General Fund - April 2018 Review (See Attachment)

Revenue Variances (+/- 10% of 33% Target)

• One-third of the way through the year and 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 37 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 April 2017.  This increase in revenue is attributed to an increase in interest revenue.

Expenditure Variances (+/- 10% of 33% 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 is expected to paid in May.  That payment will be approximately $270,000.
• 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 slightly higher at this point in the year compared to this same time last year. This is largely due in part to the recognition of advertising revenue. In early 2017 a payment was made to the Shakopee Youth Hockey Association for their agreed upon share of advertising revenue. This check should have been classified as a 2016 payable as the coinciding revenue was recorded in 2016. Since it was not recorded in 2016, this 2017 expenditure reduces the net advertising revenue for the year. In effect our 2016 revenues were overstated

slightly and our 2017 revenues are understated by the same amount. At the end of the day, this oversight washes itself out over the two years, 2016 and 2017.            

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 40% of the 2018 budget, which is in line with the budget target.

Community Center/Sand Venture expenditures are higher than this time last year due to the facility not being fully functional until mid-summer. Through April 2018 the community center/sand venture expenditures account for approximately 26 percent of the budget. Individual line item expenditures will continue to be monitored as the year progresses.

As we move into the summer season revenues and expenditures will increase as Sand Venture begins operations.  

Deferred membership revenue as of March 31, 2018 is $251,303 compared to $176,678 a year ago. This is direct result of strong annual membership sales throughout 2017 and into 2018.