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<br />To: Mayor and Council <br />From: Ron Olson, Finance Director <br />Subject: Budget Update <br />Date: October 22, 2018 <br /> <br />Attachments: <br />1. Revenue Information <br />2. Revenue Graph <br />3. Expenditure Information <br /> <br />The third quarter General Fund year to date budget to actual comparisons are included with this <br />memo. They are as of the end of September which represents 75% of the year. Revenues are <br />currently at 77.22% of budget with expenditures at 73.89% of budget. <br /> <br />General Fund Revenues <br />• Property taxes at 62.9% of the budget are the primary revenue source for the General <br />Fund. The 1st half collections were unusually high due to the prepayment of 2018 taxes <br />as a result the 2017 tax bill and a cap on the deductibility of state and local taxes. When <br />the 2nd half tax settlement is received in December, it is expected that property tax <br />revenue will be at 100% of budget. <br /> <br />• Licenses and Permits are already at 114.1% of budget. This positive variance is due to <br />the continuation of the trend of increasing building permit revenue over the past few <br />years. However, with increasing interest rates there has been a slowing in new home <br />construction nationwide. On a quarter to quarter basis, the third quarter of 2018 saw a <br />decrease of from $163,349 in 2017 to $104,339.65 (-36%) in 2018. Whether this is due <br />simply to timing of permits, or the beginning of a return to the historical average of <br />permits will need to be monitored. <br /> <br />• The Charges for Services category is at 97.6% of budget and will finish the year over <br />budget as the fourth quarter revenue are received. The construction related revenue lines <br />are already 45% over budget for the year. This is a reflection of the strong building <br />climate with is continuing to drive all construction related revenues. <br /> <br />• Other Governmental revenue is only at 18.3% of budget, however the police State Aid <br />Reimbursement been received in October in the amount of $234,177.59. The category <br />will exceed budget at the end of the year. <br /> <br />• Golf Course revenue is at 95% of budget and will finish the year slightly under budget. <br />The major reason for this was the late spring and the loss of the entire month of April to <br />start the season. <br /> <br />The overall General Fund revenue budget will exceed 100% at the end of the year.