06-09-14 Council Packet - Laserfiche WebLink

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CITY OF LINO LAKES, MINNESOTA MANAGEMENT'S DISCUSSION AND ANALYSIS DECEMBER 31, 2013 FINANCIAL ANALYSIS OF THE GOVERNMENT'S FUNDS (CONTINUED) Proprietary funds — The City of Lino Lakes' proprietary funds provide the same type of information found in the government -wide financial statements, but in more detail. The water fund has total net position at year-end of $18,833,063, of which $4,972,620 is unrestricted. The increase in net position of $519,918 was primarily due to operating income and capital contributions from governmental activities. Total net position in the sewer fund at the end of 2013 was $22,589,403, of which $8,026,562 was unrestricted. The increase in net position of $2,440 was primarily due to capital contributions from governmental activities. The water rates, which reflect water conservation efforts through a tiered rate structure, and sewer rates were unchanged in 2013. A review of utility rates was completed in 2013. A 2% adjustment of water rates and 4% adjustment of sewer rates will go into effect in January, 2014. GENERAL FUND BUDGETARY HIGHLIGHTS The original budget was amended several times during the year reflecting increases licences and permits, public safety charges for services, MSA maintenance aid and police aid; reductions in property tax revenue, fines revenue, interest earnings and other miscellaneous revenues; and reallocating resources within the original budget. The final amended budget is $36,000 less than the original adopted budget. Revenues were $64,908 under budget for the year. This is due primarily due to change in market value of investments which is not budgeted for and accounted for $50,343 of this variance, tax collections also came in under budget by $88,321. These two larger variances were offset by greater than anticipating planning and engineering fees and licenses due to increased construction activity and greater than anticipated public safety charges for services due to higher than anticipated traffic control contracts. Expenditures came in under budget by $337,910 due mainly to lower than expected personal services costs from vacant positions and unspent contingency budgets. Energy costs for fuels and electricity were higher than budgeted amounts, and supplies costs were generally lower than anticipated. Spending on contractual services was lower overall from budgeted levels. The contingency budget of $147,975 was unspent for the year, contributing 44% of the expenditure variance. There were also net transfers from the general fund of $565,789. This resulted in a net fund balance increase of $152,266 for the fiscal year, compared to the planned reduction of $129,947. 19