05-11-2022 Council Packet - Laserfiche WebLink

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CITY OF LITTLE CANADA, MINNESOTA Management’s Discussion and Analysis (continued) Year Ended December 31, 2021 BUDGETARY HIGHLIGHTS General Fund The General Fund original budget was revised to reflect the following changes: • The protective inspection expenditure budget in the public safety category increased by $38,500 for building permitting efficiency upgrades. These upgrades were funded with fund balance that had increased in the prior fiscal year due to building permits that exceeded budget amounts. • The protective inspection expenditure budget in the public safety category increased by $20,000 for rental housing inspections that needed to be completed in 2021. These inspections were funded with fund balance that had increased in the prior fiscal year due to receipt of rental housing licenses. • The intergovernmental revenue and fire department expenditure budgets were increased by $12,980 due to the State Fire Relief funds received by the City that were required by State Statute to be paid to the Fire Relief Association. • The donation revenue and shade tree expenditure budgets were increased by $6,556 to recognize the donation that was received from Canadian Days to fund the removal of trees at Spooner Park due to Emerald Ash Borer (EAB). • The shade tree expenditure budget was increased by $6,000 to fund the first year EAB treatment that began in 2021 due to the discovery of EAB in the City during the current fiscal year. The actual results were different than the final budget amounts. Large differences are as follows: • Total General Fund revenues were lower than the budget by $124,979. The biggest budget variances for revenue categories were within property taxes, licenses and permits, and miscellaneous revenues. o Property tax revenue ended at 103% of budget. Per the City’s Financial Policies, first-year property tax collections are included in the General Fund budget at a 97.5% collection rate. However, first-year collections ended higher at 99.22%. In addition to the first-year property tax collections, delinquent property taxes were received. o License and permit revenue ended at only 68% of budget due to less building permit activity that occurred during the current fiscal year due to the pandemic. In addition, liquor license credits were granted to on-sale establishments to recognize the loss of sales that these businesses experienced due to the pandemic. o Investment earnings ended at 34% of the budget due to the low interest rate environment and the year-end mark to market rate adjustment. o Miscellaneous revenue ended at 12% of the budget due to the contract sheriff’s reimbursement not being received in 2021. This was a one-year occurrence, due to overtime costs experienced during the pandemic. • Total General Fund expenditures were under budget by $244,392 or 94.3%. The largest budget variances were in the public safety and public works departments. o Under the public safety department, protection inspection realized the largest savings. A large portion of these savings were for the building permit efficiencies that were included in the budget but not spent during the year. 27