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Overview <br /> <br />AGENDA BILL APPROVAL FORM Agenda Subject: 2nd Quarter 2016 Financial Report Date: August 23, 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 second quarter status report is based on financial data available as of July 25, 2016 for the period ending June 30, 2016. Sales <br />tax information represents business activity that occurred through April 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 June 2016, General Fund revenues totaled $32.5 million compared to a budget of $30.3 million <br />and were $2.2 million higher than the revenues collected for the same period in 2015. Notable variances to budget in the second quarter of 2016 include: • General Fund sales tax revenues <br />totaled $7.3 million, exceeding budget by $16,000 or 0.2% and exceeding 2015 collections by $221,000. Receipts to date include a one-time payment of over $100,000 and so the trend is <br />unfavorable. The areas of significant increase from 2015 were primarily in the service and transportation sectors, with significant decreases in the manufacturing and retail trade sectors. <br />• The Other Taxes category performed better than budget through Q2-2016. Collections in criminal justice sales tax revenues exceeded budget by $114,000, or 13.8%. City utility tax revenues <br />were above budget by $156,000 and electric and natural gas tax revenues were above budget by $157,000 and $68,000, respectively. These revenues were somewhat offset by an unfavorable <br />variance in telephone tax collections of $67,000. • Development services fees through June totaled $616,000 and exceeded budget by $248,000. The increased revenues were predominantly <br />attributable to plan check revenues, which year-to-date have already generated 82% of budgeted annual revenue. • Other revenues exceeded the year-to-date budget through Q2-2016 by $251,000, <br />or 51.7%, and exceeded Q2-2015 revenue in this category by $102,000, primarily due to increase parking revenues, facility rental revenues, and purchase card rebates. 1 <br />Agenda Subject: 2nd Quarter 2016 Financial Report Date: 8/23/2016 General Fund expenditures through June totaled $29.2 million as compared with a budget of $33.4 million. This represents <br />a 12.6% underspend compared to budget. Through the second quarter of 2016, 2,342 pet licenses have been sold resulting in $66,645 in revenue. For the same period in 2015, 2,563 licenses <br />were sold resulting in $73,605 in revenue. Street Funds: The City’s three street funds are special revenue funds where the revenue sources and expenditures are legally restricted. These <br />funds are used for street capital construction projects, local street repair and arterial street repair and preservation projects. In Q2-2016, Arterial Street fund revenues collected <br />totaled $1.9 million as compared to collections of $1.1 million for the same period in 2015; expenditures totaled $1.5 million as compared to $1.8 million spent through second quarter <br />last year. Local Street fund revenues exceeded budget expectations for the first half of the year by $299,000, or 33.7%, due to higher than anticipated sales tax revenues from local <br />construction projects; expenditures were $276,000 as compared with a budget of $312,000. Lastly, Arterial Street Preservation fund revenues totaled $1.1 million as compared to a budget <br />of $1.3 million, while expenditures totaled $354,000. Proprietary Funds: The City’s seven proprietary funds account for operations with revenues primarily provided from user fees, charges <br />or contracts for services. At the end of Q2-2016, the Water fund had net operating income of $1.9 million compared to operating income of $1.4 million at the end of Q2-2015. The Sewer <br />fund ended the period with net income of $1.2 million compared to income of $0.9 million in the previous year. The Sewer-Metro Utility ended the quarter with net operating income of <br />$192,000 as compared to an operating loss of $173,000 in 2015. Lastly, the Stormwater Utility ended the quarter with operating income of $1.4 million compared to operating income of <br />$2.7 million for the same period in 2015. The Cemetery ended Q2-2016 with net operating income of $178,000 compared to operating income of $94,000 for the same period in 2015. Internal <br />Service Funds: Internal Service Funds provide services to other City departments and include functions such as Insurance, Worker’s Compensation, Facilities, Innovation and Technology, <br />and Equipment Rental. All funds have sufficient revenues to cover year-end expenditures. Investment Portfolio: The City’s total cash and investments at the end of the quarter was $114.7 <br />million, and compares to $118.3 million at the end of Q2-2015. Staff: Coleman Meeting Date: August 29, 2016 Item Number: 2 <br />Quarterly Financial Report Through Q2-2016 YEAR-TO-DATE GENERAL FUND EXPENDITURES BY DEPARTMENT (through June 2016) YEAR-TO-DATE GENERAL FUND REVENUES (through June 2016) GENERAL FUND <br />SUMMARY $0 $5 $10 $15 Total Revenues Total Expenses Millions Property Taxes Sales Taxes Other Taxes Intergovernmental (Grants, etc.) Development Service Fees Culture & Recreation Other <br />Fees & Charges Other Revenues Personnel Supplies & Services Intergovernmental Other Expenses Revenues Expenditures $0.0 $2.0 $4.0 $6.0 $8.0 $10.0 $12.0 $14.0 $16.0 $18.0 $20.0 Millions <br />YTD Budget YTD Actuals (Favorable) YTD Actuals (Unfavorable) $30.6 $32.5 $33.9 $29.2 $0 $10 $20 $30 $40 Total Revenues Total Expenses Millions Council & Mayor Administrative Services <br />Municipal Court & Probation Human Resources Finance City Attorney Community Development Jail -SCORE Police Public Works Parks, Arts & Recreation Streets Non-Departmental$0 $2 $4 $6 $8 <br />$10 $12 Millions YTD Budget YTD Actuals (Favorable) YTD Actuals (Unfavorable) 3 <br />Quarterly Financial Report Through Q2-2016 General Fund 2015 Summary of Sources and Uses Annual YTD YTD YTD Budget Budget Actual Actual Amount Beginning Fund Balance $ 15,817,653 Operating <br />Revenues Property Tax $ 17,733,500 $ 9,364,100 $ 9,448,363 $ 9,082,406 $ 84,263 0.9 % Sales Tax 14,572,000 7,286,000 7,301,456 7,080,481 15,456 0.2 % Sales Tax -Annexation Credit 1,912,000 <br />914,000 988,193 886,979 74,193 8.1 % Criminal Justice Sales Tax 1,747,000 831,400 945,829 861,400 114,429 13.8 % Brokered Natural Gas Tax 282,000 179,900 160,140 159,349 (19,760) (11.0) <br />% City Utilities Tax 3,521,200 1,682,400 1,838,188 1,719,324 155,788 9.3 % Admissions Tax 333,600 133,300 142,414 135,674 9,114 6.8 % Electric Tax 3,297,700 1,758,600 1,915,419 1,648,480 <br />156,819 8.9 % Natural Gas Tax 852,000 575,900 644,107 659,020 68,207 11.8 % Cable TV Franchise Fee 906,700 449,900 487,057 455,052 37,157 8.3 % Cable TV Franchise Fee -Capital 64,000 <br />32,800 33,238 36,324 438 1.3 % Telephone Tax 1,620,000 835,000 767,726 871,239 (67,274) (8.1) % Garbage Tax (external) 106,000 52,980 61,778 54,854 8,798 16.6 % Leasehold Excise Tax <br />33,000 16,700 179,245 35,020 162,545 973.3 % Gambling Excise Tax 334,400 129,700 309,615 82,550 179,915 138.7 % Taxes subtotal $ 47,315,100 $ 24,242,680 $ 25,222,768 $ 23,768,153 $ 980,088 <br />4.0 % Business License Fees $ 310,000 $ 137,000 $ 105,695 $ 160,817 $ (31,305) (22.9) % Building Permits 1,190,000 647,800 840,170 645,220 192,370 29.7 % Other Licenses & Permits 444,600 <br />216,300 270,330 246,230 54,030 25.0 % Intergovernmental (Grants, etc.) 5,627,893 2,654,934 2,648,748 2,602,995 (6,186) (0.2) % Charges for Services: General Government Services 67,200 <br />37,600 46,237 43,704 8,637 23.0 % Public Safety 520,300 260,149 342,281 287,517 82,132 31.6 % Development Services Fees 680,600 368,100 615,814 715,082 247,714 67.3 % Culture and Recreation <br />2,105,080 1,089,000 1,251,074 1,236,235 162,074 14.9 % Fines and Forfeits 796,180 418,700 449,907 485,978 31,207 7.5 % Fees/Charges/Fines subtotal $ 11,741,853 $ 5,829,583 $ 6,570,256 <br />$ 6,423,779 $ 740,673 12.7 % 146,477 Interests and Other Earnings $ 35,200 $ 15,000 $ 54,747 $ 23,497 $ 39,747 265.0 % Rents, Leases and Concessions 630,600 294,500 373,158 301,118 78,658 <br />26.7 % Contributions and Donations 32,000 17,300 11,818 20,852 (5,482) (31.7) % Other Miscellaneous 157,800 70,000 160,111 102,512 90,111 128.7 % Transfers In 159,300 76,000 99,000 76,000 <br />23,000 30.3 % Insurance Recoveries -Capital & Operating 25,000 12,600 37,572 110,458 24,972 198.2 % Other Revenues subtotal $ 1,039,900 $ 485,400 $ 736,406 $ 634,438 $ 251,006 51.7 % <br />Total Operating Revenues $ 60,096,853 $ 30,557,663 $ 32,529,429 $ 30,826,369 $ 1,971,766 6.5 % Operating Expenditures Council & Mayor $ 976,866 $ 487,900 $ 495,405 $ 446,739 $ (7,505) <br />(1.5) % Administration 2,544,236 1,163,000 986,476 857,741 176,524 15.2 % Municipal Court & Probation 2,355,889 447,000 314,914 272,076 132,086 29.5 % Human Resources 1,406,554 688,400 <br />612,047 510,844 76,353 11.1 % Finance 1,300,773 654,000 589,442 623,422 64,558 9.9 % City Attorney 2,195,190 1,048,500 937,549 912,293 110,951 10.6 % Community Development 4,656,841 <br />2,309,300 2,027,342 1,919,180 281,958 12.2 % Jail -SCORE 5,583,542 2,791,771 2,009,736 1,829,432 782,035 28.0 % Police 23,794,252 11,664,900 11,463,766 10,811,956 201,134 1.7 % Public <br />Works 2,811,835 1,391,400 1,518,788 1,326,774 (127,388) (9.2) % Parks, Arts & Recreation 11,584,205 5,738,300 5,452,246 5,351,703 286,054 5.0 % Streets 3,466,563 1,531,900 1,447,978 <br />1,289,104 83,922 5.5 % Non-Departmental 5,102,169 3,471,775 1,313,029 2,298,317 2,158,747 62.2 % Total Operating Expenditures $ 67,778,915 $ 33,388,146 $ 29,168,718 $ 28,449,580 $ 4,219,428 <br />12.6 % 2016 2016 YTD Budget vs. Actual Favorable (Unfavorable) Percent 4 <br />Quarterly Financial Report Through Q2-2016 Executive Summary This Executive Summary provides an overview of the City’s overall financial position for the fiscal period ending June 30, <br />2016, reflecting financial data available as of July 25, 2016. Through June 2016, General Fund revenues totaled $32.5 million compared to a budget of $30.6 million, and were $2.2 million <br />