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Memo- 1st Qtr 2006 Financial Rpt MEMORANDUM I FINANCE DEPARTMENT I Date: April 14, 2006 To: Mayor & City Council From: Christine Harkess, Finance Director Subject: First Quarter 2006 Financial Report Attached is the first 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 1st QUART R FINANCIAL R PORT CITY OF HOPKINS 1 . At the end of 151 quarter the year is 25% expired. . Revenues are at 23% of total budget . Expenditures are at 19% of budget As a comparison - in 2005 Revenues were at 24% and Expenditures were are 19% of budget Actual revenues and expenditures are slightly under 1 st quarter 2005. 2006 2005 Revenues $2,084,310 $2,153,963 Expenditures $1,644,140 $1,687,485 2 evenues . Taxes support 82% of general fund activities. . Intergovernmental revenues support 4% . Licenses, Permits & Fines support 7% . Charges for Services support 2% . Miscellaneous revenues including Franchise fees support 3% . Interest income supports 1 % Property taxes now support 82% of the general fund programs. Intergovernmental revenues support 4% ofthe 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 11 % over last year at this time. This is primarily due to increased tax levy and grants received General fund revenues to date total $1,687,485, 3 . I2l 2006 1.3 2005 1.3 2004 82003 -200 Taxes Intergvn't Lie/Per/Fines Charges Interest Other . This graph shows first quarter revenues by source for the years 2003-2006. 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. Taxes are down in 2006 due to a slight decrease in the General Fund levy. . 4 % age of Budqet Actual Budqet Taxes $7,210,998 $1,794,019 24.9% Intergovernmental $ 413,910 $ 61,928 14.9% Licenses, Permits & Fines $ 634,400 $ 135,863 21.4% Charges for Services $ 213,750 $ 39,695 18.5% Miscellaneous $ 305,150 $ 3,534 1.2% Interest Income $ 110.000 $ 49,269 44.8% Total Revenues $8,888,208 $2,084,308 23.5% Miscellaneous includes franchise rees budgeted at $290,000. First quarter franchise rees have not yet been received. 5 enditures . Salaries and benefits make up 72% of GF expenditures . Materials, supplies and services make up 18% . Transfers and Contingency make up 6% . Capital make up 4% 6 . $1,600 $1 ,400 $1,200 $1,000 $800 $600 $400 $200 $0 IlliJ 2006 1lliJ2005 1lliJ2004 Ii 2003 . Changes in staffing from 1 st quarter 2005 to 2006 has resulted in lower personnel costs. Salaries are approximately $17,000 lower in first quarter 2006. Salaries Matl/Spls Capital Factors impacting 2006 materials & supplies category are increased fuel costs for vehicles (330/0) , 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 % age of BudQet Actual BudQet General Government $ 941 ,468 $ 167,490 17.8% Community Services $ 921,218 $ 151,913 16.5% Public Safety $4,456,201 $ 877,699 19.7% Public Works $1,876,854 $ 330,827 17.6% Recreation $ 509,276 $ 67,716 13.6% Other $ 183.273 $ 48.495 26.5% Total Expenditures $8,888,290 $1,644,140 18.5% Year is 25% 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 - PW - Snow & Ice Removal is at 41% of budget. Purchases of salt totaling $19,438.44 were made first quarter which is 77% ofthe budgeted amount. Salaries & benefits were at 37% ofbudget. The majority of the departments are at or under budget for first quarter. 9 '1 2111 2115 211" 2Dea Compares general fund expenditures from the last four years. 2006 $1,644,140 2005 $1,687,485 2004 $1,535,657 2003 $1,743,165 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 $ 8,996 $ 37,517 $ 18,513 $ 17 ,450 $ 25,542 $ 22,137 $ 8,951 $ 22,831 $ 86,683 Chemical Assessment - This program is funded entirely by state grants. % age of Budaet 20% 15% 14% 20% 20% 19% 9% 12% 20% Economic Development - Operating transfer of$61,000 to the ReA has not yet been made. Para Transit - Nothing ofnate. Housing Rehab - Grant dependant program. Parking - Parking enforcement is at 20% of budget, parking operations are at 38% of budget and parking ramp is at 8% of budget. Cable TV - Budgeted transfers have not yet been made. Depot Coffee House - The Coffee House is at 18% of budget and the Teen Center is at 1 % of budget. We have not yet been billed for 1 st quarter teen coordinator expenses. Art Center - Expenditures are on target with the budget. 11 nds Revenues Expenses Water $ 205,709 $ 265,539 $ (59,830) Sewer $ 339,469 $ 391,941 $ (52,471) Refuse $ 173,577 $ 122,636 $ 50,941 Storm Sewer $ 199,629 $ 134,770 $ 64,859 Pavilion $ 116,475 $ 87,116 $ 29,358 Water - Revenues approximate 2005. Expenditures are $18,000 less than this period 2005. Sewer - Revenues are about $20,000 more than 2005. Expenditures are $13,000 over 2005 levels. We had a sewer rate increase for 2006. Refuse Fund - Revenues approximate 2005. Expenditures approximate 2005 levels. Storm Sewer Fund - Revenues are $35,000 more than 2005. Expenses are $20,000 less than 2005 levels due to lower bond interest costs. We had a rate increase in the storm sewer fund for 2006. Pavilion - Revenues are $39,000 over 2005 levels due primarily to the income from rents. Expenses are $6,000 under 2005. 12 OVERALL REPO HE CITY OF HOPKINS REMAINS IN GOOD FINANCIAL HEALTH 13