Agenda Cover Memorandum

Transcription

1 Agenda Cover Memorandum Meeting Date: July 22, 2013 Meeting Type: COW (Committee of the Whole) City Council Workshop Item Title: Revenue & Expenditure Report for June 2013 Action Requested: Approval For discussion Feedback requested For Your Information Staff Contact: Finance Manager Kent Oliven Phone Number: (847) Address: Background: 1. Explanation of the Report a. Overview As mentioned in the May Finance Department Head Report, starting in the Council would start receiving a Revenue & Expenditure report on a monthly basis. Due to the power outage around City Hall cutting short the Finance COW last month, this report through June is the first report presented. This report is designed as a tool to help the City Council in working through strategic issues. This report is designed to look like reports that the Council has been receiving for a number of years. The Finance Manager and staff have made minor changes to the categories in that template for clarity. We have also made changes to which accounting line items fall within which specific categories in this report to make the report more accurate. An accompanying sheet will detail those changes, as well as clarify some similar category titles. b. Funds Included This report will detail five of the six major funds as defined by Generally Accepted Accounting Principles (GAAP). [The major Municipal Waste Fund will not be included, as there is little Council management needed between contracts.] These five major funds are: General Fund Uptown TIF Fund Sewer Construction Fund Water Fund Sewer Fund Note that the top All Funds sheet is for all the funds in the City, not just the major funds shown above. c. Explanation of the New Forecast and the Forecast Divided By The Revised Columns There are two new columns that can be good management tools, but need explanation. First, Forecast is a column that currently projects revenues and expenditures over the entire fiscal year at the same rate as YTD numbers. Note, later in each fiscal year this column s calculation of expenditures will change from this crude calculation to a system wherein each department will take ownership of their numbers by declaring their intended spending. This change will lead to better numbers during the budget season. This will be presented in greater detail as that switchover occurs. Please note that the forecast column can lead to strange results in cases where revenues or expenditures are not smoothly received or spent over the fiscal year, such as the property taxes or vehicle licenses as seen below. The next column is the forecast column divided by the most recent revised budget. In a perfect world, these percentages would always equal 100%. If revenues were not coming in as fast as budgeted or if expenditures were not being spent as fast as budgeted, this number will be less than 100%. Alternatively, if revenues were coming in fast or expenditures were large, this would be over 100%. It is a crude barometer that can be read quickly and, I hope, will be useful given the limitations of the forecast column outlined above. Page 1 of 2

2 Agenda Cover Memorandum 2. Data Observations a. ed Columns Before looking the YTD data, it is worth remembering that the All Funds page deficits for FY13 and were budgeted and are mainly due to: i. The Sewer Construction Fund received bond proceeds at its inception and it spends them in subsequent years; ii. Since the FY13 audit has not been performed, that the FY13 column is the revised budget and not the actual numbers. This means that the Summit parking lot and the FY13 to carryover items ($318,000 of Police Phase II; $100k of the $160k for Fire Department building maintenance projects: epoxy flooring, painting, and ceiling work; $5,000 for City Hall building maintenance; $83,568 for Local 150 retro pay and uniform allowance (tentative deal); and $153,400 for Fire Department defibrillators) will appear as expenditures in both years. iii. iv. The Uptown TIF runs a deficit In we started budgeting for both internal service funds (i.e. the MERF and IT Replacement). In some years these funds accumulate assets and in some those assets are spent down. This fiscal year they are spending down assets. For example, the IT fund is going to invest in software updates to increase productivity. b. YTD Column First and foremost, property taxes are lumpy, as the collections are twice annually. Since we receive almost no property taxes in the first few months of each fiscal year, that line item will seem very skewed. Conversely, licensing appears overly large, as we just completed vehicle stickers. Also, cable pays quarterly and has not paid in yet. Again, the Revenue & Expenditure Report will be a monthly report. Recommendation: Discuss and provide feedback, if appropriate. Implications: Does Action Require an Expenditure of Funds: Yes No Attachments: Changes in Revenue & Expenditure Report Categories June 2013 Revenue & Expenditure Report Page 2 of 2

3 Changes in Revenue & Expense Report Categories As mentioned in the June Finance COW Revenue & Expenditure cover memo, there have been some changes to the traditional template used to summarize revenue and expenditures. Specifically, some a few of the categories have been renamed, eliminated, or created for greater clarity. Additionally, some of the line items have been moved from one category to another to more accurately reflect those categories. This document details those changes. 1. Category Changes: The Licenses category has been renamed Licenses & Fees. Parking Garage Tax was a category and is now a Parking Garage Fee line item that falls under the Licenses & Fees category. The Miscellaneous category is now renamed Other Revenues. [Note that the amount of items in that category has been greatly reduced, as shown below.] Ambulance Tax, as well as Food, Beverage, & Liquor Tax were categories and are now just line items within a new Other Taxes category. 2. Line Item Changes The Food & Beverage Tax and Liquor Tax line items have been moved from the Food, Beverage, Package Liquor category and now fall under the Sales Tax category The Special Sales Tax line item has been moved from the Miscellaneous (Other Revenues) category and now falls under the Sales Tax category The new category Other Taxes now includes Ambulance Tax (which used to be its own category), in addition to the other line items that had been under that category (Personal Property Tax, Exempt Property Transfer Tax, and Non-Exempt Property Transfer Tax). The Gasoline Tax, Natural Gas Tax, and Cable & Video Taxes line items used to full under the Miscellaneous (now Other Revenues) category, but have been moved to the Utility Tax category. The Road and Bridge Tax line item has been removed from the Miscellaneous (Other Revenues) category and now falls under the Property Tax category. [Note: while this is a property tax receipt, it is not one that the City levies for.] 3. Explanation of Other Revenues in General Fund As mentioned above, the Miscellaneous category has been renamed Other Revenues. Additionally, this category has traditionally contained many items that properly should have been within different categories, and those changes are detailed above. However, the following list of revenue accounts remains in Other Revenues: Return Check Charge Promo Items Misc. Over/Under Misc. Tree Damage to City Property Misc. Public Works Alarm Registration Weed Cutting Elevator Inspections Interest on Investments Rent Income Miscellaneous Misc. City Clerk Misc. Police Misc. Fire Misc. Zoning Misc. Street Contributions 4. Explanation of Employee Contributions The line item, Employee Contributions, identifies the amount of money employees pay/have taken out of their paycheck every two weeks to offset costs the City incurs for health insurance. 5. User Charges vs. Charges for Services There are two categories with similar names: User Charges and Charges for Services. To clarify: User Charges encompasses the fees the City charges residents/non-residents for Water, Sewer, and Parking. Charges for Services are fees the City charges School Districts 207 and 64 for Police officers and gasoline. These are consistent with how they have been defined in prior years, with the exception that User Charges now includes Parking User Charges, which used to fall under Miscellaneous (Other Revenues). 6. Transfer In & Transfer Out The funds within the Management report have numerous Transfer In and Transfer Out line items. Transfers are done for these reasons: They are done to supplement certain funds if for some reason there could be a deficit in that fund. For example the General Fund will always have to support the E911 Fund. Shared Services are transferred from different funds to the General Fund to cover operating costs Debt Service repayments

4 Summary Source of Revenue All Funds Revenues & Other Sources June YTD Forecast Revised Property Taxes - 118, ,415 4% 19,815,687 19,815,687 19,651,774 Sales Taxes 539,042 1,024,400 6,146,398 92% 6,692,412 6,692,412 6,062,000 Income Taxes 346, ,212 2,077,270 59% 3,524,994 3,524,994 2,968,416 Other Taxes 125, ,908 1,709,448 69% 2,489,287 2,489,287 2,575,000 Utility Taxes 279, ,663 2,889,978 57% 5,110,424 5,110,424 5,459,170 Licenses 493,507 1,030,714 6,184, % 2,161,930 2,161,930 2,077,000 Building Permits 109, , , % 831, , ,000 Intergovernmental % 841, , ,129 Charges for Services 17,888 54, , % 257, , ,200 Fines and Forfeitures 34,648 88, , % 515, , ,000 Other Revenues 101, , ,911 67% 1,292,521 1,292,521 1,230,454 Employee Contributions 32,001 63, ,391 53% 718, , ,477 User Charges 1,563,611 2,161,997 12,971, % 11,024,000 11,024,000 10,762,298 Bond Proceeds Transfers In % 6,315,166 6,315,166 6,564,645 Total Revenues 3,642,717 5,961,782 35,770,694 61,590,793 61,590,793 60,533,563 Source of Expenditure All Funds Revised Regular Salaries 1,498,288 2,996,576 17,979,456 99% 18,148,252 18,148,252 17,404,791 Overtime 77, , ,919 96% 972, ,351 1,226,931 Medical, Dental, Unemployment 127, ,779 2,140,673 51% 4,160,753 4,160,753 4,063,501 Police & Fire Pension - 19, ,168 4% 3,192,005 3,192,005 3,019,028 Workers Compensation 67,451 67, ,706 81% 500, , ,609 All Other Personnel 18,755 35, ,658 86% 246, , ,285 IMRF & SS 63, , ,150 39% 2,073,768 2,073,768 1,981,877 Water Purchases Chicago 260, ,833 1,564,997 32% 4,853,000 4,853,000 4,220,000 Contractual Services 597, ,649 5,169,893 47% 10,951,044 10,951,044 11,084,873 Commodities 194, ,034 1,596,207 63% 2,518,040 2,518,040 2,574,272 Capital Items 742, ,050 4,452,298 48% 9,202,638 9,202,638 7,717,035 Debt Service 2,914 1,003,603 6,021, % 3,913,158 3,913,158 4,086,327 Contingency % 250, ,000 - Transfers Out % 6,315,166 6,315,166 6,564,645 Total Expenditures 3,650,852 6,900,791 41,404,744 67,297,134 67,297,133 64,783,173 Surplus (Deficit) (8,135) (939,008) (5,634,050) (5,706,341) (5,706,340) (4,249,610)

5 Summary Source of Revenue General Fund Revenues & Other Sources June YTD Forecast Revised Property Taxes - 50, ,889 4% 8,200,779 8,200,779 8,015,878 Sales Tax 539,042 1,024,400 6,146,398 92% 6,692,412 6,692,412 6,062,000 Income Taxes 346, ,593 3,273,559 93% 3,524,994 3,524,994 2,968,416 Other Taxes 125, ,239 1,603, % 1,533,507 1,533,507 1,500,000 Utility Taxes 279, ,663 2,889,978 57% 5,110,424 5,110,424 5,459,170 Licenses & Fees 493,507 1,030,714 6,184, % 2,161,930 2,161,930 2,077,000 Building Permits 109, , , % 831, , ,000 Intergovernmental % ,129 Charges for Services 17,888 54, , % 257, , ,200 Fines and Forfeitures 34,648 88, , % 515, , ,000 Employee Contributions 32,001 63, ,391 54% 699, , ,521 Other Revenues 32,015 41, ,264 68% 363, , ,459 Transfer In % 1,092,841 1,092,841 1,252,398 Total Revenues 2,009,403 3,810,969 22,865,816 30,984,948 30,984,948 30,614,171 Source of Expenditure General Fund Revised Salaries 1,109,469 2,218,937 12,013,195 84% 14,287,455 14,287,455 13,658,736 Overtime 56, , ,689 82% 836, ,201 1,064,000 Medical, Dental, Unemployment 92, ,326 1,663,954 48% 3,436,863 3,436,863 3,361,551 Police & Fire Pension - 19, ,168 4% 3,192,005 3,192,005 3,019,028 Workers Compensation 67,451 67, ,706 81% 500, , ,000 All Other Personnel 18,755 35, , % 202, , ,827 Contractual Services 271, ,705 2,140,232 48% 4,501,326 4,501,326 4,733,633 Commodities 96, , ,859 48% 1,281,112 1,281,112 1,326,245 Capital Items 38,269 38, ,614 18% 1,268,300 1,268,300 1,058,605 Debt Service % Contigency % 250, ,000 - Transfer Out % 1,125,000 1,125,000 1,001,000 Total Expenditures 1,750,911 3,228,417 18,070,075 30,880,297 30,880,297 30,032,626 Surplus (Deficit) 258, ,552 4,795, , ,545

6 Summary Source of Revenue Water Fund Revenues & Other Sources June YTD Forecast Revised Water User charges 1,264,319 1,708,666 10,251, % 8,985,100 8,985,100 8,723,398 Employee Contributions % 12,678 12,678 11,024 Misc. Other ,800 4% 49,000 49,000 49,000 Transfers In % Total Revenues 1,264,619 1,708,966 10,253, % 9,046,778 9,046,778 8,783,422 Source of Expenditure Water Fund Revised Regular Salaries 27,802 55, ,626 48% 698, , ,602 Overtime 12,572 25, , % 108, , ,947 Medical, Dental, Unemployment 4,996 9,992 59,953 50% 120, , ,074 Workers Compensation % All Other Personnel % 22,900 22,900 15,215 Water Purchases Chicago 260, ,833 1,564,997 32% 4,853,000 4,853,000 4,220,000 Contractual Services 4,024 4,176 25,057 14% 174, , ,537 Commodities 35,641 35, ,787 50% 431, , ,562 Capital Items % 815, ,000 1,699,100 Debt Service % Transfers Out % 1,992,178 1,992,178 1,871,842 Total Expenditures 345, ,547 2,349,284 25% 9,215,149 9,215,149 9,401,879 Surplus (Deficit) 918,751 1,317,419 7,904,515 (168,371) (168,371) (618,457)

7 Summary Source of Revenue Sewer Fund Revenues & Other Sources June YTD Forecast Revised Sewer User Charge 291, ,827 2,422, % 1,838,900 1,838,900 1,838,900 Intergovernmental % ,000 Employee Contributions % 5,361 5,361 5,106 Misc. Other % 25,250 25,250 25,000 Transfers In % Total Revenues 291, ,827 2,422, % 1,869,511 1,869,511 2,094,006 Source of Expenditure Sewer Fund Revised Regular Salaries 8,241 16,481 98,887 32% 309, , ,418 Overtime 669 1,338 8,031 40% 20,000 20,000 20,000 Medical, Dental, Unemployment 2,857 5,714 34,286 62% 55,000 55,000 55,580 Workers Compensation % All Other Personnel % 11,100 11,100 7,519 Contractual Services 1,710 1,710 10,262 3% 310, , ,250 Commodities 10,540 10,540 63,240 67% 94,000 94, ,370 Capital Items % 310, , ,800 Debt Service % Transfers Out % 401, , ,216 Total Expenditures 24,017 35, ,706 14% 1,510,604 1,510,604 1,438,152 Surplus (Deficit) 267, ,043 2,208, , , ,854

8 Summary Source of Revenue Uptown TIF Fund Revenues & Other Sources June YTD Forecast Revised FY13 Revised Property Taxes - 16, ,435 5% 2,036,683 2,036,683 2,475,644 Intergovernmental % 841, ,000 - Misc. Other % Transfer In % Total Revenues - 16, ,435 3% 2,877,683 2,877,683 2,475,644 Source of Expenditure Uptown TIF Fund Revised FY13 Revised School & Park District % 610, , ,441 Contracting % 15,000 15,000 - Capital Items % 841, ,000 - Transfers Out % 2,504,228 2,504,228 2,725,097 Total Expenditures % 3,970,281 3,970,281 3,248,538 Surplus (Deficit) - 16, ,435 (1,092,598) (1,092,598) (772,894)

9 Summary Source of Revenue Sewer Construction Fund Revenues & Other Sources June YTD Forecast Revised FY13 Revised Bond Proceeds % Intergovernmental % Misc. Other % - - 9,995 Transfer In % Total Revenues ,995 Source of Expenditure Sewer Construction Fund Revised FY13 Revised Contracting Capital Items % 2,968,237 2,968,237 2,374,030 Transfers Out Total Expenditures 2,968,237 2,968,237 2,374,030 Surplus (Deficit) (2,968,237) (2,968,237) (2,364,035)