02-12-2024 CC Agenda Packet - Laserfiche WebLink

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Fourth Quarter Financial Report February 7, 2024 Page 2 of 2 General Fund Expenditures General Fund expenditures are at 102.54% of the budget. Expenditure numbers could change slightly as audit preparation is underway. There are many departments that are over budget. The first is Mayor Council. The department is currently at 106.23% for the year. Additional training expenditures have resulted in the department being slightly over budget for the year. The Fire Department is finishing the year overbudget, with approximately $30,000 for the costs of starting up the Orono Fire Department and the remaining $46,000 is due to overage in 2022’s Long Lake fire service cost. Engineering is over budget for the year as GIS expenditures continue to be higher than budgeted. Because engineering is a small department, it will not have a major impact on the overall budget. Other departments trending over budget and will may exceed budget at year end. Law and Legal Services is being driven over budget by an unusual number of lawsuits against the City. Central Service is also over budget due to higher rates for monthly recurring bills, such as electricity, gas and telephone. Building and Zoning is slightly overbudget with unanticipated expenses due to cannabis mapping, Spruce Place and Navarre parking lot survey and cost associated to staff turnover. Public Works – SP has had a change in the allocation of payroll to accurately account for staff time. Expenditures are reimbursed by Spring Park and is offset by the Charges for Service revenue. Parks department is overbudget by approximately $5,573 due to Engineering consulting on Hackberry project, lake access marking and pickleball master plan offset by not hiring temporary or seasonal employees for the year. Lastly, Special Services is overbudget. This is related to greater participation of Toward Zero Deaths project in the police department and is offset by the increased revenue. Enterprise Fund The Enterprise Funds resulted in 2023 operating with a profit for all funds: Water, Sewer, Recycling, Golf Course, Cable, Stormwater. The net income may change as audit preparation is in progress. This is on trend as Enterprise Funds are financed and operated from the fees and charges designed to cover its cost, which includes potential years of net loss or any future improvements needed to maintain and sustain the systems. Summary In summary, while there are departments that have exceeded budget for the year, the overall General Fund has a positive net income with revenue exceeding budget, even more so once interest is allocated. 211