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HomeMy WebLinkAboutItem 5i        FINANCIAL HIGHLIGHTS:   The following financial report and analysis offers readers a narrative overview of the financial activities  of the City for the six‐month period ended June 30, 2019. 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 $21.3 million for 2019.     Licenses and Permits.     Building  permit  revenue  continues  to  be  strong  and  are  exceeding  budget  estimates  through the first half. The following chart shows how the number of permits issued in the  first quarter compares to the same period in 2018 and the 2019 Adopted Budget:      YTD 2nd 2019 Second Quarter Adopted Quarter Permit Type 2018 Budget 2019 Single Family 244 350 243 Townhome 33 50 44 Apartments (Units) 0 1 (160 units) 1 (160 units) Commercial 3 10 2    Intergovernmental.   Revenues comprised of police and fire aid and various grants are typically received in the  third and fourth quarters. $16,000 has been recognized for fire department training grants  and $15,000 has been recognized for an Arts Grant.     Charges for Services.   General government services are in line with the budget. $52,000 has been received for  fiscal agent fees from the Dakota Communications Center and Lakeville Arenas.        ii    FINANCIAL HIGHLIGHTS (continued):    General Fund     ‐     Revenues (Continued)     Charges for Services. (Continued)   Public Safety revenues are slightly above budget estimates. Security services are down  compared to the same time in 2018 which included $18,000 from Super Bowl LII. Security  services are also below budget due to many events occurring later in the year. The fire  contract with Eureka Township is $41,375. 2019 is the first year of a three‐year agreement  with Eureka Township.     Public works revenues are based on summer construction projects and therefore year‐to‐ date  revenues  are  below  the  annual  estimates.  Engineering  developer  contract  administration is collected at the time of the development contract. $343,000 has been  received in the first half of the year and is exceeding budget by $136,000.      Parks and Recreation revenues are exceeding budget estimates and are up $28,000 over  the same period in 2018.      Court Fines  •  Revenues from court fines ($199,000) represent 57 percent of the budget estimates and  are up $20,000 over the same period in 2018. Court fine revenues and the membership  fees paid to the Dakota Communications Center are both impacted by the number of CAD  calls.      General Fund     ‐     Expenditures     Personnel – Actual expenses for personnel will reflect the impact of the implementation of the  compensation and classification study and cost of living adjustments that were approved in  2018.     Motor Fuels – Motor fuels through June 30, are at 57 percent of the 2019 Budget. Motor fuels  are  equal  with  the  same  period  in  2018.  Increased  snow  events  for  the  public  works  departments contributed to the higher fuel expense.      Street Chemicals – Costs for the first part of 2019 are at 43 percent of the budget. Inventory at  the end of 2018 helped keep salt purchases down in 2019. Unused chemicals are stored at the  central maintenance facility and will be utilized in the late fall if needed.       Utilities – Electric & Natural Gas. Costs are fairly consistent with the same period in 2018. Tota l  costs through the first quarter represent 44 percent of the adopted budget.      Community and Economic Development. Expenditures are down compared to the same  period in 2018 due to the Economic Development Guide being completed in 2018.    iii    FINANCIAL HIGHLIGHTS (continued):    General Fund     ‐     Expenditures (continued)     Inspections. Salaries are up over the same period in 2018 due to an employee resignation  resulting in severance costs.      Information Technology. Timing of annual maintenance agreements can impact the expense  comparison each year. In 2019, increases in ESRI maintenance connected with the Cartegraph  upgrade and the county broadband initiative contributed to the increase over the same period  in 2018.     Police. DCC membership fees for the 1st half are up $32,000 over the same period in 2018 as a  result of increased CAD events in prior years.      Fire. The Department migrated to a pay‐per‐hour compensation plan for firefighters. The  increased  costs  are  accounted  for  in  the  budget  appropriations.  The  first  half  personnel  expenses were 12.4 percent over the same period in 2018.      Engineering/GIS. GPS receivers were purchased in the first quarter contributing to the increase  over 2018. GIS professional fees in 2018 is the reason for the decrease in 2019.      Operations & Maintenance. Personnel services are below budget estimates due to employee  vacancies.      Streets. Personnel services are up compared to budget and the prior year due in part to the  increased  snow  events  in  2019.  Salt  costs  were  below  the  prior year  due  to  the  use  of  significant inventories available at the end of 2018.      Parks. Expenditures exceeded the same period in 2018 as a result of an extended ice rink  season.     Arts Center.  A roll drum was purchased in 2019 to allow the use of a screen to be utilized  during performances. Funding ($13,000) was provided by ticket surcharges.     iv    FINANCIAL HIGHLIGHTS (continued):    Communications Fund       Revenues from Franchise fees are received on a quarterly basis. They are typically received by  the end of the month following the quarter. As of the date of this report, the second quarter  franchise fees have not been received and the amount was estimated based on historical  numbers. Revenues are anticipated to remain consistent with prior years.      Expenses  are  down  slightly  over the same period in 2018. There is  $180,000  in  budget  appropriations for the final phase of the fiber installation project. The project is funded by  transfers from the General Fund, Liquor Fund and the Utility Fund. Funding from the General  Fund was transferred in 2018 and is reflected in the beginning fund balance. Funding from the  Liquor Fund and Utility Fund will be made as the project is completed.      Liquor Fund       Sales for the first quarter amounted to $7.4 million which is a 4.4 percent increase over the  same period in 2018. Sales were slightly below budget estimates which had much higher  expectations for March sales which may have been impacted by the winter weather.      Total expenditures are slightly below budget appropriations. Rent for the Kenrick liquor store  added $132,000 in additional expenditures for the quarter compared to 2018. Three floor  scrubbers were also purchased adding $14,000 to the 2019 expenditures.      2019 Transfers include a $400,000 transfer to the Equipment Fund; $400,000 to the Debt  Service Fund for the police station bonds (final maturity ‐ February, 2032); $274,000 for the  2017 HRA lease revenue bonds (debt for Galaxie Store; final maturity – February, 2027); and  $262,000 in operating transfers.       v    FINANCIAL HIGHLIGHTS (continued):       Water Fund     Water revenues are low in the first half which is typical for the first half of the year but are  exceeding revenues from the same period a year ago due mainly to the water rate increase  that went in affect February 1, 2019. Water usage increases as residents and businesses turn  on their irrigation systems in late spring.     The 2019 major maintenance projects are budgeted as follows:   ADA Door operators ‐ $6,800; $5,000 has been spent year‐to‐date   Water Treatment Facility space needs study ‐ $50,000    Trench drain rehabilitation ‐ $40,000   Well #12 rehabilitation ‐ $60,000   Pump rehabilitation ‐ $60,000   Well house #3 roof replacement ‐ $12,500   2019 Street reconstruction project – watermain repair/replacement costs ‐ $1.4 million;  $15,000 has been spent year‐to‐date   Water meter replacement projects ‐ $334,000; $9,000 has been spent year‐to‐date      Sewer Fund     Sewer revenues are in line with budget expectations and are up over the same period in 2018  as a result of the increase in sewer rates for the base charge and discharge effective February  1, 2019.       Expenditures are below budget estimates but are up compared to the same period in 2018.      Disposal charges paid to Metropolitan Council of Environmental Services increased 3.9 percent  over the 2018 rates and are projected to be $4.2 million for 2019.      The 2019 major maintenance projects are budgeted as follows:   Lift station rehabilitation ‐ $530,000; $16,000 has been spent year‐to‐date   Sewer line improvements ‐ $250,000   I/I mitigation repairs ‐$425,000; $176,000 has been spent year‐to‐date     vi    FINANCIAL HIGHLIGHTS (continued):       Street Lighting Fund     Revenues are exceeding budget and are up over the same period in 2018. Streetlight fees of  $12,700 were collected at the time of final plat in the first half.     Streetlight rates were increased effective February 1, 2019.       2019 electrical costs are in line with budget estimates.        Environmental Resources Fund     Revenues are tracking with budget estimates.      Rates were increased effective February 1, 2019.     Personnel services are slightly below budget but increased over the same period in 2018.      Majority of projects are completed in the spring, summer and fall months which results in  lower expenses during the first quarter.     Unaudited 2019 Variance from Adopted 6/30/2019 Amended Budget Actual 6/30/18 Budget Actual Positive (Negative)Percent Actual Revenues General property taxes 21,327,427$         11,297,597$      (10,029,830)$               53.0% 11,036,385$        261,212$                    102.4% Licenses and permits 2,390,498             1,953,638          (436,860)                       81.7% 1,627,911            325,727                      120.0% Intergovernmental 989,590                 52,456                (937,134)                       5.3% 128,178                (75,722)                       40.9% Charges for services 2,734,249             1,527,529          (1,206,720)                    55.9% 1,293,271            234,258                      118.1% Court fines 346,000                 198,602              (147,398)                       57.4% 179,008                19,594                         110.9% Investment income 120,000                 70,216                (49,784)                          58.5% 45,795                  24,421                         153.3% Miscellaneous 47,163                   22,679                (24,484)                         48.1%19,643                  3,036                          115.5%   Total revenues 27,954,927           15,122,717        (12,832,210)                 54.1%14,330,191          792,526                     105.5% Expenditures Mayor and Council 113,250                 51,430                61,820                           45.4% 38,856                  (12,574)                       132.4% Committees and Commissions 68,218                   7,475                  60,743                           11.0% 5,233                    (2,242)                          142.8% City Administration 477,506                 246,528              230,978                         51.6% 247,129                601                              99.8% City Clerk 148,586                 70,192                78,394                           47.2% 68,963                  (1,229)                          101.8% Legal Counsel 81,000                   39,986                41,014                           49.4% 34,893                  (5,093)                          114.6% Planning 580,515                 283,599              296,917                         48.9% 274,430                (9,169)                          103.3% Community and Econ. Development 375,237                 173,251              201,987                         46.2% 209,607                36,356                         82.7% Inspections 1,273,544             622,753              650,791                         48.9% 588,184                (34,569)                       105.9% General Government Facilities 607,324                 307,164              300,161                         50.6% 281,192                (25,972)                       109.2% Finance 804,429                 393,221              411,208                         48.9% 393,626                405                              99.9% Information Systems 788,545                 487,321              301,224                         61.8% 420,682                (66,639)                       115.8% Human Resources 527,997                 247,179              280,818                         46.8% 239,324                (7,855)                          103.3% Insurance 285,000                 142,500              142,500                         50.0% 142,500                ‐                                    100.0% Police 11,628,288           5,519,547          6,108,741                     47.5% 5,385,149            (134,398)                     102.5% Fire 2,034,937             773,269              1,261,669                     38.0% 727,422                (45,847)                       106.3% Engineering 881,757                 402,617              479,141                         45.7% 439,686                37,070                         91.6% Construction Services 573,870                 222,272              351,599                         38.7% 240,372                18,101                         92.5% Streets 3,288,617             1,853,072          1,435,546                     56.3% 1,792,531            (60,541)                       103.4% Parks 2,744,963             1,317,465        1,427,499                   48.0% 1,283,036           (34,429)                      102.7% Recreation 745,137                 319,292              425,845                         42.9% 317,644                (1,648)                          100.5% Heritage Center 138,674                 50,971                87,704                           36.8% 55,320                  4,350                           92.1% Arts Center 550,049                 310,641              239,409                         56.5% 278,185                (32,456)                       111.7% Other 79,466                  ‐                           79,466                          0.0%‐                            ‐                                   0.0%   Total expenditures 28,796,909           13,841,740        14,955,169                  48.1%13,463,963          (377,777)                    102.8% Excess (deficiency) of revenues over expenditures (841,982)               1,280,977          2,122,959                     866,228                414,749                      Other financing sources (uses) Transfer from other funds 766,482                 344,958              (421,524)                       45.0% 404,938                (59,980)                       85.2% Transfer to other funds (630,000)               (630,000)            ‐                                     100.0%(401,800)              (228,200)                    156.8% Total other financing sources (uses) 136,482                 (285,042)             (421,524)                       3,138                    (288,180)                    ‐9083.6% Net change in fund balance (705,500)               995,935              1,701,435                     (5,793,609)           6,789,544                   Beginning fund balance 14,970,310           15,732,733        762,423                         15,128,923          603,810                      Ending fund balance 14,264,810$         16,728,668$      2,463,858$                   9,335,314$          7,393,354$                 Adj fund balance, Dec 31 (net of restricted )13,150,435$        16,032,838$     8,639,484$         Net change in fund balance percentage (4.7%)6.3%(38.3%) Ratio: Fund balance to CY expenditures 45.7% Ratio: Fund balance to NY expenditures 44.3% Expense Summary: Personnel services 21,502,338          10,252,369       11,170,503                 47.7%9,792,266            (460,103)                   104.7% Commodities 1,757,479             901,302             856,177                       51.3%942,739               41,437                       95.6% Other charges and services 5,537,092             2,674,890          2,862,202                   48.3%2,698,996            24,106                       99.1% Capital outlay ‐                             13,179               (13,179)                        0.0%29,962                 16,783                       44.0% 28,796,909          13,841,740       14,875,703                 48.1%13,463,963         (377,777)                   102.8% General Fund Summary Statement of Revenues, Expenditures and Changes in Fund Balances For the Six Month Period Ended June 30, 2019 Comparative Variance from 2018 Actual Positive (Negative) 1 Unaudited General Fund Schedule of Expenditures 2019 Variance from Adopted 6/30/2019 Adopted Budget Actual 6/30/18 Expenditures Budget Actual Positive (Negative)Percent Actual Mayor and Council Personnel services 62,561$                 30,121$              32,440$                         48% 24,178$                (5,943)$                       124.6% Commodities 50                           64                        (14)                                  128% 90                          26                                 71.1% Other charges and services 50,639                   21,245                29,394                          42%14,588                  (6,657)                         145.6% Total 113,250                 51,430                61,820                          45%38,856                  (12,574)                      132.4% Committees/Commissions Personnel services 53,388                   1,072                  52,316                           2% 1,095                    23                                 97.9% Commodities 1,630                     ‐                       1,630                             0% ‐                         ‐                               0.0% Other charges and services 13,200                   6,403                  6,797                            49%4,138                    (2,265)                         154.7% Total 68,218                   7,475                  60,743                          11%5,233                    (2,242)                         142.8% City Administration Personnel services 455,248                 222,686              232,562                         49% 211,731                (10,955)                       105.2% Commodities 1,600                     189                      1,411                             12% 947                        758                              20.0% Other charges and services 20,658                   23,653                (2,995)                            114% 32,781                  9,128                           72.2% Capital outlay ‐                             ‐                      ‐                                 0%1,670                    1,670                          0.0% Total 477,506                 246,528              230,978                        52%247,129                601                             99.8% City Clerk Personnel services 114,305                 57,326                56,979                           50% 55,286                  (2,040)                          103.7% Commodities 300                         36                        264                                 12% 514                        478                              7.0% Other charges and services 33,981                   12,830                21,151                           38%13,163                  333                              97.5% Total 148,586                 70,192                78,394                          47%68,963                  (1,229)                         101.8% Legal Counsel Other charges and services 81,000                   39,986                41,014                          49%34,893                  (5,093)                         114.6% Planning Personnel services 538,195                 268,631              269,565                         50% 253,343                (15,288)                       106.0% Commodities 2,041                     317                      1,724                             16% 366                        49                                 86.6% Other charges and services 40,279                   14,651                25,628                           36%20,721                  6,070                           70.7% Total 580,515                 283,599              296,917                        49%274,430                (9,169)                         103.3% Community and Economic Development Personnel services 307,121                 144,072              163,050                         47% 148,029                3,957                           97.3% Commodities 250                         4                          246                                 2% 164                        160                              2.4% Other charges and services 67,866                   29,175                38,691                           43%61,414                  32,239                         47.5% Total 375,237                 173,251              201,987                        46%209,607                36,356                        82.7% Inspection Personnel services 1,003,209             498,192              505,017                         50% 466,054                (32,138)                       106.9% Commodities 13,792                   4,782                  9,010                             35% 5,887                    1,105                           81.2% Other charges and services 256,543                 119,779              136,764                         47%116,243                (3,536)                          103.0% Total 1,273,544             622,753              650,791                        49%588,184                (34,569)                      105.9% (continued) Comparative Variance from 2018 Actual Positive (Negative) 2 Unaudited General Fund Schedule of Expenditures 2019 Variance from Adopted 6/30/2019 Adopted Budget Actual 6/30/18 Expenditures (continued)Budget Actual Positive (Negative)Percent Actual General Government Facilities Personnel services 399,147$               207,883$            191,265$                      52% 186,300$              (21,583)$                     111.6% Commodities 22,174                   12,728                9,446                             57% 12,847                  119                              99.1% Other charges and services 186,003                 86,553                99,450                          47%82,045                  (4,508)                         105.5% Total 607,324                 307,164              300,161                        51%281,192                (25,972)                      109.2% Finance Personnel services 716,653                 341,423              375,230                         48% 337,903                (3,520)                          101.0% Commodities 3,525                     1,045                  2,480                             30% 1,567                    522                              66.7% Other charges and services 84,251                   50,753                33,498                           60%54,156                  3,403                           93.7% Total 804,429                 393,221              411,208                        49%393,626                405                             99.9% Information Technology Personnel services 443,618                 217,752              225,866                         49% 204,107                (13,645)                       106.7% Commodities 4,425                     3,071                  1,354                             69% 2,999                    (72)                               102.4% Other charges and services 340,502                 266,498              74,004                           78%213,576                (52,922)                       124.8% Total 788,545                 487,321              301,224                        62%420,682                (66,639)                      115.8% Human Resources Personnel services 416,092                 197,652              218,440                         48% 189,578                (8,074)                          104.3% Commodities 3,865                     3,356                  509                                 87% 885                        (2,471)                          379.2% Other charges and services 108,040                 46,171                61,869                           43%48,861                  2,690                           94.5% Total 527,997                 247,179              280,818                        47%239,324                (7,855)                         103.3% Insurance Other charges and services 285,000                 142,500              142,500                        50%142,500               ‐                              100.0% Police Personnel services 9,083,175             4,322,828          4,760,347                     48% 4,145,313            (177,515)                     104.3% Commodities 401,462                 196,050              205,412                         49% 196,364                314                              99.8% Other charges and services 2,143,651             1,000,669          1,142,982                     47%1,043,472            42,803                         95.9% Capital outlay ‐                             ‐                      ‐                                 0%‐                        ‐                              0.0% Total 11,628,288           5,519,547          6,108,741                    47%5,385,149            (134,398)                    102.5% Fire Personnel services 1,245,784             589,976              655,809                         47% 525,052                (64,924)                       112.4% Fire Relief Contribution/State Aid 363,351                 6,000                  357,351                         2% 10,000                  4,000                           60.0% Commodities 153,816                 49,959                103,857                         32% 59,202                  9,243                           84.4% Other charges and services 271,986                 127,334              144,652                         47%133,168                5,834                           95.6% Total 2,034,937             773,269              1,261,669                    38%727,422                (45,847)                      106.3% (continued) Comparative Variance from 2018 Actual Positive (Negative) 3 Unaudited General Fund Schedule of Expenditures 2019 Variance from Adopted 6/30/2019 Adopted Budget Actual 6/30/18 Expenditures (continued)Budget Actual Positive (Negative)Percent Actual Engineering Personnel services 769,706$               365,894$            403,813$                      48% 346,607$              (19,287)$                     105.6% Commodities 12,966                   5,680                  7,286                             44% 2,938                    (2,742)                          193.3% Other charges and services 99,085                   31,043                68,042                           31%90,141                  59,098                         34.4% Total 881,757                 402,617              479,141                        46%439,686                37,070                        91.6% Construction Services Personnel services 552,065                 215,397              336,669                         39% 206,576                (8,821)                          104.3% Commodities 7,915                     3,194                  4,721                             40% 2,655                    (539)                             120.3% Other charges and services 13,890                   3,681                  10,209                           27%2,849                    (832)                             129.2% Capital outlay ‐                             ‐                      ‐                                 0%28,292                  28,292                        0.0% Total 573,870                 222,272              351,599                        39%240,372                18,101                        92.5% Streets Personnel services 2,183,894             1,217,823          966,072                         56% 1,147,893            (69,930)                       106.1% Commodities 746,573                 454,574              291,999                         61% 503,794                49,220                         90.2% Other charges and services 358,150                 180,675              177,475                         50%140,844                (39,831)                       128.3% Total 3,288,617             1,853,072          1,435,546                    56%1,792,531            (60,541)                      103.4% Parks  Personnel services 1,925,115             974,560              950,556                         51% 987,259                12,700                         98.7% Commodities 296,140                 135,573              160,567                         46% 120,451                (15,122)                       112.6% Other charges and services 523,708                 207,332              316,376                         40%175,326                (32,006)                      118.3% Total 2,744,963             1,317,465          1,427,499                    48%1,283,036            (34,429)                      102.7% Recreation Personnel services 419,055                 173,928              245,127                         42% 171,184                (2,744)                          101.6% Commodities 35,577                   7,423                  28,154                           21% 6,487                    (936)                             114.4% Other charges and services 290,505                 137,941              152,564                         47%139,973                2,032                           98.5% Total 745,137                 319,292              425,845                        43%317,644                (1,648)                         100.5% Heritage Center Personnel services 71,576                   31,274                40,303                           44% 31,718                  445                              98.6% Commodities 9,358                     1,685                  7,673                             18% 4,467                    2,782                           37.7% Other charges and services 57,740                  18,012               39,728                          31%19,135                 1,123                          94.1% Total 138,674                 50,971                87,704                          37%55,320                  4,350                          92.1% Arts Center Personnel services 299,614                 167,884              131,731                         56% 143,061                (24,823)                       117.4% Commodities 40,020                   21,572                18,448                           54% 20,115                  (1,457)                          107.2% Other charges and services 210,415                 108,006              102,409                         51% 115,009                7,003                           93.9% Capital outlay ‐                              13,179                (13,179)                         0%‐                         (13,179)                      0.0% Total 550,049                 310,641              239,409                        56%278,185                (32,456)                      111.7% Other financing uses ‐ transfers To Building Fund ‐                              ‐                       ‐                                      0% 300,000                (300,000)                     0.0% To Equipment Fund 480,000                 480,000              ‐                                      100% ‐                             480,000                      0.0% To Park Improvement Fund 150,000                 150,000              ‐                                      100% ‐                             150,000                      0.0% To Trail Improvement Fund ‐                             ‐                      ‐                                     0%100,000                (100,000)                    0.0% Total 630,000                 630,000             ‐                                     100%400,000                230,000                     157.5% Variance from 2018 Actual Positive (Negative) Comparative 4 Unaudited 2019 Percent Adopted 6/30/2019 of 6/30/18 Budget Actual Variance Budget Actual Revenues Licenses franchise fee 687,840$   170,000$   (517,840)$   24.7% 337,085$      (167,085)$     50.4% PEG Fees 57,948       14,656       (43,292)        25.3% 30,023           (15,367)         48.8% Intergovernmental State aid  516             258             (258)             50.0% 258                ‐                     100.0% Investment income 2,058          3,878          1,820          188.4%3,019             859               128.5% Total revenues 748,362     188,792     (559,570)    25.2%370,385         (181,593)      51.0% Expenditures ‐ General government Personnel services 461,880     222,922     238,959       48.3%213,093         (9,829)            104.6% Commodities 14,900       4,387          10,513         29.4% 4,798             411                91.4% Other charges and services 310,530     35,006       275,524       11.3% 47,822           12,816           73.2% Capital outlay 59,500       802             58,698        1.3%9,638             8,836            8.3% Total expenditures 846,810     263,117     583,694      31.1%275,351        12,235           95.6% Excess (deficiency) of revenues over  expenditures (98,448)      (74,324)      24,124        75.5%95,034           (70,910)        ‐78.2% Other financing (uses) ‐ Transfers From Liquor Fund (Comm/Mkt Position) 91,267       45,634       (45,634)        50.0% 79,498           (33,865)         57.4% From Utility Fund (fiber project) 41,472       ‐                  (41,472)        0.0% ‐                     ‐                     0.0% From Liquor Fund (fiber project) 7,503          ‐                  (7,503)          0.0% ‐                     ‐                     0.0% To General Fund (expense allocations) (80,866)      (20,217)      60,650         25.0%(39,332)         19,116           51.4% To Improvement Construction Fund ‐                 ‐                 ‐                   0.0%‐                    ‐                    0.0% Total other financing (uses)59,376       25,417       (33,959)       42.8%40,166           (14,749)        63.3% Net change in fund balance (39,072)      (48,907)      (9,835)          135,200         (184,107)       Beginning fund balance 498,704     930,792     432,088       603,175         327,617         Ending fund balance 459,632$  881,885$  422,253$    738,375$     143,510$      Variance from 2018 Actual Positive (Negative) Comparative CITY OF LAKEVILLE, MINNESOTA Statement of Revenues, Expenditures and Changes in Fund Balances For the Six Month Period Ended June 30, 2019 Special Revenue ‐ Communications Fund 5 Unaudited 2019 Percent Adopted 6/30/2019 of 6/30/18 Budget Actual Variance Budget Actual Sales and cost of sales Sales 15,360,906$      7,401,394$         (7,959,512)$      48.2% 7,088,123$     313,271$        104.4% Cost of sales 11,583,628         5,538,094           6,045,534         47.8%5,310,014        (228,080)        104.3% Gross profit 3,777,278           1,863,300           (1,913,978)       49.3%1,778,109        85,191           104.8% Gross profit % 24.6% 25.2% 25.1% Operating expenses Personnel services 1,736,357           825,071              911,287             47.5% 764,322           (60,749)           107.9% Commodities 79,362                36,986                42,376               46.6% 24,503             (12,483)           150.9% Other charges and services 1,087,236           510,001              577,235             46.9%451,477           (58,524)           113.0% Total operating expenses 2,902,955           1,372,058           1,530,898         47.3%1,240,302        (131,756)        110.6% Operating income 874,323              491,243              (383,081)           56.2%537,807           (46,565)          91.3% Non‐operating revenue (expense) Investment income 19,110                24,316                5,206                 127.2% 9,197               15,119            264.4% Miscellaneous 6,716                   ‐                            (6,716)                0.0% ‐                    ‐                   0.0% Capital outlay acquisitions (79,785)               ‐                            79,785               0.0% ‐                    ‐                   0.0% Sale of assets ‐                            ‐                            ‐                          0.0% 2,349,283        (2,349,283)     0.0% Transfers in (out) General Fund (158,573)             (79,287)               79,287               50.0% (97,433)            18,147            81.4% Communications (Mktg Spec) (91,267)               (45,634)               45,634               50.0% (79,498)            33,865            57.4% Communications (Fiber) (7,503)                 ‐                            7,503                 0.0% ‐                    ‐                   0.0% Debt Service: CIP Bonds‐Police Station (400,000)             (400,000)             ‐                          100.0% (300,000)          (100,000)         133.3% Galaxie Lease (274,100)             (245,400)             28,700               89.5% ‐                    (245,400)         0.0% Capital Projects: Equipment Fund (400,000)             (400,000)             ‐                          100.0% (250,000)          150,000          160.0% Enterprise Fund:‐                       Environmental Resources ‐ Recycling (4,525)                 (3,425)                 1,100                75.7%(2,176)              (2,177)            157.4% Total non‐operating (net)(1,389,927)         (1,149,429)         240,498            82.7%1,629,373        (2,778,802)    ‐70.5% Change in working capital (515,604)             (658,186)             (142,582)            2,167,180        (2,825,366)     Beginning working capital 3,007,218           3,890,525           883,307            1,223,019        2,667,506       Ending working capital 2,491,614$        3,232,339$        740,725$          3,390,199$    (157,860)$      Variance from 2018 Actual Positive (Negative) Comparative CITY OF LAKEVILLE, MINNESOTA Enterprise ‐ Liquor Fund Statement of Revenues, Expenditures and Changes in Working Capital For the Six Month Period Ended June 30, 2019 6 Unaudited 2019 Percent Adopted 6/30/2019 of 6/30/18 Budget Actual Variance Budget Actual Operating revenues User charges for services 5,144,657$        1,491,332$        (3,653,325)$   29.0% 1,462,077$   29,255$        102.0% Other 231,830              88,186                (143,644)        38.0%75,675           12,511          116.5% Total operating revenue 5,376,487           1,579,518           (3,796,969)     29.4%1,537,752     41,766          ‐246.9% Operating expenses Personnel services 1,215,031           583,832              631,199          48.1%553,616         (30,216)         105.5% Commodities 350,868              146,405              204,463          41.7%122,732         (23,673)         119.3% Other charges and services 1,253,016           417,982              835,034          33.4%386,857         (31,125)         108.0% Major Maintenance 1,958,114           50,649                1,907,465      2.6%112,268         61,619          45.1% Total operating expenses 4,777,029           1,198,868           3,578,161      25.1%1,175,473     (23,395)        102.0% Operating income (loss)599,458              380,650              (218,808)         362,279         18,371           Non‐operating revenue (expense) Intergovernmental 1,632                  816                      (816)                50.0% (816)               1,632             ‐100.0% Investment income 36,308                45,286                8,978               124.7% 25,000           20,286           181.1% Disposal of assets (10,000)               6,761                  16,761            ‐67.6% 7,016             (255)               96.4% Capital outlay (67,739)               (3,956)                 63,783            5.8%(46,133)         42,177           8.6% Bond proceeds 1,430,000           ‐                           (1,430,000)      0.0% ‐                     ‐                     0.0% Debt Service (1,215,420)         (855,667)             359,753          70.4%(865,828)       10,161           98.8% Transfers (out)(169,526)             (37,198)               132,329         21.9%(91,467)         54,270          40.7% Total non‐operating (net)5,255                  (843,958)             (849,213)         (972,228)       128,270         Change in working capital 604,713              (463,307)             (1,068,020)      (609,949)       146,642         76.0% Beginning working capital 7,364,204           7,245,758           (118,446)         7,687,750     (441,992)      94.3% Ending working capital 7,968,917$        6,782,451$        (1,186,466)$   7,077,801$   (295,350)      95.8% Variance from 2018 Actual Positive (Negative) CITY OF LAKEVILLE, MINNESOTA Comparative For the Six Month Period Ended June 30, 2019 Statement of Revenues, Expenditures and Changes in Working Capital Enterprise ‐ Utility Fund Water Operation 7 Unaudited 2019 Percent Adopted 6/30/2019 of 6/30/18 Budget Actual Variance Budget Actual Operating revenue User charges for services 6,608,063$        3,327,079$        (3,280,984)$  50.3%3,074,891$   252,188$      108.2% Operating expenses Personnel services 834,639              369,870              464,769          44.3%339,347         (30,523)         109.0% Commodities 85,471                41,790                43,681            48.9% 22,290           (19,500)         187.5% Other charges and services 391,263              330,655              60,608            84.5%120,912         (209,743)       273.5% Disposal charges 4,174,432           2,087,214           2,087,218       50.0%2,009,006     (78,208)         103.9% Major maintenance projects 1,205,000           192,111              1,012,889      15.9%31,810           (160,301)      603.9% Total operating expenses 6,690,805           3,021,640           3,669,165      45.2%2,523,365     (498,275)      119.7% Operating income (loss)(82,742)               305,439              388,181          551,526         (246,087)      55.4% Non‐operating revenue (expense) Intergovernmental State aid 1,632                  816                      (816)                50.0% (816)               1,632             ‐100.0% Grants 152,368              ‐                           (152,368)         0.0% ‐                     ‐                     0.0% Investment income 24,050                19,025                (5,025)             79.1% 12,500           6,525             152.2% Disposal of assets (10,000)               ‐                           10,000            0.0% ‐                     ‐                     0.0% Capital outlay (51,529)               ‐                           51,529            0.0%(29,624)         29,624           0.0% Debt service (70,472)               (56,496)               13,976            80.2%(65,350)         8,854             86.5% Transfers in 24,165                24,165                ‐                       100.0% 23,822           343                101.4% Transfers (out)(174,527)             (87,264)               87,264           50.0%(93,670)         6,407            93.2% Total non‐operating (net)(104,313)             (99,753)               4,560              95.6%(153,138)       53,385          65.1% Change in working capital (187,055)             205,686              392,741          398,388         (192,702)       51.6% Beginning working capital 2,275,130           3,044,063           768,933          2,790,620     253,443        109.1% Ending working capital 2,088,075$        3,249,749$        1,161,674$     3,189,008$  60,741$        101.9% Variance from 2018 Actual Positive (Negative) Comparative CITY OF LAKEVILLE, MINNESOTA Statement of Revenues, Expenditures and Changes in Working Capital For the Six Month Period Ended June 30, 2019 Enterprise ‐ Utility Fund Sanitary Sewer Operation 8 Unaudited 2019 Percent Adopted 6/30/2019 of 6/30/18 Budget Actual Variance Budget Actual Operating revenue User charges for services 875,355$      473,561$        (401,794)$    54.1%442,432$   31,129$        107.0% Operating expenses Personnel services 19,855          9,699               10,156          48.9% 9,004          (695)              107.7% Commodities 63                  6                      57                  10.2% 176             170               3.6% Other charges and services 761,901        359,526          402,375        47.2%370,659     11,133          97.0% Total operating expenses 781,819        369,231          412,588       47.2%379,839     10,608         97.2% Operating income (loss)93,536          104,330          10,794          62,593       41,737         166.7% Non‐operating revenue (expense) Investment income 2,933             2,380               (553)               81.1% 2,375          5                    100.2% Debt service (45,375)         (31,396)           13,979          69.2%(6,461)        (24,935)         485.9% Transfers in (out) ‐ General Fund (5,001)           (2,501)             2,501            50.0%(2,204)        (297)             113.5% Total non‐operating (net)(47,443)         (31,516)           15,927         66.4%(6,290)        (25,226)        501.1% Change in working capital 46,093          72,813            26,720          56,303       16,510          129.3% Beginning working capital 477,402        571,214          93,812          432,774     138,440       132.0% Ending working capital 523,495$      644,027$        120,532$      489,077$   154,950$    131.7% Variance from 2018 Actual Positive (Negative) Comparative CITY OF LAKEVILLE, MINNESOTA Statement of Revenues, Expenditures and Changes in Working Capital For the Six Month Period Ended June 30, 2019 Enterprise ‐ Utility Fund Street Light Operation 9 Unaudited 2019 Percent Adopted 6/30/2019 of 6/30/18 Budget Actual Variance Budget Actual Revenues User charges for services 1,636,903$       810,168$          (826,735)$      49.5% 569,735$      240,433$        142.2% Charges for services ‐ Recycling ‐                         4,090                 4,090             0.0%7,740             (3,650)             52.8% Total revenues 1,636,903         814,258            (822,645)        49.7%577,475         236,783          ‐142.5% Expenditures ‐ Public works Personnel services 444,935            238,525            206,410          53.6%216,417         (22,108)            110.2% Commodities 34,248               20,046               14,202            58.5% 27,140           7,094               73.9% Other charges and services 1,161,000         214,629            946,371         18.5%116,825         (97,804)            183.7% Total expenditures 1,640,183         473,200            1,166,983      28.9%360,382         (112,818)         131.3% Operating income (loss)(3,280)               341,058            344,338          217,093         123,965          157.1% Non‐operating revenue (expense) Intergovernmental 120,292            ‐                         (120,292)         0.0% ‐                     ‐                   0.0% Investment income 3,140                 6,840                 3,700              217.8% 5,000             1,840               136.8% Capital outlay ‐                         ‐                         ‐                       0.0%(1,226)            1,226               0.0% Transfers in (out) General Fund (169,461)           (84,731)             84,731            50.0%(111,448)       26,718             76.0% Equipment Fund (31,000)             (31,000)             ‐                       100.0% (31,000)         ‐                   100.0% Storm Sewer Trunk Fund 20,000               20,000               ‐                       100.0% 10,000           10,000             200.0% Liquor Fund 4,525                 ‐                         (4,525)             0.0% ‐                     ‐                   0.0% Sanitary sewer operations (24,165)             (24,165)            ‐                      100.0%(23,822)         (343)                 101.4% Total other financing (uses)(76,669)             (113,056)           (36,387)          147.5%(152,496)       39,440             74.1% Change in working capital (79,949)             228,003            307,952          64,597           163,406           353.0% Beginning working capital 782,656            1,094,376         311,720          1,004,332     90,044             109.0% Ending working capital 702,707$         1,322,379$      619,672$       1,068,929$  253,450$        123.7% Variance from 2018 Actual Positive (Negative) Comparative CITY OF LAKEVILLE, MINNESOTA Statement of Revenues, Expenditures and Changes in Working Capital For the Six Month Period Ended June 30, 2019 Enterprise ‐ Utility Fund Environmental Resources Operation 10