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2020.03 Monthly Budget Report QUARTERLY BUDGET FINANCIAL STATUS UPDATE To: Mayor and Councilmembers From: Noah Crocker, Finance Director Period: First Quarter 2020 (Jan-Mar) 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 for 2020 • Current budget which would reflect any amendments that have been made for 2020 • This Budget report does not include the additional budget authority remaining from 2019 • 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. • The Budget for 2020 will adjust once Finance re-appropriates the 2019 budget surplus to 2020 CASH AND INVESTMENT FUND SUMMARY The Cash and Investment Fund Summary provides information on current total cash & investment balances by Fund. 1.1 POINTS OF INTEREST: Current Expense Fund 001 – The Current Expense Fund is used for the general governmental functions of the City. The first quarter of 2020 is on track for revenue received at 24.53%. The effects of the COVID19 pandemic are not yet visible in these numbers. Future reports will show the effects of the Shelter in Place Order. The table below provides budget versus actual (YTD) data by source of revenue. The table also shows revenue received for the month of March. Real Estate Excise Tax Fund 109 and Impact Mitigation Fee Fund 111 Real Estate Excise Tax receipts fluctuate monthly but are currently trending higher (7.80%) than revenue received in the same time period for 2019. The table below shows biennial balances through March 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 first quarter of 2020 are as follows: McCormick Woods Transportation $50,751, Parks $19,464, Transportation $34,825 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*178,450 99,879 7,577 198,098 657,641 657,681 41,315 2019-2020 Expenses Budgeted (151,043) - (313,285) - (162,914) (1,472,517) (25,000) 2019-2020 Obligated Expenses (465,000) - - (500,000) (458,000) - - 2019-2020 Ending Balance 99,241 144,145 10,766 240,592 724,863 506,974 71,246 *Revenue received includes interest earned Revenue Source 2020 Original Budget 2020 Current Budget 2020 YTD % of Budget Received Received March 2020 Property Tax 1,900,000 1,900,000 112,071 5.90%81,333 Sales Tax 5,085,000 5,085,000 1,361,423 26.77%389,996 Other Taxes 2,125,000 2,125,000 550,299 25.90%88,156 Total Taxes 9,110,000 9,110,000 2,023,793 22.22%559,485 Licenses & Permits 405,300 405,300 130,286 32.15%37,251 Intergovernmental Revenue 226,700 226,700 88,808 39.17%49,994 Charges for Goods & Services 444,800 444,800 175,228 39.39%50,200 Fines & Penalties 179,700 179,700 51,590 28.71%19,459 Misc Revenues 173,800 173,800 112,970 65.00%22,156 Non-Revenues - - 2,588 0.00%1,981 Capital Contributions - - - 0.00%- REVENUE TOTALS 10,540,300 10,540,300 2,585,264 24.53%740,526 Current Expense Fund Revenues Capital Construction Fund 302 – The McCormick Woods Splash Pad and City Hall Door Security improvements have been budgeted for later this year but there has not yet been any activity. 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 March 31st the City has received 23% 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. Operational expenses through March 31st (excluding capital project, Debt or ER&R transfers) are at 30% of the annual budgeted expense. 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 is currently approximately $1.293 million of transfers which have not occurred yet. Sewer operation - Sewer Operational Revenues for the first quarter of 2020 are trending as projected at 24% of the annual budgeted revenue. Operational Sewer expenses (excluding transfers for Capital Projects, ER&R and Debt) are at 22% for the 1st quarter of 2020 leaving 78% of available of the annual budget authority remaining. 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 is currently approximately $900,000 of transfers which have not occurred yet. Storm Drainage operations -As of March 31st the Storm Drainage utility has received 30% of its annual budgeted revenue. Trending slightly higher than projected. Expenses through March 31st for the Storm Drainage Operations Fund (excluding transfers) are at 20%, leaving 80% remaining budget authority through the end of the year. SALES TAX REVENUES SUMMARY • Total 2020 Budget: $5,085,000 • Total 2020 YTD Actuals: $1,361,423 • Year-to-Date Actual revenue collected is 10.60% higher when compared to Year-to Date Budgeted • Year-to-Date Actual revenue collected is 4.00% higher when compared to Prior Year-to Date Actuals The following tables provide additional sales tax information. Table 2: provides current data for sales tax revenue collected Year-to-date. Table 1: shows revenue received by month over a three-year period. 4/9/2020 11:53:02 AM Page 1 of 4 Budget Report City of Port Orchard Group Summary For Fiscal: 2020 Period Ending: 03/31/2020 Fiscal Activity Variance Favorable (Unfavorable) Period ActivityDepartmen… Current Total Budget Original Total Budget Percent Remaining Fund: 001 - Current Expense Revenue 00 - Revenues 2,585,263.76740,526.0510,540,300.00 10,540,300.00 -7,955,036.24 75.47 % 2,585,263.76740,526.0510,540,300.00 10,540,300.00 -7,955,036.24Revenue Total:75.47 % Expense 01 - Finance 208,284.5153,790.99872,500.00 872,500.00 664,215.49 76.13 % 02 - Court 120,554.9536,365.05709,600.00 709,600.00 589,045.05 83.01 % 03 - Law Enforcement 997,290.46343,171.435,368,387.00 5,368,387.00 4,371,096.54 81.42 % 04 - Community Development 294,253.24107,900.641,435,917.00 1,435,917.00 1,141,663.76 79.51 % 05 - Public Works 350,390.3464,201.111,126,771.00 1,126,771.00 776,380.66 68.90 % 06 - Miscellaneous 1,100.00700.00350,000.00 350,000.00 348,900.00 99.69 % 07 - Administration 274,892.8065,015.121,191,018.00 1,191,018.00 916,125.20 76.92 % 2,246,766.30671,144.3411,054,193.00 11,054,193.00 8,807,426.70Expense Total:79.67 % 338,497.4669,381.71-513,893.00 -513,893.00 852,390.46Fund: 001 - Current Expense Surplus (Deficit):165.87 % Fund: 002 - City Street Fund Revenue 00 - Revenues 198,956.0793,936.901,634,000.00 1,634,000.00 -1,435,043.93 87.82 % 198,956.0793,936.901,634,000.00 1,634,000.00 -1,435,043.93Revenue Total:87.82 % Expense 05 - Public Works 268,975.6791,892.981,683,871.00 1,683,871.00 1,414,895.33 84.03 % 268,975.6791,892.981,683,871.00 1,683,871.00 1,414,895.33Expense Total:84.03 % -70,019.602,043.92-49,871.00 -49,871.00 -20,148.60Fund: 002 - City Street Fund Surplus (Deficit):-40.40 % Fund: 003 - Stabilization Fund Revenue 00 - Revenues 4,651.711,472.97200,000.00 200,000.00 -195,348.29 97.67 % 4,651.711,472.97200,000.00 200,000.00 -195,348.29Revenue Total:97.67 % 4,651.711,472.97200,000.00 200,000.00 -195,348.29Fund: 003 - Stabilization Fund Total:97.67 % Fund: 103 - Criminal Justice Revenue 00 - Revenues 82,568.8619,592.87244,700.00 244,700.00 -162,131.14 66.26 % 82,568.8619,592.87244,700.00 244,700.00 -162,131.14Revenue Total:66.26 % Expense 03 - Law Enforcement 37,926.1116,789.15325,686.00 325,686.00 287,759.89 88.36 % 37,926.1116,789.15325,686.00 325,686.00 287,759.89Expense Total:88.36 % 44,642.752,803.72-80,986.00 -80,986.00 125,628.75Fund: 103 - Criminal Justice Surplus (Deficit):155.12 % Fund: 104 - Special Investigative Unit Revenue 00 - Revenues 1,324.48242.404,000.00 4,000.00 -2,675.52 66.89 % 1,324.48242.404,000.00 4,000.00 -2,675.52Revenue Total:66.89 % Expense 03 - Law Enforcement 1,290.808.502,200.00 2,200.00 909.20 41.33 % 1,290.808.502,200.00 2,200.00 909.20Expense Total:41.33 % 33.68233.901,800.00 1,800.00 -1,766.32Fund: 104 - Special Investigative Unit Surplus (Deficit):98.13 % Fund: 107 - Community Events Revenue 00 - Revenues 24,419.846,326.24100,000.00 100,000.00 -75,580.16 75.58 % 24,419.846,326.24100,000.00 100,000.00 -75,580.16Revenue Total:75.58 % Budget Report For Fiscal: 2020 Period Ending: 03/31/2020 4/9/2020 11:53:02 AM Page 2 of 4 Fiscal Activity Variance Favorable (Unfavorable) Period ActivityDepartmen… 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 3,378.343,000.00109,700.00 109,700.00 106,321.66 96.92 % 3,378.343,000.00112,200.00 112,200.00 108,821.66Expense Total:96.99 % 21,041.503,326.24-12,200.00 -12,200.00 33,241.50Fund: 107 - Community Events Surplus (Deficit):272.47 % Fund: 108 - Paths & Trails Revenue 00 - Revenues 338.30117.671,000.00 1,000.00 -661.70 66.17 % 338.30117.671,000.00 1,000.00 -661.70Revenue Total:66.17 % 338.30117.671,000.00 1,000.00 -661.70Fund: 108 - Paths & Trails Total:66.17 % Fund: 109 - Real Estate Excise Tax Revenue 00 - Revenues 208,618.2671,265.54700,000.00 700,000.00 -491,381.74 70.20 % 208,618.2671,265.54700,000.00 700,000.00 -491,381.74Revenue Total:70.20 % Expense 06 - Miscellaneous 35,253.080.000.00 0.00 -35,253.08 0.00 % 35,253.080.000.00 0.00 -35,253.08Expense Total:0.00 % 173,365.1871,265.54700,000.00 700,000.00 -526,634.82Fund: 109 - Real Estate Excise Tax Surplus (Deficit):75.23 % Fund: 111 - Impact Mitigation Fee Revenue 00 - Revenues 112,103.4343,037.96140,000.00 140,000.00 -27,896.57 19.93 % 112,103.4343,037.96140,000.00 140,000.00 -27,896.57Revenue Total:19.93 % Expense 05 - Public Works 0.000.00150,000.00 0.00 0.00 0.00 % 0.000.00150,000.00 0.00 0.00Expense Total:0.00 % 112,103.4343,037.96-10,000.00 140,000.00 -27,896.57Fund: 111 - Impact Mitigation Fee Surplus (Deficit):19.93 % Fund: 411 - Water Operating Revenue 00 - Revenues 781,304.69269,985.313,353,200.00 3,353,200.00 -2,571,895.31 76.70 % 781,304.69269,985.313,353,200.00 3,353,200.00 -2,571,895.31Revenue Total:76.70 % Expense 05 - Public Works 661,736.71217,554.232,785,638.00 2,785,638.00 2,123,901.29 76.24 % 661,736.71217,554.232,785,638.00 2,785,638.00 2,123,901.29Expense Total:76.24 % 119,567.9852,431.08567,562.00 567,562.00 -447,994.02Fund: 411 - Water Operating Surplus (Deficit):78.93 % Fund: 412 - Water Stabilization Revenue 00 - Revenues 395.13111.66290,000.00 290,000.00 -289,604.87 99.86 % 395.13111.66290,000.00 290,000.00 -289,604.87Revenue Total:99.86 % 395.13111.66290,000.00 290,000.00 -289,604.87Fund: 412 - Water Stabilization Total:99.86 % Fund: 414 - Water Debt Service Revenue 00 - Revenues 0.000.0050,000.00 50,000.00 -50,000.00 100.00 % 0.000.0050,000.00 50,000.00 -50,000.00Revenue Total:100.00 % Expense 05 - Public Works 0.000.0050,000.00 50,000.00 50,000.00 100.00 % 0.000.0050,000.00 50,000.00 50,000.00Expense Total:100.00 % 0.000.000.00 0.00 0.00Fund: 414 - Water Debt Service Surplus (Deficit):0.00 % Fund: 421 - Storm Drainage Utility Revenue 00 - Revenues 490,054.70157,305.311,639,500.00 1,639,500.00 -1,149,445.30 70.11 % 490,054.70157,305.311,639,500.00 1,639,500.00 -1,149,445.30Revenue Total:70.11 % Budget Report For Fiscal: 2020 Period Ending: 03/31/2020 4/9/2020 11:53:02 AM Page 3 of 4 Fiscal Activity Variance Favorable (Unfavorable) Period ActivityDepartmen… Current Total Budget Original Total Budget Percent Remaining Expense 05 - Public Works 264,790.0585,871.661,417,956.00 1,417,956.00 1,153,165.95 81.33 % 264,790.0585,871.661,417,956.00 1,417,956.00 1,153,165.95Expense Total:81.33 % 225,264.6571,433.65221,544.00 221,544.00 3,720.65Fund: 421 - Storm Drainage Utility Surplus (Deficit):-1.68 % Fund: 422 - Storm Drainage Stabilization Revenue 00 - Revenues 654.72185.0110,200.00 10,200.00 -9,545.28 93.58 % 654.72185.0110,200.00 10,200.00 -9,545.28Revenue Total:93.58 % 654.72185.0110,200.00 10,200.00 -9,545.28Fund: 422 - Storm Drainage Stabilization Total:93.58 % Fund: 424 - Storm Drainage Debt Service Revenue 00 - Revenues 27,245.090.00176,990.00 176,990.00 -149,744.91 84.61 % 27,245.090.00176,990.00 176,990.00 -149,744.91Revenue Total:84.61 % Expense 05 - Public Works 27,245.090.00176,990.00 176,990.00 149,744.91 84.61 % 27,245.090.00176,990.00 176,990.00 149,744.91Expense Total:84.61 % 0.000.000.00 0.00 0.00Fund: 424 - Storm Drainage Debt Service Surplus (Deficit):0.00 % Fund: 431 - Sewer Operating Revenue 00 - Revenues 1,311,545.52438,862.055,427,400.00 5,427,400.00 -4,115,854.48 75.83 % 1,311,545.52438,862.055,427,400.00 5,427,400.00 -4,115,854.48Revenue Total:75.83 % Expense 05 - Public Works 836,433.81264,324.674,629,788.00 4,629,788.00 3,793,354.19 81.93 % 836,433.81264,324.674,629,788.00 4,629,788.00 3,793,354.19Expense Total:81.93 % 475,111.71174,537.38797,612.00 797,612.00 -322,500.29Fund: 431 - Sewer Operating Surplus (Deficit):40.43 % Fund: 432 - Sewer Stabilization Revenue 00 - Revenues 1,322.78489.7918,400.00 18,400.00 -17,077.22 92.81 % 1,322.78489.7918,400.00 18,400.00 -17,077.22Revenue Total:92.81 % 1,322.78489.7918,400.00 18,400.00 -17,077.22Fund: 432 - Sewer Stabilization Total:92.81 % Fund: 500 - Equipment Rental and Revolving Revenue 00 - Revenues 107,974.5635,422.93753,402.00 753,402.00 -645,427.44 85.67 % 107,974.5635,422.93753,402.00 753,402.00 -645,427.44Revenue Total:85.67 % Expense 10 - ER&R 780,227.66484,052.52370,857.00 370,857.00 -409,370.66 -110.39 % 780,227.66484,052.52370,857.00 370,857.00 -409,370.66Expense Total:-110.39 % -672,253.10-448,629.59382,545.00 382,545.00 -1,054,798.10Fund: 500 - Equipment Rental and Revolving Surplus (Deficit):275.73 % Report Surplus (Deficit): 44,242.61 774,718.282,523,713.00 2,673,713.00 -1,898,994.72 71.02 % 4/9/2020 11:49:00 AM Page 1 of 2 Budget Report City of Port Orchard Group Summary For Fiscal: 2020 Period Ending: 03/31/2020 Fiscal Activity Variance Favorable (Unfavorable) Period ActivityAccount Typ… Current Total Budget Original Total Budget Percent Remaining Fund: 302 - Capital Construction Revenue 521.08265.650.00 0.00 521.08 0.00 % Expense 0.000.00318,000.00 225,000.00 225,000.00 100.00 % 521.08265.65-318,000.00 -225,000.00 225,521.08Fund: 302 - Capital Construction Surplus (Deficit):100.23 % Fund: 304 - Street Capital Projects Revenue 453,128.652,615.04150,000.00 0.00 453,128.65 0.00 % Expense 255,657.57254,447.24592,594.00 360,594.00 104,936.43 29.10 % 197,471.08-251,832.20-442,594.00 -360,594.00 558,065.08Fund: 304 - Street Capital Projects Surplus (Deficit):154.76 % Fund: 413 - Water Capital Revenue 288,554.37165,096.102,562,500.00 2,562,500.00 -2,273,945.63 88.74 % Expense 878,096.11747,318.834,480,500.00 4,495,444.00 3,617,347.89 80.47 % -589,541.74-582,222.73-1,918,000.00 -1,932,944.00 1,343,402.26Fund: 413 - Water Capital Surplus (Deficit):69.50 % Fund: 423 - Storm Drainage Capital Facil Revenue 1,952.86551.840.00 0.00 1,952.86 0.00 % Expense 0.000.00501,640.00 269,703.00 269,703.00 100.00 % 1,952.86551.84-501,640.00 -269,703.00 271,655.86Fund: 423 - Storm Drainage Capital Facil Surplus (Deficit):100.72 % Fund: 433 - Sewer Capital Revenue 129,822.1919,051.842,155,000.00 2,155,000.00 -2,025,177.81 93.98 % Expense 131,414.05121,106.483,772,400.00 4,973,883.00 4,842,468.95 97.36 % -1,591.86-102,054.64-1,617,400.00 -2,818,883.00 2,817,291.14Fund: 433 - Sewer Capital Surplus (Deficit):99.94 % Report Surplus (Deficit): -935,292.08 -391,188.58-4,797,634.00 -5,607,124.00 5,215,935.42 93.02 % Detail ReportDate Range: 01/01/2020 - 03/31/20204/9/2020 12:04:31 PMPage 5 of 5Fund SummaryEnding BalanceBeginning BalanceFund Total Activity001 - Current Expense 5,305,131.045,643,628.50338,497.46002 - City Street Fund 810,626.43740,606.83-70,019.60003 - Stabilization Fund 1,358,179.131,362,830.844,651.71103 - Criminal Justice 350,829.59395,472.3444,642.75104 - Special Investigative Unit 93,804.5393,838.2133.68107 - Community Events 151,872.45172,913.9521,041.50108 - Paths & Trails 9,918.1710,256.47338.30109 - Real Estate Excise Tax 2,456,556.852,629,922.03173,365.18111 - Impact Mitigation Fee 1,760,925.341,873,028.77112,103.43302 - Capital Construction 301,091.23301,612.31521.08304 - Street Capital Projects 2,467,946.322,665,417.40197,471.08401 - Water-Sewer Utilities 0.000.000.00403 - Water-Sewer Cumulative Reserve 0.000.000.00411 - Water Operating 2,206,979.072,326,547.05119,567.98412 - Water Stabilization 101,274.62101,669.75395.13413 - Water Capital 2,364,571.541,775,029.80-589,541.74414 - Water Debt Service 0.000.000.00421 - Storm Drainage Utility 1,546,015.331,771,279.98225,264.65422 - Storm Drainage Stabilization 167,808.03168,462.75654.72423 - Storm Drainage Capital Facil 623,713.61625,666.471,952.86424 - Storm Drainage Debt Service 0.000.000.00431 - Sewer Operating 2,408,208.472,883,320.18475,111.71432 - Sewer Stabilization 444,667.60445,990.381,322.78433 - Sewer Capital 3,012,178.483,010,586.62-1,591.86434 - Sewer Debt Service 0.000.000.00500 - Equipment Rental and Revolving 3,850,310.873,178,057.77-672,253.10631 - Trust and Agency 73.259,348.149,274.89632 - Wastewater Treatment Facil Fee 2,623,740.732,716,956.2293,215.49Grand Total:34,416,422.6834,902,442.76486,020.08