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To: Mayor and Council <br />From: Ron Olson, Finance Director <br />Subject: Budget Update <br />Date: April 24, 2023 <br />Attachments: <br />1. Revenue Summary <br />2.Revenue Detail <br />3.Revenue Graphs/Tables <br />4. Expenditure Summary <br />5. Expenditure Detail <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 March which represents 25% of the year. Revenues are <br />currently at 13.3% of budget with expenditures at 22.4% of budget. <br />General Fund Revenues <br />The low revenue percentage is normal for the first quarter. The timing of revenue streams <br />account for the low revenue percentage for the quarter. The first property tax receipts, <br />representing 51.5% of the budget, will not be received until June. Various state grants (Other <br />Governmental) will also not be received until later in the year. A revenue graph is included to <br />illustrate the typically low 1st quarter revenues. <br />General Fund Expenditures <br />At 22.4%, the overall expenditure amounts are on target for the year. Although some <br />adjustments have been made, the expenditure statement should be view as non-adjusted. There a <br />few departments that are tracking over budget. The first is Mayor Council. The department is <br />currently at 44.8% for the year. Most of this is due to the fact that memberships in organizations <br />like the League of Minnesota Cities and the Suburban Rate Authority are already paid in full for <br />the year. One other line that is at 100% of budget is the line for training. There has been a <br />higher-than-normal utilization of trainings available to the Council. This is a relatively small <br />departmental budget so additional trainings will lead to the budget being exceeded for the year. <br />Training lines in other departments could be utilized to cover these expenses. <br />Another department tracking over budget is for Law and Legal Services. This is the result of a <br />number of lawsuits, primarily a MERA claim that has cost a total of $80,000 to date. Staff is <br />considering recoding these expenses to the insurance fund as a way to keep the department at <br />budgeted levels for the year. <br />The fire department will be over budget for the year. This is the result an unexpected bill in the <br />amount of $46,010 for our share of the department overage in 2022. This follows a overage <br />billing of $15,000 for 2021 services.