Memo - Fourth Quarter 2007 Financial Report, HarkessMEMORANDUM FINANCE DEPARTMENT
Date: February 15, 2007
To: Mayor & City Council
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From: Christine Harkess, Finance Director
Subject: Fourth Quarter 2007 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.
General Fund -Overview
• Revenues are at 102.3% of budget
• Expenditures are at 101.2% of budget
• Fund Balance increased by $95,817 -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
2007 in preparation for the 2007 audit.
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General-Fund Revenues
• 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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General Fund Revenue Comparison
- (in thousands)
^ 200
^ 2006
O 2005
~ 2004
This graph shows third quarter revenues by source for the years 2004-2007.
Taxes: 2005 -levy swap
L & P - 2007 -bldg permit -Opus development
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Taxes Intergvn't Lic/Per/Fines Charges Interest Other
General Fund Revenues
This graph shows a visual of the breakdown between revenue sources.
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GENERAL FUND REVENUES
%age of
Budget Actual Budget
Taxes $7,557,758 $7,460,638 98.7%
Intergovernmental $ 438,010 $ 439,566 103.5%
Licenses, Permits &
Fines $ 644,500 $ 848,201 131.6%
Charges for Services $ 214,300 $ 292,539 136.5%
Miscellaneous $ 305,250 $ 310,426 101.7%
Interest Income $ 109,949 $ 138,393 125.7%
Total Revenues $9,269,767 $9,487,763 102.4%
Miscellaneous includes franchise fees budgeted at $290,000.
Licenses -Opus project bldg permit
Charges -Opus project plan review fees
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General fund Expenditures
• Salaries and benefits makes up 76% of
GF expenditures
• Materials, supplies and services makes
up 22%
• Transfers and Contingency makes up
1.5%
• Capital makes up .5%
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Changes in staffing from 2006 include a new dispatcher and an enhanced
medical response program.
Factors impacting 2006 materials & supplies category are increased fuel costs
for vehicles, heating costs, electrical costs, sand & gravel for snow removal,
and an increase in insurance premiums for liability and property insurance.
General-F~nd Expenditures
Community Services includes the departments of Ass:,ssing, Inspections, City
Clerk, Elections, Zoning & Planning
Other is the unallocated department that includes transfers and the contingency
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~:.
General
~~
fund Ex
penditures
%age of
Budget Actual Budget
General Government $1,102,568 $1,151,952 104.5%
Public Safety $4,616,245 $4,771,674 103.4%
Community Services $ 905,156 $ 882,078 97.5%
Public Works $1,953,606 $2,084,492 106.7%
Recreation $ 526,192 $ 495,398 94.1
Other $ 166,000 9 988 6.0%
Total Expenditures $9,269,767 $9,395,582 101.4%
General Government - PT temp staffing, retiree benefits, receptionist staffing
Public Safety -Staffing changes, retiree benefits, new dispatchers (dbl staffing
during training), motor fuel costs, vehicle repairs
Public Works -electricity, vehicle repairs, sidewalk repairs $9,000 over
budget, snow & ice removal costs exceeded budget
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Compares general fund expenditures from the last four years.
2007 $9,395,581
2006 $8,174,511
2005 $8,517,722
2004 $8,145,648
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Special Revenue Fund Expenditures
%a g e of
Bud et Actual Bud et
Chemical Assessment $ 45,000 $ 83,108
185%
Economic Development $ 686,693 $
686,893 103%
Paratransit $ 116,923 $ 116,118 99%
Housing Rehab $ 86,503 $ 78,261
90%
Chemical Assessment -This program is funded entirely by state grants. Over
$80,000 in grants was received in 2007.
Economic Development -Salary allocation was modified mid-year and budget
was not adjusted.
Paratransit - Nothing of note
Housing Rehab -Grant dependant program.
Parking -Nothing of note.
Section 8 -Salary expenses were over budget due to severance payout.
Cable TV - Nothing of note.
Depot Coffee House -Grants received in past years were used for current year
expenditures.
Art Center -Electricity, property & liability insurance all over budget.
Advertising for PT programming employee and awrite-off of a receivable
from 2005 owed by HCA, Inc for space rent was written off as organization
ceased to exist.
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~~~~«-~t~
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~
~ Enterprise Funds
:
Incr/(Decry
Revenues Expenses Fund Balance
Water $1,111,291 $1,552,511 $ (441,220)
Sewer $1,444,953 $1,935,358 $ (490,405)
Refuse $ 730,291 $ 748,021 $ (17,730)
Storm Sewer $ 767,582 $ 792,557 $ 24,975
Pavilion
r,-; :.
:,; ., $ 464,155 $ 384,670 $ 79,485
Completed the utility master plan to modify revenues to ensure water and
sewer revenues are adequate to meet operational, debt and capital needs.
Water -Capital costs for Excelsior Blvd Phase II dating back to 2002 were
paid to Hennepin County - $280,000; Chemicals, Electricity and Insurance are
all over budget. Repairs to pump #6 also was a factor impacting the 2007
budget.
Sewer -Met council fees totaled $1,024,375 for 2007. Revenues have not
kept up with increasing expenses. New rate structure has been put into place
to address this issue.
Refuse - An analysis of rates and expenditures for the various refuse program
will be undertaken in 2008.
Storm Sewer -Capital costs for Excelsior Blvd Phase II dating back to 2002
were paid to Hennepin County - $272,111
Pavilion -Final accelerated ice rental received from school.
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Cash & Investments
• Bank Sweep Account $ 8,764,228
• Commercial Paper 1,000,000
• Government Securities 9,000,000
Total $18,764,228
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2007 $614,705
2006 $662,302
2005 $556,567
2004 $541,865
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OVERALL REPORT
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