Memo- 2nd Quarter 2006 Financial Rpt
..: 1 . .~
MEMORANDUM
I ..FINANCEllEPARTMENT. I
Date: July 13, 2006
To: Mayor & City Council ,\k
From: Christine Harkess, Finance Director rJ'
Subject: Second Quarter 2006 Financial Report
Attached is the second 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.
. ..,
2006
2nd QUART R
FINANCIAL R PORT
CITY OF HOPKINS
1
r-
. At the end of 2nd quarter the year is 500/0
expi red.
. Revenues are at 480/0 of total budget
. Expenditures are at 44% of budget
As a comparison - in 2005 Revenues were at 49% and Expenditures were are
45% of budget
Revenues
Expenditures
2006
$4,268,207
$3,954,390
2005
$4,343,323
$4,003,196
2
. --l
. Taxes support 820/0 of general fund activities.
. Intergovernmental revenues support 40/0
. Licenses, Permits & Fines support 70A>
. Charges for Services support 2%
. Miscellaneous revenues including Franchise
fees support 30/0
. I nterest income supports 10/0
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 1.7% less than last year at this
time.
General fund revenues to date total $4,268,207.
3
.
omparison
Gl 2006
EJ 2005
El 2004
m 2003
Charges
Interest
Other
This graph shows second quarter revenues by source for the years 2003-2006.
Taxes are down in 2006 due to a slight decrease in the General Fund levy.
.
.
4
% age of
Budaet Actual Budaet
Taxes $7,210,998 $3,612,517 50.1%
Intergovernmental $ 413,910 $ 68,212 16.5%
Licenses, Permits &
Fines $ 634,400 $ 330,378 52.1%
Charges for Services $ 213,750 $ 86,659 40.5%
Miscellaneous $ 305,150 $ 88,776 29.1%
Interest Income $ 110.000 $ 81.664 74.2%
Total Revenues $8,888,208 $4,268,206 48.0%
Miscellaneous includes franchise fees budgeted at $290,000.
5
.
enditures
. Salaries and benefits make up 720/0 of
GF expenditures
. Materials, supplies and services make up
180/0
. Transfers and Contingency make up 60/0
. Capital make up 40/0
6
.
$3,500
$3,000
$2,500
$2,000
$1,500
$1,000
$500
$0
Salaries
MatuSpls Capital
(@ 2006
@] 2005
lWJ 2004
~ 2003
.
Salaries are virtually the same as 2nd quarter 2005. 2006 salaries do not reflect
any potential salary increases for two bargaining units that have not settled
their 2006 contracts.
Factors impacting 2006 materials & supplies category are increased fuel costs
for vehicles, heating costs, electrical costs, sand and gravel for snow removal,
and an increase in insurance premiums for liability and property insurance.
.
7
.
Community Services includes the departments of Assessing, Inspections, City
Clerk, and Elections. For illustration purposes the Zoning & Planning
Department is shown as part of community services.
.
Other is the unallocated department that includes transfers and the contingency
.
8
General Government
Community Services
Public Safety
Public Works
Recreation
Other
Total Expenditures
Budaet
$ 941,468
$ 921,218
$4,456,201
$1,876,854
$ 509,276
$ 183.273
$8,888,290
Actual
$ 405,140
$ 392,134
$2,025,242
$ 785,755
$ 295,248
$ 50.602
% age of
Budaet
43.0%
42.6%
42.6%
41.9%
58.0%
27.6%
$3,954,120
44.5%
Year is 50% expired. All departments appear to be monitoring their budgets. Some budgets
have more cyclical expenditures such as recreation and some PW departments.
Items of Note -
Recreation - Joint Recreation contribution for 2006 has been paid in full to Minnetonka.
The amount paid for 2006 reflects a credit from 2005 of $12,398 which resulted from
increased revenues due to higher participation in the 2005 programs.
Most departments are at or under budget for second quarter.
9
.
$1,000
$5,000
$4,000
$3,000
$2,000
$0
2006
2005
2004
2003
Compares general fund expenditures from the last four years.
2006 $3,954,120
2005 $4,003,197
2004 $3,608,016
2003 $3,683,061
.
.
10
Budaet
Chemical Assessment $ 45,000
Economic Development $ 257,008
Paratransit $ 129,017
Housing Rehab $ 89,176
Parking $ 130,450
Section 8 $ 118,966
Cable TV $ 147,607
Depot Coffee House $ 183,782
Art Center $ 422,950
xpenditures
Actual
$ 31,897
$ 116,407
$ 46,140
$ 36,834
$ 45,182
$ 55,000
$ 23,126
$ 56,465
$ 199,162
% age of
Budaet
71%
45%
36%
41%
35%
46%
16%
31%
47%
Chemical Assessment - This program is funded entirely by state grants.
Economic Development - Operating transfer of$61,000 to the HCA has not yet been made.
Housing Rehab - Grant dependant program.
Parking - Parking enforcement is at 43% of budget, parking operations are at 51 % of budget and parking
ramp is at 35% of budget.
Cable TV - Budgeted transfers have not yet been made.
Art Center - Expenditures are on target with the budget.
11
nds
Incr/(Decr)
Revenues Expenses Fund Balance
Water $ 439,337 $ 552,165 $ (112,828)
Sewer $ 710,009 $ 806,686 $ ( 96,677)
Refuse $ 376,433 $ 309,094 $ 67,339
Storm Sewer $ 396,065 $ 219,749 $ 176,316
Pavilion $ 298,560 $ 183,120 $ 115,440
Water and Sewer Funds continue to struggle with having operating revenues meeting
operating expenses. Included in each of these funds is depreciation expense of $132,498 in the
Water Fund and $73,206 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 the 2007
budget process. 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.
12
'; ,
, I . "
HE CITY OF
HOPKINS
REMAINS IN GOOD
FINANCIAL HEALTH
13