HomeMy WebLinkAbout#3 cc 10 20 15 September Financials
MAYOR & COUNCIL COMMUNICATION
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DATE: October 20, 2015
CONSENT
ITEM #3 MOTION
AGENDA ITEM: September 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 September 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 September 2015 reflecting the monthly and year to date detail, comparing the actual results to the 2015 Budget.
City Council Meeting [Consent Agenda Item #3]
October 20, 2015
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GENERAL FUND:
Revenues:
Total revenue for the month was 80.5% above budget for the month bringing the year to date
total revenue to 0.7% below budget. The most significant budget to actual revenue variances are
as follows:
• Building Permit revenue was 15.3% below budget for the month bringing the year to date
to 28.5% below budget. In September there were 13 new home starts compared 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 the average home values being lower than
anticipated in the budget, which results in lower fees. The year to date new home starts is
at 88, of which 10 were open space new homes. The 2015 budget did not include any
open space new homes.
• The State Fire Aid proceeds were received in September. The base aid was $46.7k and
supplement State Fire Aid proceeds were also received in September for $11.4k. In the
budget it was planned that these proceeds would be received in October as in previous
years, however the proceeds were received on September 30th so this variance is just a
timing issue.
• Recycling grant proceeds have not yet been received and as a result there continues to be
a year to date variance due to this timing issue.
Expenses:
Total expenses for the month were 22.6% above budget bringing the year to date expenses to
2.7% less than budget. This was primarily a result of the receipt of the supplemental State Fire
Aid received in September. Although a pass through expense, it is still reported within the
operating expenses. All departments continue to manage to the bottom line.
The following summarizes variances of note:
General:
• Planning & Zoning – The developer escrow offset expenses for August and September
have not yet been booked. These expenses will be booked in October.
• Engineering services continue to be below budget due to their primary focus in 2015
being on development activity for which their fees are 100% recoverable from the developer escrows.
• Fire Relief – The 2015 annual State Aid funds were received on September 30th. The
budget anticipated that these funds would be received in the first week of October as
City Council Meeting [Consent Agenda Item #3]
October 20, 2015
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they have been in the past so this variance is a timing issue. The base State Aid
received was $46.7k and Supplemental State Aid funds of $11.4 were also received
resulting in a total received which was 55.8% greater than budget. These funds are
remitted to the Fire Relief fund as this is the State Funding for Fire Relief pensions.
• Animal Control – Contract services for the month were 332% of budget. The 1st quarter
billing from the Animal Humane Society was received and paid in September. The City
Clerk is looking into the cause of the delay and why this bill was so high.
• Public Works – The total Public Works expenses were 0.3% below budget for the month and 12.1% below budget year to date. Although expending funds to prepare for winter
(tires etc), the budget is being closely followed.
In summary, year to date actual expenses continue to be less than budgeted and the net income through September is 33.2% better than budget. 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. The library will no longer be renting out space due to the continued collection expansion and the need for the space by the Library.
Expenses: Expenses for the month of September were 43% below budget for the month. This
was primarily due to spending less than anticipated on repairs and maintenance during the month. On a year to date basis the actual expenses are 21.2% below budget.
On a net income basis, the September results are 40.6% below budget primarily due to the
previously mentioned collection of delinquent rent mentioned in prior months.
The ending September cash balance in the library fund is $212.9k.
RECOMMENDATION: Based on the aforementioned, the staff recommends the City Council
accept the attached September Financial Report. ATTACHMENT: 1. September Financial Reports