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Overview <br /> <br />AGENDA BILL APPROVAL FORM Agenda Subject: 1st Quarter 2016 Financial Report Date: June 8, 2016 Department: Finance Attachments: Quarterly Financial Report Budget Impact: $0 Administrative <br />Recommendation: For discussion only. Background Summary: The purpose of the quarterly financial report is to summarize for the City Council the general state of Citywide financial affairs <br />and to highlight significant items or trends that the City Council should be aware of. The following provides a high level summary of the City’s financial performance; further details <br />can be found within the attached financial report. The first quarter status report is based on financial data available as of June 1, 2016 for the period ending March 31, 2016. Sales <br />tax information represents business activity that occurred through January 2016. General Fund: The General Fund is the City’s largest fund and accounts for the majority of City resources <br />and services, other than those required by statute to be accounted for in another fund. Through March 2016, General Fund revenues totaled $11.6 million compared to a budget of $11.1 <br />million and were $0.1 million higher than the revenues collected for the same period in 2015. Notable variances to budget in the first quarter of 2016 include: • Property tax collections <br />through Q1-2016 totaled $796,000, which is 11.5% or $103,000 below budget expectations but exceeded collections in the same period last year by $12,000, or 1.5%. The majority of property <br />tax revenues are collected during the months of April and October, coinciding with the due dates for the County property tax billings. • The other taxes category performed better than <br />budget through Q1-2016. Collections in electric and natural gas tax revenues were above budget by $72,000 and $29,000, respectively. City utility tax revenues were also above budget <br />by $44,000, and gambling excise tax revenues were above budget by $102,000. These revenues were somewhat offset by an unfavorable variance in telephone tax collections of $124,000. • <br />Development services fees through March totaled $252,000 and exceeded budget by $90,000. The increased revenues were predominantly attributable to plan check revenues, which surpassed <br />budget expectations by $60,000. • Other fees and charges exceeded the year-to-date budget through Q1-2016 by $102,000, or 43.4%, and exceed Q1-2015 revenue in this category by $45,000. <br />General Fund expenditures through March totaled $14.3 million as compared with a budget of $15.4 million. This represents a 6.8% underspend compared to budget. In the first quarter of <br />2016, 1,153 pet licenses were sold resulting in $32,560 in revenue. For the same period in 2015, 1,279 licenses were sold resulting in $36,980 in revenue. 1 <br />Agenda Subject: 1st Quarter 2016 Financial Report Date: 6/8/2016 Street Funds: The City’s three street funds are special revenue funds where the revenue sources and expenditures are <br />legally restricted. These funds are used for street capital construction projects, local street repair and arterial street repair and preservation projects. In Q1-2016, Arterial Street <br />fund revenues collected totaled $140,000 as compared to collections of $277,000 for the same period in 2015; expenditures totaled $516,000 as compared to $364,000 spent in the first <br />quarter last year. Local Street fund revenues exceeded budget expectations for the quarter by $135,000, or 25.0%, due to higher than anticipated sales tax revenues from local construction <br />projects; expenditures were virtually at budget. Lastly, Arterial Street Preservation fund revenues totaled $511,000 as compared to a budget of $504,000, while expenditures totaled $95,000. <br />Proprietary Funds: The City’s seven proprietary funds account for operations with revenues primarily provided from user fees, charges or contracts for services. At the end of Q1-2016, <br />the Water fund had net operating income of $738,000 compared to operating income of $772,000 at the end of Q1-2015. The Sewer fund ended the period with net income of $638,000 compared <br />to income of $527,000 in the previous year. The Sewer-Metro Utility ended the quarter with a net operating loss of $40,000 as compared to an operating loss of 215,000 in 2015. Lastly, <br />the Stormwater Utility ended the quarter with operating income of $713,000 compared to operating income of $1.1 million for the same period in 2015. The Cemetery ended Q1-2016 with net <br />operating income of $155,000 compared to operating income of $123,000 for the same period in 2015. Internal Service Funds: Internal Service Funds provide services to other City departments <br />and include functions such as Insurance, Worker’s Compensation, Facilities, Innovation and Technology, and Equipment Rental. All funds have sufficient revenues to cover year-end expenditures. <br />Investment Portfolio: The City’s total cash and investments at the end of the quarter was $114.7 million, and compares to $118.3 million at the end of Q1-2015. Staff: Coleman Meeting <br />Date: June 13, 2016 Item Number: 2 <br />Quarterly Financial Report Through Q1-2016 General Fund Summary Council& MayorAdministrativeServicesCommunity &Human ServicesMunicipal Court& ProbationHumanResourcesFinanceCity AttorneyCommunityDevelopmentJail <br />-SCOREPolicePublic WorksParks, Arts& RecreationStreetsNon-Departmental$0$1$2$3$4$5$6$7MillionsYTDBudgetYTDActuals(Favorable)YTDActuals(Unfavorable)Year-To-DateGeneral Fund Expenditures <br />by Department(Through Q1-2016)Property TaxesSales TaxesOther TaxesIntergovernmental(Grants, etc.)DevelopmentService FeesCulture &RecreationOther Fees& ChargesOtherRevenuesPersonnelSupplies& <br />ServicesIntergovernmentalOther ExpendituresRevenuesExpenditures$0$1$2$3$4$5$6$7$8$9$10MillionsYTDBudgetYTDActuals(Favorable)YTDActuals(Unfavorable)Year-To-DateGeneral Fund Revenues and <br />Expenditures(Through Q1-2016)$11.1$15.4$11.6$14.3TotalRevenuesTotalExpenditures$0$5$10$15$20Millions 3 <br />Quarterly Financial Report Through Q1-2016 General Fund2015Summary of Sources and UsesAnnualBudgetYTD BudgetYTD ActualYTD ActualAmountOperating RevenuesProperty Tax17,733,500$ 899,300$ <br />796,137$ 783,959$ (103,163)$ (11.5)%Sales Tax14,572,0003,665,9003,691,9673,627,14026,0670.7 %Sales Tax -Annexation Credit1,912,000477,400496,407487,96919,0074.0 %Criminal Justice Sales <br />Tax1,747,000430,400484,107444,62553,70712.5 %Brokered Natural Gas Tax282,00094,70088,61783,760(6,083)(6.4)%City Utilities Tax3,521,200821,300865,034830,85643,7345.3 %Admissions Tax333,60061,30049,84964,119(11,451)(18.7)%Electric <br />Tax3,297,700816,800888,465777,77171,6658.8 %Natural Gas Tax852,000228,400257,763263,62029,36312.9 %Cable TV Franchise Fee906,700224,400245,425226,59521,0259.4 %Cable TV Franchise Fee <br />-Capital64,00016,00016,56118,0715613.5 %Telephone Tax1,820,000529,600405,093476,329(124,507)(23.5)%Garbage Tax (external)106,00026,49030,54027,1104,05015.3 %Leasehold Excise Tax33,0006,30016,20810,5369,908157.3 <br />%Gambling Excise Tax234,40061,700164,08870,728102,388165.9 %Taxes sub-total47,415,100$ 8,359,990$ 8,496,259$ 8,193,187$ 136,269$ 1.6 %Business License Fees221,000$ 91,800$ 73,583$ 115,833$ <br />(18,217)$ (19.8)%Building Permits1,190,000307,800238,584327,641(69,216)(22.5)%Other Licenses & Permits533,600110,200125,959131,37515,75914.3 %Intergovernmental (Grants, etc.)5,269,5801,154,8191,215,0301,235,55960,2115.2 <br />%Charges for Services:General Government Services67,20018,10025,76023,7677,66042.3 %Public Safety520,300130,075159,101165,72129,02622.3 %Development Services Fees680,600162,300252,474355,12190,17455.6 <br />%Culture and Recreation2,105,080354,200401,083400,15246,88313.2 %Fines and Forfeits796,180208,200243,206250,09935,00616.8 %Fees/Charges/Fines sub-total11,383,540$ 2,537,494$ 2,734,781$ <br />3,005,267$ 197,287$ 7.8 %Interest and Other Earnings35,200$ 8,200$ 20,517$ 10,150$ 12,317$ 150.2 %Rents, Leases and Concessions588,600108,800143,06898,28534,26831.5 %Contributions and <br />Donations32,0006,0001,8087,158(4,192)(69.9)%Other Miscellaneous157,80030,60079,86243,09549,262161.0 %Transfers In76,00076,00076,00076,00000.0 %Insurance Recoveries -Capital & Operating25,0006,24816,84558,48710,597169.6 <br />%Other Revenues sub-total914,600$ 235,848$ 338,100$ 293,176$ 102,253$ 43.4 %Total Operating Revenues59,713,240$ 11,133,331$ 11,569,141$ 11,491,630$ 435,809$ 3.9 %Operating ExpendituresCouncil <br />& Mayor985,404$ 268,800$ 258,683$ 232,012$ 10,117$ 3.8 %Administration 1,307,747327,000229,903182,90897,09729.7 %Community & Human Services971,096158,900229,100160,056(70,200)(44.2)%Municipal <br />Court & Probation2,356,172143,700131,787114,00711,9138.3 %Human Resources1,277,320299,800312,488246,012(12,688)(4.2)%Finance1,322,606320,700287,781297,74932,91910.3 %City Attorney2,217,978526,100469,102455,50156,99810.8 <br />%Community Development4,479,0611,200,700984,2521,018,198216,44818.0 %Jail -SCORE5,583,5421,005,000669,912914,716335,08833.3 %Police24,114,4265,998,2005,984,3845,540,50013,8160.2 %Public <br />Works2,841,494743,100720,694653,33622,4063.0 %Parks, Arts & Recreation11,491,6992,611,4002,516,7942,464,69494,6063.6 %Streets3,431,557729,500665,582558,20963,9188.8 %Non-Departmental4,852,1581,035,751857,956442,453177,79517.2 <br />%Total Operating Expenditures67,232,261$ 15,368,651$ 14,318,419$ 13,280,351$ 1,050,232$ 6.8 %20162016 YTD Budget vs. ActualFavorable (Unfavorable)Percentage 4 <br />Quarterly Financial Report Through Q1-2016 Overview This financial overview reflects the City’s overall financial position for the fiscal period ending March 31, 2016 and represents <br />financial data available as of May 11, 2016. Through March 2016, General Fund revenues totaled $11.5 million compared to a budget of $11.1 million, and were $77,000 higher than the revenues <br />collected during the same period in 2015. Some notable variances to budget year-to-date include:  Property tax collections through Q1-2016 totaled $796,000, which is 11.5% or $103,000 <br />below budget expectations but exceeded collections in the same period last year by $12,000, or 1.5%. The majority of property tax revenues are collected during the months of April and <br />October, coinciding with the due dates for the County property tax billings.  General Fund sales tax revenues totaled $3.7 million, exceeding budget by 0.7% or $26,000, and exceeding <br />2015 collections by $65,000. The areas of significant increase in sales activity compared to 2015 were primarily seen in the service, wholesale trade, and transportation and warehousing <br />categories.  The other taxes category performed better than budget through Q1-2016. Collections in electric and natural gas tax revenues were above budget by $72,000 and $29,000, respectively. <br />City utility tax revenues were also above budget by $44,000, and gambling excise tax revenues were above budget by $102,000. These revenues were somewhat offset by an unfavorable variance <br />