Memo - Second Quarter 2010 Financial and Investment Report• MEMORANDUM I FINANCE DEPARTMENT
Date: July 20, 2010
To: Mayor & City Council
From: Christine Harkess, Finance Director
Subject: Second Quarter 2010 Financial and Investment Report
Attached is the second quarter financial and investment report power point presentation. If you
have any questions in advance please contact me. A full presentation will be given at the council
meeting.
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2010
2nd QUARTER
FINANCIAL & INVESTMENT
REPORT
CITY OF HOPKINS
General Fund Revenues
o Taxes support 84% of general fund
activities.
o Intergovernmental revenues support
4%
o Licenses, Permits & Fines support 6%
o Charges for Services support 2%
o Miscellaneous revenues including
Franchise fees support 3%
o Interest income supports less than
1%
GENERAL FUND REVENUES
General Fund — Overview
At the end of 2nd Quarter -
o Revenues are at 45% of total budget
o Expenditures are at 45% of budget
General Fund Revenue Comparison
2nd Quarter (mthousands)
0.500
0.000 .2010
■ 2009
1,500 .2008
3,— ■2007
2,500
2.000
I'm
1,000
500
0
Tnn InteRvnh IANPe�illnee CTe�gee IMe,eae (MM
General Fund Expenditures
o Salaries and benefits make up 79% of GF
expenditures
o Materials, supplies and services make up
21%
o Transfers and Contingency make up 0%
o Capital is 0%
1
% age of
Budget
Actual
Budget
Taxes
$
8,470,018
$ 4,041,214
47.71%
Intergovernmental
$
440,725
$ 83,674
18.99%
Licenses, Permits &
Fines
$
597,910
$ 260,619
43.59%
Charges for Services
$
183,650
$ 102,005
55.54%
Miscellaneous
$
305,900
$ 90,758
29.67%
Interest Income
$
75,000
$ 8,573
11.43%
Total Revenues
$ 10,073,203
$ 4,586,843
45.54°x6
General Fund — Overview
At the end of 2nd Quarter -
o Revenues are at 45% of total budget
o Expenditures are at 45% of budget
General Fund Revenue Comparison
2nd Quarter (mthousands)
0.500
0.000 .2010
■ 2009
1,500 .2008
3,— ■2007
2,500
2.000
I'm
1,000
500
0
Tnn InteRvnh IANPe�illnee CTe�gee IMe,eae (MM
General Fund Expenditures
o Salaries and benefits make up 79% of GF
expenditures
o Materials, supplies and services make up
21%
o Transfers and Contingency make up 0%
o Capital is 0%
1
r1
U
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Total General Fund Expenditures
2nd Quarter - (in thousands)
Salaries MatllSpls Capital
General Fund Expenditures
2010 Budget Challenges
o State Budget Deficit
Impact on city's budget
o Loss of MVHC
o Loss of LGA
o Health insurance costs
o Decline in investment income
o Decline in building permit fees
General Fund Expenditures
one.
Nxraetl Oenxtl CrmY
oeamweee
eaee
s..
General Fund Expenditure Comparison
2nd Quarter - (in thousands)
2010 2009 2008 2007
City's Response
o Revenues
. Eliminated Capital Levy
o Expenditures
. 0% wages - Freeze for most employees
Delayed hiring of vacant positions
. Eliminated non-critical capital items
"Every little bit adds up" - small cuts
across all city departments
2
% age of
Budaet
Actual
Budget
General Government
$ 1,137,784
$ 470,984
41.39%
Community Services
$ 1,043,991
$ 417,148
39.96%
Public Safety
$ 5,160,695
$ 2,459,398
47.66%
Public Works
$ 2,146,475
$ 883,896
41.18%
Recreation
$ 524,058
$ 313,445
59 81 %
Other
$ 60.200
$ 32.971
54.77%
Total Expenditures
$ 10,073,203
$ 4,577,841
45.45%
2010 Budget Challenges
o State Budget Deficit
Impact on city's budget
o Loss of MVHC
o Loss of LGA
o Health insurance costs
o Decline in investment income
o Decline in building permit fees
General Fund Expenditures
one.
Nxraetl Oenxtl CrmY
oeamweee
eaee
s..
General Fund Expenditure Comparison
2nd Quarter - (in thousands)
2010 2009 2008 2007
City's Response
o Revenues
. Eliminated Capital Levy
o Expenditures
. 0% wages - Freeze for most employees
Delayed hiring of vacant positions
. Eliminated non-critical capital items
"Every little bit adds up" - small cuts
across all city departments
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C,
Savings & Efficiencies
o Police vehicle fuel monitoring program to save
on fuel costs
o Daytime rescue standby program - $10,000
savings
o In-house Pavement Management Inspections
o HC Sentencing to Service Work Force Program
- savings of $7/hr over PT seasonal staffing
o Donated for clerical service - $20,000 annual
savings
o Assessing contract with Hennepin Co saves
$74,000/yr
Enterprise Funds
Enterprise Funds
EXPENDITURES
REVENUES
Net
% age of
Budget
Actual
Income
Water
$ 1,472,000
$ 601,397
40.86%
Sewer
$1,964,000
$ 880,559
44.83%
Refuse
$ 879,030
$ 426,899
48.56%
Storm Sewer
$ 820,140
$ 400,333
48.81%
Pavilion
$ 366,650
$ 176,478
48.13%
Enterprise Funds
Special Revenue Fund Expenditures
EXPENDITURES
Net
% age of
Actual
Actual
Income
Budaet
_ Revenues
Expenses
(Loss)
Water
$ 601,397
$ 549,227
$ 52,171
Sewer
$ 880,559
$ 864,015
16,545
Refuse
$ 426,899
$ 322,241
104,658
Storm Sewer
$ 400,333
$ 204,816
195,517
Pavilion
$ 176,478
$ 185,192
(8,714)
Special Revenue Fund Expenditures
EXPENDITURES
% age of
Actual
Actual
Budget
Budaet
Chemical Assessment
$ 49,992
$ 53,458
106.93%
Economic Development
$ 258,013
$ 91,940
35.63%
Paratransit
$ 14,382
$ 17,210
119.66%
Housing Rehab
$ 98,858
$ 43,789
44.29%
Parking
$ 106,759
$ 38,124
35.71%
Communications
$ 200,432
$ 37,986
18.95%
Depot Coffee House
$ 131,495
$ 52,437
39.88%
Art Center
$ 776,376
$ 367,487
47.33%
Enterprise Funds
Cash & Investments
June 30, 2010
o Bank Sweep Account $ 4,222,775
o Certificates of Deposit 3,790,000
o Government Securities 1.486.748
Total $ 9,499,523
3
EXPENDITURES
Budget
Actual
Water
$1,137,035
$ 549,227
48.30%
Sewer
$1,999,771
$ 864,015
43.21%
Refuse
$ 907,178
$ 322,241
35.52%
Storm Sewer
$ 426,236
$ 204,816
48.05%
Pavilion
$ 409,198
$ 185,192
45.26%
Cash & Investments
June 30, 2010
o Bank Sweep Account $ 4,222,775
o Certificates of Deposit 3,790,000
o Government Securities 1.486.748
Total $ 9,499,523
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Interest Earnings
500,000
400,000
300,000
200,000
100,000
0
2010 2009 2008 2007 2006
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2010
2nd QUARTER
FINANCIAL AND INVESTMENT
REPORT
Questions?
M