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2020.06 Monthly Budget ReportMONTHLY BUDGET FINANCIAL STATUS UPDATE To: Mayor and Councilmembers From: Noah Crocker, Finance Director Period: June 2020 OVERVIEW: The Finance Department is committed to providing clear information to the Mayor, Council and staff regarding the budget status of the City. We have prepared the following reports to keep you up to date on the current budget status of the City. 1)Budget Report 2)Detail Fund Summary Report BUDGET REPORT: The Budget report will first provide Operational Funds and follow up with Capital Projects Funds. This report does not include beginning fund balance. This report is designed to provide a high-level view of each fund reviewing total revenues and expenses. The report does provide expense information by department. The goal of the City is to pay all current budget year expenses with current budget year revenues. We are not quite there yet, and this will show in the Surplus (Deficit) line at the end of each fund. We expect that future budget cycles will smooth out revenues and expenditures. The Budget Report provides information on current revenues and expenditures by fund including the following: •The original budgeted amount. •Current budget which would reflect any amendments that have been made. •Period activity which details the revenue and expense activity for the period in which the report was run. •Fiscal activity will provide the year to date expense and revenue amounts •Variance Shows the difference between budgeted and actual. •Percent remaining is the amount still needed to reach the budgeted amount. CASH AND INVESTMENT FUND SUMMARY The Cash and Investment Fund Summary provides information on current total cash & investment balances by Fund. Page 1 of 10 POINTS OF INTEREST: Current Expense Fund 001 – The Current Expense Fund is used for the general governmental functions of the City. The revenues received through June 2020 are trending just above budgeted at 54.86%. The effects of the COVID19 pandemic had little effect on June Revenues. Future reports will show what effects the COVID19 Pandemic may have on the City’s Current Expense Fund Revenues. The table provides budget versus actual (YTD) data by source of revenue. The table also shows revenue received for the month of June. SALES TAX REVENUES SUMMARY •Total 2020 Budget:$5,085,000 •Total 2020 YTD Actuals:$2,568,224 •Year-to-Date Actual revenue collected is 6.60% higher when compared to Year-to Date Budgeted •Year-to-Date Actual revenue collected is 2.64% higher when compared to Prior Year-to Date Actuals The following tables provide additional sales tax information. Table 1: shows revenue received by month over a three-year period. Revenue Source 2020 Original Budget 2020 Current Budget 2020 YTD % of Budget Received Received June 2020 Property Tax 1,900,000 1,900,000 1,013,199 53.33%36,872 Sales Tax 5,085,000 5,085,000 2,568,224 50.51%431,044 Other Taxes 2,125,000 2,125,000 1,167,501 54.94%103,435 Total Taxes 9,110,000 9,110,000 4,748,924 52.13% 571,351 Licenses & Permits 405,300 405,300 304,302 75.08%67,055 Intergovernmental Revenue 226,700 226,700 153,323 67.63%42,185 Charges for Goods & Services 444,800 444,800 335,181 75.36%61,732 Fines & Penalties 179,700 179,700 90,074 50.12%14,133 Misc Revenues 173,800 173,800 142,707 82.11%14,480 Non-Revenues - - 3,114 0.00%(1,316) Capital Contributions - - 5,000 0.00%- REVENUE TOTALS 10,540,300 10,540,300 5,782,625 54.86%769,620 Current Expense Fund Revenues Page 2 of 10 Real Estate Excise Tax (REET) Fund 109 and Impact Mitigation Fee Fund 111 Real Estate Excise Tax receipts fluctuate monthly but are currently trending lower (-12.33%) than revenue received in the same time-period for 2019. This may be due to the COVID19 pandemic. While REET is trending lower than 2019 actuals, it is still coming in above what was projected for the 2020 budget year. The table below shows biennial balances through June 2020 for REET 1 & 2 and Impact fees. These restricted funds are used as a local funding source for capital projects that have been documented in the City’s comprehensive plans. REET funds are also used for debt payments. The table shows 2019 beginning fund balances, biennial revenue received, expenses budgeted for the biennium and expenses which are obligated for future projects but have not yet been officially budgeted. The intent of this table is to snapshot and illustrate available balances and what is projected for the end of the biennium. This table includes project cost revisions which were approved as part of the mid biennial review amendment Ordinance # 044-19, adopted by Council on October 22, 2019. Impact Fees received for the June are as follows: McCormick Woods Transportation $29,244, Parks $12,879, Transportation $13,608. REET revenues received in June: REET 1 received $55,091, REET 2 received $55,091. Impact Fees REET Recreation Reserve MW Transport Impact Parks Impact Bayside Plat SEPA Transportation REET 1 REET 2 Recreation Reserve (001) Admissions 2019-2020 Beginning Balance 536,834 44,266 316,474 542,494 688,136 1,321,810 54,930 2019-2020 Revenue Received*244,574 133,543 7,061 407,261 764,885 764,926 63,182 2019-2020 Expenses Budgeted (51,043) (100,000) (313,285) - (162,914) (1,472,517) (25,000) 2019-2020 Obligated Expenses (420,000) (50,000) - (700,000) (458,000) - - 2019-2020 Ending Balance 310,365 27,809 10,250 249,755 832,108 614,219 93,112 *Revenue received includes interest earned Table 2: provides current data for sales tax revenue collected Year-to-date. Page 3 of 10 Capital Construction Fund 302 – The McCormick Woods Splash Pad is budgeted for later this year but there has not yet been any activity -No Change Street Capital Construction Fund 304 – Public Works is continuing to work to close out the Tremont Widening Project. The Bay Street Pedestrian Path Right of Way efforts are ongoing. – No change ENTERPRISE/UTILITY FUNDS: Water operation - Water operations budgeted revenues in the amount of $3,353,200 for 2020. Through June the City has received 47.32% of the annual budgeted revenues. Revenues for the Water utility, in winter and spring, are typically lower with larger monthly revenues received during the warmer summer and fall months. Revenues received in June are for the Apr-May cycle. Future months will show the impact that COVID19 may have on our Water Utility revenues. Operational expenses through the end of June are at 31.14% of the annual budgeted amount for 2020. The water operational expense budget also includes transfers which have not yet been executed. The City manages its transfers according to when the anticipated expenses are to occur in the Water Capital Project, Debt or ER&R fund. Thus, there are currently approximately $1.541 million of transfers budgeted in 2019-2020 which have not occurred yet. Page 4 of 10 Sewer operation - Sewer Operational Revenues received for the period ending June 2020 are trending at 50.63% of the annual budgeted revenue. Operational Sewer expenses are at 27.39% for the period ending June 2020 leaving 72.61% of available annual budget authority to be used in the remaining months of 2020. The sewer operational expense budget also includes transfers which have not yet been executed. The City manages its transfers according to when the anticipated expenses are to occur in the Sewer Capital Project, Debt or ER&R fund. Thus, there are currently approximately $2.295 million of transfers budgeted in 2019-2020 which have not occurred yet. Storm Drainage operations -As of June 30th the Storm Drainage utility has received 55.97% of its annual budgeted revenue. Trending slightly higher than projected. Expenses through June 30th for the Storm Drainage Operations Fund are at 37.81%, leaving 62.19% remaining budget authority through the end of the year. The storm drainage operational expense budget also includes transfers which have not yet been executed. The City manages its transfers according to when the anticipated expenses are to occur in the Storm Drainage Capital Project, Debt or ER&R fund. Thus, there is currently approximately $268,000 of transfers budgeted in 2019-2020 which have not occurred yet. Page 5 of 10 7/13/2020 10:35:41 AM Page 1 of 4 Budget Report City of Port Orchard Group Summary For Fiscal: 2020 Period Ending: 06/30/2020 Fiscal Activity Variance Favorable (Unfavorable) Period Activity Current Total Budget Original Total Budget Percent RemainingDepartment Fund: 001 - Current Expense Revenue 00 - Revenues 5,782,625.30769,619.9910,540,300.00 10,540,300.00 -4,757,674.70 45.14 % 5,782,625.30769,619.9910,540,300.00 10,540,300.00 -4,757,674.70Revenue Total:45.14 % Expense 01 - Finance 417,900.0081,496.47872,500.00 872,500.00 454,600.00 52.10 % 02 - Court 255,457.1739,304.92709,600.00 722,141.00 466,683.83 64.63 % 03 - Law Enforcement 2,088,309.99318,309.855,368,387.00 5,268,387.00 3,180,077.01 60.36 % 04 - Community Development 675,382.66138,310.641,435,917.00 1,641,917.00 966,534.34 58.87 % 05 - Public Works 579,977.4864,044.741,126,771.00 1,226,771.00 646,793.52 52.72 % 06 - Miscellaneous 1,175.000.00350,000.00 1,211,853.00 1,210,678.00 99.90 % 07 - Administration 524,936.0969,108.611,521,018.00 1,191,018.00 666,081.91 55.93 % 4,543,138.39710,575.2311,384,193.00 12,134,587.00 7,591,448.61Expense Total:62.56 % 1,239,486.9159,044.76-843,893.00 -1,594,287.00 2,833,773.91Fund: 001 - Current Expense Surplus (Deficit):177.75 % Fund: 002 - City Street Fund Revenue 00 - Revenues 805,892.6864,954.941,634,000.00 1,904,000.00 -1,098,107.32 57.67 % 805,892.6864,954.941,634,000.00 1,904,000.00 -1,098,107.32Revenue Total:57.67 % Expense 05 - Public Works 561,756.2986,840.801,683,871.00 1,748,871.00 1,187,114.71 67.88 % 561,756.2986,840.801,683,871.00 1,748,871.00 1,187,114.71Expense Total:67.88 % 244,136.39-21,885.86-49,871.00 155,129.00 89,007.39Fund: 002 - City Street Fund Surplus (Deficit):-57.38 % Fund: 003 - Stabilization Fund Revenue 00 - Revenues 6,531.95411.21200,000.00 766,853.00 -760,321.05 99.15 % 6,531.95411.21200,000.00 766,853.00 -760,321.05Revenue Total:99.15 % 6,531.95411.21200,000.00 766,853.00 -760,321.05Fund: 003 - Stabilization Fund Total:99.15 % Fund: 103 - Criminal Justice Revenue 00 - Revenues 151,278.1918,343.08244,700.00 244,700.00 -93,421.81 38.18 % 151,278.1918,343.08244,700.00 244,700.00 -93,421.81Revenue Total:38.18 % Expense 03 - Law Enforcement 73,784.9311,403.75325,686.00 325,686.00 251,901.07 77.34 % 73,784.9311,403.75325,686.00 325,686.00 251,901.07Expense Total:77.34 % 77,493.266,939.33-80,986.00 -80,986.00 158,479.26Fund: 103 - Criminal Justice Surplus (Deficit):195.69 % Fund: 104 - Special Investigative Unit Revenue 00 - Revenues 2,726.89268.464,000.00 4,000.00 -1,273.11 31.83 % 2,726.89268.464,000.00 4,000.00 -1,273.11Revenue Total:31.83 % Expense 03 - Law Enforcement 1,325.0811.082,200.00 3,436.00 2,110.92 61.44 % 1,325.0811.082,200.00 3,436.00 2,110.92Expense Total:61.44 % 1,401.81257.381,800.00 564.00 837.81Fund: 104 - Special Investigative Unit Surplus (Deficit):-148.55 % Fund: 107 - Community Events Revenue 00 - Revenues 46,305.494,686.85100,000.00 100,000.00 -53,694.51 53.69 % 46,305.494,686.85100,000.00 100,000.00 -53,694.51Revenue Total:53.69 % Operations______________________________________________________________________________________________________________________________________________________ Page 6 of 10 Budget Report For Fiscal: 2020 Period Ending: 06/30/2020 7/13/2020 10:35:41 AM Fiscal Activity Variance Favorable (Unfavorable) Period ActivityDepartment Current Total Budget Original Total Budget Percent Remaining Expense 01 - Finance 0.000.002,500.00 2,500.00 2,500.00 100.00 % 07 - Administration 7,878.341,500.00109,700.00 109,700.00 101,821.66 92.82 % 7,878.341,500.00112,200.00 112,200.00 104,321.66Expense Total:92.98 % 38,427.153,186.85-12,200.00 -12,200.00 50,627.15Fund: 107 - Community Events Surplus (Deficit):414.98 % Fund: 108 - Paths & Trails Revenue 00 - Revenues 582.0784.511,000.00 1,000.00 -417.93 41.79 % 582.0784.511,000.00 1,000.00 -417.93Revenue Total:41.79 % 582.0784.511,000.00 1,000.00 -417.93Fund: 108 - Paths & Trails Total:41.79 % Fund: 109 - Real Estate Excise Tax Revenue 00 - Revenues 423,107.99111,846.97700,000.00 700,000.00 -276,892.01 39.56 % 423,107.99111,846.97700,000.00 700,000.00 -276,892.01Revenue Total:39.56 % Expense 06 - Miscellaneous 35,253.080.000.00 977,600.00 942,346.92 96.39 % 35,253.080.000.00 977,600.00 942,346.92Expense Total:96.39 % 387,854.91111,846.97700,000.00 -277,600.00 665,454.91Fund: 109 - Real Estate Excise Tax Surplus (Deficit):239.72 % Fund: 111 - Impact Mitigation Fee Revenue 00 - Revenues 420,537.9856,713.42140,000.00 140,000.00 280,537.98 200.38 % 420,537.9856,713.42140,000.00 140,000.00 280,537.98Revenue Total:200.38 % Expense 05 - Public Works 0.000.00150,000.00 468,285.00 468,285.00 100.00 % 0.000.00150,000.00 468,285.00 468,285.00Expense Total:100.00 % 420,537.9856,713.42-10,000.00 -328,285.00 748,822.98Fund: 111 - Impact Mitigation Fee Surplus (Deficit):228.10 % Fund: 206 - Bond Redemption Fund Revenue 00 - Revenues 35,253.080.000.00 298,006.00 -262,752.92 88.17 % 35,253.080.000.00 298,006.00 -262,752.92Revenue Total:88.17 % Expense 06 - Miscellaneous 35,253.070.00298,007.00 298,007.00 262,753.93 88.17 % 35,253.070.00298,007.00 298,007.00 262,753.93Expense Total:88.17 % 0.010.00-298,007.00 -1.00 1.01Fund: 206 - Bond Redemption Fund Surplus (Deficit):101.00 % Fund: 411 - Water Operating Revenue 00 - Revenues 1,586,670.75283,941.123,353,200.00 3,353,200.00 -1,766,529.25 52.68 % 1,586,670.75283,941.123,353,200.00 3,353,200.00 -1,766,529.25Revenue Total:52.68 % Expense 05 - Public Works 1,163,408.57147,275.292,785,638.00 3,735,638.00 2,572,229.43 68.86 % 1,163,408.57147,275.292,785,638.00 3,735,638.00 2,572,229.43Expense Total:68.86 % 423,262.18136,665.83567,562.00 -382,438.00 805,700.18Fund: 411 - Water Operating Surplus (Deficit):210.67 % Fund: 412 - Water Stabilization Revenue 00 - Revenues 537.1030.93290,000.00 290,000.00 -289,462.90 99.81 % 537.1030.93290,000.00 290,000.00 -289,462.90Revenue Total:99.81 % 537.1030.93290,000.00 290,000.00 -289,462.90Fund: 412 - Water Stabilization Total:99.81 % Fund: 414 - Water Debt Service Revenue 00 - Revenues 8,075.000.0050,000.00 50,000.00 -41,925.00 83.85 % 8,075.000.0050,000.00 50,000.00 -41,925.00Revenue Total:83.85 % Page 7 of 10 Budget Report For Fiscal: 2020 Period Ending: 06/30/2020 7/13/2020 10:35:41 AM Fiscal Activity Variance Favorable (Unfavorable) Period ActivityDepartment Current Total Budget Original Total Budget Percent Remaining Expense 05 - Public Works 8,075.000.0050,000.00 50,000.00 41,925.00 83.85 % 8,075.000.0050,000.00 50,000.00 41,925.00Expense Total:83.85 % 0.000.000.00 0.00 0.00Fund: 414 - Water Debt Service Surplus (Deficit):0.00 % Fund: 421 - Storm Drainage Utility Revenue 00 - Revenues 917,650.31135,799.521,639,500.00 1,639,500.00 -721,849.69 44.03 % 917,650.31135,799.521,639,500.00 1,639,500.00 -721,849.69Revenue Total:44.03 % Expense 05 - Public Works 536,122.1889,634.451,417,956.00 1,417,956.00 881,833.82 62.19 % 536,122.1889,634.451,417,956.00 1,417,956.00 881,833.82Expense Total:62.19 % 381,528.1346,165.07221,544.00 221,544.00 159,984.13Fund: 421 - Storm Drainage Utility Surplus (Deficit):-72.21 % Fund: 422 - Storm Drainage Stabilization Revenue 00 - Revenues 889.9551.2510,200.00 10,200.00 -9,310.05 91.28 % 889.9551.2510,200.00 10,200.00 -9,310.05Revenue Total:91.28 % 889.9551.2510,200.00 10,200.00 -9,310.05Fund: 422 - Storm Drainage Stabilization Total:91.28 % Fund: 424 - Storm Drainage Debt Service Revenue 00 - Revenues 35,507.758,262.66176,990.00 176,990.00 -141,482.25 79.94 % 35,507.758,262.66176,990.00 176,990.00 -141,482.25Revenue Total:79.94 % Expense 05 - Public Works 35,507.758,262.66176,990.00 176,990.00 141,482.25 79.94 % 35,507.758,262.66176,990.00 176,990.00 141,482.25Expense Total:79.94 % 0.000.000.00 0.00 0.00Fund: 424 - Storm Drainage Debt Service Surplus (Deficit):0.00 % Fund: 431 - Sewer Operating Revenue 00 - Revenues 2,753,495.03487,960.455,427,400.00 5,427,400.00 -2,673,904.97 49.27 % 2,753,495.03487,960.455,427,400.00 5,427,400.00 -2,673,904.97Revenue Total:49.27 % Expense 05 - Public Works 1,651,004.66262,579.314,629,788.00 6,028,517.00 4,377,512.34 72.61 % 1,651,004.66262,579.314,629,788.00 6,028,517.00 4,377,512.34Expense Total:72.61 % 1,102,490.37225,381.14797,612.00 -601,117.00 1,703,607.37Fund: 431 - Sewer Operating Surplus (Deficit):283.41 % Fund: 432 - Sewer Stabilization Revenue 00 - Revenues 1,945.55135.6818,400.00 165,475.00 -163,529.45 98.82 % 1,945.55135.6818,400.00 165,475.00 -163,529.45Revenue Total:98.82 % 1,945.55135.6818,400.00 165,475.00 -163,529.45Fund: 432 - Sewer Stabilization Total:98.82 % Fund: 500 - Equipment Rental and Revolving Revenue 00 - Revenues 188,228.3233,118.84753,402.00 732,697.00 -544,468.68 74.31 % 188,228.3233,118.84753,402.00 732,697.00 -544,468.68Revenue Total:74.31 % Expense 10 - ER&R 892,777.3723,044.62370,857.00 1,128,357.00 235,579.63 20.88 % 892,777.3723,044.62370,857.00 1,128,357.00 235,579.63Expense Total:20.88 % -704,549.0510,074.22382,545.00 -395,660.00 -308,889.05Fund: 500 - Equipment Rental and Revolving Surplus (Deficit):-78.07 % Report Surplus (Deficit):635,102.69 3,622,556.671,895,706.00 -2,061,809.00 5,684,365.67 275.70 % Page 8 of 10 7/13/2020 10:30:43 AM Budget Report City of Port Orchard Group Summary For Fiscal: 2020 Period Ending: 06/30/2020 Fiscal Activity Variance Favorable (Unfavorable) Period ActivityAccount Typ… Current Total Budget Original Total Budget Percent Remaining Fund: 302 - Capital Construction Revenue 859.5173.840.00 127,263.00 -126,403.49 99.32 % Expense 1,399.73788.61318,000.00 436,215.00 434,815.27 99.68 % -540.22-714.77-318,000.00 -308,952.00 308,411.78Fund: 302 - Capital Construction Surplus (Deficit):99.83 % Fund: 304 - Street Capital Projects Revenue 458,529.511,746.91150,000.00 990,616.00 -532,086.49 53.71 % Expense 263,741.183,293.13592,594.00 360,594.00 96,852.82 26.86 % 194,788.33-1,546.22-442,594.00 630,022.00 -435,233.67Fund: 304 - Street Capital Projects Surplus (Deficit):69.08 % Fund: 413 - Water Capital Revenue 1,316,427.3677,825.102,562,500.00 3,512,500.00 -2,196,072.64 62.52 % Expense 1,531,790.9596,944.054,480,500.00 4,495,444.00 2,963,653.05 65.93 % -215,363.59-19,118.95-1,918,000.00 -982,944.00 767,580.41Fund: 413 - Water Capital Surplus (Deficit):78.09 % Fund: 423 - Storm Drainage Capital Facil Revenue 2,654.51152.870.00 0.00 2,654.51 0.00 % Expense 0.000.00501,640.00 269,703.00 269,703.00 100.00 % 2,654.51152.87-501,640.00 -269,703.00 272,357.51Fund: 423 - Storm Drainage Capital Facil Surplus (Deficit):100.98 % Fund: 433 - Sewer Capital Revenue 347,355.0468,622.052,155,000.00 3,406,654.00 -3,059,298.96 89.80 % Expense 917,998.83408,508.083,772,400.00 4,973,883.00 4,055,884.17 81.54 % -570,643.79-339,886.03-1,617,400.00 -1,567,229.00 996,585.21Fund: 433 - Sewer Capital Surplus (Deficit):63.59 % Report Surplus (Deficit):-361,113.10 -589,104.76-4,797,634.00 -2,498,806.00 1,909,701.24 76.42 % Capital Projects___________________________________________________________________________________________________________________ Page 9 of 10 Detail Report Date Range: 06/01/2020 - 06/30/2020 7/13/2020 4:14:03 PM Fund Summary Ending BalanceBeginning BalanceFund Total Activity 001 - Current Expense 6,486,087.36 6,545,132.1259,044.76 002 - City Street Fund 1,076,648.68 1,054,762.82-21,885.86 003 - Stabilization Fund 1,364,852.60 1,365,263.81411.21 103 - Criminal Justice 420,830.79 427,770.126,939.33 104 - Special Investigative Unit 94,948.96 95,206.34257.38 107 - Community Events 187,112.75 190,299.603,186.85 108 - Paths & Trails 10,415.73 10,500.2484.51 109 - Real Estate Excise Tax 2,732,564.79 2,844,411.76111,846.97 111 - Impact Mitigation Fee 2,124,749.90 2,181,463.3256,713.42 206 - Bond Redemption Fund 0.01 0.010.00 302 - Capital Construction 301,265.78 300,551.01-714.77 304 - Street Capital Projects 2,664,280.87 2,662,734.65-1,546.22 401 - Water-Sewer Utilities 0.00 0.000.00 403 - Water-Sewer Cumulative Reserve 0.00 0.000.00 411 - Water Operating 2,484,983.17 2,621,649.00136,665.83 412 - Water Stabilization 101,780.79 101,811.7230.93 413 - Water Capital 2,168,326.90 2,149,207.95-19,118.95 414 - Water Debt Service 0.00 0.000.00 421 - Storm Drainage Utility 1,871,651.72 1,917,816.7946,165.07 422 - Storm Drainage Stabilization 168,646.73 168,697.9851.25 423 - Storm Drainage Capital Facil 626,215.25 626,368.12152.87 424 - Storm Drainage Debt Service 0.00 0.000.00 431 - Sewer Operating 3,303,636.62 3,529,017.76225,381.14 432 - Sewer Stabilization 446,477.47 446,613.15135.68 433 - Sewer Capital 2,781,420.72 2,441,534.69-339,886.03 434 - Sewer Debt Service 0.00 0.000.00 500 - Equipment Rental and Revolving 3,135,687.60 3,145,761.8210,074.22 631 - Trust and Agency 8,381.81 9,702.101,320.29 632 - Wastewater Treatment Facil Fee 2,821,353.84 2,669,338.88-152,014.96 Grand Total:37,382,320.84 37,505,615.76123,294.92 Cash & Investment Summary ________________________________________________________________________________________________________________________________________________________________________ Page 10 of 10