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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 six‐month period ended June 30, 2020. 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.  Following guidance from state health officials, the City of Lakeville closed public access to all facilities  effective March 17, 2020 to limit the potential for community transmission of COVID‐19.  The closure  included Lakeville City Hall, Lakeville Area Arts Center, Heritage Center, Hasse and Ames Arenas,  Central Maintenance Facility, Water Treatment Facility, all four fire stations and the lobby of the  Lakeville Police Department.  Essential City services continued without interruption. City facilities were  reopened to the public on June 17, 2020.  This financial report and future reports will include information related to the financial impact of  COVID‐19, when available.  City Administrator Miller and department directors made expenditure  adjustments in 2020 to mitigate the impacts of lost revenues.   General Fund     ‐     Revenues     Property tax revenues   Tax payments from Dakota County are typically received in two installments in June and  December.  Due to COVID‐19, the Dakota County Board of Commissioners extended the  property tax deadline from May 15 to July 15 for certain qualifying properties.   Distributions to cities are scheduled for May 27, July 6, July 10 and July 31.  The General  fund property tax revenues are anticipated to be $22.5 million for 2020.        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 2019 and the 2020 Adopted Budget:    YTD 2nd 2020 YTD 2nd Quarter Adopted Quarter Permit Type 2019 Budget 2020 Single Family 243 350 265 Townhome 44 50 65 Apartments (Units) 1 (160 units) 0 8 (200 units) Commercial 2 8 2 Industrial 200      ii    FINANCIAL HIGHLIGHTS (continued):    General Fund     ‐     Revenues (Continued)   Licenses and Permits.  (Continued)     Year‐to‐date permits issued through July 20, 2020 are as follows:    o Single Family – 292  o Townhome – 70  o Apartment (units) – 8 (200 units)     Liquor license fees were reduced by 20 percent and will be made in two installments  (June and November).     Intergovernmental.   Revenues comprised of police and fire aid and various grants are typically received in the  third and fourth quarters. $8,000 has been recognized for an Arts Grant. $21,000 was  received from Dakota County towards the 2020 primary election. Fire training grants  ($22,000) exceeds the 2020 budget of $18,000.     Charges for Services.   General government services are exceeding the budget. $53,000 has been received for  fiscal agent fees from the Dakota Communications Center and Lakeville Arenas.      Public Safety revenues are below budget estimates. Security services are down significantly  compared to the same time in 2019 due to reductions in request for service at Hosanna!.  SRO contributions are comparable to 2019. Despite the school closing for COVID‐19, the  school district honored the existing contract through the end of the school year. The fire  contract with Eureka Township ($42,265) was billed out in June of the current year. 2020  is the second 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. $101,000 has been  received in the first half which is $241,000 less than the first half 2019. Preliminary  engineering platting fees ($15,000) are at 52 percent of the adopted budget.      Parks and Recreation revenues are below budget with many program cancellations from  the end of March through June due to COVID‐19 and the State of Minnesota “Stay at  Home” executive order. Future revenues will be significantly impacted due to COVID‐19.   Current gross revenue is down $214,000 over the same period in 2019.      iii    FINANCIAL HIGHLIGHTS (continued):      General Fund     ‐     Revenues (Continued)     Court Fines  • Revenues from court fines ($134,000) represent only 37 percent of the budget estimates  and are down $64,000 from the same period in 2019. Court fine revenues and the  membership fees paid to the Dakota Communications Center are both impacted by the  number of CAD calls. It is difficult to determine how much of an impact that COVID‐19 will  have on court fines in future quarters.      General Fund     ‐     Expenditures     Personnel – First half expenditures for personnel are at 46 percent of the 2020 budget. 2020  is the first full year of implementation of the compensation and classification study for non‐ union staff; compensation adjustments for the unions are being implemented in 2020. Due to  the staged implementation, comparisons to prior year will vary by department.      Motor Fuels – Motor fuels through June 30 are at 45 percent of the 2020 Budget. Decreased  snow events for the public works departments contributed to the lower fuel expense. The first  half fuel expense was $32,000 lower than the same period in 2019.      Street Chemicals –2020 salt purchases are 100 percent higher than the same period in 2019.  Inventory at the end of 2018 helped keep salt purchases down in 2019 compared to 2020.  Unused chemicals are stored at the central maintenance facility and will be utilized in the late  fall if needed.       Utilities – Electric costs are lower ($21,000) than the same period in 2019 due to energy saving  improvements in lighting. Natural gas costs are in line with the same period in 2019.      City Clerk. Expenditures are up compared to the same period in 2019 due to election judge  training and the purchase of voting booths.       Legal. Legal fees are in line with budget. Expenditures are up 14 percent over the same period  in 2019.     Inspections. Capital outlay includes a new vehicle replacement in 2020. This replacement was  planned in 2019 but was delayed. Other charges and services are exceeding prior year due to  increased contract electrical inspections.      General Government Facilities. The City migrated from Frontier Communications to Vonage for  the City’s telephone system. The contract with Vonage began in April 2020. Equipment and  maintenance are included in the monthly contract and reflected in operating costs. 2020 costs  are anticipated to exceed budget by $16,000.   iv    FINANCIAL HIGHLIGHTS (continued):    General Fund     ‐     Expenditures (continued)     Information Technology. Timing of annual maintenance agreements can impact the expense  comparison each year. In 2020, the Laserfiche annual maintenance paid in the first quarter  2019 expired in March 2020. Laserfiche is being upgraded in 2020 and the new maintenance  contract was paid in the second quarter 2020 for July1, 2020 through December 31, 2020.     Police. Personnel services are exceeding the same period in 2019. However, there are savings  due to the delay in hiring the new officer from April until September. Overtime is also down  resulting from a decreased need from entities such as Hosanna! Personnel services are at 46  percent of the 2020 amended budget. DCC membership fees for the first half decreased $7,000  over the same period in 2019. The fee is allocated among the members based on the number  of CAD events over a three‐year period. Lakeville’s share of total CAD events went down,  resulting in an annual reduction of $15,000.      Fire. Personnel services are exceeding budget due to the extension of the duty crews as a result  of COVID‐19. If the duty crew schedule is maintained, additional costs for 2020 are estimated  to be $41,000. Delays in purchasing firefighter bunker gear, cancelled attendance for schools  and the cancellation of the annual banquet kept expenses below the same period in 2019.       Engineering/GIS. Personnel services are below budget estimates due to an employee vacancy  through the end of the second quarter. Purchase of a drone and GPS equipment resulted in  the increase in commodities.     Construction Services. Personnel services are up over the prior year due to leave hours paid  out for an employee resignation in 2020 and by vacancies in the first quarter of 2019.  Replacement of the current vacated position is currently being evaluated.      Streets. Personnel services are slightly below budget and are down $113,000 compared to the  same period in 2019 due to reduced snow events.      Parks. Commodities and contractual expenses are below budget and are $52,000 below the  same period in 2019. Some park maintenance activities were down due to lower use of many  park facilities.      Recreation and Heritage Center. Expenses are below budget and the prior year because of  program cancellations due to COVID‐19.      Arts Center. Personnel services are exceeding the prior year due to the addition of the  Administrative Assistant that was added in 2019. Contractual expenses are below budget  because of program cancellations due to COVID‐19.        v     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 2nd 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 over the same period in 2019. The Marking Specialist/Events Coordinator  personnel costs are expensed directly into the Liquor Fund. In previous years, the costs were  included in Communications Fund and then funded by an interfund transfer from the Liquor  Fund. The final segment of the fiber project is being completed in 2020, and final costs are  anticipated in 2020. The project was funded by transfers from the General Fund, Liquor Fund,  and the Utility Fund, and the funding will be finalized after the final costs are invoiced by the  County.     Liquor Fund       Sales through the first half amounted to $8.4 million which is a 12.8 percent increase over the  same period in 2019. The “Stay at Home” order may have contributed to the increased sales  despite intermittent store closures.      Total expenditures are slightly below budget appropriations. Personnel services are down as a  result of the COVID‐19 virus forcing stores to operate with minimal staffing.      2020 Transfers include a $500,000 transfer to the Equipment Fund; $400,000 to the Debt  Service Fund for the police station bonds (final maturity ‐ February, 2032); $258,000 for the  2017 HRA lease revenue bonds (debt for Galaxie Store; final maturity – February, 2027);  $13,000 for the 2020 fireworks; and $143,000 in operating transfers.       Capital outlay appropriations consists of $15,000 for the condenser replacement at the  Heritage location; $26,000 for the replacement of the sliding front door at the Galaxie location;  and $9,000 for a cardboard bailer at the Kenrick location.         FINANCIAL HIGHLIGHTS (continued):     Water Fund     Water revenues are low in the first half which is typical for the first two quarters but are  exceeding revenues from the same period a year ago. A four percent increase in consumption  can be attributed with the three percent increase in customer base. A Water rate increase that  went in affect February 1, 2020 also contributed to the increase. Water usage increases as  residents and businesses turn on their irrigation systems in late spring.  vi       The 2020 major maintenance projects are budgeted as follows:   Automatic shut off for chlorine tanks ‐ $45,000   PLC Replacement ‐ $413,000   Lunchroom floor epoxy coating ‐ $12,000   Condenser replacement ‐ $30,000   Air compressor replacement ‐ $54,000   Well and pump rehabilitations ‐ $286,000   Fairfield water tower logo painting ‐ $100,000   Dakota Heights water tower lot repaving ‐ $85,000   2020 Street reconstruction project – watermain repair/replacement costs ‐ $2.5 million   Water meter replacement projects ‐ $342,000       Sewer Fund     Sewer revenues are exceeding budget expectations and are up over the same period in 2019.  Similar to water revenues, sewer revenues increased as a result of the increased customer  base and an increase in sewer rates for the base charge and discharge effective February 1,  2020.       Disposal charges paid to Metropolitan Council of Environmental Services increased 3.1 percent  over the 2019 rates and are projected to be $4.3 million for 2020.      Expenditures are below budget estimates and the same period in 2019.      The 2020 major maintenance projects are budgeted as follows:   Sewer line improvements ‐ $598,000   I/I mitigation repairs ‐$425,000    vii    FINANCIAL HIGHLIGHTS (continued):     Street Lighting Fund     Revenues are exceeding budget and are up over the same period in 2019. Streetlight fees of  $1,000 were collected at the time of final plat in the first quarter.     Streetlight rates were increased effective February 1, 2020.       2020 electrical costs are below budget estimates but are exceeding prior year by  approximately 10 percent due to added streetlights in new developments and rate increases.       Environmental Resources Fund     Revenues are tracking slightly below budget estimates. Intergovernmental grant revenues  were budgeted at $120,000. The request for funding will be made once the final contract  payments are made.      Rates were increased effective February 1, 2020.     Personnel services are slightly below budget but are exceeding prior year due to the addition  of a full‐time Forester position late in the second quarter of 2019.      Majority of projects are still currently in progress or have not been started resulting in lower  expenses compared to the budget.   Unaudited 2020 2020 Variance from Adopted Amended 6/30/2020 Amended Budget Actual 6/30/2019 Budget Budget Actual Positive (Negative)Percent Actual Revenues General property taxes 22,509,080$      22,509,080$        11,327,822$      (11,181,258)$              50.3% 11,297,597$    30,225$           100.3% Licenses and permits 2,657,099          2,657,099            1,904,867          (752,232)                      71.7% 1,953,638        (48,771)            97.5% Intergovernmental 1,053,453          1,053,453            69,530                (983,923)                      6.6% 57,781              11,749             120.3% Charges for services 2,976,026          2,976,026            1,052,254          (1,923,772)                   35.4% 1,527,529        (475,275)          68.9% Court fines 360,000              360,000                134,137              (225,863)                      37.3% 198,602            (64,465)            67.5% Investment income 128,000              128,000                74,375                (53,625)                         58.1% 70,216              4,159               105.9% Miscellaneous 42,893                68,782                  50,157                (18,625)                         72.9%22,679              27,478             221.2%   Total revenues 29,726,551        29,752,440          14,613,142        (15,139,298)                 49.1%15,128,042      (514,900)          96.6% Expenditures Mayor and Council 121,006              121,006                51,321                69,686                          42.4% 51,430              110                   99.8% Committees and Commissions 91,616                91,616                  4,974                  86,642                          5.4% 7,475                2,501               66.5% City Administration 498,062              498,062                239,124              258,938                        48.0% 246,528            7,404               97.0% City Clerk 265,446              265,446                102,652              162,795                        38.7% 70,192              (32,460)            146.2% Legal Counsel 83,500                83,500                  41,948                41,552                          50.2% 39,986              (1,962)              104.9% Planning 597,315              597,315                292,041              305,275                        48.9% 283,599            (8,442)              103.0% Community and Econ. Development 382,316              382,316                168,635              213,681                        44.1% 173,251            4,616               97.3% Inspections 1,439,695          1,439,695            699,991              739,704                        48.6% 622,753            (77,238)            112.4% General Government Facilities 637,091              637,091                323,729              313,362                        50.8% 307,164            (16,566)            105.4% Finance 859,493              879,693                426,854              452,840                        48.5% 393,221            (33,633)            108.6% Information Systems 818,247              850,247                518,726              331,522                        61.0% 487,321            (31,405)            106.4% Human Resources 557,705              557,705                249,031              308,674                        44.7% 247,179            (1,852)              100.7% Insurance 285,000              285,000                142,500              142,500                        50.0% 142,500             ‐                        100.0% Police 12,428,732        12,506,121          5,844,639          6,661,482                    46.7% 5,519,547        (325,092)          105.9% Fire 2,103,412          2,119,412            828,730              1,290,682                    39.1% 773,269            (55,462)            107.2% Engineering 1,024,200          1,024,200            427,753              596,448                        41.8% 402,617            (25,136)            106.2% Construction Services 620,977              620,977                250,033              370,944                        40.3% 222,272            (27,762)            112.5% Streets 3,547,487          3,547,487            1,806,733          1,740,754                    50.9% 1,853,072        46,339             97.5% Parks 2,869,618          2,869,618            1,300,597          1,569,022                    45.3% 1,317,465        16,868             98.7% Recreation 786,925              786,925                313,083              473,843                        39.8% 319,292            6,210               98.1% Heritage Center 151,221              151,221                58,789                92,433                          38.9% 50,971              (7,818)              115.3% Arts Center 633,472              633,472                271,747              361,726                        42.9% 310,641            38,894             87.5% Other (45,939)              (45,939)                 ‐                           (45,939)                         0.0%‐                         ‐                        0.0%   Total expenditures 30,756,597        30,902,186          14,363,625        16,538,561                  46.5%13,841,740      (521,885)          103.8% Excess (deficiency) of revenues over expenditures (1,030,046)         (1,149,746)           249,517              1,399,263                    1,286,302        (1,036,785)       Other financing sources (uses) Transfer from other funds 830,371              830,371                448,391              (381,980)                      54.0% 344,958            103,433           130.0% Transfer to other funds (550,000)            (550,000)              (550,000)            ‐                                     100.0%(630,000)           80,000             87.3% Total other financing sources (uses) 280,371              280,371                (101,609)            (381,980)                      (285,042)           183,433           35.6% Net change in fund balance (749,675)            (869,375)              147,908              1,017,283                    1,001,260        (853,352)           Beginning fund balance 16,012,291        16,012,291          17,203,248        1,190,957                    15,563,485      1,639,763        Ending fund balance 15,262,616$      15,142,916$        17,351,156$      2,208,240$                  16,564,745$    786,411$          Adj fund balance, Dec 31 (net of restricted )14,338,795$        14,219,095$          16,327,335$     15,868,915$    Net change in fund balance percentage (4.7%)(5.4%)0.9%6.4% Ratio: Fund balance to CY expenditures 46.6%46.0% Ratio: Fund balance to NY expenditures 45.0%44.4% Expense Summary: Personnel services 23,014,364       23,014,364         10,618,780       12,441,523                 46.1%10,252,369     (366,411)         103.6% Commodities 1,863,320         1,956,709            971,689             985,020                       49.7%901,302           (70,387)           107.8% Other charges and services 5,863,108         5,915,308            2,732,571         3,182,737                   46.2%2,674,890        (57,681)           102.2% Capital outlay 15,805               15,805                 40,585               (24,780)                        256.8%13,179             (27,406)           308.0% 30,756,597       30,902,186         14,363,625       16,584,500                 46.5%13,841,740     (521,885)         103.8% Variance from 2019 Actual Positive (Negative) General Fund Summary Statement of Revenues, Expenditures and Changes in Fund Balances For the Six Month Period Ended June 30, 2020 Comparative 1 Unaudited General Fund Schedule of Expenditures 2020 2020 Variance from Adopted Amended 6/30/2020 Adopted Budget Actual 6/30/2019 Expenditures Budget Budget Actual Positive (Negative)Percent Actual Mayor and Council Personnel services 62,561$              62,561$                30,216$              32,346$                        48% 30,121$            (95)$                  100.3% Commodities 50                        50                           ‐                      50                                  0% 64                      64                     0.0% Other charges and services 58,395                58,395                  21,105                37,290                          36%21,245              140                   99.3% Total 121,006              121,006                51,321                69,686                          42%51,430              110                   99.8% Committees/Commissions Personnel services 58,261                58,261                  854                      57,407                          1% 1,072                218                   79.7% Commodities 2,530                  2,530                     ‐                      2,530                            0%‐                      ‐                    0.0% Other charges and services 30,825                30,825                  4,120                  26,705                          13%6,403                2,283               64.3% Total 91,616                91,616                  4,974                  86,642                          5%7,475                2,501               66.5% City Administration Personnel services 471,198              471,198                230,443              240,755                        49% 222,686            (7,757)              103.5% Commodities 1,600                  1,600                    1,802                  (202)                              113% 189                    (1,613)              953.4% Other charges and services 25,264                25,264                  6,879                  18,385                          27% 23,653              16,774             29.1% Capital outlay ‐                           ‐                             ‐                      ‐                                 0%‐                     ‐                    0.0% Total 498,062              498,062                239,124              258,938                        48%246,528            7,404               97.0% City Clerk Personnel services 219,099              219,099                64,626                154,474                        29% 57,326              (7,300)              112.7% Commodities 4,090                  4,090                    4,083                  7                                    100% 36                      (4,047)              11341.7% Other charges and services 42,257                42,257                  33,943                8,314                            80%12,830              (21,113)            264.6% Total 265,446              265,446                102,652              162,795                        39%70,192              (32,460)            146.2% Legal Counsel Other charges and services 83,500                83,500                  41,948                41,552                          50%39,986              (1,962)              104.9% Planning Personnel services 561,507              561,507                277,518              283,990                        49% 268,631            (8,887)              103.3% Commodities 1,718                  1,718                    347                      1,371                            20% 317                    (30)                    109.5% Other charges and services 34,090                34,090                  14,176                19,914                          42%14,651              475                   96.8% Total 597,315              597,315                292,041              305,275                        49%283,599            (8,442)              103.0% Community and Economic Development Personnel services 325,688              325,688                157,241              168,447                        48% 144,072            (13,170)            109.1% Commodities 275                      275                         ‐                      275                                0% 4                        4                       0.0% Other charges and services 56,353                56,353                  11,394                44,959                          20%29,175              17,781             39.1% Total 382,316              382,316                168,635              213,681                        44%173,251            4,616               97.3% Inspection Personnel services 1,110,274          1,110,274            535,690              574,584                        48% 498,192            (37,498)            107.5% Commodities 15,931                15,931                  9,175                  6,756                            58% 4,782                (4,393)              191.9% Other charges and services 305,810              305,810                124,124              181,686                        41% 119,779            (4,345)              103.6% Capital outlay 7,680                  7,680                    31,002                (23,322)                         404%‐                     (31,002)            0.0% Total 1,439,695          1,439,695            699,991              739,704                        49%622,753            (77,238)            112.4% (continued) Comparative Variance from 2019 Actual Positive (Negative) 2 Unaudited General Fund Schedule of Expenditures 2020 2020 Variance from Adopted Amended 6/30/2020 Adopted Budget Actual 6/30/2019 Expenditures (continued)Budget Budget Actual Positive (Negative)Percent Actual General Government Facilities Personnel services 424,529$           424,529$              208,545$           215,984$                     49% 207,883$          (663)$               100.3% Commodities 27,822                27,822                  10,043                17,779                          36% 12,728              2,685               78.9% Other charges and services 184,740              184,740                105,141              79,599                          57%86,553              (18,588)            121.5% Total 637,091              637,091                323,729              313,362                        51%307,164            (16,566)            105.4% Finance Personnel services 757,706              757,706                346,639              411,068                        46% 341,423            (5,216)              101.5% Commodities 1,575                  1,575                    1,167                  408                                74% 1,045                (122)                  111.7% Other charges and services 100,212              120,412                79,048                41,364                          66%50,753              (28,295)            155.8% Total 859,493              879,693                426,854              452,840                        49%393,221            (33,633)            108.6% Information Technology Personnel services 469,695              469,695                235,210              234,486                        50% 217,752            (17,458)            108.0% Commodities 3,800                  3,800                    5,190                  (1,390)                           137% 3,071                (2,119)              169.0% Other charges and services 344,752              376,752                278,326              98,426                          74%266,498            (11,828)            104.4% Total 818,247              850,247                518,726              331,522                        61%487,321            (31,405)            106.4% Human Resources Personnel services 425,855              425,855                209,124              216,731                        49% 197,652            (11,472)            105.8% Commodities 3,100                  3,100                    828                      2,272                            27% 3,356                2,528               24.7% Other charges and services 128,750              128,750                39,079                89,671                          30%46,171              7,092               84.6% Total 557,705              557,705                249,031              308,674                        45%247,179            (1,852)              100.7% Insurance Other charges and services 285,000              285,000                142,500              142,500                        50%142,500            ‐                    100.0% Police Personnel services 9,760,854          9,760,854            4,535,038          5,225,816                    46% 4,322,828        (212,210)          104.9% Commodities 373,796              451,185                223,708              227,477                        50% 196,050            (27,658)            114.1% Other charges and services 2,294,082          2,294,082            1,085,893          1,208,189                    47%1,000,669        (85,224)            108.5% Total 12,428,732        12,506,121          5,844,639          6,661,482                    47%5,519,547        (325,092)          105.9% Fire Personnel services 1,309,742          1,309,742            670,175              639,567                        51% 589,976            (80,200)            113.6% Fire Relief Contribution/State Aid 375,000              375,000                2,000                  373,000                        1% 6,000                4,000               33.3% Commodities 146,449              162,449                47,484                114,965                        29% 49,959              2,475               95.0% Other charges and services 272,221              272,221                109,071              163,150                        40%127,334            18,263             85.7% Total 2,103,412          2,119,412            828,730              1,290,682                    39%773,269            (55,462)            107.2% (continued) Comparative Variance from 2019 Actual Positive (Negative) 3 Unaudited General Fund Schedule of Expenditures 2020 2020 Variance from Adopted Amended 6/30/2020 Adopted Budget Actual 6/30/2019 Expenditures (continued)Budget Budget Actual Positive (Negative)Percent Actual Engineering Personnel services 892,142$           892,142$              381,152$           510,991$                     43% 365,894$          (15,258)$          104.2% Commodities 15,526                15,526                  9,255                  6,271                            60% 5,680                (3,575)              162.9% Other charges and services 116,532              116,532                37,346                79,186                          32%31,043              (6,303)              120.3% Total 1,024,200          1,024,200            427,753              596,448                        42%402,617            (25,136)            106.2% Construction Services Personnel services 598,042              598,042                243,478              354,564                        41% 215,397            (28,082)            113.0% Commodities 9,207                  9,207                    4,867                  4,340                            53% 3,194                (1,673)              152.4% Capital outlay ‐                           ‐                             ‐                      ‐                                 0%‐                     ‐                    0.0% Total 620,977              620,977                250,033              370,944                        40%222,272            (27,762)            112.5% Streets Personnel services 2,321,085          2,321,085            1,104,966          1,216,119                    48% 1,217,823        112,857           90.7% Commodities 887,173              887,173                509,756              377,417                        57% 454,574            (55,182)            112.1% Other charges and services 339,229              339,229                192,011              147,218                        57%180,675            (11,336)            106.3% Total 3,547,487          3,547,487            1,806,733          1,740,754                    51%1,853,072        46,339             97.5% Parks  Personnel services 2,039,577          2,039,577            987,714              1,051,864                    48% 974,560            (13,154)            101.3% Commodities 287,489              287,489                113,279              174,210                        39% 135,573            22,294             83.6% Other charges and services 542,552              542,552                199,604              342,948                        37%207,332            7,728               96.3% Total 2,869,618          2,869,618            1,300,597          1,569,022                    45%1,317,465        16,868             98.7% Recreation Personnel services 440,186              440,186                208,572              231,615                        47% 173,928            (34,644)            119.9% Commodities 33,296                33,296                  6,426                  26,870                          19% 7,423                997                   86.6% Other charges and services 313,443              313,443                98,085                215,358                        31%137,941            39,856             71.1% Total 786,925              786,925                313,083              473,843                        40%319,292            6,210               98.1% Heritage Center Personnel services 70,331                70,331                  29,340                40,992                          42% 31,274              1,934               93.8% Commodities 9,743                  9,743                    2,077                  7,666                            21% 1,685                (392)                  123.3% Other charges and services 71,147                71,147                  27,372                43,775                          38%18,012              (9,360)              152.0% Total 151,221              151,221                58,789                92,433                          39%50,971              (7,818)              115.3% Arts Center Personnel services 366,971              366,971                160,244              206,728                        44% 167,884            7,640               95.4% Commodities 38,150                38,150                  22,202                15,948                          58% 21,572              (630)                  102.9% Other charges and services 220,226              220,226                79,718                140,508                        36% 108,006            28,288             73.8% Capital outlay 8,125                  8,125                    9,583                  (1,458)                           118%13,179              3,596               72.7% Total 633,472              633,472                271,747              361,726                        43%310,641            38,894             87.5% Variance from 2019 Actual Positive (Negative) Comparative 4 Unaudited 2020 Percent Adopted 6/30/2020 of 6/30/2019 Budget Actual Variance Budget Actual Revenues Licenses franchise fee 698,256$  337,421$     (360,835)$  48.3% 341,540$     (4,119)$        98.8% PEG Fees 58,266      24,831          (33,435)       42.6% 30,819          (5,988)           80.6% Intergovernmental State aid 516            258               (258)            50.0% 258                ‐                    100.0% Investment income 2,058         3,293            1,235          160.0%3,878            (585)              84.9% Total revenues 759,096    365,803        (393,293)    48.2%376,495        (10,692)        97.2% Expenditures ‐ General government Personnel services 417,437    204,695        212,742      49.0% 222,922        18,227          91.8% Commodities 20,300      10,047          10,253        49.5% 4,387            (5,660)           229.0% Other charges and services 114,292    39,480          74,812        34.5% 35,006          (4,474)           112.8% Capital outlay 185,000    ‐                    185,000      0.0%802               802               0.0% Total expenditures 737,029    254,222        482,807      34.5%263,117        8,895            96.6% Excess (deficiency) of revenues over  expenditures 22,067      111,580        89,513        505.6%113,378        (23,865)        98.4% Other financing (uses) ‐ Transfers From Liquor Fund (Comm/Mkt Position)‐                  ‐                     ‐                   0.0% 45,634          (45,634)        0.0% To General Fund (expense allocations) (83,739)     (41,870)        41,869        50.0% (40,434)        (1,436)           103.6% To Technology Fund (expense allocations)(4,400)       (4,400)           ‐                   100.0%‐                    (4,400)           0.0% Total other financing (uses)(88,139)     (46,270)        41,869        52.5%5,200            (51,470)        ‐889.8% Net change in fund balance (66,072)     65,310          131,382      118,578        (53,268)         Beginning fund balance 808,425    1,053,663    245,238      930,791        122,872         Ending fund balance 742,353$  1,118,973$  376,620$    1,049,369$  69,604$         Variance from 2019 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, 2020 Special Revenue ‐ Communications Fund 5 Unaudited 2020 Percent Adopted 6/30/2020 of 6/30/2019 Budget Actual Variance Budget Actual Sales and cost of sales Sales 15,898,952$     8,350,049$        (7,548,903)$     52.5% 7,401,394$    948,655$       112.8% Cost of sales 11,923,215        6,226,435          5,696,780         52.2%5,538,094       (688,341)        112.4% Gross profit 3,975,737          2,123,614          (1,852,123)       53.4%1,863,300       260,314         114.0% Gross profit % 25.0% 25.4% 25.2% Operating expenses Personnel services 1,832,091          854,900             977,191            46.7% 825,071          (29,829)          103.6% Commodities 79,619               24,323               55,296              30.5% 36,986            12,663           65.8% Other charges and services 1,371,375          616,265             755,110            44.9%510,001          (106,264)        120.8% Total operating expenses 3,283,085          1,495,488          1,787,597         45.6%1,372,058       (123,430)        109.0% Operating income 692,652             628,126             (64,526)             90.7%491,242          136,884         127.9% Non‐operating revenue (expense) Investment income 15,000               23,895               8,895                159.3% 24,316            (421)                98.3% Miscellaneous 3,762                   ‐                           (3,762)               0.0%‐                    ‐                  0.0% Capital outlay acquisitions (49,790)              (8,000)                41,790              16.1%‐                   (8,000)            0.0% Sale of assets ‐                            ‐                            ‐                         0.0%‐                    ‐                  0.0% Transfers in (out) General Fund (143,412)            (71,706)              71,706              50.0% (79,287)           7,581              90.4% General Fund ‐ Fireworks (13,000)               ‐                           13,000              0.0%‐                  0.0% Communications (Mktg Spec)‐                            ‐                            ‐                         0.0% (45,634)           45,634           0.0% Debt Service: CIP Bonds‐Police Station (400,000)            (400,000)             ‐                         100.0% (400,000)          ‐                  100.0% Galaxie Lease (284,808)            (258,250)            26,558              90.7% (245,400)         (12,850)          105.2% Capital Projects: Equipment Fund (500,000)            (500,000)             ‐                         100.0% (400,000)         (100,000)        125.0% Technology Fund (69,677)              (69,677)               ‐                         100.0%‐                   (69,677)          0.0% Enterprise Fund: Environmental Resources ‐ Recycling (4,356)                ‐                           4,356                0.0%(3,425)             (3,425)            0.0% Total non‐operating (net)(1,446,281)        (1,283,738)        162,543            88.8%(1,149,430)     (134,308)        111.7% Change in working capital (753,629)            (655,612)            98,017              (658,188)         2,576               Beginning working capital 3,378,854          3,823,210          444,356            3,890,525       (67,315)           Ending working capital 2,625,225$        3,167,598$        542,373$          3,232,337$    (64,739)$         CITY OF LAKEVILLE, MINNESOTA Enterprise ‐ Liquor Fund Statement of Revenues, Expenditures and Changes in Working Capital For the Six Month Period Ended June 30, 2020 Variance from 2019 Actual Positive (Negative) Comparative 6 Unaudited 2020 Percent Adopted 6/30/2020 of 6/30/2019 Budget Actual Variance Budget Actual Operating revenues User charges for services 5,762,460$       1,820,863$       (3,941,597)$  31.6% 1,491,332$  329,531$     122.1% Other 133,479             67,769               (65,710)          50.8%88,186          (20,417)        76.8% Total operating revenue 5,895,939          1,888,632          (4,007,307)     32.0%1,579,518    309,114        ‐253.7% Operating expenses Personnel services 1,279,486          651,826             627,660         50.9% 583,832        (67,994)        111.6% Commodities 359,080             135,610             223,470         37.8% 146,405        10,795          92.6% Other charges and services 1,409,280          549,866             859,414         39.0% 417,982        (131,884)      131.6% Major Maintenance 3,845,340          72,391               3,772,949      1.9%50,649          (21,742)        142.9% Total operating expenses 6,893,186          1,409,693          5,483,493      20.5%1,198,868    (210,825)      117.6% Operating income (loss)(997,247)            478,939             1,476,186      380,650        98,289           Non‐operating revenue (expense) Intergovernmental 1,632                 816                     (816)               50.0% 816                ‐                    100.0% Investment income 32,484               47,412               14,928           146.0% 45,286          2,126            104.7% Disposal of assets (10,000)               ‐                          10,000           0.0% 6,761            (6,761)           0.0% Capital outlay (66,261)              (72,213)              (5,952)            109.0% (3,956)           (68,257)        1825.4% Bond proceeds 3,470,000           ‐                          (3,470,000)     0.0%‐                     ‐                    0.0% Debt Service (1,273,737)        (936,001)            337,736         73.5% (855,667)      (80,334)        109.4% Transfers (out)(180,367)            (94,084)              86,284           52.2%(37,198)        (56,886)        252.9% Total non‐operating (net)1,973,751          (1,054,069)        (3,027,820)     (843,958)      (210,111)       Change in working capital 976,504             (575,130)            (1,551,634)     (463,308)      (111,822)      124.1% Beginning working capital 7,386,740          7,585,974          199,234         7,245,758    340,216        104.7% Ending working capital 8,363,244$       7,010,844$       (1,352,400)$  6,782,450$  228,394        103.4% Variance from 2019 Actual Positive (Negative) CITY OF LAKEVILLE, MINNESOTA Comparative For the Six Month Period Ended June 30, 2020 Statement of Revenues, Expenditures and Changes in Working Capital Enterprise ‐ Utility Fund Water Operation 7 Unaudited 2020 Percent Adopted 6/30/2020 of 6/30/2019 Budget Actual Variance Budget Actual Operating revenue User charges for services 6,969,526$       3,606,651$       (3,362,875)$  51.7%3,327,079$  279,572$     108.4% Operating expenses Personnel services 848,707             368,954             479,753         43.5% 369,870        916               99.8% Commodities 85,148               26,172               58,976           30.7% 41,790          15,618          62.6% Other charges and services 384,787             146,959             237,828         38.2% 330,655        183,696        44.4% Disposal charges 4,305,768          2,152,884          2,152,884      50.0% 2,087,214    (65,670)        103.1% Major maintenance projects 1,023,000          8,238                 1,014,762      0.8%192,111        183,873        4.3% Total operating expenses 6,647,410          2,703,207          3,944,203      40.7%3,021,640    318,433        89.5% Operating income (loss)322,116             903,444             581,328         305,439        598,005        295.8% Non‐operating revenue (expense) Intergovernmental State aid 816                     816                      ‐                      100.0% 816                ‐                    100.0% Grants 25,816                ‐                          (25,816)          0.0%‐                     ‐                    0.0% Investment income 40,544               22,154               (18,390)          54.6% 19,025          3,129            116.4% Disposal of assets (10,000)               ‐                          10,000           0.0%‐                     ‐                    0.0% Capital outlay (66,261)              (72,212)              (5,951)            109.0%‐                    (72,212)        0.0% Debt service (72,450)              (68,142)              4,308              94.1% (56,496)        (11,646)        120.6% Transfers in 24,187               24,187                ‐                      100.0% 24,165          22                 100.1% Transfers (out)(187,412)            (97,606)              89,806           52.1%(87,264)        (10,342)        111.9% Total non‐operating (net)(244,760)            (190,803)            53,957           78.0%(99,754)        (91,049)        191.3% Change in working capital 77,356               712,641             635,285         205,685        506,956        346.5% Beginning working capital 2,880,764          3,544,582          663,818         3,044,063    500,519        116.4% Ending working capital 2,958,120$       4,257,223$       1,299,103$    3,249,748$  1,007,475$  131.0% CITY OF LAKEVILLE, MINNESOTA Statement of Revenues, Expenditures and Changes in Working Capital For the Six Month Period Ended June 30, 2020 Enterprise ‐ Utility Fund Sanitary Sewer Operation Variance from 2019 Actual Positive (Negative) Comparative 8 Unaudited 2020 Percent Adopted 6/30/2020 of 6/30/2019 Budget Actual Variance Budget Actual Operating revenue User charges for services 1,017,739$  536,356$       (481,383)$    52.7%473,561$  62,795$       113.3% Operating expenses Personnel services 22,657         10,193           12,464         45.0% 9,699         (494)             105.1% Commodities 67                 96                   (29)                143.7% 6                (90)               1604.2% Other charges and services 964,218       393,614         570,604       40.8%359,526    (34,088)        109.5% Total operating expenses 986,942       403,904         583,038       40.9%369,231    (34,673)        109.4% Operating income (loss)30,797         132,452         101,655       104,330    28,122         127.0% Non‐operating revenue (expense) Investment income 3,686            4,748              1,062            128.8% 2,380         2,368           199.5% Debt service (48,700)        (38,521)          10,179         79.1% (31,396)     (7,125)          122.7% Transfers in (out) ‐ General Fund (5,614)          (2,808)            2,806            50.0%(2,501)       (307)             112.3% Total non‐operating (net)(50,628)        (36,581)          14,047         72.3%(31,517)     (5,064)          116.1% Change in working capital (19,831)        95,871           115,702       72,813      23,058         131.7% Beginning working capital 584,861       759,654         174,793       571,214    188,440       133.0% Ending working capital 565,030$     855,525$       290,495$     644,027$  211,498$    132.8% CITY OF LAKEVILLE, MINNESOTA Statement of Revenues, Expenditures and Changes in Working Capital For the Six Month Period Ended June 30, 2020 Enterprise ‐ Utility Fund Street Light Operation Variance from 2019 Actual Positive (Negative) Comparative 9 Unaudited 2020 Percent Adopted 6/30/2020 of 6/30/2019 Budget Actual Variance Budget Actual Revenues User charges for services 2,020,828$      952,279$         (1,068,549)$  47.1% 810,168$     142,111$        117.5% Charges for services ‐ Recycling 4,090                ‐                        (4,090)            0.0%4,090            (4,090)             0.0% Total revenues 2,024,918        952,279           (1,072,639)    47.0%814,258        138,021          ‐131.7% Expenditures ‐ Public works Personnel services 539,971           252,386           287,585         46.7% 238,525        (13,861)           105.8% Commodities 37,856              14,500              23,356           38.3% 20,046          5,546              72.3% Other charges and services 1,581,698        236,662           1,345,036      15.0%214,629        (22,033)           110.3% Total expenditures 2,159,525        503,548           1,655,977      23.3%473,200        (30,348)           106.4% Operating income (loss)(134,607)          448,731           583,338         341,058        107,673          131.6% Non‐operating revenue (expense) Intergovernmental 120,292           627                   (119,665)        0.5% 627                ‐                  100.0% Investment income 4,189                9,240                5,051             220.6% 6,840            2,400              135.1% Transfers in (out) General Fund (182,427)          (130,919)          51,508           71.8% (123,014)      (7,905)             106.4% Storm Sewer Infrastucture Fund ‐                         ‐                         ‐                      0.0% 20,000          (20,000)           0.0% Equipment Fund (31,000)            (31,000)             ‐                      100.0% (31,000)         ‐                  100.0% Technology Fund (3,600)              (3,600)               ‐                      100.0%‐                    (3,600)             0.0% Liquor Fund 4,356                 ‐                        (4,356)            0.0%‐                     ‐                  0.0% Sanitary sewer operations (24,187)            (24,187)            ‐                      100.0%(24,165)        (22)                  100.1% Total other financing (uses)(112,377)          (179,839)          (67,462)          160.0%(150,712)      (29,127)           119.3% Change in working capital (246,984)          268,892           515,876         190,346        78,546            141.3% Beginning working capital 1,070,254        1,478,379        408,125         1,094,376    384,003          135.1% Ending working capital 823,270$         1,747,271$      924,001$       1,284,722$  462,549$        136.0% CITY OF LAKEVILLE, MINNESOTA Statement of Revenues, Expenditures and Changes in Working Capital For the Six Month Period Ended June 30, 2020 Enterprise ‐ Utility Fund Environmental Resources Operation Variance from 2019 Actual Positive (Negative) Comparative 10