HomeMy WebLinkAboutItem 3 - cc 7.7.15 May Financials
MAYOR & COUNCIL COMMUNICATION
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DATE: July 7, 2015 CONSENT ITEM #3 MOTION
AGENDA ITEM: May 2015 Financial Reporting SUBMITTED BY: Cathy Bendel, Finance Director
THROUGH: Cathy Bendel, Finance Director REVIEWED BY: Finance Committee
SUGGESTED ORDER OF BUSINESS:
- Introduction of Item .............................................................. City Administrator
- Report/Presentation…………………………………………City Administrator
- Questions from Council to Staff ............................................. Mayor Facilitates
- Call for Motion ............................................................... Mayor & City Council
- Discussion ....................................................................... Mayor & City Council
- Action on Motion .................................................................... Mayor Facilitates POLICY RECOMMENDER: Finance FISCAL IMPACT: NA SUMMARY AND ACTION REQUESTED: As part of its Consent Agenda, the City Council
is asked to accept the May 2015 Financial Reporting Packet. No specific motion is needed as this is recommended to be part of the overall approval of the Consent Agenda. BACKGROUND INFORMATION: The City of Lake Elmo has fiduciary authority and responsibility to conduct normal business operations and report the financial (unaudited)
statement to the City Council. City guidelines suggest the Council be updated on a regular basis.
STAFF REPORT: Attached please find the comparative financial statements for the month of May 2015 reflecting the monthly and year to date detail, comparing the actual results to the 2015 Budget.
City Council Meeting [Consent Agenda Item #3]
July 7, 2015
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GENERAL FUND: Revenues:
Total revenue for the month was 47% above budget for the month bringing the year to date total revenue to 2.5% below budget. The most significant budget to actual revenue variances are as follows:
• Building Permit revenue was 16.6% above budget for the month and 35.9% below budget
on a year to date basis. The budget was compiled for the full year only and the amount
shown for the month of June is 1/12th of the total budgeted for the year. This represents
18 new home starts in May compared to the budgeted 11 new home starts per month.
The year to date new home starts is at 38, of which 5 were open space new homes. The
2015 budget did not include any open space new homes.
• Sewer Permit revenue for the month was 100% below budget due to there being no new
sewer permits in the month of May.
• Utility Permit revenue for the month was 113% above budget due to the new
development activity generating more permit revenue than budgeted.
• Cable Franchise revenue for the month was 51% above budget due to the Cable
Commission refunding Lake Elmo’s proportionate share of the excess fees collected.
• Zoning and permit revenue was far above budget May due to only minimal zoning permit
revenue having been budgeted for 2015.
Expenses:
Total expenses for the month were 6.3% more than budgeted bringing the year to date expenses
to 4.1% less than budget. All departments continue to manage to the bottom line.
The following summarizes variances of note: General:
• Mayor and Council – As mentioned previously, the year to date amount in Dues and
Subscriptions represents the 2015 portion of the League of MN Cities annual dues as well as the annual contribution of $5,000 made to the Youth Services Bureau in January for 2015. These amounts were spread out in the budget so the expense will catch up during the year.
• Prosecution legal expenses are 7% higher than budget for the month and the majority of
the cost increase is covered by fine revenue.
• Building Inspection – The building inspection expenses are 43.5% below budget for the month due to the building permit volume being below the level anticipated in the plan.
City Council Meeting [Consent Agenda Item #3]
July 7, 2015
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As a result, the contracted inspector continues to be utilized until the permit volume
ramp up to a level justifying a staff addition. In summary, as discussed during the 2015 budget process, expenses are being closely monitored until the development ramps up to cover growth driven expenses. Year to date actual expenses
continue to be less than budgeted and the net income through May is 5% better than budget due
to everyone managing to the bottom line. LIBRARY FUND:
Revenues: Revenues for the month and year to date are right at budget.
Expenses: Expenses for the month of May were 24.5% less than budget primarily due to not spending as much on library collection maintenance as budgeted. On a year to date basis, expenses were 19.8% less than budget.
On a net income basis, the May results are 26.9% better than budgeted and on a year to date basis are 21% better than budgeted. The ending May cash balance in the library fund is $146.4k.
RECOMMENDATION: Based on the aforementioned, the staff recommends the City Council accept the attached May Financial Report.
ATTACHMENT: 1. May Financial Reports