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HomeMy WebLinkAbout2010-07-21 PACKET 04.I.REQUEST OF CITY COUNCIL ACTION COUNCIL AGENDA MEETING ITEM # DATE 7/21/10 PREPARED BY Finance Robin Roland ORIGINATING DEPARTMENT DEPARTMENT HEAD COUNCIL ACTION REQUEST Receive June 30, 2010 financial report. 611fAIZ2 7xK�7��1�1 �1�7_�1[�P►p no action necessary BUDGET IMPLICATION Id0l1010:11 %WTIkTAi[6P1P11 ACTUAL AMOUNT ADVISORY COMMISSION ACTION ❑ PLANNING ❑PUBLIC SAFETY ❑ PUBLIC WORKS ❑ PARKS AND RECREATION ❑ HUMAN SERVICES /RIGHTS ❑ ECONOMIC DEV. AUTHORITY SUPPORTING DOCUMENTS F REVIEWED El El El APPROVED DENIED ❑ ❑ ❑ ❑ ❑ ❑ ❑ ❑ ❑ ❑ ❑ ❑ ❑ ❑ ® MEMO /LETTER: ❑ RESOLUTION: ❑ ORDINANCE: ❑ ENGINEERING RECOMMENDATION: ❑ LEGAL RECOMMENDATION: ® OTHER: Financial analysis reports - General, Special Revenue and Enterprise Funds ADMINISTRATORS COMMENTS QS )(,A ` i0 City Administrator Date * * * * * * * * * * * * * * * W W W W * W W * W * W W W W W W W * W * W * * * * * * * * * * * * COUNCIL ACTION TAKEN: [ ❑ DENIED ® 'OTHER A /1 H1Council items \City Council Action Form.doc City of Cottage Grove ri1 Finance Department TO: Honorable Mayor and City Council Ryan Schroeder, City Administrator FROM: Robin Roland, Finance Director+ DATE: July 15, 2010 RE: June 30, 2010 Financial Report Introduction Attached are financial reports giving budget to actual analysis for the General Fund, Special Revenue and Enterprise funds for the six months ended June 30, 2010 with comparison data for the same period in 2009. Discussion General Fund The budget to actual analysis is presented with Revenues by type and Expenditures by division. As is normal for the June 30 financial report, total revenues are significantly less than 50% received for the year, as the property tax settlement from the County does not arrive until the first week in July. Other revenue sources including permits and charges for services are close to the 50% anticipated for the half way point in the year. Investment income currently exceeds our total annual budgeted amount due to stronger than anticipated revenues which exceed the conservative budget for this line item. Total General Fund expenditures are at 45.87% through June 30 4% less than the expected 50 %. The "% of budget" column should be used to evaluate how each division is doing at the mid -point of the year. Some divisions, such as City Clerk, will see a greater expense in the second half of the year (with elections) and should therefore be at significantly less than the 50 %. Other divisions, such as Legal /Assessing and Forestry, may be over the 50% due to fees or charges which are paid in full for the entire year in a lump sum early on (and not amortized each month). Please note that the Engineering division has not yet been adjusted this year to apply the appropriate wage costs to non - General fund projects. This adjustment has been done quarterly in the past (as reflected in the 2009 comparison numbers) but has not been done yet this year. When the allocation of wages and benefits to projects is done, the division expense (and total General Fund expenditures) will be reduced to within budgeted levels. Honorable Mayor, City Council, and Ryan Schroeder Page 2 of 2 Special Revenue Funds The Special Revenue Funds are presented as total revenues by fund and total expenditures by fund, exclusive of transfers in or out. Due to their nature, Special Revenue Funds are less predictable than the General fund. An assumption that at the half way point in the year revenues or expenditures should also be at 50% would be inaccurate. For example, the Sealcoating fund relies on Franchise fees as revenue, which are paid quarterly and which have not yet been received for the second quarter of 2010. As a result, the Sealcoat fund only reflects that 21% of its budgeted revenues have been received. Enterprise Funds The Enterprise Funds are presented as total revenues by fund and total expenditures by fund, exclusive of transfers in or out. Enterprise funds are less volatile than Special Revenue funds and because they do not depend on property taxes as a source of revenue, the assumption can be made that the percentage of revenues received and expenditures expended should be closely related to the percentage of time elapsed in the year. The only exception to this would be the Golf Course fund which is of a more seasonal nature. As Enterprise funds are those operations most comparable to a business, each fund should be evaluated based on where revenues are in relation to expenses in that fund. For example, at June 30 the EMS fund shows $581,727 in revenues and $451,542 in expenses, reflecting a positive position. More detailed information on any of the funds operations is available from the Finance department upon request. Requested Action For information only. 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