General Fund - August 2024 (see attachment)

The 2024 Budget column has been adjusted for budget amendments approved by City Council on July 2, 2024.

Revenue variances (67% target)

• Total revenues were at 63 percent of budgeted revenues.
• Taxes will remain below budget targets until the 2nd half property tax settlement is received from the County in December.
• Licenses and permits have exceeded the budget expectation for the full year as a result of building permits.  However, building permits are tracking behind last year through August.
• Intergovernmental is currently below budget targets, this is typical as the majority of grant revenue is received in the fall.
• Miscellaneous includes interest earnings on investments, which are tracking ahead of budget targets.  This amount does not include the adjustment for an unrealized gain (adjustment of investments to market value), which will occur once a year on December 31.

Expenditure variances (67% target)

• In total departmental expenditures are within the normal range and similar to last year's percentage through August.
• Finance department expenditures are currently exceeding budget targets as a result of payments for the County assessing contract and the annual audit.  These payments occur in the first half of the year.  It is anticipated the department will remain within the total annual budget allocation.
• Planning and Development expenditures are currently exceeding budget targets as a result of the professional services related to the National Historic registry.  The city received a grant of $77,500 from the Minnesota Historical Society towards the registry which covers a significant portion of the overall cost.
• The Building Inspections department is currently ahead of budget targets, as a result of annual software costs paid in the 1st half and merchant processing fees associated with credit card revenues.  It is anticipated the department will be within the budget for the full year.