Discussion:
August 2018 Review (See Attachment)
Revenue Variances (+/- 10% of 67% Target)
- Taxes - Received first half taxes in June, second half payment will come in December.
- Special Assessments - This remains a negative revenue amount through the first half collection of property taxes. The negative amount is result of the payment to Republic Services for delinquent garbage bills. The city will recoup this payment through special assessments levied against the delinquent account holders. The second half tax collection in December will account for the remainder of the variance with special assessment revenues.
- Licenses & Permits - Experienced another strong month in August with $317,095 of license and permit receipts. Year-to-date revenues have already exceeded the 2017 budget.
- Intergovermental - Similar to last month, current year-to-date revenue is below the target for August, but slightly higher than this same time last year. Police and fire state aid of approximately $585,000 are not received until October. Those payments will shore up the expected intergovernmental revenue.
- Fines & Forfeits - Fines and forfeits revenue has exceeded the 2017 budget allotment of $1,500. A majority of the revenues in this category come from late fees associated with the monthly lodging tax submittals and payments related to the driving diversion program.
- Miscellaneous - Interest earning receipts are slightly higher than anticipated.
Expenditure Variances (+/- 10% of 67% Target)
- Engineering - This division is slightly below budget due to personnel vacancies earlier in the year.
- Street Maintenance - This division remains slightly higher than budget due to the timing of the chip sealing and striping contracts that amounted to approximately $410,000. The chip sealing contract was paid in June of this year compared to September in the prior year. I would expect the actual expenditures to fall back inline with budget as the year continues to progress.
- Unallocated - This division accounts for items that cannot be specifically assigned to specific departments or divisions. Included in this division is the city's contingency allotment of $110,000.
- All other departments/divisions are within +/-10% of the August 31, 2017 target date.
Community Center & Ice Arena Year-over-Year Comparison (See Attachment)
Ice arena revenues are at $389,391 through August 31, which is approximately $188,000 greater than this same time last year. In June, the ice arena receipted about $75,000 in private ice rental for various comps and teams. These payments are for their entire ice allotments through the summer and early fall. Revenues are expected to begin ramping up again as we get closer to the start of the hockey season.
Ice arena expenditures are remaining steady. As previously mentioned we are monitoring the utility costs, as the gas and electric charges are more than originally anticipated. The ice arena should recognize a savings in part-time salaries that will offset the utility variance.
Community center revenues have surpassed the 2017 budget as of the end of August. We are still anticipating a significant number of new and renewing memberships between now and the end of the calendar year.
Community center expenditures are running within the overall anticipated budget. The aquatics center just came on-line in July, which will have an effect on both revenues and expenditures. As a bit more time passes, we will begin to see if there are variances that need specific attention.