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HomeMy WebLinkAboutItem 5i          FINANCIAL HIGHLIGHTS:   The following financial report and analysis offers readers a narrative overview of the financial activities  of the City for the nine‐month period ended September 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. This third quarter report includes expenditures related to COVID‐19 but  does not include any CARES Act funding. Final allocations will be made once the final costs are compiled  in November. CARES Act funding does not provide funding for lost revenues.  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 were collected on May 27, July 6, July 10 and July 31.  The General  fund property tax revenues are anticipated to be $22.5 million for 2020.      Dakota County has extended the second half property tax deadline from October 15 to  November 15 for certain qualifying properties.  Distributions to cities will be made on  October 26 and December 1, 2020 and the final tax settlement on January 25, 2021.       ii    FINANCIAL HIGHLIGHTS (continued):    General Fund     ‐     Revenues (Continued)     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 2019 and the 2020 adopted  budget:      YTD 3rd 2020 YTD  3rd Quarter Adopted Quarter Permit Type 2019 Budget 2020 Single Family 378 350 432 Townhome 65 50 112 Apartments (Units) 2 (215 units) 0 8 (200 units) Commercial 2 8 4 Industrial 4 0 2   Year‐to‐date permits issued through October 20, 2020 are as follows:    o Single Family – 493  o Townhome – 124  o Apartment (units) – 8 (200 units)     Liquor license fees were reduced by 20 percent and will be made in two installments  (June and November).  Loss of revenue is anticipated to be about $38,000.     Intergovernmental.   Police state aid revenue of $539,000 exceeds budget estimates by $39,000. Fire state aid  revenue of $410,000 exceeds budget estimates by $35,000.   Other grant revenues through the third quarter amounted to $133,000. These grants  include: police post board grant, firefighter safety training grants, police vest  reimbursements, Elections reimbursement, Art Center grant, DARTS and senior chores  funding.     Charges for Services.   General government services are in line with the budget. $79,000 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 up slightly from 2019 due to adding a third SRO Officer beginning  September 2020. Despite the school hybrid learning schedule for COVID‐19, the school  district honored the existing contract and the addition of the third SRO officer for the 2020‐ 2021 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.   iii    FINANCIAL HIGHLIGHTS (continued):      General Fund     ‐     Revenues (Continued)   Charges for Services (Continued).   Public works revenues are based on summer construction projects. Revenues are  exceeding budget due to more projects completed by city staff than previously anticipated  and higher project costs. Engineering developer contract administration is collected at the  time of the development contract. $460,000 has been received in the first three quarters  which is $165,000 less than the same period in 2019. Preliminary engineering platting fees  ($26,000) are at 93 percent of the adopted budget.     Parks and Recreation revenues are below budget with many program cancellations from  the end of March through September due to COVID‐19 and the State of Minnesota “Stay  at Home” executive order. Revenues will be significantly impacted due to COVID‐19.   Current gross revenue is down $316,000 over the same period in 2019.      Court Fines  • Revenues from court fines ($170,000) represent only 47 percent of the budget estimates  and are down $111,000 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 the fourth quarter and into next year.      General Fund     ‐     Expenditures     Personnel.  Expenditures for the first three quarters for personnel are at 71 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 September 30 are at 67 percent of the 2020 Budget.  Decreased snow events for the public works departments and revised shift for Patrol Officers  contributed to the lower fuel expense. Fuel expense was $37,000 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 $11,000 lower than the same period in 2019 due to energy saving  improvements in lighting. Natural gas costs are $6,000 lower than same period in 2019.         iv    FINANCIAL HIGHLIGHTS (continued):    General Fund     ‐     Expenditures (continued)   City Clerk. Expenditures are up compared to the same period in 2019 due to election judge  training and the purchase of voting booths.  The city received grants from Dakota county CARES  Grant ($25,000) and the State of Minnesota ($21,000) to fund election‐related costs.  These  are shown in intergovernmental revenues section.     Legal. Legal fees are at 73 percent of the budget. Expenditures are down 11 percent from the  same period in 2019.     Inspections. Capital outlay includes a new vehicle replacement in 2020. This replacement was  planned in 2019 but was delayed.      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.      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 December. A new SRO officer was  added in September and is funded by ISD 194. Overtime is also down resulting from a  decreased security needs from entities such as Hosanna! Personnel services are at 69 percent  of the 2020 amended budget. DCC membership fees for the first half decreased $11,000 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. The new duty crew schedule has remained in place through the end of  September. If this schedule is maintained through the end of the year, additional costs for 2020  are estimated to be $41,000. Delays in purchasing firefighter bunker gear and equipment,  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 and the delay in hiring the new GIS Analyst from April  until August. Purchase of a drone and GPS equipment resulted in the increase in commodities.  Engineering fees for the Lakeville schools traffic study are almost complete and will be funded  in part by contributions from ISD 194 and Dakota County.     v    FINANCIAL HIGHLIGHTS (continued):    General Fund     ‐     Expenditures (continued)   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. The  vacated Construction Services Superintendent position will be combined with the Public Works  & Facilities Coordinator which was vacated during the second quarter. The position is expected  to be filled in the fourth quarter.      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 $20,000 below the  same period in 2019. Some park maintenance activities were down due to lower use of many  park facilities.      Recreation, Heritage Center and Arts Center. Expenses are below budget and the prior year  because of program cancellations due to COVID‐19.      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 3rd quarter  franchise fees have not been received and the amount was estimated based on historical  numbers. Revenues are trending lower than the prior year by $22,000.      Expenses are down over the same period in 2019. The Marketing 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 completed but final billing from Dakota County  has not been received. 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.       vi    FINANCIAL HIGHLIGHTS (continued):   Liquor Fund       Sales through the first half amounted to $13.1 million which is a 12.2 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 were initially  down as a result of the COVID‐19 virus forcing stores to operate with minimal staffing. Staffing  levels have increased to cover the increased sales.  Personnel services also includes leave hours  paid out due to two resignations during the third quarter.      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); $284,000 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 consists of a cardboard bailer at the Kenrick location. Additional appropriations  include $15,000 for the condenser replacement at the Heritage location and $26,000 for the  replacement of the sliding front door at the Galaxie location.      Design expenses for the Keokuk store amounted to $167,000 through the third quarter. These  expenses are currently included in the operating expenses. If the project moves forward these  expenses would be capitalized with the construction of the building.     Water Fund     Water revenues are exceeding budget estimates due to the dryer than normal conditions late  in the summer resulting in a 19 percent increase in consumption. Revenues are up 36 percent  from the same period a year ago due to a three percent increase in customer base. A water  rate increase that went in affect February 1, 2020 also contributed to the increase.      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     vii    FINANCIAL HIGHLIGHTS (continued):   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.      The 2020 major maintenance projects are budgeted as follows:   Sewer line improvements ‐ $598,000   I/I mitigation repairs ‐$425,000       Street Lighting Fund     Revenues are exceeding budget and are up over the same period in 2019. Streetlight fees of  $29,000 were collected at the time of final plat in the first three quarters.     Streetlight rates were increased effective February 1, 2020.       2020 electrical costs are below budget estimates but are exceeding prior year by  approximately 9 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 $120,000. The request for funding will be made once the final contract  payments are made.      Rates were increased effective February 1, 2020.     Personnel services are slightly below budget but are exceeding prior year due to the addition  of a full‐time Forester position late in the second quarter of 2019.      Various projects are still currently in progress or have not been started resulting in lower  expenses compared to the budget.   Unaudited 2020 2020 Variance from Adopted Amended 9/30/2020 Amended Budget Actual 9/30/2019 Budget Budget Actual Positive (Negative)Percent Actual Revenues General property taxes 22,509,080$      22,509,080$        12,324,398$      (10,184,682)$              54.8% 11,435,656$    888,742$         107.8% Licenses and permits 2,657,099          2,657,099            2,938,314          281,215                        110.6% 2,866,874        71,440             102.5% Intergovernmental 1,053,453          1,053,453            1,082,382          28,929                          102.7% 1,035,185        47,197             104.6% Charges for services 2,976,026          2,976,026            2,445,915          (530,111)                      82.2% 2,590,858        (144,943)          94.4% Court fines 360,000              360,000                170,191              (189,809)                      47.3% 280,873            (110,682)          60.6% Investment income 128,000              128,000                147,314              19,314                          115.1% 105,324            41,990             139.9% Miscellaneous 42,893                68,782                  64,769                (4,013)                           94.2%55,941              8,828               115.8%   Total revenues 29,726,551        29,752,440          19,173,283        (10,579,157)                 64.4%18,370,711      802,572           104.4% Expenditures Mayor and Council 121,006              121,006                65,063                55,943                          53.8% 96,609              31,546             67.3% Committees and Commissions 91,616                91,616                  30,838                60,778                          33.7% 106,210            75,372             29.0% City Administration 498,062              498,062                350,660              147,403                        70.4% 366,394            15,735             95.7% City Clerk 265,446              265,446                163,667              101,779                        61.7% 107,482            (56,185)            152.3% Legal Counsel 83,500                83,500                  61,350                22,150                          73.5% 68,504              7,154               89.6% Planning 597,315              597,315                428,714              168,601                        71.8% 431,623            2,909               99.3% Community and Econ. Development 382,316              382,316                247,729              134,587                        64.8% 259,260            11,531             95.6% Inspections 1,439,695          1,439,695            1,050,669          389,027                        73.0% 957,233            (93,436)            109.8% General Government Facilities 637,091              637,091                504,960              132,132                        79.3% 460,640            (44,320)            109.6% Finance 859,493              879,693                605,128              274,565                        68.8% 595,010            (10,118)            101.7% Information Systems 818,247              850,247                721,554              128,693                        84.9% 609,716            (111,838)          118.3% Human Resources 557,705              557,705                374,433              183,273                        67.1% 367,125            (7,308)              102.0% Insurance 285,000              285,000                213,750              71,250                          75.0% 213,750             ‐                        100.0% Police 12,428,732        12,506,121          8,546,297          3,959,824                    68.3% 8,292,715        (253,582)          103.1% Fire 2,103,412          2,119,412            1,674,481          444,931                        79.0% 1,564,968        (109,513)          107.0% Engineering 1,024,200          1,024,200            659,372              364,828                        64.4% 650,243            (9,129)              101.4% Construction Services 620,977              620,977                372,174              248,804                        59.9% 378,502            6,329               98.3% Streets 3,547,487          3,547,487            2,475,887          1,071,600                    69.8% 2,524,322        48,435             98.1% Parks 2,869,618          2,869,618            2,033,997          835,621                        70.9% 2,015,003        (18,994)            100.9% Recreation 786,925              786,925                490,382              296,543                        62.3% 562,474            72,092             87.2% Heritage Center 151,221              151,221                85,580                65,641                          56.6% 85,748              168                   99.8% Arts Center 633,472              633,472                368,419              265,053                        58.2% 463,492            95,073             79.5% Other (45,939)              (45,939)                 ‐                           (45,939)                         0.0%‐                         ‐                        0.0%   Total expenditures 30,756,597        30,902,186          21,525,102        9,377,085                    69.7%21,177,023      (348,079)          101.6% Excess (deficiency) of revenues over expenditures (1,030,046)         (1,149,746)           (2,351,818)         (1,202,072)                   (2,806,312)       454,494            Other financing sources (uses) Transfer from other funds 830,371              830,371                645,881              (184,490)                      77.8% 445,306            200,575           145.0% Transfer to other funds (550,000)            (550,000)              (550,000)            ‐                                     100.0%(1,030,000)       480,000           53.4% Total other financing sources (uses) 280,371              280,371                95,881                (184,490)                      (584,694)           680,575           ‐16.4% Net change in fund balance (749,675)            (869,375)              (2,255,937)         (1,386,562)                   (3,391,006)       1,135,069        Beginning fund balance 16,012,291        17,203,248          17,203,248        ‐                                     15,563,485      1,639,763        Ending fund balance 15,262,616$      16,333,873$        14,947,311$      (1,386,562)$                 12,172,479$    2,774,832$      Adj fund balance, Dec 31 (net of restricted )14,283,241$        15,410,052$          14,023,490$     11,476,649$    Net change in fund balance percentage (4.7%)(5.1%)(13.1%)(21.8%) Ratio: Fund balance to CY expenditures 45.6%49.0% Ratio: Fund balance to NY expenditures 44.8%48.1% Expense Summary: Personnel services 23,014,364       23,014,364         16,223,982       6,836,322                   70.5%15,928,831     (295,151)         101.9% Commodities 1,863,320         1,956,709            1,338,183         618,526                       68.4%1,199,091        (139,092)         111.6% Other charges and services 5,863,108         5,915,308            3,920,550         1,994,758                   66.3%4,029,546        108,996          97.3% Capital outlay 15,805               15,805                 42,387               (26,582)                        268.2%19,555             (22,832)           216.8% 30,756,597       30,902,186         21,525,102       9,423,024                   69.7%21,177,023     (348,079)         101.6% General Fund Summary Statement of Revenues, Expenditures and Changes in Fund Balances For the Nine Month Period Ended September 30, 2020 Comparative Variance from 2019 Actual Positive (Negative) 1 Unaudited General Fund Schedule of Expenditures 2020 2020 Variance from Adopted Amended 9/30/2020 Adopted Budget Actual 9/30/2019 Expenditures Budget Budget Actual Positive (Negative)Percent Actual Mayor and Council Personnel services 62,561$              62,561$                43,878$              18,683$                        70% 42,116$            (1,762)$            104.2% Commodities 50                        50                          25                        25                                  50% 64                      39                     39.1% Other charges and services 58,395                58,395                  21,160                37,235                          36%54,429              33,269             38.9% Total 121,006              121,006                65,063                55,943                          54%96,609              31,546             67.3% Committees/Commissions Personnel services 58,261                58,261                  1,437                  56,824                          2% 79,257              77,820             1.8% Commodities 2,530                  2,530                     ‐                      2,530                            0% 2,191                2,191               0.0% Other charges and services 30,825                30,825                  29,401                1,424                            95%24,762              (4,639)              118.7% Total 91,616                91,616                  30,838                60,778                          34%106,210            75,372             29.0% City Administration Personnel services 471,198              471,198                339,830              131,369                        72% 336,932            (2,898)              100.9% Commodities 1,600                  1,600                    66                        1,534                            4% 282                    216                   23.4% Other charges and services 25,264                25,264                  8,962                  16,302                          35% 29,180              20,218             30.7% Capital outlay ‐                           ‐                             1,802                  (1,802)                           0%‐                     (1,802)              0.0% Total 498,062              498,062                350,660              147,403                        70%366,394            15,735             95.7% City Clerk Personnel services 219,099              219,099                138,764              80,335                          63% 86,959              (51,805)            159.6% Commodities 4,090                  4,090                    8,394                  (4,304)                           205% 184                    (8,210)              4562.0% Other charges and services 42,257                42,257                  16,509                25,748                          39%20,339              3,830               81.2% Total 265,446              265,446                163,667              101,779                        62%107,482            (56,185)            152.3% Legal Counsel Other charges and services 83,500                83,500                  61,350                22,150                          73%68,504              7,154               89.6% Planning Personnel services 561,507              561,507                409,559              151,948                        73% 407,505            (2,054)              100.5% Commodities 1,718                  1,718                    973                      745                                57% 719                    (254)                  135.3% Other charges and services 34,090                34,090                  18,182                15,908                          53%23,399              5,217               77.7% Total 597,315              597,315                428,714              168,601                        72%431,623            2,909               99.3% Community and Economic Development Personnel services 325,688              325,688                229,697              95,991                          71% 218,121            (11,576)            105.3% Commodities 275                      275                        56                        219                                20% 96                      40                     58.3% Other charges and services 56,353                56,353                  17,976                38,377                          32%41,043              23,067             43.8% Total 382,316              382,316                247,729              134,587                        65%259,260            11,531             95.6% Inspection Personnel services 1,110,274          1,110,274            795,266              315,009                        72% 739,187            (56,079)            107.6% Commodities 15,931                15,931                  11,132                4,799                            70% 7,141                (3,991)              155.9% Other charges and services 305,810              305,810                213,269              92,541                          70% 210,905            (2,364)              101.1% Capital outlay 7,680                  7,680                    31,002                (23,322)                         404%‐                     (31,002)            0.0% Total 1,439,695          1,439,695            1,050,669          389,027                        73%957,233            (93,436)            109.8% (continued) Comparative Variance from 2019 Actual Positive (Negative) 2 Unaudited General Fund Schedule of Expenditures 2020 2020 Variance from Adopted Amended 9/30/2020 Adopted Budget Actual 9/30/2019 Expenditures (continued)Budget Budget Actual Positive (Negative)Percent Actual General Government Facilities Personnel services 424,529$           424,529$              326,587$           97,943$                        77% 309,857$          (16,730)$          105.4% Commodities 27,822                27,822                  18,886                8,936                            68% 16,354              (2,532)              115.5% Other charges and services 184,740              184,740                159,487              25,253                          86%134,429            (25,058)            118.6% Total 637,091              637,091                504,960              132,132                        79%460,640            (44,320)            109.6% Finance Personnel services 757,706              757,706                507,989              249,717                        67% 521,234            13,245             97.5% Commodities 1,575                  1,575                    1,416                  159                                90% 1,152                (264)                  122.9% Other charges and services 100,212              120,412                95,723                24,689                          79%72,624              (23,099)            131.8% Total 859,493              879,693                605,128              274,565                        69%595,010            (10,118)            101.7% Information Technology Personnel services 469,695              469,695                346,792              122,903                        74% 329,195            (17,597)            105.3% Commodities 3,800                  3,800                    1,925                  1,875                            51% 5,243                3,318               36.7% Other charges and services 344,752              376,752                372,837              3,915                            99%275,278            (97,559)            135.4% Total 818,247              850,247                721,554              128,693                        85%609,716            (111,838)          118.3% Human Resources Personnel services 425,855              425,855                308,219              117,637                        72% 300,975            (7,244)              102.4% Commodities 3,100                  3,100                    2,208                  892                                71% 3,683                1,475               60.0% Other charges and services 128,750              128,750                64,006                64,744                          50%62,467              (1,539)              102.5% Total 557,705              557,705                374,433              183,273                        67%367,125            (7,308)              102.0% Insurance Other charges and services 285,000              285,000                213,750              71,250                          75%213,750            ‐                    100.0% Police Personnel services 9,760,854          9,760,854            6,775,529          2,985,325                    69% 6,540,804        (234,725)          103.6% Commodities 373,796              451,185                297,664              153,521                        66% 253,857            (43,807)            117.3% Other charges and services 2,294,082          2,294,082            1,473,104          820,978                        64%1,498,054        24,950             98.3% Total 12,428,732        12,506,121          8,546,297          3,959,824                    68%8,292,715        (253,582)          103.1% Fire Personnel services 1,309,742          1,309,742            995,268              314,474                        76% 901,175            (94,093)            110.4% Fire Relief Contribution/State Aid 375,000              375,000                409,568              (34,568)                         109% 383,598            (25,970)            106.8% Commodities 146,449              162,449                92,518                69,931                          57% 78,050              (14,468)            118.5% Other charges and services 272,221              272,221                177,127              95,094                          65%202,145            25,018             87.6% Total 2,103,412          2,119,412            1,674,481          444,931                        79%1,564,968        (109,513)          107.0% (continued) Comparative Variance from 2019 Actual Positive (Negative) 3 Unaudited General Fund Schedule of Expenditures 2020 2020 Variance from Adopted Amended 9/30/2020 Adopted Budget Actual 9/30/2019 Expenditures (continued)Budget Budget Actual Positive (Negative)Percent Actual Engineering Personnel services 892,142$           892,142$              575,233$           316,909$                     64% 586,450$          11,217$           98.1% Commodities 15,526                15,526                  13,742                1,784                            89% 7,342                (6,400)              187.2% Other charges and services 116,532              116,532                70,397                46,135                          60%56,451              (13,946)            124.7% Total 1,024,200          1,024,200            659,372              364,828                        64%650,243            (9,129)              101.4% Construction Services Personnel services 598,042              598,042                361,569              236,474                        60% 364,167            2,599               99.3% Commodities 9,207                  9,207                    7,743                  1,464                            84% 6,094                (1,649)              127.1% Other charges and services 13,728                13,728                  2,862                  10,866                          21%3,681                819                   77.8% Capital outlay ‐                           ‐                             ‐                      ‐                                 0%4,560                4,560               0.0% Total 620,977              620,977                372,174              248,804                        60%378,502            6,329               98.3% Streets Personnel services 2,321,085          2,321,085            1,586,977          734,108                        68% 1,721,382        134,405           92.2% Commodities 887,173              887,173                649,679              237,494                        73% 562,653            (87,026)            115.5% Other charges and services 339,229              339,229                239,231              99,998                          71%240,287            1,056               99.6% Total 3,547,487          3,547,487            2,475,887          1,071,600                    70%2,524,322        48,435             98.1% Parks  Personnel services 2,039,577          2,039,577            1,486,359          553,218                        73% 1,447,577        (38,782)            102.7% Commodities 287,489              287,489                188,746              98,743                          66% 207,437            18,691             91.0% Other charges and services 542,552              542,552                358,892              183,660                        66%359,989            1,097               99.7% Total 2,869,618          2,869,618            2,033,997          835,621                        71%2,015,003        (18,994)            100.9% Recreation Personnel services 440,186              440,186                310,858              129,328                        71% 312,027            1,169               99.6% Commodities 33,296                33,296                  8,712                  24,584                          26% 14,090              5,378               61.8% Other charges and services 313,443              313,443                170,812              142,631                        54%236,357            65,545             72.3% Total 786,925              786,925                490,382              296,543                        62%562,474            72,092             87.2% Heritage Center Personnel services 70,331                70,331                  42,044                28,287                          60% 46,400              4,356               90.6% Commodities 9,743                  9,743                    6,586                  3,157                            68% 2,988                (3,598)              220.4% Other charges and services 71,147                71,147                  36,950                34,197                          52%36,360              (590)                  101.6% Total 151,221              151,221                85,580                65,641                          57%85,748              168                   99.8% Arts Center Personnel services 366,971              366,971                232,561              134,410                        63% 253,913            21,352             91.6% Commodities 38,150                38,150                  27,712                10,438                          73% 29,471              1,759               94.0% Other charges and services 220,226              220,226                98,563                121,663                        45% 165,113            66,550             59.7% Capital outlay 8,125                  8,125                    9,583                  (1,458)                           118%14,995              5,412               63.9% Total 633,472              633,472                368,419              265,053                        58%463,492            95,073             79.5% Variance from 2019 Actual Positive (Negative) Comparative 4 Unaudited 2020 Percent Adopted 9/30/2020 of 9/30/2019 Budget Actual Variance Budget Actual Revenues Licenses franchise fee 698,256$  490,180$     (208,076)$  70.2% 512,424$     (22,244)$      95.7% PEG Fees 58,266      44,434          (13,832)       76.3% 43,156          1,278            103.0% Intergovernmental State aid 516             ‐                    (516)            0.0% 258               (258)              0.0% Investment income 2,058         9,878            7,820          480.0%8,726            1,152            113.2% Total revenues 759,096    544,492        (214,604)    71.7%564,564        (20,072)        96.4% Expenditures ‐ General government Personnel services 417,437    302,928        114,509      72.6% 342,887        39,959          88.3% Commodities 20,300      9,922            10,378        48.9% 6,009            (3,913)           165.1% Other charges and services 114,292    56,089          58,203        49.1% 116,114        60,025          48.3% Capital outlay 185,000    ‐                    185,000      0.0%25,287          25,287          0.0% Total expenditures 737,029    368,939        368,090      50.1%490,297        121,358        75.2% Excess (deficiency) of revenues over  expenditures 22,067      175,553        153,486      795.5%74,267          79,219          236.4% Other financing (uses) ‐ Transfers From Liquor Fund (Comm/Mkt Position)‐                  ‐                     ‐                   0.0% 68,450          (68,450)        0.0% To General Fund (expense allocations) (83,739)     (62,804)        20,935        75.0% (60,650)        (2,154)           103.6% To Technology Fund (expense allocations)(4,400)       (4,400)           ‐                   100.0%‐                    (4,400)           0.0% Total other financing (uses)(88,139)     (67,204)        20,935        76.2%7,800            (75,004)        ‐861.6% Net change in fund balance (66,072)     108,349        174,421      82,067          26,282           Beginning fund balance 808,425    1,053,663    245,238      930,791        122,872         Ending fund balance 742,353$  1,162,012$  419,659$    1,012,858$  149,154$      Variance from 2019 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, 2020 Special Revenue ‐ Communications Fund 5 Unaudited 2020 Percent Adopted 9/30/2020 of 9/30/2019 Budget Actual Variance Budget Actual Sales and cost of sales Sales 15,898,952$     13,129,447$     (2,769,505)$     82.6% 11,702,365$  1,427,082$   112.2% Cost of sales 11,923,215        9,752,595          2,170,620         81.8%8,770,711       (981,884)        111.2% Gross profit 3,975,737          3,376,852          (598,885)           84.9%2,931,654       445,198         115.2% Gross profit % 25.0% 25.7% 25.1% Operating expenses Personnel services 1,832,091          1,333,370          498,721            72.8% 1,207,678       (125,692)        110.4% Commodities 79,619               36,643               42,976              46.0% 53,762            17,119           68.2% Other charges and services 1,371,375          1,043,389          327,987            76.1%857,569          (185,820)        121.7% Total operating expenses 3,283,085          2,413,402          869,684            73.5%2,119,009       (294,393)        113.9% Operating income 692,652             963,451             270,799            139.1%812,645          150,806         118.6% Non‐operating revenue (expense) Investment income 15,000               26,190               11,190              174.6% 36,474            (10,284)          71.8% Miscellaneous 3,762                   ‐                           (3,762)               0.0% 1,881              (1,881)            0.0% Capital outlay acquisitions (49,790)              (24,724)              25,066              49.7% (76,427)           51,703           32.3% Transfers in (out) General Fund (143,412)            (107,559)            35,853              75.0% (125,232)         17,673           85.9% General Fund ‐ Fireworks (13,000)              13,000               26,000               ‐100.0%‐                   13,000           0.0% Communications (Mktg Spec)‐                            ‐                            ‐                         0.0% (68,450)           68,450           0.0% Debt Service: CIP Bonds‐Police Station (400,000)            (400,000)             ‐                         100.0% (400,000)          ‐                  100.0% Galaxie Lease (284,808)            (284,431)            377                    99.9% (273,650)         (10,781)          103.9% 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)        (1,347,201)        99,080              93.1%(1,308,829)     (38,372)          102.9% Change in working capital (753,629)            (383,751)            369,878            (496,184)         112,433          Beginning working capital 3,378,854          3,823,210          444,356            3,890,525       (67,315)           Ending working capital 2,625,225$        3,439,459$        814,234$          3,394,341$    45,118$          Variance from 2019 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, 2020 6 Unaudited 2020 Percent Adopted 9/30/2020 of 9/30/2019 Budget Actual Variance Budget Actual Operating revenues User charges for services 5,762,460$       4,451,762$       (1,310,698)$  77.3% 3,270,516$  1,181,246$  136.1% Other 133,479             86,380               (47,099)          64.7%126,310        (39,930)        68.4% Total operating revenue 5,895,939          4,538,142          (1,357,797)     77.0%3,396,826    1,141,316    ‐40.0% Operating expenses Personnel services 1,279,486          922,117             357,369         72.1% 868,786        (53,331)        106.1% Commodities 359,080             288,684             70,396           80.4% 233,404        (55,280)        123.7% Other charges and services 1,409,280          1,003,195          406,085         71.2% 781,216        (221,979)      128.4% Major Maintenance 3,845,340          467,262             3,378,078      12.2%659,229        191,967        70.9% Total operating expenses 6,893,186          2,681,258          4,211,928      38.9%2,542,635    (138,623)      105.5% Operating income (loss)(997,247)            1,856,884          2,854,131      854,191        1,002,693     Non‐operating revenue (expense) Intergovernmental 1,632                  ‐                     (1,632)            0.0% 5,408            (5,408)           0.0% Investment income 32,484               71,119               38,635           218.9% 67,929          3,190            104.7% Disposal of assets (10,000)               ‐                          10,000           0.0% 7,134            (7,134)           0.0% Capital outlay (66,261)              (101,962)            (35,701)          153.9% (28,578)        (73,384)        356.8% Bond proceeds 3,470,000           ‐                          (3,470,000)     0.0% 855,543        (855,543)      0.0% Debt Service (1,273,737)        (1,252,775)        20,962           98.4% (1,167,961)   (84,814)        107.3% Transfers (out)(180,367)            (137,225)            43,142           76.1%(111,593)      (25,632)        123.0% Total non‐operating (net)1,973,751          (1,420,843)        (3,394,594)     (372,118)      (1,048,725)    Change in working capital 976,504             436,040             (540,464)        482,073        (46,033)        90.5% Beginning working capital 7,386,740          7,585,974          199,234         7,245,758    340,216        104.7% Ending working capital 8,363,244$       8,022,015$       (341,229)$      7,727,831$  294,184        103.8% Variance from 2019 Actual Positive (Negative) CITY OF LAKEVILLE, MINNESOTA Comparative For the Nine Month Period Ended September 30, 2020 Statement of Revenues, Expenditures and Changes in Working Capital Enterprise ‐ Utility Fund Water Operation 7 Unaudited 2020 Percent Adopted 9/30/2020 of 9/30/2019 Budget Actual Variance Budget Actual Operating revenue User charges for services 6,969,526$       5,439,977$       (1,529,549)$  78.1%5,033,320$  406,657$     108.1% Operating expenses Personnel services 848,707             529,062             319,645         62.3% 538,861        9,799            98.2% Commodities 85,148               39,533               45,615           46.4% 58,382          18,849          67.7% Other charges and services 384,787             238,048             146,739         61.9% 230,668        (7,380)           103.2% Disposal charges 4,305,768          3,229,326          1,076,442      75.0% 3,130,824    (98,502)        103.1% Major maintenance projects 1,023,000          149,514             873,486         14.6%1,015,953    866,439        14.7% Total operating expenses 6,647,410          4,185,484          2,461,926      63.0%4,974,688    789,204        84.1% Operating income (loss)322,116             1,254,493          932,377         58,632          1,195,861    2139.6% Non‐operating revenue (expense) Intergovernmental State aid 816                      ‐                          (816)               0.0% 816               (816)              0.0% Grants 25,816                ‐                          (25,816)          0.0%‐                     ‐                    0.0% Investment income 40,544               33,230               (7,314)            82.0% 28,538          4,692            116.4% Disposal of assets (10,000)               ‐                          10,000           0.0% 750               (750)              0.0% Capital outlay (66,261)              (101,962)            (35,701)          153.9% (9,637)           (92,325)        1058.0% Debt service (72,450)              (68,435)              4,015              94.5% (56,496)        (11,939)        121.1% Transfers in 24,187               24,187                ‐                      100.0% 24,165          22                 100.1% Transfers (out)(187,412)            (142,509)            44,903           76.0%(130,895)      (11,614)        108.9% Total non‐operating (net)(244,760)            (255,488)            (10,728)          104.4%(142,759)      (112,729)      179.0% Change in working capital 77,356               999,005             921,649         (84,127)        1,083,132     ‐1187.5% Beginning working capital 2,880,764          3,544,582          663,818         3,044,063    500,519        116.4% Ending working capital 2,958,120$       4,543,587$       1,585,467$    2,959,936$  1,583,651$  153.5% Variance from 2019 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, 2020 Enterprise ‐ Utility Fund Sanitary Sewer Operation 8 Unaudited 2020 Percent Adopted 9/30/2020 of 9/30/2019 Budget Actual Variance Budget Actual Operating revenue User charges for services 1,017,739$  822,914$       (194,825)$    80.9%717,342$  105,572$    114.7% Operating expenses Personnel services 22,657         14,942           7,715            65.9% 16,246      1,304           92.0% Commodities 67                 113                 (46)                169.4% 12              (101)             945.7% Other charges and services 964,218       591,547         372,671       61.3%544,636    (46,911)        108.6% Total operating expenses 986,942       606,602         380,340       61.5%560,894    (45,708)        108.1% Operating income (loss)30,797         216,312         185,515       156,448    59,864         138.3% Non‐operating revenue (expense) Investment income 3,686            7,122              3,436            193.2% 5,355         1,767           133.0% Debt service (48,700)        (40,771)          7,929            83.7% (39,021)     (1,750)          104.5% Transfers in (out) ‐ General Fund (5,614)          (4,212)            1,402            75.0%(3,751)       (461)             112.3% Total non‐operating (net)(50,628)        (37,861)          12,767         74.8%(37,417)     (444)             101.2% Change in working capital (19,831)        178,451         198,282       119,031    59,420         149.9% Beginning working capital 584,861       759,654         174,793       571,214    188,440       133.0% Ending working capital 565,030$     938,105$       373,075$     690,245$  247,860$    135.9% Variance from 2019 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, 2020 Enterprise ‐ Utility Fund Street Light Operation 9 Unaudited 2020 Percent Adopted 9/30/2020 of 9/30/2019 Budget Actual Variance Budget Actual Revenues User charges for services 2,020,828$      1,440,642$      (580,186)$     71.3% 1,222,448$  218,194$        117.8% Charges for services ‐ Recycling 4,090                ‐                        (4,090)            0.0%4,090            (4,090)             0.0% Total revenues 2,024,918        1,440,642        (584,276)        71.1%1,226,538    214,104          ‐47.6% Expenditures ‐ Public works Personnel services 539,971           372,083           167,888         68.9% 347,034        (25,049)           107.2% Commodities 37,856              20,081              17,775           53.0% 26,518          6,437              75.7% Other charges and services 1,581,698        639,747           941,951         40.4%557,435        (82,312)           114.8% Total expenditures 2,159,525        1,031,911        1,127,614      47.8%930,987        (100,924)        110.8% Operating income (loss)(134,607)          408,731           543,338         295,551        113,180          138.3% Non‐operating revenue (expense) Intergovernmental 120,292           627                   (119,665)        0.5%‐                    627                 0.0% Investment income 4,189                13,860              9,671             330.9% 10,260          3,600              135.1% Transfers in (out) General Fund (182,427)          (156,672)          25,755           85.9% (146,238)      (10,434)           107.1% Storm Sewer Infrastucture Fund ‐                         ‐                         ‐                      0.0%‐                     ‐                  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% 3,425            (3,425)             0.0% Sanitary sewer operations (24,187)            (24,187)            ‐                      100.0%(24,165)        (22)                  100.1% Total other financing (uses)(112,377)          (200,972)          (88,595)          178.8%(187,718)      (13,254)           107.1% Change in working capital (246,984)          207,759           454,743         107,833        99,926            192.7% Beginning working capital 1,070,254        1,478,379        408,125         1,094,376    384,003          135.1% Ending working capital 823,270$         1,686,138$      862,868$       1,202,209$  483,929$        140.3% Variance from 2019 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, 2020 Enterprise ‐ Utility Fund Environmental Resources Operation 10