General Fund - May 2018 Review (See Attachment)

The May General Fund financial review is very similar to April.  There were no significant changes in variances between April and May. Below are explanations of this month's variances, which were the same as April.  

Revenue Variances (+/- 10% of 42% Target)

• General Fund revenues continue trending in the right direction. If we ignore Taxes and Special Assessments, which are only received twice a year in June and December, other revenues are at 46 percent of budget.
• Intergovernmental revenues are below the target range at this point of the year, but are only slightly less than the actual receipts at this same time last year. The difference between this year and last year is due to a shift in state-aid from street maintenance to street construction aid. Maintenance aid is accounted for in the General Fund and construction aid is accounted for in the Capital Improvement Fund. Staff did account for this shift when preparing the 2018 budget. 
• Miscellaneous revenue is higher than both the target budget and the actuals from May 2017. This increase in revenue is attributed to an increase in interest revenue.

Expenditure Variances (+/- 10% of 42% Target)

• The Mayor and Council division incurs a number of one-time costs at the front of the budget cycle and is anticipated to fall back within the variance parameters as the year progresses.
• Finance Department expenditures are below the target range at this point in the year.  The contract for assessing services with Scott County will be paid later in June. That payment will be approximately $279,000.
• Natural Resources expenditures will start to ramp up as the summer season approaches and tree maintenance and preservation activities begin.

Community Center/Sand Venture& Ice Arena Year-over-Year Comparison - March 2018 (See Attachment)

2018 Ice Arena revenues are $45,000 higher than this same time last year. A portion of this variance or $11,500 is  due to an error in recognizing advertising revenue between 2016 and 2017. Advertising revenue was overstated by $11,500 in 2016 and understated by the same amount in 2017. The understated 2017 revenue

causes a larger variance when comparing 2017 and 2018 actual revenues. However, the difference between the $45,000 and $11,500 is attributed to increased ice and turf rental sales. 2018 revenues are anticipated to keep trending upward. 

Ice arena total expenditures are nearly identical to this same time last year and are tracking with the 2018 budget.

Community Center/Sand Venture revenues are trending at about 50 percent of the 2018 budget, which is slightly above the budget target for May.

Community Center/Sand Venture expenditures are higher than this time last year due to the facility not being fully functional until mid-summer. Through May 2018 the community center/sand venture expenditures account for approximately 33 percent of the budget. Individual line item expenditures will continue to be monitored as the year progresses.

As the summer season begins revenues and expenditures will increase as Sand Venture is now in full operation.  

Deferred membership revenue as of May 31, 2018 is $223,643 compared to $161,878 a year ago. This is direct result of strong annual membership sales throughout 2017 and into 2018.