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City of Lino Lakes
<br />Sewer Fund Budget to Actual (Unaudited)
<br />For the Quarter Ended March 31, 2023
<br />Budget Actuals Prior Year Variance -
<br />Annual Thru Thru Thru Favorable
<br />Budget 03/31/2023 03/31/2023 03/31/2022 (Unfavorable)
<br />Revenues
<br />Sewer Hook Up Charge 33,000$ 8,250$ 4,400$ 5,400$ (1,000)$
<br />Interest On Investments 80,000 20,000 52,705 (232,865) 285,569 (1)
<br />Change in FV of Investments - - 89,666 - 89,666 (1)
<br />Sewer Sales 1,827,010 456,753 492,022 463,170 28,852 (2)
<br />Penalty 26,000 6,500 8,114 3,560 4,554
<br />Sale of Fixed Assets 500 125 977 - 977
<br /> Total Revenues 1,966,510 491,628 647,883 239,266 408,617
<br />Expenditures
<br />Personal Services 416,456 104,114 92,491 70,802 (21,688) (3)
<br />Supplies 62,000 15,500 5,712 16,633 10,921
<br />Services & Charges 302,177 75,544 78,644 45,748 (32,896) (4)
<br />Contractual Services 1,248,109 312,027 388,841 363,025 (25,816) (5)
<br />Capital Outlay 35,000 8,750 (25,680) 33,169 58,849 (6)
<br />Operating Transfers 225,420 56,355 - - -
<br /> Total Expenditures 2,289,162 572,291 540,008 529,378 (10,630)
<br />Revenues Over
<br />(Under) Expenditures (322,652)$ (80,663)$ 107,876$ (290,111)$ 397,987$
<br />Item Explanation of items with variance greater than $20,000
<br />(1) Interest rates are favorable and surpassing budget expectations. Portfolio market yield is 4.49% compared to 1.63% at
<br />March 31, 2022. In 2022, negative interest resulted from unrealized losses on investments. Unrealized losses reflect a decrease
<br />in the value of an investment that an investor holds due to rising interest rates. In 2023, a change in accounting practice
<br />occurred and the change in fair value of investments is broken out from interest earnings.
<br />(2) Increase in sewer rates combined with an increase in accounts. 5,637 accounts in Q1 2023 compared to 5,423 in Q1 2022.
<br />(3) Unfavorable variance due to the reallocation of staff and addition of General Maintenance Worker in March 2022.
<br />(4) Unfavorable variance due to professional services within budget in current year including clean and televise sewer lines and
<br />lift station upgrades and repairs.
<br />(5) Met Council Environmental Services Sewer Charges increased 7% in 2023. The increase was budgeted.
<br />(6) Variance from prior year due to timing of capital projects and purchases. Retainage payable at 12/31/2022 on the East Shadow
<br />Lake Drive Project was reversed in January 2023 and has not yet been remitted to the contractor. In the prior year, a Utilities
<br />vehicle (50% charged to Water) was replaced.
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