2021.07 Monthly Budget ReportO R
ORCHARD
MONTHLY BUDGET FINANCIAL STATUS UPDATE
To: Mayor and Council members
From: Noah Crocker, Finance Director
Period: July 2021
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.
POINTS OF INTEREST:
Current Expense Fund 001— The Current Expense Fund is used for the general governmental functions of the City.
As of July 31st, 2021, 85% of budgeted revenues were received. To date revenue is trending higher than
expected. Of particular importance, the City received $1,410,539 from the American Rescue Plan Coronavirus
State & Local Fiscal Recovery Funds (SLFRF) identified in Intergovernmental Revenue.
The table provides budget versus actual (YTD) data by source of revenue.
2021
2021
% of
Revenue Source
Original
Current
2021 YTD
Budget
Property Tax
Budget.•
1,976,000
1,976,000
1,082,272
54.77%
Sales Tax
5,235,000
5,235,000
3,865,329
73.84%
Other Taxes
2,080,000
2,080,000
1,483,304
71.31%
Total Taxes
9,291,000
9,291,000
6,430,906
69.22%
Licenses & Permits
480,300
480,300
392,787
81.78%
Intergovernmental Revenue
626,600
626,600
1,933,158
308.52%
Charges for Goods & Services
389,300
389,300
505,545
129.86%
Fines & Penalties
163,300
163,300
99,846
61.14%
Misc Revenues
177,000
177,000
121,788
68.81%
Non -Revenues
-
-
289
0.00%
Capital Contributions
-
-
-
0.00%
REVENUE TOTALS 11,127,500 11,127,500 9,484,320 85.23%
SALES TAX REVENUES SUMMARY
4,953
605,455
309,578
919,986
135,846
1,572,329
42,920
10,852
19,491
(1,605
2.699.817
• Total 2021 Budget: $5,235,000
• Total 2021 YTD Actuals: $3,865,329
• Year -to -Date Actual revenue collected is 25% higher when compared to Prior Year -to Date Actuals
• Year -to -Date Actual revenue collected is 33% higher when compared to Year -to Date Budgeted
The following tables provide additional sales tax information:
Table 1: shows revenue
received by month over a
three-year period.
Monthly Sales Tax -Three Year Comparison
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Table 2: provides current
data for sales tax revenue
collected Year-to-date.
$700,000 Sales Tax Revenues
Actuals 2D21
$600,000
$500,000
$400,000
$300,000 Budget 2D21
$200,000
$100,000
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Real Estate Excise Tax (REET) Fund 109 and Impact Mitigation Fee Fund 111
The City's Real Estate Excise Tax receipts fluctuate monthly. 2021 REET revenue is currently coming in
significantly higher (174%) than the same period in prior years. July 2021 receipts are higher than July 2020 by
371%. The table below shows balances through July 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 aavments.
2021-2022 Beginning Balance
785,820
255,009
326,495
944,142
1,625,464
1,641,128
118,202
2021-2022 Revenue Received*
31,314
40,968
510
196,420
705,305
705,321
480 234,233
2021-2022 Expenses Budgeted
(550,000)
(115,000)
-
(500,000)
(393,000)
(1,198,200)
(90,000) -
2021-2022Obligated Expenses
(267,134)
(180,977)
(327,005)
(743,509)
(1,710,500)
(585,500)
- -
2021-2022 Ending Balance
(0)
(0)
(0)
(102,947)
227,269
562,749
28,683 234,233
The table above shows 2021 beginning fund balances, biennial revenue received to date, 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. As identified in this table all funding sources have been either budgeted or obligated.
Impact Fees received for July 2021 are as follows:
o McCormick Woods Transportation $0
o Parks $7,299
o Transportation $83,579
REET revenues received in July:
o REET 1 $252,813
o REET 2 $252,813
Capital Construction Fund 302 — The design of the McCormick Woods Splash Pad was completed by Land
Expressions, LLC. Murray Smith value engineered the design to meet the project budget constraints and is working
on completing the engineering to be ad ready. Rice Fergus Miller is currently working on the City Hall design.
Street Capital Construction Fund 304 — The project closeout of Tremont is almost complete. TIB has accepted the
project and the acceptance from WSDOT is in progress. Bay Street Pedestrian Path right of way efforts continue.
The City has contracted with Skillings Inc for Design and Right of Way Services for the Bethel -Lincoln Round -About
project. Design for the project has begun.
ENTERPRISE/UTILITY FUNDS:
Water operation - Water operations budgeted revenue in the amount of $3,344,700 for 2021. Through July, the
city has received $2,024,843 or —60% of the 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.
Water Operations expended $1,349,286 through July representing — 47% of the 2021 budget. In addition, the
water operational budget includes transfers which occur throughout the year. The City manages its transfers
according to policy goals, cashflow needs, and realized expenses for water capital projects, stabilization targets,
and debt service payments. The 2021 budget includes $1,206,500 for transfers. A transfer in the amount of
$21,958 was recorded in July for the water stabilization fund.
Water Service Payments
450,000
400,000
350,000
300,000
250,000 ■ 2019
200,000 ■ 2020
150,000 ■ 2021
100,000
50,000
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov ❑ec
Sewer operation - $5,418,800 is budgeted for Sewer Operational Revenues for 2021. Through the month of July
$3,381,736 was received representing —63% of the 2021 budgeted revenues. Sewer Operations expended
$2,337,031 through July representing —60% of the 2021 budget. The sewer operational expense budget includes
transfers which occur throughout the year. The City manages its transfers according to policy goals, cashflow
needs, and realized expenses for sewer capital projects, stabilization targets, and debt service payments. The
2021 budget includes $374,150 for transfers. A transfer in the amount of $31,179 were recorded in July for the
Sewer stabilization fund.
600,000
500,000
400,000
300,000
200,000
100,000
Sewer Service Payments
Jan Feb Mar Apr May Jun
■ 2019
■ 2020
■ 2021
Jul Aug Sep Oct Nov Dec
Storm Drainage operations -As of the end of July the Storm Drainage utility has received $1,173,430 or —72% of its
annual budgeted revenue. Storm Drainage Operations expended $820,194 through July representing —46% of the
2021 operating budget. The storm drainage operational budget includes transfers which occur throughout the
year. The City manages its transfers according to policy goals, cashflow needs, and realized expenses for storm
capital projects, stabilization targets, and debt service payments. The 2021 budget includes $342,150 for
transfers. A transfer in the amount of $13,670 was recorded in July for the storm stabilization fund.
Storm Drainage Payments
180,000
160,000 —
140,000
120,000
100,000
80,000
60,000
40,000
20,000
J
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov ❑ec
■ 2019
■ 2020
■ 2021