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Overview <br /> <br />AGENDA BILL APPROVAL FORM Agenda Subject: 4th Quarter 2015 Financial Report Date: February 05, 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 fourth quarter status report is based on financial data available as of February 4, 2016 for the period ending December 31, 2015. <br />Sales tax information represents business activity that occurred through October 2015. General Fund: The General Fund is the City’s largest fund and accounts for the majority of City <br />resources and services, other than those required by statute to be accounted for in another fund. In 2015, General Fund revenues totaled $61.0 million compared to a budget of $58.9 million <br />and were $2.2 million higher than the revenues collected in 2014. Notable variances to budget in 2015 include: General Fund sales tax revenues totaled $14.6 million and exceeded budget <br />by 6.7% or $911,000. In addition, sales tax credit for annexation and criminal justice sales tax revenues exceeded budget expectations by $133,000 and $227,000 respectively. Collections <br />in electric tax and natural gas tax revenues ended the year under budget by $204,000 and $150,000 respectively due primarily to a mild winter which reduced customer demand for heating. <br />This unfavorable variance was somewhat offset by favorable variances in City utility tax collections. Development services fees totaled $1.4 million and exceeded budget by $720,000. <br />Of this, $575,000 of this was attributable to the fact that plan check revenues far exceeded budget expectations. Both The Villas (Senior Living Community) and the Promenade Apartment <br />project contributed to these higher than usual collections. General Fund expenditures through December totaled $61.1 million as compared with a budget of $65.1 million. This represents <br />a 6.1% year-end underspend compared to budget. All departments operated within their allocated budgets in 2015. Ending 2015 fund balances will not be finalized until approximately June <br />2016 pending final year-end adjustments and certification by the State Auditor’s Office. Once the final ending 2015 fund balances are available, budgeted beginning 2016 fund balances <br />will be reconciled and adjusted accordingly. In 2015, 5,112 pet licenses were sold resulting in $147,152 in revenue. For the same period in 2014, 5,811 licenses were sold resulting in <br />$155,790 in revenue. <br />Agenda Subject: 4th Quarter 2015 Financial Report Date: 2/05/2016 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 2015, Arterial Street <br />fund revenues collected totaled $4.7 million as compared to collections of $3.5 million in 2014; expenditures totaled $6.9 million as compared to $3.8 million spent last year. Local <br />Street fund revenues exceeded budget expectations by $698,000, or 39.8%, due to higher than anticipated sales tax revenues from local construction projects; expenditures were under budget <br />by $957,000, or 28.4%. Lastly, Arterial Street Preservation fund revenues totaled $2.7 million as compared to a budget of $2.9 million, while expenditures totaled $4.0 million. Enterprise <br />Funds: The City’s seven enterprise funds account for operations with revenues primarily provided from user fees, charges or contracts for services. At the end of 2015, the Water fund <br />had net operating income of $1,076,100 compared to operating income of $1,757,300 at the end of 2014. The Sewer fund ended the year with net income of $109,300 compared to income of <br />$181,500 in the previous year. The Sewer-Metro Utility ended 2015 with operating income of $186,800 as compared to operating income of $273,900 in 2014. Lastly, the Stormwater Utility <br />ended the year with operating income of $1,316,800 compared to operating income of $1,486,200 at the end of 2014. The Cemetery ended 2015 with net operating income of $19,600 compared <br />to operating income of $2,900 in 2014. Internal Service Funds: Internal Service Funds provide services to other City departments and include functions such as Insurance, Worker’s Compensation, <br />Facilities, Innovation and Technology, and Equipment Rental. All funds have sufficient revenues to cover year-end expenditures. Investment Portfolio: The City’s total cash and investments <br />at the end of the year was $115.1 million, and compares to $115.7 million at the end of Q3-2015. Staff: Coleman Meeting Date: February 22, 2016 Item Number: <br />Quarterly Financial Report Through Q4-2015 General Fund Summary Council& MayorAdministrativeServicesCommunity &Human ServicesMunicipal Court& ProbationHumanResourcesFinanceCity AttorneyCommunityDevelopmentJail <br />-SCOREPolicePublic WorksParks, Arts& RecreationStreetsNon-Departmental-$2$3$8$13$18$23$28MillionsYEBudgetYEActuals(Favorable)YEActuals(Unfavorable)Year-End General Fund Expenditures <br />by Department(Through Q4-2015)Property TaxesSales TaxesOher TaxesIntergovernmental(Grants, etc.)DevelopmentService FeesCulture &RecreationOther Fees& ChargesOtherRevenuesPersonnelSupplies& <br />ServicesIntergovernmentalOther ExpendituresRevenuesExpenditures$0$5$10$15$20$25$30$35$40MillionsYEBudgetYEActuals(Favorable)YEActuals(Unfavorable)Year-End General Fund Revenues and Expenditures(Through <br />Q4-2015)$58.9$65.1$61.0$61.1TotalRevenuesTotalExpenditures$0$10$20$30$40$50$60$70Millions 1 <br />Quarterly Financial Report Through Q4-2015 General Fund2014Summary of Sources and UsesAnnualBudgetYE BudgetYE ActualYE ActualAmountOperating RevenuesProperty Tax17,182,600$ 17,182,600$ <br />17,199,418$ 15,805,041$ 16,818$ 0.1 %Sales Tax13,662,00013,662,00014,573,16413,891,465911,1646.7 %Sales Tax -Annexation Credit1,856,0001,856,0001,988,5231,836,391132,5237.1 %Criminal <br />Justice Sales Tax1,589,0001,589,0001,815,8331,658,228226,83314.3 %Brokered Natural Gas Tax282,000282,000248,670275,327(33,330)(11.8)%City Utilities Tax3,452,3003,452,3003,642,2183,479,570189,9185.5 <br />%Admissions Tax330,300330,300355,170318,44124,8707.5 %Electric Tax3,435,6003,435,6003,232,5033,424,427(203,097)(5.9)%Natural Gas Tax1,152,0001,152,0001,002,3341,136,969(149,666)(13.0)%Cable <br />TV Franchise Fee888,900888,900925,835880,90936,9354.2 %Cable TV Franchise Fee -Capital63,00063,00069,68062,9936,68010.6 %Telephone Tax1,811,0001,811,0001,661,5051,805,572(149,495)(8.3)%Garbage <br />Tax (external)106,000106,000114,870110,5668,8708.4 %Leasehold Excise Tax33,00033,00066,54437,23333,544101.6 %Gambling Excise Tax232,400232,400212,939280,736(19,461)(8.4)%Taxes sub-total46,076,100$ <br />46,076,100$ 47,109,207$ 45,003,866$ 1,033,107$ 2.2 %Business License Fees219,000$ 219,000$ 281,654$ 171,422$ 62,654$ 28.6 %Building Permits1,100,0001,100,0001,209,8361,505,799109,83610.0 <br />%Other Licenses & Permits532,300532,300582,986723,44150,6869.5 %Intergovernmental (Grants, etc.)5,456,9515,456,9515,317,2595,063,108(139,692)(2.6)%Charges for Services:General Government <br />Services96,50096,50079,413113,491(17,087)(17.7)%Public Safety515,100515,100479,061479,866(36,039)(7.0)%Development Services Fees680,000680,0001,400,2921,101,680720,292105.9 %Culture <br />and Recreation2,058,0802,058,0802,317,3512,219,387259,27112.6 %Fines and Forfeits788,040788,040938,7751,239,233150,73519.1 %Fees/Charges/Fines sub-total11,445,971$ 11,445,971$ 12,606,628$ <br />12,617,427$ 1,160,657$ 10.1 %Interest and Other Earnings36,850$ 36,850$ 57,464$ 41,767$ 20,614$ 55.9 %Rents, Leases and Concessions573,200573,200729,969710,705156,76927.3 %Contributions <br />and Donations32,00032,00039,71246,8517,71224.1 %Other Miscellaneous107,400107,400218,832168,357111,432103.8 %Transfers In560,823560,82397,443121,652(463,380)(82.6)%Insurance Recoveries <br />-Capital & Operating50,60050,600153,041102,377102,441202.5 %Other Revenues sub-total1,360,873$ 1,360,873$ 1,296,461$ 1,191,708$ (64,412)$ (4.7)%Total Operating Revenues58,882,944$ 58,882,944$ <br />61,012,296$ 58,813,002$ 2,129,352$ 3.6 %Operating ExpendituresCouncil & Mayor915,017$ 915,017$ 912,825$ 744,569$ 2,192$ 0.2 %Administration 1,299,1361,299,1361,171,634719,335127,5029.8 <br />%Community & Human Services1,406,5231,406,5231,222,557942,026183,96613.1 %Municipal Court & Probation2,272,1102,272,1102,239,9831,265,24332,1271.4 %Human Resources1,137,7851,137,7851,050,8031,305,02986,9837.6 <br />%Finance1,277,2251,277,2251,221,2531,148,10455,9714.4 %City Attorney2,202,1592,202,1591,901,1411,742,176301,01813.7 %Community Development4,606,6754,606,6753,882,7093,783,049723,96615.7 <br />%Jail -SCORE3,670,0003,670,0003,658,8635,504,76711,1370.3 %Police22,887,78222,887,78222,085,78020,296,100802,0023.5 %Public Works2,724,4092,724,4092,620,4782,647,511103,9313.8 %Parks, <br />Arts & Recreation11,135,56411,135,56410,816,5769,600,201318,9882.9 %Streets3,365,6763,365,6763,016,2753,227,025349,40110.4 %Non-Departmental6,161,5656,161,5655,302,2502,319,980859,31513.9 <br />%Total Operating Expenditures65,061,626$ 65,061,626$ 61,103,128$ 55,245,114$ 3,958,498$ 6.1 %20152015 YE Budget vs. ActualFavorable (Unfavorable)Percentage 2 <br />Quarterly Financial Report Through Q4-2015 Overview This financial overview reflects the City’s overall financial position for the fiscal period ending December 31, 2015 (period 12) <br />and represents financial data available as of February 4, 2016. In 2015, General Fund revenues totaled $61.0 million compared to a budget of $58.9 million, and were $2.2 million higher <br />than the revenues collected during in 2014. Some notable variances to budget this year include: • General Fund sales tax revenues totaled $14.6 million, exceeding budget by 6.7% or $911,000, <br />and exceeding 2014 collections by $682,000. The areas of significant increase in sales activity compared to 2014 were primarily seen in the construction and automotive sales categories. <br />• The other taxes category ended the year $254,000, or 2.2%, lower than anticipated. Collections in electric and natural gas tax revenues in 2015 were under budget by $204,000 and $150,000, <br />respectively, due primarily to a mild winter which reduced customer demand for heating. Telephone tax revenues were also $150,000 below budget. The underperformance in these revenues <br />