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City of Lino Lakes <br />Sewer Fund Budget to Actual (Unaudited) <br />For the Quarter Ended September 30, 2023 <br />Budget Actuals Prior Year Variance - <br />Annual Thru Thru Thru Favorable <br />Budget 09/30/2023 09/30/2023 09/30/2022 (Unfavorable) <br />Revenues <br />Penalties & Interest -$ -$ 47$ 23$ 24$ <br />Sewer Hook Up Charge 33,000 24,750 18,630 23,060 (4,430) <br />Other Grants - - 51,953 - 51,953 (1) <br />Interest On Investments 80,000 60,000 154,252 (463,198) 617,450 (2) <br />Change in FV of Investments - - 55,422 - 55,422 (2) <br />Sewer Sales 1,827,010 1,370,258 1,496,390 1,405,917 90,473 (3) <br />Penalty 26,000 19,500 29,123 21,383 7,740 <br />Sale of Fixed Assets 500 375 977 - 977 <br /> Total Revenues 1,966,510 1,474,883 1,806,793 987,185 819,608 <br />Expenditures <br />Personal Services 416,456 312,342 249,766 242,133 (7,632) <br />Supplies 62,000 46,500 8,726 51,783 43,058 (4) <br />Services & Charges 302,177 226,633 258,995 184,766 (74,229) (5) <br />Contractual Services 1,248,109 936,082 1,031,020 910,322 (120,698) (6) <br />Capital Outlay 35,000 26,250 5,570 202,875 197,306 (7) <br />Operating Transfers 225,420 169,065 - - - <br /> Total Expenditures 2,289,162 1,716,872 1,554,076 1,591,880 37,804 <br />Revenues Over <br />(Under) Expenditures (322,652)$ (241,989)$ 252,718$ (604,695)$ 857,413$ <br />Item Explanation of items with variance greater than $20,000 <br />(1) Grant received from Met Council Environmental Services for inflow/infiltration in 2023. <br />(2) Interest rates are favorable and surpassing budget expectations. See Investments Summary for Portfolio YTM. In 2023, <br />a change in accounting practice occurred and the change in fair value of investments is broken out from interest earnings. <br />Due to rising interest rates in 2022, unrealized losses on investments were greater than interest earnings. <br />(3) Increase in sewer rates combined with an increase in accounts. <br />(4) Favorable variance due to pump replacements in 2022 which did not occur in 2023. <br />(5) Unfavorable variance due to professional services within budget in current year but expenses incurred for cleaning and <br />televising sewer lines and lift station upgrades and repairs. <br />(6) Met Council Environmental Services Sewer Charges increased 7% in 2023. Also contributing to the variance is Contracted <br />Services for Manhole Rehabilitation. Both of these items were budgeted in 2023. <br />(7) Variance from prior year due to timing of capital projects and purchases. The East Shadow Lake Drive Inflow & Infiltration <br />Project wrapped up in 2023 and a Towable Generator (50% charged to Water) budgeted for in 2022 was purchased in 2023. In <br />the prior year, a Utilities vehicle (50% charged to Water) was replaced along with project costs incurred for East Shadow Lake <br />Drive. <br />77