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HomeMy WebLinkAboutItem 10i        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, 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 three quarters. The following chart shows how the number of permits  issued in the third quarter compares to the same period in 2018 and the 2019 Adopted  Budget:      YTD 3rd 2019 YTD 3rd Quarter Adopted Quarter Permit Type 2018 Budget 2019 Single Family 352 350 378 Townhome 68 50 65 Apartments (Units) 1 (55 units) 1 (160 units) 2 (215 units) Commercial 6 10 2   In October, twenty‐four (24) single family and twelve (12) townhome permits have been  issued bringing the year‐to‐date total to 402 for single family and 77 for townhomes.     Intergovernmental.   Police state aid revenue of $501,000 exceeds budget estimates by $37,000. Fire state aid  revenue of $384,000 exceeds budget estimates by $20,000.   Other grant revenues through the third quarter amounted to $150,000. These grants  include: police post board grant, PERA rate increase aid, firefighter safety training grants,  police vest reimbursements, Art Center grant, DARTS and senior chores funding.       ii    FINANCIAL HIGHLIGHTS (continued):    General Fund     ‐     Revenues (Continued)     Charges for Services.   General government services are in line with the budget. $78,000 has been received for  fiscal agent fees from the Dakota Communications Center and Lakeville Arenas.    Public Safety revenues are slightly below 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. $625,000 has been  received in the first half of the year and is exceeding budget by $418,000. Preliminary  engineering platting fees were not anticipated in the 2019 budget, however $27,000 has  been received to date.      Parks and Recreation revenues are exceeding budget estimates and are up $49,000 over  the same period in 2018.      Court Fines  •  Revenues from court fines ($281,000) represent 81 percent of the budget estimates and  are up $21,000 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 September 30 are at 81 percent of the 2019 Budget.  Increased  snow  events  for  the  public  works  departments  contributed  to  the  higher  fuel  expense.      Street Chemicals – Costs 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.      iii    FINANCIAL HIGHLIGHTS (continued):    General Fund     ‐     Expenditures (continued)   Utilities – Electric & Natural Gas. Costs are fairly consistent with the same period in 2018. Total  costs through the first three quarters represent 72 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.       Legal. Legal fees are up 28 percent over the same period in 2018 and currently at 85 percent  of the 2019 budget.     Inspections. Other charges and services are exceeding budget estimates due to higher than  anticipated contract electrical inspections. The increased costs are funded by the increase in  electrical permit revenues.      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 nine months are up $48,000 over the same period in 2018 as  a result of increased CAD events in prior years. Personnel services are slightly below the 2019  budget due in part to various employee transitions and vacancies.       Fire. The Department migrated to a pay‐per‐hour compensation plan for firefighters. The  increased costs are accounted for in the budget appropriations. Personnel expenses for the  first nine months were 11.7 percent over the same period in 2018. Fire Relief State Aid  increased $12,000 over 2018.       Engineering/GIS.  GPS  receivers  (mapping  grade)  were  purchased  in  the  first  quarter  contributing to the increase over 2018. Contractual services are down in 2019 compared to  2018 when contractual engineering services were used to update the Transportation Plan and  the Transit ADA Plan.     Construction  Services.  Personnel  services  are  below  budget  estimates  due  to  employee  vacancies. All positions have been filled since July.      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.      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 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.      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. The fiber project is  anticipated to be completed by the end of the year but may run into the next year depending  on contract acceptance and the actual start date.      Liquor Fund       Sales through the third quarter amounted to $11.7 million which is a 5.8 percent increase over  the same period in 2018. Sales are slightly above budget estimates due to strong summer sales.      Total expenditures are slightly below budget appropriations. Rent for the Kenrick liquor store  added $199,000 in additional expenditures year to date compared to 2018. $25,000 was  contributed to the Lakeville school district for chemical prevention programs. $46,500 was  expended on a space needs analysis in conjunction with a proposed fourth liquor store.  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.       Capital outlay consists of $63,000 for the Galaxie monument. Other capital outlay anticipated  in  2019  is  for  lighting  upgrades ($25,000)  at  the  Galaxie  location.  The  upgrades  will  be  completed in the fourth quarter.     v    FINANCIAL HIGHLIGHTS (continued):       Water Fund     Water revenues are below budget expectations through the end of the third quarter as a result  of a higher than average precipitation over the summer months. Consumption was down 12.3  percent with revenues down 10.9 percent which was minimized due to the water rate increase  that went in affect February 1, 2019.     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; $10,000 has been spent year‐to‐date   2019 Street reconstruction project – watermain repair/replacement costs ‐ $1.4 million;  $633,000 has been spent year‐to‐date.   Water meter replacement projects ‐ $334,000; $11,000 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.       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.      Expenditures are below budget estimates but are up compared to the same period in 2018.      The 2019 major maintenance projects are budgeted as follows:   Lift station rehabilitation ‐ $530,000; $112,000 has been spent year‐to‐date   Sewer line improvements ‐ $250,000; $223,000 has been spent year to date   I/I mitigation repairs ‐$425,000; $681,000 has been spent year‐to‐date with unspent  appropriations from the prior year     vi    FINANCIAL HIGHLIGHTS (continued):       Street Lighting Fund     Revenues are exceeding budget and are up over the same period in 2018. Streetlight fees of  $24,000 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.  Intergovernmental grant  revenues  were  budgeted at $120,000. The request for funding will be made once the final contract payments  are made.      Rates were increased effective February 1, 2019.     Personnel services are slightly above budget due to the addition of a full‐time Forester position  late in the second quarter which was inadvertently left out of the 2019 budget.      Majority of projects are currently in progress and will be completed in the fourth quarter  resulting in lower expenses compared to the budget.     Unaudited 2019 2019 Variance from Adopted Amended 9/30/2019 Amended Budget Actual 9/30/18 Budget Budget Actual Positive (Negative)Percent Actual Revenues General property taxes 21,327,427$       21,327,427$         11,435,656$       (9,891,771)$                  53.6% 11,041,782$     393,874$          103.6% Licenses and permits 2,390,498           2,390,498             2,866,874           476,376                         119.9% 2,539,397         327,477            112.9% Intergovernmental 989,590               989,590                 1,035,185           45,595                           104.6% 1,050,623         (15,438)             98.5% Charges for services 2,734,249           2,734,249             2,590,858           (143,391)                       94.8% 2,520,707         70,151              102.8% Court fines 346,000               346,000                 280,873               (65,127)                          81.2% 260,021             20,852              108.0% Investment income 120,000               120,000                 105,324               (14,676)                          87.8% 68,693               36,631              153.3% Miscellaneous 47,163                 52,135                   55,941                 3,806                            107.3%47,186               8,755               118.6%   Total revenues 27,954,927         27,959,899           18,370,711         (9,589,188)                   65.7%17,528,409       842,302           104.8% Expenditures Mayor and Council 113,250               113,250                 96,609                 16,642                           85.3% 84,031               (12,578)             115.0% Committees and Commissions 68,218                 68,218                   106,210               (37,992)                          155.7% 94,691               (11,519)             112.2% City Administration 477,506               477,506                 366,394               111,112                         76.7% 362,456             (3,938)               101.1% City Clerk 148,586               148,586                 107,482               41,105                           72.3% 124,457             16,976              86.4% Legal Counsel 81,000                 81,000                   68,504                 12,496                           84.6% 53,518               (14,986)             128.0% Planning 580,515               580,515                 431,623               148,892                         74.4% 408,233             (23,390)             105.7% Community and Econ. Development 375,237               375,237                 259,260               115,977                         69.1% 296,811             37,551              87.3% Inspections 1,273,544           1,273,544             957,233               316,311                         75.2% 907,102             (50,131)             105.5% General Government Facilities 607,324               607,324                 460,640               146,684                         75.8% 435,252             (25,388)             105.8% Finance 804,429               804,429                 595,010               209,419                         74.0% 583,971             (11,039)             101.9% Information Systems 788,545               788,545                 609,716               178,829                         77.3% 517,954             (91,762)             117.7% Human Resources 527,997               527,997                 367,125               160,872                         69.5% 368,560             1,435                99.6% Insurance 285,000               285,000                 213,750               71,250                           75.0% 213,750             ‐                         100.0% Police 11,628,288         11,628,288           8,292,715           3,335,574                     71.3% 7,989,063         (303,652)           103.8% Fire 2,034,937           2,039,909             1,564,968           474,941                         76.7% 1,472,475         (92,493)             106.3% Engineering 881,757               881,757                 650,243               231,514                         73.7% 623,833             (26,410)             104.2% Construction Services 573,870               573,870                 374,821               199,049                         65.3% 375,832             1,011                99.7% Streets 3,288,617           3,288,617             2,524,322           764,295                         76.8% 2,464,407         (59,915)             102.4% Parks 2,744,963           2,744,963            2,015,003         729,960                       73.4% 2,002,941         (12,062)           100.6% Recreation 745,137               745,137                 562,474               182,664                         75.5% 537,923             (24,551)             104.6% Heritage Center 138,674               138,674                 85,748                 52,926                           61.8% 90,427               4,679                94.8% Arts Center 550,049               550,049                 463,492               86,557                           84.3% 396,293             (67,199)             117.0% Other 79,466                 79,466                  ‐                            79,466                          0.0%‐                         ‐                        0.0%   Total expenditures 28,796,909         28,801,881           21,173,339         7,628,542                    73.5%20,403,980       (769,359)          103.8% Excess (deficiency) of revenues over expenditures (841,982)             (841,982)               (2,802,628)          (1,960,646)                    (2,875,571)        72,943              Other financing sources (uses) Transfer from other funds 766,482               611,482                 445,306               (166,176)                       72.8% 591,335             (146,029)           75.3% Transfer to other funds (630,000)             (1,030,000)            (1,030,000)         ‐                                     100.0%(526,800)            (503,200)          195.5% Total other financing sources (uses) 136,482               (418,518)               (584,694)             (166,176)                       64,535               (649,229)          ‐906.0% Net change in fund balance (705,500)             (1,260,500)            (3,387,322)          (2,126,822)                    (5,793,609)        2,406,287        Beginning fund balance 14,970,310         14,970,310           15,732,733         762,423                         15,128,923       603,810            Ending fund balance 14,264,810$       13,709,810$         12,345,411$       (1,364,399)$                  9,335,314$       3,010,097$      Adj fund balance, Dec 31 (net of restricted )13,150,435$      12,595,435$        11,649,581$      8,639,484$      Net change in fund balance percentage (4.7%)(8.4%)(21.5%)(38.3%) Ratio: Fund balance to CY expenditures 45.7%43.7% Ratio: Fund balance to NY expenditures 43.0%41.2% Expense Summary: Personnel services 21,502,338        21,502,338          15,928,828        5,494,044                   74.1%15,102,497      (826,331)         105.5% Commodities 1,757,479          1,762,451             1,199,091          563,360                       68.0%1,300,998         101,907          92.2% Other charges and services 5,537,092          5,537,092             4,030,425          1,506,667                   72.8%3,968,167         (62,258)           101.6% Capital outlay ‐                          ‐                             14,995                (14,995)                        0.0%32,318              17,323            46.4% 28,796,909        28,801,881          21,173,339        7,549,076                   73.5%20,403,980      (769,359)         103.8% General Fund Summary Statement of Revenues, Expenditures and Changes in Fund Balances For the Nine Month Period Ended September 30, 2019 Comparative Variance from 2018 Actual Positive (Negative) 1 Unaudited General Fund Schedule of Expenditures 2019 2019 Variance from Adopted Amended 9/30/2019 Adopted Budget Actual 9/30/18 Expenditures Budget Budget Actual Positive (Negative)Percent Actual Mayor and Council Personnel services 62,561$               62,561$                 42,116$               20,446$                         67% 37,127$             (4,989)$             113.4% Commodities 50                         50                           64                         (14)                                  128% 90                       26                      71.1% Other charges and services 50,639                 50,639                   54,429                 (3,790)                           107%46,814               (7,615)              116.3% Total 113,250               113,250                 96,609                 16,642                          85%84,031               (12,578)            115.0% Committees/Commissions Personnel services 53,388                 53,388                   79,257                 (25,869)                          148% 70,679               (8,578)               112.1% Commodities 1,630                   1,630                     2,191                   (561)                               134% 2,247                 56                      97.5% Other charges and services 13,200                 13,200                   24,762                 (11,562)                         188%21,765               (2,997)              113.8% Total 68,218                 68,218                   106,210               (37,992)                         156%94,691               (11,519)            112.2% City Administration Personnel services 455,248               455,248                 336,932               118,316                         74% 316,191             (20,741)             106.6% Commodities 1,600                   1,600                     282                       1,318                             18% 966                     684                    29.2% Other charges and services 20,658                 20,658                   29,180                 (8,522)                            141% 43,629               14,449              66.9% Capital outlay ‐                           ‐                             ‐                      ‐                                 0%1,670                 1,670               0.0% Total 477,506               477,506                 366,394               111,112                        77%362,456             (3,938)              101.1% City Clerk Personnel services 114,305               114,305                 86,959                 27,347                           76% 85,572               (1,387)               101.6% Commodities 300                       300                         184                       116                                 61% 3,659                 3,475                5.0% Other charges and services 33,981                 33,981                   20,339                 13,642                           60%35,226               14,887              57.7% Total 148,586               148,586                 107,482               41,105                          72%124,457             16,976             86.4% Legal Counsel Other charges and services 81,000                 81,000                   68,504                 12,496                          85%53,518               (14,986)            128.0% Planning Personnel services 538,195               538,195                 407,505               130,690                         76% 380,924             (26,581)             107.0% Commodities 2,041                   2,041                     719                       1,322                             35% 1,141                 422                    63.0% Other charges and services 40,279                 40,279                   23,399                 16,880                           58%26,168               2,769                89.4% Total 580,515               580,515                 431,623               148,892                        74%408,233             (23,390)            105.7% Community and Economic Development Personnel services 307,121               307,121                 218,121               89,000                           71% 224,101             5,980                97.3% Commodities 250                       250                         96                         154                                 38% 203                     107                    47.3% Other charges and services 67,866                 67,866                   41,043                 26,823                           60%72,507               31,464              56.6% Total 375,237               375,237                 259,260               115,977                        69%296,811             37,551             87.3% Inspection Personnel services 1,003,209           1,003,209             739,187               264,022                         74% 699,211             (39,976)             105.7% Commodities 13,792                 13,792                   7,141                   6,651                             52% 8,071                 930                    88.5% Other charges and services 256,543               256,543                 210,905               45,638                           82%199,820             (11,085)             105.5% Total 1,273,544           1,273,544             957,233               316,311                        75%907,102             (50,131)            105.5% (continued) Comparative Variance from 2018 Actual Positive (Negative) 2 Unaudited General Fund Schedule of Expenditures 2019 2019 Variance from Adopted Amended 9/30/2019 Adopted Budget Actual 9/30/18 Expenditures (continued)Budget Budget Actual Positive (Negative)Percent Actual General Government Facilities Personnel services 399,147$            399,147$               309,857$            89,290$                         78% 284,509$           (25,348)$           108.9% Commodities 22,174                 22,174                   16,354                 5,820                             74% 18,640               2,286                87.7% Other charges and services 186,003               186,003                 134,429               51,574                          72%132,103             (2,326)              101.8% Total 607,324               607,324                 460,640               146,684                        76%435,252             (25,388)            105.8% Finance Personnel services 716,653               716,653                 521,234               195,419                         73% 512,670             (8,564)               101.7% Commodities 3,525                   3,525                     1,152                   2,373                             33% 1,619                 467                    71.2% Other charges and services 84,251                 84,251                   72,624                 11,627                           86%69,682               (2,942)               104.2% Total 804,429               804,429                 595,010               209,419                        74%583,971             (11,039)            101.9% Information Technology Personnel services 443,618               443,618                 329,195               114,423                         74% 309,494             (19,701)             106.4% Commodities 4,425                   4,425                     5,243                   (818)                               118% 4,100                 (1,143)               127.9% Other charges and services 340,502               340,502                 275,278               65,224                           81%204,360             (70,918)             134.7% Total 788,545               788,545                 609,716               178,829                        77%517,954             (91,762)            117.7% Human Resources Personnel services 416,092               416,092                 300,975               115,117                         72% 286,328             (14,647)             105.1% Commodities 3,865                   3,865                     3,683                   182                                 95% 1,066                 (2,617)               345.5% Other charges and services 108,040               108,040                 62,467                 45,573                           58%81,166               18,699              77.0% Total 527,997               527,997                 367,125               160,872                        70%368,560             1,435               99.6% Insurance Other charges and services 285,000               285,000                 213,750               71,250                          75%213,750            ‐                    100.0% Police Personnel services 9,083,175           9,083,175             6,540,804           2,542,372                     72% 6,214,742         (326,062)           105.2% Commodities 401,462               401,462                 253,857               147,605                         63% 293,552             39,695              86.5% Other charges and services 2,143,651           2,143,651             1,498,054           645,597                         70%1,480,769         (17,285)             101.2% Total 11,628,288         11,628,288           8,292,715           3,335,574                    71%7,989,063         (303,652)          103.8% Fire Personnel services 1,245,784           1,245,784             901,175               344,609                         72% 806,571             (94,604)             111.7% Fire Relief Contribution/State Aid 363,351               363,351                 383,598               (20,247)                          106% 371,701             (11,897)             103.2% Commodities 153,816               158,788                 78,050                 80,738                           49% 91,624               13,574              85.2% Other charges and services 271,986               271,986                 202,145               69,841                           74%202,579             434                    99.8% Total 2,034,937           2,039,909             1,564,968           474,941                        77%1,472,475         (92,493)            106.3% (continued) Comparative Variance from 2018 Actual Positive (Negative) 3 Unaudited General Fund Schedule of Expenditures 2019 2019 Variance from Adopted Amended 9/30/2019 Adopted Budget Actual 9/30/18 Expenditures (continued)Budget Budget Actual Positive (Negative)Percent Actual Engineering Personnel services 769,706$            769,706$               586,450$            183,256$                      76% 520,505$           (65,945)$           112.7% Commodities 12,966                 12,966                   7,342                   5,624                             57% 5,999                 (1,343)               122.4% Other charges and services 99,085                 99,085                   56,451                 42,634                           57%97,329               40,878              58.0% Total 881,757               881,757                 650,243               231,514                        74%623,833             (26,410)            104.2% Construction Services Personnel services 552,065               552,065                 364,167               187,898                         66% 337,735             (26,432)             107.8% Commodities 7,915                   7,915                     6,094                   1,821                             77% 5,226                 (868)                   116.6% Other charges and services 13,890                 13,890                   4,560                   9,330                             33%4,119                 (441)                   110.7% Capital outlay ‐                           ‐                             ‐                      ‐                                 0%28,752               28,752             0.0% Total 573,870               573,870                 374,821               199,049                        65%375,832             1,011               99.7% Streets Personnel services 2,183,894           2,183,894             1,721,382           462,512                         79% 1,627,522         (93,860)             105.8% Commodities 746,573               746,573                 562,653               183,920                         75% 600,756             38,103              93.7% Other charges and services 358,150               358,150                 240,287               117,863                         67%236,129             (4,158)               101.8% Total 3,288,617           3,288,617             2,524,322           764,295                        77%2,464,407         (59,915)            102.4% Parks  Personnel services 1,925,115           1,925,115             1,447,577           477,538                         75% 1,458,861         11,284              99.2% Commodities 296,140               296,140                 207,437               88,703                           70% 213,099             5,662                97.3% Other charges and services 523,708               523,708                 359,989               163,719                         69%329,085             (30,904)            109.4% Capital outlay ‐                           ‐                             ‐                      ‐                                 0%1,896                 1,896               0.0% Total 2,744,963           2,744,963             2,015,003           729,960                        73%2,002,941         (12,062)            100.6% Recreation Personnel services 419,055               419,055                 312,027               107,029                         74% 301,205             (10,822)             103.6% Commodities 35,577                 35,577                   14,090                 21,487                           40% 12,751               (1,339)               110.5% Other charges and services 290,505               290,505                 236,357               54,148                           81%223,967             (12,390)             105.5% Total 745,137               745,137                 562,474               182,664                        75%537,923             (24,551)            104.6% Heritage Center Personnel services 71,576                 71,576                   46,400                 25,176                           65% 46,343               (57)                     100.1% Commodities 9,358                   9,358                     2,988                   6,370                             32% 6,084                 3,096                49.1% Other charges and services 57,740                57,740                  36,360                21,380                          63%38,000              1,640               95.7% Total 138,674               138,674                 85,748                 52,926                          62%90,427               4,679               94.8% Arts Center Personnel services 299,614               299,614                 253,913               45,701                           85% 210,506             (43,407)             120.6% Commodities 40,020                 40,020                   29,471                 10,549                           74% 30,105               634                    97.9% Other charges and services 210,415               210,415                 165,113               45,302                           78% 155,682             (9,431)               106.1% Capital outlay ‐                           ‐                              14,995                 (14,995)                         0%‐                      (14,995)            0.0% Total 550,049               550,049                 463,492               86,557                          84%396,293             (67,199)            117.0% Variance from 2018 Actual Positive (Negative) Comparative 4 Unaudited 2019 Percent Adopted 9/30/2019 of 9/30/18 Budget Actual Variance Budget Actual Revenues Licenses franchise fee 687,840$   512,424$      (175,416)$   74.5% 501,235$      11,189$        102.2% PEG Fees 57,948       43,156           (14,792)        74.5% 40,245           2,911             107.2% Intergovernmental State aid  516             258                (258)             50.0% 258                ‐                     100.0% Investment income 2,058          8,726             6,668          424.0%4,529             4,197            192.7% Total revenues 748,362     564,564         (183,798)    75.4%546,267         18,297          103.3% Expenditures ‐ General government Personnel services 461,880     342,887         118,993       74.2%321,677         (21,211)         106.6% Commodities 14,900       6,009             8,891           40.3% 7,385             1,376             81.4% Other charges and services 310,530     116,114         194,416       37.4%151,992         35,878           76.4% Capital outlay 59,500       25,287           34,213        42.5%47,869           22,582          52.8% Total expenditures 846,810     490,297         356,513      57.9%528,923        38,625           92.7% Excess (deficiency) of revenues over  expenditures (98,448)      74,267           172,715      ‐75.4%17,344           155,371        428.2% Other financing (uses) ‐ Transfers From Liquor Fund (Comm/Mkt Position) 91,267       68,450           (22,817)        75.0%101,379         (32,929)         67.5% 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)      (60,650)         20,217         75.0%(58,997)         (1,653)            102.8% Total other financing (uses)59,376       7,801             (51,576)       13.1%42,382           (34,582)        18.4% Net change in fund balance (39,072)      82,067           121,139       59,726           22,341           Beginning fund balance 498,704     930,792         432,088       603,175         327,617         Ending fund balance 459,632$  1,012,859$  553,227$    662,901$     349,958$      Variance from 2018 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, 2019 Special Revenue ‐ Communications Fund 5 Unaudited 2019 Percent Adopted 9/30/2019 of 9/30/18 Budget Actual Variance Budget Actual Sales and cost of sales Sales 15,360,906$      11,702,365$      (3,658,541)$      76.2% 11,057,365$   645,000$        105.8% Cost of sales 11,583,628         8,770,711           2,812,917         75.7%8,294,216        (476,495)        105.7% Gross profit 3,777,278           2,931,654           (845,624)           77.6%2,763,149        168,505         106.1% Gross profit % 24.6% 25.1% 25.0% Operating expenses Personnel services 1,736,357           1,207,678           528,679             69.6% 1,171,385        (36,293)           103.1% Commodities 79,362                53,762                25,600               67.7% 37,789             (15,973)           142.3% Other charges and services 1,087,236           857,569              229,667             78.9%709,433           (148,136)         120.9% Total operating expenses 2,902,955           2,119,009           783,946            73.0%1,918,607        (200,402)        110.4% Operating income 874,323              812,645              (61,678)             92.9%844,542           (31,897)          96.2% Non‐operating revenue (expense) Investment income 19,110                36,474                17,364               190.9% 20,693             15,781            176.3% Miscellaneous 6,716                   1,881                   (4,835)                28.0% 3,764               (1,883)             50.0% Capital outlay acquisitions (79,785)               (76,427)               3,358                 95.8% (7,100)              (69,327)           1076.4% Sale of assets ‐                            ‐                            ‐                          0.0% 2,350,761        (2,350,761)     0.0% Transfers in (out) General Fund (158,573)             (125,232)             33,341               79.0% (146,150)          20,918            85.7% Communications (Mktg Spec) (91,267)               (68,450)               22,817               75.0% (101,379)          32,929            67.5% 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)             (273,650)             450                     99.8% (44,418)            (229,232)         616.1% 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%(2,178)              (2,179)            157.2% Total non‐operating (net)(1,389,927)         (1,308,829)         81,098              94.2%1,523,993        (2,832,822)    ‐85.9% Change in working capital (515,604)             (496,184)             19,420               2,368,535        (2,864,719)     Beginning working capital 3,007,218           3,890,525           883,307            1,223,019        2,667,506       Ending working capital 2,491,614$        3,394,341$        902,727$          3,591,554$    (197,213)$      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 Nine Month Period Ended September 30, 2019 6 Unaudited 2019 Percent Adopted 9/30/2019 of 9/30/18 Budget Actual Variance Budget Actual Operating revenues User charges for services 5,144,657$        3,270,516$        (1,874,141)$   63.6% 3,671,205$   (400,689)$     89.1% Other 231,830              188,831              (42,999)          81.5%120,308         68,524          157.0% Total operating revenue 5,376,487           3,459,347           (1,917,140)     64.3%3,791,513     (332,166)      ‐50.6% Operating expenses Personnel services 1,215,031           868,786              346,245          71.5%829,081         (39,705)         104.8% Commodities 350,868              233,404              117,464          66.5%223,801         (9,603)            104.3% Other charges and services 1,253,016           781,216              471,800          62.3%776,290         (4,927)            100.6% Major Maintenance 1,958,114           659,229              1,298,885      33.7%1,498,366     839,137        44.0% Total operating expenses 4,777,029           2,542,635           2,234,394      53.2%3,327,537     784,903        76.4% Operating income (loss)599,458              916,712              317,254          463,975         452,737         Non‐operating revenue (expense) Intergovernmental 1,632                  5,408                  3,776               331.4% 816                4,592             662.7% Investment income 36,308                67,929                31,621            187.1% 37,500           30,429           181.1% Disposal of assets (10,000)               7,134                  17,134            ‐71.3% 7,183             (49)                 99.3% Capital outlay (67,739)               (28,578)               39,161            42.2%(94,498)         65,920           30.2% Bond proceeds 1,430,000           855,543              (574,457)         59.8%486,947         368,596         175.7% Debt Service (1,215,420)         (1,167,961)         47,459            96.1%(986,891)       (181,070)       118.3% Transfers (In) ‐                           ‐                       0.0%307,661         (307,661)       0.0% Transfers (out)(169,526)             (111,593)             57,934           65.8%(296,637)       185,045        37.6% Total non‐operating (net)5,255                  (372,117)             (377,372)         (537,919)       165,802         Change in working capital 604,713              544,595              (60,118)           (73,944)         618,539         ‐736.5% Beginning working capital 7,364,204           7,245,758           (118,446)         7,687,750     (441,992)      94.3% Ending working capital 7,968,917$        7,790,353$        (178,564)$       7,613,806$   176,547        102.3% Variance from 2018 Actual Positive (Negative) CITY OF LAKEVILLE, MINNESOTA Comparative For the Nine Month Period Ended September 30, 2019 Statement of Revenues, Expenditures and Changes in Working Capital Enterprise ‐ Utility Fund Water Operation 7 Unaudited 2019 Percent Adopted 9/30/2019 of 9/30/18 Budget Actual Variance Budget Actual Operating revenue User charges for services 6,608,063$        5,033,320$        (1,574,743)$  76.2%4,650,130$   383,190$      108.2% Operating expenses Personnel services 834,639              538,861              295,778          64.6%515,606         (23,255)         104.5% Commodities 85,471                58,382                27,089            68.3% 59,535           1,153             98.1% Other charges and services 391,263              230,668              160,595          59.0%187,489         (43,179)         123.0% Disposal charges 4,174,432           3,130,824           1,043,608       75.0%3,013,509     (117,315)       103.9% Major maintenance projects 1,205,000           1,015,953           189,047         84.3%100,759         (915,194)      1008.3% Total operating expenses 6,690,805           4,974,688           1,716,117      74.4%3,876,898     (1,097,790)   128.3% Operating income (loss)(82,742)               58,632                141,374          773,232         (714,600)      7.6% Non‐operating revenue (expense) Intergovernmental State aid 1,632                  816                      (816)                50.0% 816                ‐                     100.0% Grants 152,368              ‐                           (152,368)         0.0% ‐                     ‐                     0.0% Investment income 24,050                28,538                4,488               118.7% 18,750           9,788             152.2% Disposal of assets (10,000)               750                      10,750            ‐7.5% ‐                     750                0.0% Capital outlay (51,529)               (9,637)                 41,892            18.7%(38,793)         29,156           24.8% Debt service (70,472)               (56,496)               13,976            80.2%(65,700)         9,204             86.0% Transfers in 24,165                24,165                ‐                       100.0% 23,822           343                101.4% Transfers (out)(174,527)             (130,895)             43,632           75.0%(129,726)       (1,169)           100.9% Total non‐operating (net)(104,313)             (142,759)             (38,446)          136.9%(190,831)       48,072          74.8% Change in working capital (187,055)             (84,128)               102,927          582,401         (666,529)       ‐14.4% Beginning working capital 2,275,130           3,044,063           768,933          2,790,620     253,443        109.1% Ending working capital 2,088,075$        2,959,935$        871,860$        3,373,021$  (413,086)$     87.8% Variance from 2018 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, 2019 Enterprise ‐ Utility Fund Sanitary Sewer Operation 8 Unaudited 2019 Percent Adopted 9/30/2019 of 9/30/18 Budget Actual Variance Budget Actual Operating revenue User charges for services 875,355$      717,342$        (158,013)$    81.9%678,052$   39,290$        105.8% Operating expenses Personnel services 19,855          16,246            3,609             81.8% 12,865       (3,381)           126.3% Commodities 63                  12                    51                  18.5% 338             326               3.5% Other charges and services 761,901        544,636          217,265        71.5%552,401     7,765            98.6% Total operating expenses 781,819        560,893          220,926       71.7%565,604     4,711           99.2% Operating income (loss)93,536          156,449          62,913          112,448     44,001         139.1% Non‐operating revenue (expense) Investment income 2,933             5,355               2,422             182.6% 3,563          1,792            150.3% Debt service (45,375)         (39,021)           6,354             86.0%(9,593)        (29,428)         406.8% Transfers in (out) ‐ General Fund (5,001)           (3,751)             1,250            75.0%(3,505)        (246)             107.0% Total non‐operating (net)(47,443)         (37,417)           10,026         78.9%(9,535)        (27,882)        392.4% Change in working capital 46,093          119,032          72,939          102,913     16,119          115.7% Beginning working capital 477,402        571,214          93,812          432,774     138,440       132.0% Ending working capital 523,495$      690,246$        166,751$      535,687$   154,559$    128.9% Variance from 2018 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, 2019 Enterprise ‐ Utility Fund Street Light Operation 9 Unaudited 2019 Percent Adopted 9/30/2019 of 9/30/18 Budget Actual Variance Budget Actual Revenues User charges for services 1,636,903$       1,222,448$       (414,455)$      74.7% 866,498$      355,950$        141.1% Charges for services ‐ Recycling ‐                         4,090                 4,090             0.0%7,740             (3,650)             52.8% Total revenues 1,636,903         1,226,538         (410,365)        74.9%874,238         352,300          ‐46.9% Expenditures ‐ Public works Personnel services 444,935            347,034            97,901            78.0%326,688         (20,346)            106.2% Commodities 34,248               26,518               7,730              77.4% 24,304           (2,214)              109.1% Other charges and services 1,161,000         557,435            603,565         48.0%224,177         (333,258)         248.7% Total expenditures 1,640,183         930,987            709,196         56.8%575,169         (355,818)         161.9% Operating income (loss)(3,280)               295,551            298,831          299,069         (3,518)             98.8% Non‐operating revenue (expense) Intergovernmental 120,292            ‐                         (120,292)         0.0% ‐                     ‐                   0.0% Investment income 3,140                 10,260               7,120              326.7% 7,500             2,760               136.8% Capital outlay ‐                         ‐                         ‐                       0.0%(26,741)         26,741             0.0% Transfers in (out) General Fund (169,461)           (146,238)           23,223            86.3%(132,352)       (13,886)            110.5% Equipment Fund (31,000)             (31,000)             ‐                       100.0% (31,000)         ‐                   100.0% Storm Sewer Trunk Fund 20,000               ‐                         (20,000)           0.0% 10,000           (10,000)            0.0% Liquor Fund 4,525                 3,425                 (1,100)             75.7% 2,178             1,247               157.3% Sanitary sewer operations (24,165)             (24,165)            ‐                      100.0%(23,822)         (343)                 101.4% Total other financing (uses)(76,669)             (187,718)           (111,049)        244.8%(194,237)       6,519               96.6% Change in working capital (79,949)             107,833            187,782          104,832         3,001               102.9% Beginning working capital 782,656            1,094,376         311,720          1,004,332     90,044             109.0% Ending working capital 702,707$         1,202,209$      499,502$       1,109,164$  93,045$          108.4% Variance from 2018 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, 2019 Enterprise ‐ Utility Fund Environmental Resources Operation 10