HomeMy WebLinkAbout#4 cc 9 15 15 August Financials
MAYOR & COUNCIL COMMUNICATION
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DATE: September 15, 2015
CONSENT
ITEM #4 MOTION
AGENDA ITEM: August 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 August 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 August 2015 reflecting the monthly and year to date detail, comparing the actual results to the 2015 Budget.
City Council Meeting [Consent Agenda Item #4]
September 15, 2015
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GENERAL FUND:
Revenues:
Total revenue for the month was 32.9% below budget for the month bringing the year to date
total revenue to 2.9% below budget. The most significant budget to actual revenue variances are
as follows:
• The first installment of property tax proceeds were received on 7/2/15 for $1,302,869
which was 4% lower than budgeted. It is anticipated that the second installment will be
slightly above this amount and that the year will come in very close to the budgeted
amount.
• Building Permit revenue was 10.7% below budget for the month bringing the year to date
to 30.1% below budget. In August there were 14 new home starts to the budgeted 11
new home starts per month. Although more homes than budgeted for the month, the fee
revenue is slightly lower due to there being a four-plex included in August which have a
lower home valuation which results in lower fees. The year to date new home starts is at
73, of which 9 were open space new homes. The 2015 budget did not include any open
space new homes.
• As mentioned last month, the second installment for MSA maintenance was received in
July. This installment was budgeted in August based on when received in prior years
resulting in the timing related variance.
• Recycling grant proceeds were expected to be received in August as in prior years,
however the recycling grant reimbursement request was submitted later than budgeted.
Expenses:
Total expenses for the month were 15.7% above budget bringing the year to date expenses to
5.1% less than budget. All departments continue to manage to the bottom line.
The following summarizes variances of note:
General:
• Planning & Zoning – The contract services expenses are 100% above budget for the
month. These expenses are for contract work performed by the Landscape Architects on
the 5th Street project.
• Fire – The repairs and maintenance-equipment expense for the month of August is 199% above budget for the month, however, the year to date expense is at 24.5% below
budget. This expense is for the annual safety inspections for all the fire vehicles and
was budgeted throughout the year rather than all in one month.
City Council Meeting [Consent Agenda Item #4]
September 15, 2015
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• Building Inspection – The building inspection expenses are 44.3% below budget for the
month and 47.9% below budget year to date primarily due to the building permit
volume being below the level anticipated in the plan. The City Council approved the hiring of a contractor to assist with a lot line review related to a code enforcement situation resulting in the budget to actual variance for the month and year to date of
$1.4k.
• Public Works – The general Public Works expense were $1.4 below budget for the month and $30.8 below budget year to date. Although expending funds to prepare for winter (tires etc), the budget is closely being adhered to.
• Ice and snow removal – the last delivery of the 2014/2015 contract season was ordered
and received in August to prepare for winter. As a result, the monthly expense was
$20.6 greater than budget and within 0.3% year to date.
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 August is better than budget due to
everyone managing to the bottom line. LIBRARY FUND:
Revenues: Revenues on a year to date basis far exceeded budget as a result of recovering the
delinquent rent from a prior tenant of $20.6k.
Expenses: Expenses for the month of August were below budget for the month. This was
primarily due to spending less than anticipated on building repairs during the month. On a year
to date basis the actual expenses are 17.6% below budget.
On a net income basis, the August results are 45.6% above budget primarily due to collection of
an additional installment related to the delinquent rent mentioned in prior months.
The ending July cash balance in the library fund is $227.5k.
RECOMMENDATION: Based on the aforementioned, the staff recommends the City Council
accept the attached August Financial Report.
ATTACHMENT: 1. August Financial Reports