Memo- 4th Quarter 2006 Financial ReportMEMORANDUM FINANCE DEPARTMENT
Date: January 11, 2007
To: Mayor & City Council
From: Christine Harkess, Finance Director
Subject: Fourth Quarter 2006 Financial Report
Attached is the fourth quarter financial report power point presentation along with specific notes.
If you have any questions in advance please contact me. A full presentation will be given at the
council meeting.
erview
• Revenues are at 95% of budget
• Expenditures are at 92% of budget
• Fund Balance increased by $257,897 -before
year end adjustments
The information presented this evening is preliminary as we have yet to make
all the year end adjustments. The finance staff is in the process of closing out
2006 in preparation for the 2006 audit.
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venues
• Taxes support 82% of general fund activities.
• Intergovernmental revenues support 4%
• Licenses, Permits & Fines support 7%
• Charges for Services and Franchise fees
each support 2%
• Miscellaneous revenues including franchise
fees support 3%
• Interest income supports less than 1
• Property taxes now support 82% of the general fund programs.
Intergovernmental revenues support 4% of the general fund programs. These
two revenue sources make up 86% of the general fund sources. This total has
not changed, however the split between taxes and IGR has. Several years ago
IGR made up as much as 14% of total revenues.
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omparison
(in thousands)
2006
2005
D 2004
® 2003
This graph shows fourth quarter revenues by source for the years 2003-2006.
The large increase in tax revenue for 2005 is due to the levy swap which
increased the general fund levy.
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This graph shows a visual of the brealcdown between revenue sources.
--G~N-~R~rL--f -U-N-B--F~ VENUES
%age of
Budget Actual Budget
Taxes $6,946,133 $6,587,542 94.8%
Intergovernmental $ 678,855 $ 707,559 104.2%
Licenses, Permits &
Fines $ 634,400 $ 576,598 90.9%
Charges for Services $ 213,750 $ 198,760 93.0%
Miscellaneous $ 305,150 $ 231,564 75.9%
Interest Income $ 110,000 $ 130,384 118.5%
Total Revenues $8,888,288 $8,432,407 94.9%
Miscellaneous includes franchise fees budgeted at $290,000. Fourth quarter
franchise fees have not been received and should total approximately $71,000..
There is about a 30-45 day delay once the quarter ends before we receive
franchise fee payments from the gas and electric companies.
Police & Fire Aid have been received at amounts over budget. Police by 12%
and Fire by 6%.
Building permits are at 64% of budget; plumbing permits at 60%; mechanical
permits are at 143%; health permits are at 123%
Charges for Services -plan check fees are at 66%;
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nditures
• Salaries and benefits make up 72% of
G F expenditures
• Materials, supplies and services make up
18%
• Transfers and contingency make up 6%
• Capital outlay make up 4%
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Due to the cost of benefits, personnel costs are on the rise and are approximately $104,300
more than 2005.
Factors impacting 2006 materials & supplies category are increased fuel costs for vehicles,
heating costs, electrical costs, maintenance & repairs of vehicles, and an increase in insurance
premiums for liability and property insurance.
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n d itu res
,,
----" rPublic Safety
Community Services includes the departments of Assessing, Inspections, City
Clerk, Elections, Zoning & Planning
Other is the unallocated department that includes transfers and the contingency
6-e-n-era-I- F-u-n-d-E~ ~ n d itu res
%age of
Budget Actual Budget
General Government $1,267,867 $1,079,205 85.1
Public Safety $5,037,366 $4,727,738 93.8%
Public Works $1,895,201 $1,775,791 93.7%
Recreation $ 512,341 $ 459,573 89.7%
Zoning & Planning $ 97,325 $ 97,963 100.6%
Other 78188 $ 34,237 43.8%
Total Expenditures $8,888,288 $8,174,510 92.0%
Items of note -
Salaries and benefits for the last week of 2006 were paid in 2007 and need to
be allocated back to 2006 as part of our year end close-out.
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~nor~l~ ~-n-~-~~-pin-~+t~-r-e Comparison
(in thousands)
$9,000 ~ -,~,
58,000 ~'
3
~~ __
$7,000
56,000
$5,000
$4,000
$3,000
$2,000
$1,000
$0
2006 Y005 2004 2003
Compares general fund expenditures from the last four years.
2006 $8,174,511
2005 $8,517,722
2004 $8,145,648
2003 $7,832,809
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pe n d itu res
%age of
Budget Actual Budget
Chemical Assessment $ 45,000 $ 56,771 126%
Economic Development $ 257,008 $ 184,089 72%
Paratransit $ 129,017 $ 100,794 78%
Housing Rehab $ 89,176 $ 80,386 85%
Parking $ 130,450 $ 78,375 60%
Section 8 $ 118,966 $ 106,945 90%
Cable TV $ 147,607 $ 139,927 95%
Depot Coffee House $ 183,782 $ 105,923 58%
Art Center $ 422,950 $ 400,661 95%
Chemical Assessment -This program is funded entirely by state grants.
Housing Rehab -Grant dependant program.
Parking -Parking enforcement is at 71 % of budget, parking operations are at 72% of budget and parking
ramp is at 43% of budget.
Depot Coffee House -due to a change in operations concessions are under budget by 80% and
contractual services are under budget by 37%. Revenues currently exceed expenditures by $48,260 due
to grants received in December that will be expended in 2007.
Art Center -Expenditures are on target with the budget.
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n#e~ - nds
Incr/(Decry
Revenues Expenses Fund Balance
Water $1,080 143 $1,151,615 $ (71,472)
Sewer $1,468,454 $1,636,546 $ (168,092)
Refuse $ 772,806 $ 675,574 $ 97,232
Storm Sewer $ 829,812 $ 417,508 $ 412,304
Pavilion $ 642,446 $ 368,933 $ 273,513
Water and Sewer Funds continue to struggle with having operating revenues meeting operating expenses.
Included in each of these funds is depreciation expense of 242,913 in the Water Fund and $134,211 in
the Sewer Fund. These are non-cash expenditures that affect profits but not the cash. We will be looking
at the rates for both these funds during 2007 when we undertake a rate analysis following the updating
our our utility masterplan.
We had a rate increase in the Water Fund of $0.20 in 2005 and in the Sewer Fund of $0.25 for 2006.
Storm Sewer Fund - We had a rate increase of $0.50 in the flat rate charge for 2006.
Pavilion -Revenues reflect a $178,000 lease payment from the school for the mezzanine project.
$170,000 of this amount will be transferred to the ERP fund to repay the loan from the ERP fund.
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OVERALL REPORT
THE CITY OF
HOPKINS IS IN
GOOD FINANCIAL
HEALTH
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