08-14-2023 Council Packet - Laserfiche WebLink

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To: Mayor and Council From: Ron Olson, Finance Director Subject: Budget Update Date: August 14, 2023 Attachments: 1. Revenue Summary 2.Revenue Detail 3.Revenue Graphs/Tables 4. Expenditure Summary 5. Expenditure Detail The second quarter General Fund year to date budget to actual comparisons are included with this memo. They are as of the end of March which represents 50.0% of the year. Revenues are currently at 56.8% of budget with expenditures at 50.8% of budget. General Fund Revenues Revenues are on target to finish the year at budgeted levels. The largest General Fund revenue is the property tax levy representing 51.5% of the revenue budget. Tax collections are at 50% and should finish the year at 100% of budget. Charges for service are currently at 72.5% of budget, this revenue line will also finish the year at 100% of budget. Other Governmental is only at 33.7% at this time, but Police State Aid is not received until October; this category will likely be at budget by year end. The Golf Course is at 51.7% with two of the season’s busiest months left. It is on pace to set a record for revenues. A revenue graph is included with this memo to illustrate revenue timing. General Fund Expenditures At 56.8%, the overall expenditure amounts are running a little high at this point of the year. Wages for the first week of July are included in the data so there is an extra week of wage expenditures being reported. There a few departments that are tracking over budget. The first is Mayor Council. The department is currently at 60.9% for the year. Most of this is due to the fact that memberships in organizations like the League of Minnesota Cities and the Suburban Rate Authority are already paid in full for the year. However, additional training expenditures will bring the department over budget for the year. The Fire Department will finish the year over budget, some of this is due to costs of standing up the Orono Fire Department. A majority will be from the $46,000 overage in last year’s LL Fire budget. Engineering is already over budget for the year as GIS expenditures continue to be higher than budgeted. Because this is a small department, it will not have a major impact on the overall budget. Four other departments are trending over budget and this time and exceed budget at year end. One of the departments is Law and Legal services which is being driven over budget by an unusual number of lawsuits. Central Service is also trending over budget and will need to be