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FY2017 3rd Qtr Financial Summary Date: April 19, 2017 To: City Manager, City Council From: Dennis Bockenstedt, Finance Director Re: Quarterly Financial Summary for Period Ending March 31, 2017 Introduction Attached to this memorandum are the City’s quarterly financial reports as of March 31, 2017. The quarterly financial report includes combined summaries of all fund balances, revenues, and expenditures for Fiscal Year 2017 through the end of the third quarter, which is 75% of the way through the fiscal year. The March quarterly report also incorporates the budget amendments that were approved during the Fiscal Year 2018 budget process. Some of the highlights of the City’s financial activity are discussed below. Revenue Analysis This revenue analysis pertains to the revenue reports, Revenues by Fund and Revenues by Type, on pages 4-6. In these two reports, the actual revenues would ideally be near 75% of budget since we have completed three-fourths of the fiscal year; however, due to accruals and timing differences, many of these percentages may be above or below 75%. On page 5, in the report, Revenues by Type, there are a few revenue items worth noting. Under Licenses, Permits, & Fees, construction permits and inspection fee revenue is already at 146.6% of budget and under Charges for Fees & Services, Building & Development fees are at 136.3% of budget. These revenue totals include construction from last summer and fall, and they are a good indicator of the amount of construction activity underway. On the other hand, property tax revenue is at 57% of budget and reflects the timing of the property tax receipts. The second half property taxes are due in April and should increase this percentage substantially. Also, on page 6, under Other Financing Sources, Debt Sales revenue is at 54.9% of budget. We are currently preparing to sell the 2017 general obligation bonds and the 2017 sewer and water revenue bonds which will bring this revenue source up to 100% of budget. On page 4, in the report, Revenues by Fund, there are also a few revenue items worth noting. One such fund is the Mass Transit Fund; Mass Transit Fund revenues are only at 28.5% of budget due to the timing of the receipt of the Federal subsidy. By the end of the fiscal year, roughly $1.4 million is expected to be received from the Federal government which will raise the actual versus budget percentage considerably. In addition, CDBG Fund and Home Fund revenues are at 37.1% and 20.9%, respectively. These funds’ revenues are below budget primarily due to the timing of the grant activity. These percentages could change quickly depending on when the Federal funds are received. As of March 31, the combined total actual revenue for all budgetary funds is $112,916,466 or 61.9% of budget. Overall, the City’s revenues are not substantially different than projected, and the anomalies and budget variances can be explained. Expenditure Analysis This expenditure analysis pertains to the expenditure reports, Expenditures by Fund and Expenditures by Fund by Department on pages 7-9. The analysis of the City’s expenditures for Fiscal Year 2017 through March is similar to the analysis for the City’s revenues. We generally expect the actual expenditure levels to be around 75% of budget at this time of year. 1 2 3 4 5 6 7 8 9