VII.2. Finance Update; Bishop
CITY OF HOPKINS
Memorandum
To: Honorable Mayor and Council Members
Mike Mornson, City Manager
From: Nick Bishop, Finance Director
Date: August 18, 2020
Subject: Finance Update
_____________________________________________________________________
The Finance Update will cover 2nd Quarter results and updated 2020 Budget Projections.
A full presentation will be given at the city council meeting.
Finance
Finance Update
August 18, 2020
Prepared by Finance Department
Finance Update
2nd Quarter Financial Report
2020 Budget Projections
General Fund Overview
At the end of the 2nd quarter
Revenues are at 45.91%
2019 Q2 Revenues were at 48.70%
Expenditures are at 46.46%
2019 Q2 Expenditures were at 48.11%
General Fund Revenues
% of
Budget Actual Budget
Taxes 12,567,105$ 6,200,150$ 49.34%
Intergovernmental 1,352,946 241,658 17.86%
Licenses, Permits & Fines 775,065 330,361 42.62%
Charges for Services 251,250 108,400 43.14%
Miscellaneous 415,350 172,508 41.53%
Total Revenues 15,361,716$ 7,053,077$ 45.91%
General Fund Expenditures
% of
Budget Actual Budget
General Government 2,481,743$ 1,319,471$ 53.17%
Community Services 863,252 349,208 40.45%
Public Safety 7,460,272 3,580,142 47.99%
Public Works 3,442,841 1,391,884 40.43%
Recreation 783,082 352,726 45.04%
Urban Development 330,525 143,330 43.36%
Total Expenditures 15,361,715$ 7,136,760$ 46.46%
Special Revenue Funds Revenues
% of
Budget Actual Budget
Chemical Assessment 65,000$ 25,344$ 38.99%
Economic Development 467,951 296,405 63.34%
Parking 154,524 85,005 55.01%
Communications 238,014 112,515 47.27%
Depot Coffee House 307,412 101,775 33.11%
Art Center 1,185,836 374,282 31.56%
Special Revenue Funds
Expenditures
% of
Budget Actual Budget
Chemical Assessment 65,000$ 28,327$ 43.58%
Economic Development 430,345 162,254 37.70%
Parking 150,690 84,124 55.83%
Communications 238,656 110,741 46.40%
Depot Coffee House 307,412 101,173 32.91%
Art Center 1,125,836 349,097 31.01%
Special Revenue Funds Financial Position
Change Ending
In Fund Fund
Revenues Expenses Balance Balance
Chemical Assessment 25,344$ 28,327$ (2,983)$ (26,839)$
Economic Development 216,405 162,254 54,151 4,359,309
Parking 85,005 84,124 881 109,117
Communications 112,515 110,741 1,774 332,705
Depot Coffee House 101,775 101,173 602 (61,979)
Art Center 374,282 349,097 25,184 (1,130,893)
Enterprise Funds Revenues
% of
Budget Actual Budget
Water 2,256,004$ 851,303$ 37.73%
Sewer 3,052,340 1,115,959 36.56%
Refuse 1,006,206 483,516 48.05%
Storm Sewer 793,532 404,363 50.96%
Pavilion 781,500 307,754 39.38%
Enterprise Funds Expenses
% of
Budget Actual Budget
Water 2,235,099$ 1,028,304$ 46.01%
Sewer 3,025,741 1,217,303 40.23%
Refuse 1,008,049 404,222 40.10%
Storm Sewer 621,945 369,475 59.41%
Pavilion 702,256 484,283 68.96%
Enterprise Funds Financial Position
All funds include depreciation expense
Net
Income
Revenues Expenses (Loss)
Water 851,303$ 1,028,304$ (177,002)$
Sewer 1,115,959$ 1,217,303$ (101,344)$
Refuse 483,516$ 404,222$ 79,293$
Storm Sewer 404,363$ 369,475$ 34,888$
Pavilion 307,754$ 484,283$ (176,528)$
2020 Budget Projections
August 18, 2020
Revenue Assumptions -Changes
Activity Center
Open virtually through into 2021
Building closed into 2021
On-Sale Liquor License Fees
Six month refund approved
Revenue Assumptions -Change
Actual 1st & 2nd quarter results were
incorporated
CARES Act Funds
Included payroll costs included in 2020 Budget,
but used for substantially different purpose
Revenue Assumptions –Still
Unknown
Property Tax Collections
Rate of collection is still unknown
1st Half Collections were greater than in prior
periods
General Fund Revenue
(Minor Impact)
2019 Actual 2020 Budget Amount % of Budget
Property Taxes 11,736,624.00 12,479,305 12,479,305
Delinquent Taxes (118,388.00) - (249,586)
Other Taxes (Delinqent Collections, Penalties)96,448.00 87,800 86,044 98.00%
Intergovernmental 1,384,842.00 1,352,946 1,356,530 100.26%
CARES Act Grant for City Operations - - 650,000 100.00%
Charges for Services 433,856.00 251,050 162,667 64.79%
Court Fines & Forfeitures 157,941.00 188,250 121,806 64.70%
Licenses 116,934.00 105,615 63,766 60.38%
Penalties 21,915.00 9,800 9,190 93.78%
Permits 697,029.00 471,400 453,612 96.23%
Miscellaneous 387,256.00 415,550 327,721 78.86%
Total General Fund Revenue 14,914,457 15,361,716 15,461,055 100.65%
2020 Projection - Minor Impact
98.00%
General Fund Revenue
(Major Impact)
2019 Actual 2020 Budget Amount % of Budget
Property Taxes 11,736,624.00 12,479,305.00 12,479,305.00
Delinquent Taxes (118,388.00) - (748,758.30)
Other Taxes (Delinqent Collections, Penalties)96,448.00 87,800.00 82,532.00 94.00%
Intergovernmental 1,384,842.00 1,352,946.00 1,356,529.00 100.26%
CARES Act Grant for City Operations - - 550,000.00 100.00%
Charges for Services 433,856.00 251,050.00 158,792.00 63.25%
Court Fines & Forfeitures 157,941.00 188,250.00 112,994.00 60.02%
Licenses 116,934.00 105,615.00 54,866.00 51.95%
Penalties 21,915.00 9,800.00 9,190.00 93.78%
Permits 697,029.00 471,400.00 428,957.00 91.00%
Miscellaneous 387,256.00 415,550.00 327,608.00 78.84%
Total General Fund Revenue 14,914,457.00 15,361,716.00 14,812,014.70 96.42%
2020 Projection - Major Impact
94.00%
General Fund Revenue
Estimate of Revenue
Minor Impact, projected revenue exceeds budget
by $99,339
Major Impact, projected revenue shortfall of
($549,701)
General Fund Expenditures
Have identified $550,000 of reductions in the
general fund
Elimination of budget items such as training or
travel
Delay when filling vacant positions
Reduction services at Activity Center
General Fund Expenditures
Have identified $500,000 of reductions in the
general fund
Reduced hiring of part time seasonal help
Deferring smaller maintenance projects
Reductions in Forestry, will not plant trees unless
funded by grant
NEW -COVID-19 Unemployment Costs Funded
Through State
Additional Expenditures
Emergency Protective Measures
Eligible for Grants or Reimbursements
FEMA or CARES
Work From Home Expenditures
Reimbursable through CARES
Next Steps
Continue to review 2020 Budget Projections
Adopt a Preliminary Levy in September