HomeMy WebLinkAbout#3 September Financials
MAYOR & COUNCIL COMMUNICATION
-- page 1 --
DATE: October 18, 2016
CONSENT
ITEM #3
MOTION
AGENDA ITEM: September 2016 Financial Reporting
SUBMITTED BY: Cathy Bendel, Finance Director
THROUGH: Cathy Bendel, Finance Director
REVIEWED BY: Kristina Handt, City Administrator
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 2016 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 2016 reflecting the monthly and year to date detail, comparing the actual results to
the 2016 Budget.
City Council Meeting [Consent Agenda Item #3]
October 18, 2016
-- page 2 --
GENERAL FUND:
General:
September was a record breaking month for new home building permits. 42 new home permits
were issued bringing the year to date new homes to 193. In addition, the Arbor Glen commercial
project was permitted in September. This project has 48 REU’s (Residential Equivalent Units)
per their Met Council determination, bringing the year to date total REU’s for commercial
permits to 59.
Revenues:
Total revenue for the month was $119.5k (108.3%) above budget for the month of September
bringing the year to date to $653.2k (31.0%) better than budget. The most significant budget to
actual revenue Variances are as follows:
• Building permits were $71.1k (158%) better than budget for the month bringing the year
to date to $315.6k (79.3%) better than budget.
• Plan review fees for the month were $45.4k (174.6%) better than budget bringing the
year to date to $166.8k (77.6%) better than budget.
Expenses:
Total expenses for the month exceeded budget by $52.7k (24.7%) for September bringing the
year to date expenses to $54.5k (2.1%) lower than budget.
The following summarizes variances of note:
General:
• September was a three pay period month. The budget anticipated October being the three
pay period month so the variances in the payroll expenses are timing related.
• General Government expenses were $31.6k (34.3%) higher than budget for the month
bringing the year to date expenses to $236.4k (33.6%) higher than budget. This was
primarily due to legal expenses far exceeding budget; the majority of which related to
the 3M litigation.
• Total Public Safety expenses were $1.8k (3.0%) higher than budget for the month
bringing the year to date expenses to $75.6k (9.5%) lower than budget.
• Public Works – The total Public Works expenses were $17.5k (46.9%) higher than
budget for the month bringing year to date expenses to $100.6k (12.7%) better than
budget. This is primarily due to the timing of paying the Street maintenance vendors as
mentioned last month. The project is on schedule and costs will be within the budgeted
amounts. This is just a timing issue.
City Council Meeting [Consent Agenda Item #3]
October 18, 2016
-- page 3 --
In summary, the September revenues were $119.5k (108.3%) better than budget and the
expenses were $52.7k (24.7%) higher than budget resulting in a net income below budget. On a
year to date basis, the revenues are $653.2k (31.0%) above budget and the expenses were $54.5k
(2.1%) less than budget resulting in a net income of $701.5k (160.6%) better than budget year to
date.
LIBRARY FUND:
The net income for the Library Fund for the month of September was $23.9k more than budget
(158.6%) bringing the year to date to $6.9k better than budget. The cash balance at the end of
September was $196.6k.
The investment in the Library book collection continues at a higher than budgeted rate and the
parking lot design work hit in September.
RECOMMENDATION: Based on the aforementioned, the staff recommends the City Council
accept the attached September Financial Report.
ATTACHMENT:
1. September Financial Reports