07-23-2018 Council Packet - Laserfiche WebLink

Home Browse Search

2018 2017 To: Mayor and Council From: Ron Olson, Finance Director Subject: Budget Update Date: July 23, 2018 Attachments: 1. Revenue Summary 2. Revenue Detail 3. Revenue Graph 4. Expenditure Summary 5. Expenditure Detail (Unadjusted) 6. Investments 7. Vendor Payment Listing The first quarter General Fund year to date budget to actual comparisons are included with this memo. They are as of the end of July which represents 50% of the year. Revenues are currently at 69.1% of budget with expenditures at 50.5% of budget. General Fund Revenues Revenues for the first half of the years have been extremely strong at 69.1 %. Property tax proceeds are at 62.9% of budget compared to 51.3% a year ago. The abnormally high collection rate is due to a high rate of prepayments received at the end of 2017 as a result of the changes to allowable tax deductions. It is expected that at year's end tax collections will be around 100%. Building related revenues are off to a strong start in 2018. Building Permits are currently at 80% of budget; Mechanical Permits are at 105%; Plumbing Permits are at 93.7%, and Plan Check/Site Exam Fees are at 72.5%. These three line items will easily exceed budget for the year. The major reason for this are permit fees paid by the Orono School District and continued high levels of residential construction in the City. The follow table compares the number of permits issued in 2018 compared to 2017. Permit revenue is based on the value of the work being performed, so the number of permits issued is not a direct indication of permit revenue. However it good indication of construction activity. June YTD New home Valuation added (new homes only) Total permits Zoning New Home Valuation added (new homes only) Total permits Zoning 3 $ 1,923,000.00 164 9 35 $ 20,123,374.00 789 50 2 $ 2,375,000.00 148 9 23 $ 15,407,196.00 705 58 A revenue graph is attached to show this year's revenue collections as compared to prior years.