Memo - 2rd Quarter Financial Rpt
MEMORANDUM
I FINANCE DEPARTMENT I
Date: October 12, 2005
To: Mayor & City Council
From: Christine Harkess, Finance Director
Subject: Third Quarter 2005 Financial Report
Attached is the third 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.
2005 '\
3rd QUART~R
FINANCIAL R~PORT
/
CITY OF HOPKINS
1
. At the end of 3rd quarter the year is 750/0
expired.
. Revenues are at 77% of total budget
. Expenditures are at 670/0 of budget
Both revenues and expenditures are in line with the budget.
Expenditures are slightly under due to seasonal expenditures. In addition
some budgeted transfers are only made 2x a year and the second half will be
made 4th quarter.
2
. Taxes support 820/0 of general fund activities.
. Intergovernmental revenues support 40/0
. Licenses, Permits & Fines support 70/0
. Charges for Services support 20/0
. Miscellaneous revenues including Franchise
fees support 30/0
. I nterest income supports 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.
General fund revenues are up approximately 15% over last year at this time.
This is primarily due to increased tax levy collections and grants received
General fund revenues to date total $6,846,484.
3
omparison
[3 2005
[3 2004
[3 2003
[3 2002
Interest Other
This graph shows third quarter revenues by source for the years 2002-2005.
You will notice a decreased dependence on intergovernmental revenues (LGA)
in the years 2002 & 2003 and increased dependence on tax revenues. As
stated previously tax revenues now consist of 82% of the general fund
revenues.
The large increase in tax revenue for 2005 is due to the levy swap which
increased the general fund levy.
Intergovernmental revenues are up from 2004 due to increased payments for
Police & Fire Aid and the Federal Grant received for the Hazard House
Display (Fire Dept)
4
enues
Cha rges for
Services
Taxes
Licenses, Permits
&. Fines
Intergovt'l
Revenue
This graph shows a visual of the breakdown between revenue sources.
5
% age of
Budaet Actual Budaet
Taxes $7,273,078 $5,486,310 75.4%
Intergovernmental $ 383,010 $ 434,270 113.0%
Licenses, Permits &
Fines $ 627,975 $ 500,908 79.7%
Charges for Services $ 228,551 $ 157,541 68.9%
Miscellaneous $ 299,150 $ 180,121 60.2%
Interest Income $ 110,000 $ 87 ,334 79.4%
Total Revenues $8,921,764 $6,846,484 76.7%
Miscellaneous includes franchise fees budgeted at $290,000. First and second
quarter franchise fees have now been received. 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 17%
and Fire by 25%. Received a federal grant for $19,791 for the Hazard House
Display that was not budgeted.
6
. Salaries and benefits makes up 720/0 of
GF expenditures
. Materials, supplies and services makes
up 18%
. Transfers and Contingency makes up 6%
. Capital makes up 4%
7
$5,000
$4,500
$4,000
$3,500
$3,000
$2,500
$2,000
$1,500
$1,000
$500
$0
1212005
EJ 2004
EJ 2003
il!J]2002
Salaries
MatVSpls
Capital
Due to the cost of benefits, personnel costs are on the rise although the total for 2005 is only
$124,638 more than 2004 (2.8%) and is $164,140 LESS than 2003 (-3.5%).
Materials and supplies are approximately $293,000 higher than at this point last year.
Significant increases from the 2005 budget are as follows:
Motor Fuels - no surprise that this line item will most likely exceed the budget. Total motor
fuel costs for the General Fund are at 84% of the 2005 budget.
Other supplies - up $18,000 from 2004 primarily due to salt supplies. Total is at 86% of 2005
budget.
Maintenance - Other Improvements are up $20,000 from 2004 due to work done in the PW
department, however is at 56% of the 2005 budget so these expenditures were planned.
Expert & Professional Services are up $10,000 from 2004 due to planned projects. Total is at
73% of the 2005 budget.
Contractual services are up $101,000 due to the cleaning contract for the police facility
($11,000); $44,112 for 1 st half assessing contract which was a 'li yr contract for 2004;
contribution to Sjourner project being expenses ($9,000); repair of street lighting due to
damage ($20,000); maintenance costs in the park and tree service dept ($11,000); several other
departments are up slightly with contribute to the total increase in this line item. Total is at
77% of the 2005 budget.
Telephone -local is up $16,000 from 2004 due increased lines in the new facilities ($12,000)
and overall inflation. However is at 32% of the 2005 budget.
Heating fuel is up $19,000 from 2004 due to new facilities pricing however is at 73% of the
2005 budget.
Electricity is up $10,000 from 2004 due to new facilities and pricing and is at 70% of the 2005
budget.
General liability and fleet insurance is up a total of$9,000 from 2004 due to rising costs in the
insurance industry and is at 118% of the 2005 budget.
8
Community Services includes the departments of Assessing, Inspections, City
Clerk, Elections, Zoning & Planning
Other is the unallocated department that includes transfers and the contingency
9
% age of
Budaet Actual Budaet
General Government $ 906,535 $ 555,854 61.3%
Community Services $ 885,178 $ 598,575 67.6%
Public Safety $4,205,945 $3,051,084 72.5%
Public Works $1,875,702 $1,272,150 67.8%
Recreation $ 481,404 $ 365,113 75.8%
Other $ 567.000 $ 204.862 36.1%
Total Expenditures $8,921,764 $6,047,638 67.8%
Year is 75% expired. All departments have been monitoring their budgets
well this year. Some budgets have more cyclical expenditures such as
recreation and some PW departments.
Items of Note -
Other - This includes the $400,000 levy swap for the the Facilities Projects,
the contingency and the transfer to the Paratransit Fund. The transfer to the
Facility Project has been made at 50%.
10
$1.010
$6.000
$5.000
$4.000
$3.000
$2.000
$1,000
$0
2005
2004
2003
2002
Compares general fund expenditures from the last four years.
2005 $6,047,637
2004 $5,509,209
2003 $5,573,131
2002 $6,063,557
11
Budaet
Chemical Assessment $ 45,000
Economic Development $ 247,170
Paratransit $ 133,601
Housing Rehab $ 89,101
Parking $ 141,991
Section 8 $ 123,008
Cable TV $ 183,009
Depot Coffee House $ 198,767
Art Center $ 408,238
Actual
$ 80,281
$ 167,448
$ 81,154
$ 56,666
$ 76,442
$ 78,707
$ 42,283
$ 140,466
$ 284,271
% age of
Budaet
178%
68%
61%
64%
44%
64%
23%
71%
70%
Chemical Assessment - This program is funded entirely by state grants. An additional grant in
the amount of$50,000 was awarded. Funds are paid out on a reimbursement basis.
Economic Development - Operating transfer of$61,000 to the HCA has been made at 100%.
Para Transit - Contractual services are expended at 60% of budget. General Fund transfer is
made at year end to balance the budget.
Housing Rehab - Grant dependant program.
Parking - Parking enforcement is at 66% of budget, parking operations are at 73% of budget
and parking ramp is at 21 % of budget. Maintenance expenses for the ramp have not yet been
incurred.
Cable TV - Budgeted transfers have not yet been made. Newsletter costs are at 51 %, Web &
messaging is at 35% of budget.
Depot Coffee House - The management of this operation has been transferred to the school.
The Coffee House is at 68% of budget and the Teen Center is at 76% of budget. The fund is
on target to show a profit this year.
Art Center - Expenditures are on target with the budget.
12
nds
Revenues Expenses
Water $ 679,068 $ 845,205 $ (166,137)
Sewer $ 876,419 $1,140,931 $ (264,512)
Refuse $ 544,018 $ 509,208 $ 34,810
Storm Sewer $ 524,195 $ 375,804 $ 148,391
Pavilion $ 171,890 $ 262,148 $ (90,258)
Water- Revenues are approximately $120,130 more than 2004 due to the rate increase and new
commercial water meters being installed. Expenses are $39,500 over 2004. Expe.nses include $240,845
of depreciation expense, a non cash expenditure. While expenditures are remaining stable the revenues
are still not at a level to fully fund operations. Even though revenues are higher than last year the fund is
anticipated to show a net loss again this year. In comparing actual to the 2005 budget, revenues are at
60% of budget and expenditures are at 76% of budget.
Sewer - Revenues are approximately at 2004 levels. Expenditures are $22,793 over 2004. Expenses
include $109,800 of depreciation. The largest line item is for Metropolitan Waste Control Commission
fees at $689,941. Again, revenues are not keeping pace with expenditures, especially with the increasing
MWWC charges. This fund is also anticipated to show a net loss this year. In comparing actual to the
2005 budget, revenues are at 60% of budget and expenditures are at 67% of budget.
Refuse Fund - Revenues are $65,303 over 2004 primarily due to the rate increase. Expenditures are
$25,269 over 2004 levels. This fund is anticipated to show a net income this year. In comparing actual
to the 2005 budget, revenues are at 75% of budget and expenditures are at 67% of budget.
Storm Sewer Fund - Revenues are $28,288 less than 2004, In 2004 an unbudgeted receipt of funds from
Westbrook Patio was received on a loan repayment. Expenses are $48,277 less than 2004 levels
primarily due to lower bond interest costs. In comparing actual to the 2005 budget, revenues are at 70%
of budget and expenditures are at 74% of budget.
Pavilion - Revenues are $22,335 less than 2004 levels due to the timing of receipts of income from the
ice rentals and the soccer program. Ice rentals are slightly behind 2004 due to the timing of payments by
our leaseholders. Expenses are slightly higher than 2004 as the Pavilion continues to hold the line on
expenses. In comparing actual to the 2005 budget, revenues are at 45% of budget as many of the leases
are made in two payments and expenditures are at 68% of budget.
13
OVERALL REPO T
HE CITY OF
HOPKINS
REMAINS IN GOOD
FINANCIAL HEALTH
14