,619) (186,574) (48,177) (12,044) 36,133 25% (7,806) (1,952) 5,855 25% (55,983) (13,996) 41,987 $ 71,972 $ (72,615) $ (144,587) (a) Capital outlay included $91,644.68 for the purchase of camera equipment. The appropriations were budgeted in 2009, however, the camera wasn't received until 2010. 19 CITY OF LAKEVILLE, MINNESOTA Special Revenue - Benefit Accrual Fund Statement of Revenues, Expenditures and Changes in Fund Balances For the Period Ended March 31, 2010 (a) There were no retirements or resignations in the first quarter of 2010. 20 Adopted YTD Budget Actual Variance Revenues Investment income $ 9,200 $ 1,668 $ (7,532) 18% Total revenues 9,200 1,668 (7,532) 18% Exnenditures - Personnel services General government (a) 10,673 - 10,673 0% Public safety (a) 6,833 - 6,833 0% Public Works (a) 2,498 - 2,498 0% Total expenditures 20,004 - 20,004 0% Excess (deficiency) of revenues over expenditures (10,804) 1,668 12,472 Other financing sources Transfer from Special Revenue: Communications Fund 7,806 1,952 (5,855) 25% Surface Water Management Fund 766 192 (575) 25% Total other financing sources 8,572 2,143 (6,429) 25% Net change in fund balance $ (2,232) $ 3,811 $ 6,043 (a) There were no retirements or resignations in the first quarter of 2010. 20 CITY OF LAKEVILLE, MINNESOTA Special Revenue - Surface Water Management Fund Statement of Revenues, Expenditures and Changes in Fund Balances For the Period Ended March 31, 2010 Revenues Intergovernmental State aid Charges for services Investment income Total revenues Expenditures - Public works Personnel services Commodities Other charges and services Capital outlay Total expenditures Adopted YTD 2,947 Budeet Actual Variance (113,597) $ 292 $ - $ (292) 0% 601,003 157,195 (443,808) 26% 6,316 988 (5,328) 16% 607,611 158,183 (450,416) 26% (38,517) 115,550 190,107 42,297 147,810 22% 9,407 1,015 8,392 11% (a) 302,575 9,404 293,171 3% 3,002 - 3,002 0% 505,091 52,716 452,375 10% Excess (deficiency) of revenues over expenditures Other financine (uses) - Transfers To General Fund To Sp. Rev. - Benefit Accrual Fund To Enterprise- Utility Fund: Water operations Sanitary sewer operations Total other financing (uses) Net change in fund balance 102,520 105,467 2,947 (113,597) (28,399) 85,198 25% (766) (192) 575 25% (23,932) (5,983) 17,949 25% (15,771) (3,943) 11,828 25% (154,066) (38,517) 115,550 25% $ (51,546) $ 104,479 $ 156,025 (a) Surface water management is a year around operation, however, majority of the projects are conducted in the spring -fall seasons. 21 CITY OF LAKEVILLE, MINNESOTA Special Revenue - Economic Development Fund Statement of Revenues, Expenditures and Changes in Fund Balances For the Period Ended March 31, 2010 Revenues Charges for services Investment income Total revenues Expenditures - General Government Other charges and services Adopted Bud¢et $ 10,000 $ 778 10,778 YTD Actual Variance - $ (10,000) 0% 111 (667) 14% 111 (10,667) Net change in fund balance $ 10,778 $ 111 $ (10,667) 22 CAPITAL PROJECTS FUNDS These funds account for financial resources used in the acquisition of capital facilities and equipment (except those financed by enterprise funds). Equipment Fund This fund accounts for the purchase of equipment for public safety, public works, and park maintenance. Building Fund This fund accounts for the accumulation and disbursement of funds for the construction or improvement of public buildings. CITY OF LAKEVILLE, MINNESOTA Capital Projects - Equipment Fund Statement of Revenues, Expenditures and Changes in Fund Balances For the Period Ended March 31, 2010 Revenues Intergovernmental ALF Ambulance distribution Dakota Communications Center rebate Miscellaneous - Disposal of assets Total revenues Expenditures - Capital outlay General government City Clerk Public safety Police Fire Public Works Engineering Streets Parks and Recreation Total expenditures Adopted YTD 19 Bud et Actual Variance $ 117,032 $ 117,032 $ - 100% 131,058 131,058 - 100% 10,500 - (10,500) 0% 258,590 248,090 (10,500) 96% 1,422 1,403 19 99% (a) 190,838 139,397 51,441 73% (a) 386,908 84,178 302,730 22% 10,000 10,688 (688) 107% (a) 92,457 78,309 14,148 85% 29,363 29,528 (165) 101% 710,988 343,503 367,485 48% Excess (deficiency) of revenues over expenditures Other financing sources (uses) Transfer from: Enterprise - Liquor Fund Total other financing sources (uses) Net change in fund balance (452,398) (95,413) 356,985 9,372 2,343 (7,029) 25% 9,372 2,343 (7,029) $ (443,026) $ (93,070) $ 349,956 (a) The capital outlay amounts include items where a purchase order has been executed, but may not have been purchased in the first quarter of the fiscal year. 23 CITY OF LAKEVILLE, MINNESOTA Capital Projects - Building Fund Statement of Revenues, Expenditures and Changes in Fund Balances For the Period Ended March 31, 2010 Revenues Intergovernmental Federal Economic Stimulus (EECGB) Grant Investment income Miscellaneous Lifetime Fitness Storm Sewer Fund allocation Street Reconst. Fund allocation Park Dedication Fund allocation Utility rebates Total revenues Expenditures - Capital outlay General government General governmental Public safety - Fire Public Works Parks and Recreation Total expenditures Excess (deficiency) of revenues over expenditures Adopted YTD 962,664 1% Budget Actual Variance 57% $ 276,174 $ 73,381 $ (202,793) 27% 6,116 1,521 (4,595) 25% 825,000 - (825,000) 0% (129,463) - 129,463 0% (50,000) - 50,000 0% (105,470) - 105,470 0% 27,544 - (27,544) 0% 849,901 74,902 (774,999) 9% 969,000 6,336 962,664 1% 42,025 24,075 17,950 57% 71,521 11,039 60,482 15% 252,800 11,903 240,897 5% 1,335,346 53,353 1,281,993 4% (485,445) 21,549 506,994 Net change in fund balance $ (485,445) $ 21,549 $ 506,994 24 PROPRIETARY FUNDS Enterprise Funds — These funds are used to account for off -sale liquor, water and sewer operations of the City, both of which are self-supporting from retail sales and user charges. The operations are managed much in the same way as private enterprises. Liquor Fund This fund accounts for revenues and expenses related to the operation of Lakeville's municipal off -sale liquor stores. Utility Fund This fund accounts for revenues and expenses related to water, sanitary sewer and streetlight service provided to the community. CITY OF LAKEVILLE, MINNESOTA Enterprise - Liquor Fund Statement of Revenues, Expenditures and Changes in Net Assets For the Period Ended March 31, 2010 Non-operatine revenue (expense Intergovernmental Adopted - (18,696) 0% Investment income Budget Actual Variance 22% Sales and cost of sales 2,254 - (2,254) 0% Sales $ 14,693,942 $ 3,015,727 $ (11,678,215) 21% Cost of sales 11,009,955 1,750,265 9,259,690 16% Gross profit 3,683,987 1,265,462 (2,418,525) 34% Debt Service: Operating expenses - HRA Lease Rev. Fund (190,097) Personnel services 1,279,786 344,857 934,929 27% Commodities 56,880 13,613 43,267 24% Other charges and services 852,058 178,944 673,114 21% Depreciation 141,412 35,353 106,059 25% Total operating expenses 2,330,136 572,767 1,757,369 25% $ 527,709 $ (269,394) Operating income 1,353,851 692,695 (661,156) Non-operatine revenue (expense Intergovernmental 18,696 - (18,696) 0% Investment income 53,121 11,681 (41,440) 22% Miscellaneous - Utility rebates 2,254 - (2,254) 0% Interest and bond expense (189,314) (100,302) 89,012 53% Transfers in (out) - General Fund (142,036) (1,498) 140,538 1% Debt Service: - HRA Lease Rev. Fund (190,097) (47,524) 142,573 25% Property Taxes Fund (100,000) (25,000) 75,000 25% Capital Projects: - Equipment Fund (9,372) (2,343) 7,029 25% Total non-operating (net) (556,748) (164,986) 391,762 Change in net assets $ 797,103 $ 527,709 $ (269,394) 25 CITY OF LAKEVILLE, MINNESOTA Enterprise - Utility Fund Water Operation Statement of Revenues, Expenditures and Changes in Net Assets For the Period Ended March 31, 2010 OQperating revenues User charges for services Other Total operating revenue Operating expenses Personnel services Commodities Other charges and services Depreciation Total operating expenses Operating income (loss) Non-operating revenue (expense) Intergovernmental Investment income Miscellaneous - Utility rebates Infrastructure contributed Disposal of assets Transfers in (out) General Fund Special Revenue: Surface Wtr. Mgmt. Fund Total non-operating (net) Change in net assets Adopted Budget Actual Variance (a) $ 3,174,694 $ 361,643 $ (2,813,051) 11% 175,119 21,787 (153,332) 12% 3,349,813 383,430 (2,966,383) 11% - 4,443 4,443 913,199 254,522 658,678 28% 354,060 41,587 312,473 12% 1,802,158 268,681 1,533,477 15% 1,924,012 481,003 1,443,009 25% 4,993,429 1,045,793 3,947,637 21% (1,643,616) (662,363) 981,254 184,762 - (184,762) 0% 77,090 11,511 (65,579) 15% 11,978 4,511 (7,467) 38% 199,683 - (199,683) 0% - 4,443 4,443 (128,132) (32,033) 96,099 25% 23,932 5,983 (17,949) 25% 369,313 (5,585) (374,898) $ (1,274,303) $ (667,947) $ 606,356 (a) Water revenues are seasonally dependent. First quarter revenues are historically low compared to the annual budget. 41 CITY OF LAKEVILLE, MINNESOTA Enterprise - Utility Fund Sanitary Sewer Operation Statement of Revenues, Expenditures and Changes in Net Assets For the Period Ended March 31, 2010 Operating revenue User charges for services Operating expenses Personnel services Commodities Other charges and services Disposal charges Depreciation Total operating expenses Operating income (loss) Non-operating revenue ,expense) Intergovernmental State aid Investment income Infrastructure contributed Transfers in (out) General Fund Special Revenue: Surface Wtr. Mgmt. Fund Total non-operating (net) Adopted Budget Actual Variance $ 4,228,009 $ 1,060,763 $ (3,167,246) 25% 576,524 245,855 330,669 43% 79,613 9,862 69,751 12% 308,623 54,303 254,320 18% 2,825,699 706,425 2,119,274 25% 1,115,940 278,985 836,955 25% 4,906,399 1,476,746 3,429,653 30% (678,390) (415,983) 262,407 1,632 - (1,632) 0% 31,132 4,697 (26,435) 15% 37,650 - (37,650) 0% (148,329) (37,082) 111,247 25% 15,771 3,943 (11,828) 25% (62,144) (28,443) 33,701 46% Change in net assets $ (740,534) $ (444,426) $ 296,108 27 CITY OF LAKEVILLE, MINNESOTA Enterprise - Utility Fund Street Light Operating Fund Statement of Revenues, Expenditures and Changes in Net Assets For the Period Ended March 31, 2010 Operating revenue User charges for services OQperating eUenses Personnel services Commodities Other charges and services Total operating expenses Operating income (loss) Non-operating revenue (expense) Investment income Transfers in (out) - General Fund Total non-operating (net) Adopted Budget Actual Variance $ 547,642 $ 141,733 $ (405,909) 26% 18,458 - 18,458 0% 1,463 - 1,463 0% 615,252 142,446 472,806 23% 635,173 142,446 492,727 22% (87,531) (713) 86,818 200 406 206 203% (4,000) (1,000) 3,000 25% (3,800) (594) 3,206 16% Change in net assets $ (91,331) $ (1,307) $ 90,024 28