February 2019 Review (See Attachment)

Revenue Variances (+/- 10% of 17% Target)   

• Special Assessments is a negative amount due to the payment to Republic Services for delinquent garbage assessments. Similar to last year, this account will be negative until we receive our first and second half tax payments.
• Licenses and Permits continues its strong start to the year with $526,167 in permit and license revenue which equates to 30 percent of the year's budget.
• The lack of miscellaneous revenue to date is mainly related to 2019 investment income not being posted to the General Fund at this point in the year. Once the 2018 fiscal year is closed and ending cash balances within all the funds have been finalized, we will then allocate 2019 interest to the General Fund. We typically wait to allocate the first couple months of interest due to ensure accurate interest allocation based on month-end cash balances.

Expenditure Variances (+/- 10% of 17% Target)

• Similar to prior years, the Mayor and Council budget line appears to be over budget. This 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. 
• The Street Maintenance division is within the target range but has about $100,000 in expenditures compared to this time last year. This year's never-ending winter costs associated with plowing and de-icing account for this additional costs. 
• All other departmental expenditures are within the normal range and similar to last year's expenditures through January.

SandVenture/Ice Arena/Community Center Year-over-Year Comparison (See Attachment)

February 2019

Similar to the analysis of the City's General fund, reviewing revenue and expenditures early in the year can be easily distorted depending upon what type of transactions did or did not occur during the reporting period. 

Starting in early 2018, we began isolating SandVenture operations into its own business unit. SandVenture wages and benefits didn't get separated until February 2018. These wages were subsequently moved out of SandVenture and into the Community Center via a journal entry in March 2018. For just this month, wages and benefits from February 2018 and February 2019 need to be compared in aggregate between SandVenture and the Community Center. 

Operating expenditures for both the Ice Arena and the Community Center are higher compared to 2018. A large portion of this variance is due to the payment of natural gas utility charges recorded in February 2019 versus last year the utility payment wasn't get recorded until March.

2019 Community Center expenditures year-to-date have utilized 13.5 percent of its budget, while the Ice Arena has utilized 12 percent.