02-24-2020 Council Packet - Laserfiche WebLink

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Budget Update February 21, 2020 Page 2 A revenue graph is included as attachment #2 to illustrating this year’s revenue collections as compared to 2018 collections. General Fund Expenditures General Fund Expenditures are currently at 99.5% of budget. Although some adjustments have been made, the expenditure number could change slightly as audit preparations proceed. It is anticipated the expenditures will finish the year slightly under budget. Some departments will end the year over budget. Assessing is $9,750 over budget (105.3%) of budget and is the result of the number and relatively high value of the new homes being built. The Police Department is over budget by $60,400 (101.3%). This is the result of the accounting shift for the Towards Zero Deaths grant which added $129,000 in unbudgeted expenditures. This is offset by the unbudgeted revenues. Engineering is a small budget that is over by $3,588 (117.9%). This is due to higher than budgeted GIS/Mapping work that was performed. Public Works is over budget by $70,425 (113.7%) which can be attributed to the last winter’s excess snow and ice. 77.4% and will finish the year at 103% ($6,000 over) of budget. Engineering is currently at 83.6% of budget, but should finish the year at budget. Golf is over by $33,831 (115.9%) and is the result of wages and higher than budgeted building maintenance costs. The brush site expenditures were budgeted within parks for 2019. It was decided to create a new department to more accurately reflect expenditures. When taken together, Parks and the Brush site were under budget for the year. Special Services was over budget for the year, but this overage is offset by the revenues that were also over budget. Investments A listing of the City’s investment portfolio is included for your review. The City’s total investment portfolio is $14,516,823.25. Interest earned through 12/31/2019 is $285,701.34, which compares to $302,439.82 for last year. The interest earnings do not include any accrued interest that has not yet been received, or any adjustments for the current market value of the portfolio. With the recent decline in interest rates, the annual mark to market performed at year end will result in an increase in interest earnings. Enterprise Funds The Enterprise Funds had mixed results in 2019 with the Water and Recycling funds operating at a loss, and the Sewer, Cable, and Stormwater funds operating with a profit. The results are consistent with previous years and support the need for the significant rate increases approved for 2020. The record rainfall of 2019 continued to hold down summer watering which has kept revenues lower than historical usage would predict. The high rainfall and resulting lake and groundwater levels is continuing to contribute to I&I and will keep our MCES charges at record highs through at least 2021. Summary In summary, the overall General Fund budget will have a positive variance for 2019 with revenues exceeding budget and expenditures coming in at budgeted levels. Investment performance is similar to last year’s. The Enterprise Funds