Discussion:
July 2019 Review (See Attachment)
Revenue Variances (+/- 10% of 58% Target)
- Special Assessments continue to be 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.
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Licenses and Permits continues its strong upward trend with $3.15 million in permit and license revenue which equates to 180 percent of the year's budget.
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Intergovernmental revenue is below the target budget but is in line with revenues from this same time last year. Police and Fire state aid are received in October which will solidify the revenues at that point.
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Fines & Forfeitures revenue is higher due to alcohol violation fines earlier this year.
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Miscellaneous revenue is tracking at a higher pace compared to 2018, which is attributed to an increase in investment income.
Expenditure Variances (+/- 10% of 58% Target)
- Overall General Fund expenditures are sitting at 55% of budget which is right in line for this point in the year.
- The Finance Department is over budget due to a $290,500 payment to Scott County in May for annual assessing services. This variance will dissipate as the year progresses.
- Natural Resources is over budget due to contracted tree trimming work that began late this winter and spring, which was planned in the budget. This budget variance should also be eliminated as the year progresses.
- Street Maintenance is within the target variance at this point, but is trending above the 58% mark. This department not only accounts for the increased costs of this year's never ending winter and related snow plowing events, but also accounts for the seal coating and crack sealing costs in the summer. In July, a payment for $99,000 was made for crack sealing.
- All other departments/divisions are within +/-10% of the July 31, 2019 target date.
SandVenture/Ice Arena/Community Center Year-over-Year Comparison (See Attachment)
July 2019
SandVenture rebounded in July after a slow start to the summer with poor weather conditions. Year-to-date revenue has surpassed last year's revenue through the same July timeframe.
As mentioned last month, wages and benefits are higher than last year, but this isn't a true comparison at this point. We discovered in early July last year that part-time staff at SandVenture were not coding their time to the correct facility. A journal entry moving over $29,000 wages and benefits from the Community Center to SandVenture was posted in early September to correct the coding. Adding that $29,000 to the 2018 YTD wages and benefits minimizes the variance for this year. Operating expenditures are down in comparison to last year. Last year, SandVenture expended about $17,000 on filter media replacement before the season started.
Ice arena revenues are approximately $412,000 through July 31, an increase of $4,000 from this same time last year.
Ice arena total expenditures are about $45,000 higher than this same time last year. Part of the variance is related to the purchase of an $11,000 industrial floor scrubber. This is a one-time purchase and will be made up from savings in canceling the cleaning contract and bringing those duties in house. Overall, ice arena expenditures account for 54 percent of the year's budget.
Community Center revenues are over $726,000 thru July 31, which is about 76 percent of the year's budget and over $83,000 higher than this time last year. The wages & benefits category is about $99,000 more this same time last year, which is mainly attributed to being fully staffed this year. The increase in operating expenses is related to an increase in internal rent charges from 2018 to 2019 and general operating expenses such as pool chemicals, birthday party supplies, and other promotional supplies associated with room rentals and community center activities.
Overall, the Community Center has utilized 60 percent of its expenditure budget through July 31, which is on target through this point of the year.
Deferred revenue related to annual membership sales for July 2019 and 2018 are very similar.