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To: Mayor and Council <br />From: Ron Olson, Finance Director <br />Subject: Budget Update <br />Date: July 24, 2020 <br /> <br />Attachments: <br />1. Revenue Summary <br />2. Revenue Detail <br />3. Expenditure Summary <br />4. Expenditure Detail <br />5. Investment Information <br />6. Vendor Listing <br /> <br />The first quarter General Fund year to date budget to actual comparisons are included with this <br />memo. They are as of the end of June which represents 50% of the year. Revenues are currently <br />at 55.0% of budget with expenditures at 44.43% of budget. <br /> <br />General Fund Revenues <br />At 55% of revenues the City is currently on pace to exceed revenues for the year. For <br />comparison purposes, 2019 revenues at the end of the 2nd quarter were 59% and finished the year <br />at 107% of budget. Tax revenues are at 45% of budget compared to 44% last year. However, <br />this year Hennepin County allowed property taxes to be paid until July 15th without penalty so <br />some collections have been delayed. It is estimated that once all the first half collections are <br />received in July, that property tax revenues for the first half will be at 49% which is within the <br />normal range of collections. <br /> <br />While the revenues are looking good through June 30th, Covid 19 still remains a concern for later <br />this year and early next year. Some states that have reopened their economies are seeing spikes <br />in cases and hospitalizations. If this leads to another shutdown, this could affect our revenue <br />streams. With this in mind, it would be wise to keep a close watch on expenditures the rest of <br />this year. <br /> <br />For revenues other than taxes, Licenses and permits are at 52% of budget. Within this category, <br />Building Permits are only at 45%, but mechanical permits are already at 118% of budget. Other <br />Governmental Revenues are at .6%, but these revenues are received later in the year. Charges <br />for services are at 77% of budget. The main reason for this is Police service revenues being at <br />87%. This line will finish the year at 100%. Fines are only at 30% of budget. Part of this is <br />because we have only received fines through May. It is likely that Covid 19 also impacted this <br />line because there were less people driving during the shutdown. <br /> <br /> <br /> <br />General Fund Expenditures