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VII.2. Fourth Quarter Financial Report; Bishop CITY OF HOPKINS Memorandum To: Honorable Mayor and Council Members Mike Mornson, City Manager From: Nick Bishop, Finance Director Date: February 19, 2019 Subject: Fourth Quarter Financial Report _____________________________________________________________________ We are still in the process of closing year end. The attached presentation is based on unaudited numbers. If you have any questions in advance please contact me. A full presentation will be given at the council meeting. Finance 2018 4th Quarter Financial Report Prepared by Finance Department General Fund Overview At the end of the 4th quarter Revenues are at 99.86% Expenditures are at 100.70% General Fund Revenues % of Budget Actual Budget Taxes 10,832,857$ 10,543,110$ 97.33% Intergovernmental 1,173,933 1,165,640 99.29% Licenses, Permits & Fines 779,065 871,112 111.82% Charges for Services 225,650 443,350 196.48% Miscellaneous 423,850 392,685 92.65% Total Revenues 13,435,355$ 13,415,897$ 99.86% General Fund Expenditures % of Budget Actual Budget General Government 2,087,278$ 2,228,824$ 106.78% Community Services 746,631 735,636 98.53% Public Safety 6,535,880 6,677,367 102.16% Public Works 3,060,337 2,875,555 93.96% Recreation 692,750 690,779 99.72% Urban Development 312,481 321,024 102.73% Total Expenditures 13,435,356$ 13,529,185$ 100.70% General Fund Overview Reduction in Fund Balance of $113,288 2018 Ending Fund Balance of $5,738,999 Fund Balance is $56,742 over fund balance policy requirement Special Revenue Funds Revenues % of Budget Actual Budget Chemical Assessment 60,000$ 64,514$ 107.52% Economic Development 402,037 547,185 136.10% Parking 150,500 136,707 90.84% Communications 269,200 259,517 96.40% Depot Coffee House 352,000 335,256 95.24% Art Center 975,626 974,513 99.89% Special Revenue Funds Expenditures % of Budget Actual Budget Chemical Assessment 60,000$ 59,174$ 98.62% Economic Development 245,700 527,603 214.73% Parking 113,529 134,737 118.68% Communications 285,566 277,234 97.08% Depot Coffee House 367,753 364,838 99.21% Art Center 992,908 989,152 99.62% Special Revenue Funds Financial Position Communications, Depot Coffee House and Arts Center Fund have budgeted decreases in fund balance for 2018 Change Ending In Fund Fund Revenues Expenses Balance Balance Chemical Assessment 64,514$ 59,174$ 5,340$ (17,658)$ Economic Development 547,185 527,603 19,582 4,478,256 Parking 136,707 134,737 1,970 139,189 Communications 259,517 277,234 (17,717) 544,221 Depot Coffee House 335,256 364,838 (29,582) (60,870) Art Center 974,513 989,152 (14,639) (1,195,051) Depot Coffee House Coffee Operations Budget Deficit of $6,238 Actual Deficit of $15,427 Youth Project Budget Deficit of $9,515 Actual Deficit of $14,425 Depot Coffee House in 2019 Coffee Operations Eliminated position, goal is to be profitable Youth Project Added Funding Support of $15,000 Hopkins -$5,000 Minnetonka -$5,000 Three Rivers Park District -$5,000 Arts Center Projected fund balance reduction of $17,282 Actual reduction of $14,639 Year ends with a deficit fund balance of $1.195M Most recent FMP projects to see a Positive Fund Balance in 2023 Enterprise Funds Revenues % of Budget Actual Budget Water 2,147,085$ 1,945,566$ 90.61% Sewer 3,088,299 2,775,005 89.86% Refuse 1,010,500 1,016,613 100.60% Storm Sewer 810,200 814,299 100.51% Pavilion 445,000 427,711 96.11% Enterprise Funds Expenses % of Budget Actual Budget Water 1,980,810$ 1,944,724$ 98.18% Sewer 2,746,202 2,762,090 100.58% Refuse 987,379 914,202 92.59% Storm Sewer 526,942 458,372 86.99% Pavilion 476,548 542,861 113.92% Enterprise Funds Financial Position All funds include depreciation expense Net Income Revenues Expenses (Loss)Net Position Water 1,945,566$ 1,944,724$ 843$ 4,048,363$ Sewer 2,775,005 2,762,090 12,915 3,869,645 Refuse 1,016,613 914,202 102,410 1,378,510 Storm Sewer 814,299 458,372 355,927 8,331,002 Pavilion 427,711 542,861 (115,149) 1,723,240 Next Steps Issue 2019 Bonds for par value of $12,185,000 City Hall –$4,655,000 Blake Road –$1,830,000 Cambridge/Oxford Street Recon. –$5,175,000 SWLRT –$525,000 Next Steps Review Utility Rates and Expenses Audit fieldwork is scheduled for April Financial Statements issued before 6/30/2019