City Council Worksession

South St. Paul WORKSESSION AGENDA SSP City Hall 125 3rd Avenue North Training room Monday, July 11, 2022 7:00 pm AGENDA: 1. 1st Quarter Financial Report and Budget adjustments 2. Closed session pursuant to Minnesota Statutes § 13D.05, Subd. 3(b), for a confidential attorney-client discussion regarding flooding claim and settlement demand at 308 11th Avenue South – No Attachment 3. Council Comments & Questions A COUNCIL WORKSESSION REPORT DATE: JULY 11, 2022 1 DEPARTMENT: FINANCE Prepared by: Clara Hilger ADMINISTRATOR: _____ AGENDA ITEM: 2022 First Quarter Financial Report DESIRED MEETING OUTCOMES: Discussion on the 2021 First Quarter Financial Report OVERVIEW: The first quarter of 2022 is complete and financial results are available. The Finance Director prepared the attached first quarter financial report for Council review. The following items are important to note when reviewing the report: • The Benchmark is roughly 25% and is based on a fluid calendar year of operations. • Many of the variances result from seasonality and not all financial transactions occur evenly throughout the year. Some are one time or periodic activities that do not occur in each quarter. • Investment income is recorded and allocated to the funds on a semi-annual basis. • Large revenue sources (i.e. tax settlements and LGA) are received in July and December, which underscores the importance of a strong fund balance as a tool to avoid General Fund borrowing for operations. Finance has not noted any worrisome variances in the operating funds for the third quarter. The variances that have occurred are noted in the attached report. The attached financial report includes budget revisions that affect several departments and funds: • Personnel costs including fringe benefits were adjusted to reflect settled contracts and insurance elections. These adjustments are reflected in the general, library, arena, airport, water and sewer utility, central garage, EDA and HRA funds. Property taxes were reallocated from the general fund to the library to balance that budget. The contingency fund was reallocated to cover the general fund expenditure budget increases. The first quarter financial report will be placed on consent for formal council action at the July 18, 2022 City Council meeting. SOURCE OF FUNDS: N/A  Benchmark 2022 2022 Actual thru 25% Description Original Amended March Percent Budget Budget 2022 of Budget GENERAL OPERATING FUND GENERAL FUND - REVENUES Taxes 11,849,375.00 11,832,750.00 0.00 0.00% A Fees 1,781,720.00 1,781,720.00 145,752.70 8.18% B Intergovernmental 2,276,618.00 2,276,618.00 157,302.30 6.91% C Charges for Services 1,784,268.00 1,784,268.00 449,681.33 25.20% Other Revenues 57,140.00 57,140.00 4,152.38 7.27% D Transfers In/Fund Balance 190,000.00 190,000.00 47,505.00 25.00% Total Revenues 17,939,121.00 17,922,496.00 804,393.71 4.48% GENERAL FUND - EXPENDITURES General Government Mayor & Council 165,918.00 165,918.00 41,835.06 25.21% Administration 546,964.00 540,070.00 88,890.32 16.46% Human Resources 244,162.00 253,070.00 45,286.63 17.89% City Attorney 70,000.00 70,000.00 10,154.67 14.51% E City Attorney - Criminal 170,000.00 170,000.00 0.00 0.00% F City Clerk 201,694.00 242,898.00 34,868.59 14.36% G Information Technology 679,063.00 687,778.00 133,582.37 19.42% Recycling 25,588.00 25,588.00 13.62 0.05% H Finance 450,328.00 409,478.00 80,218.66 19.59% I Total General Government 2,553,717.00 2,564,800.00 434,849.92 16.95% Public Safety Police 6,852,983.00 7,007,676.00 1,486,587.08 21.21% Fire 2,732,483.00 2,732,483.00 1,359,306.00 49.75% J Total Public Safety 9,585,466.00 9,740,159.00 2,845,893.08 29.22% Public Works Engineering 547,885.00 553,584.00 134,056.90 24.22% Streets, Alley's and Blvd's 1,919,766.00 1,944,375.00 474,353.85 24.40% Buildings 266,459.00 270,138.00 69,648.00 25.78% Parks Facilities and Maintenance 1,148,620.00 1,120,713.00 190,726.82 17.02% Total Public Works 3,882,730.00 3,888,810.00 868,785.57 22.34% Community Development Development Services 593,530.00 604,168.00 110,606.05 18.31% Code Enforcement 246,802.00 167,111.00 47,044.83 28.15% Total Community Development 840,332.00 771,279.00 157,650.88 20.44% Leisure Services Parks Administration 262,167.00 279,421.00 52,730.01 18.87% Splash Pool 69,695.00 70,776.00 4,152.46 5.87% K Northview Pool 92,095.00 93,176.00 3,106.74 3.33% K Recreation Programs 158,163.00 209,891.00 31,327.21 14.93% L Community Affairs 122,280.00 124,901.00 27,189.65 21.77% Total Leisure Services 704,400.00 778,165.00 118,506.07 15.23% Nondepartmental Contingencies 372,476.00 179,283.00 0.00 0.00% Total Nondepartmental 372,476.00 179,283.00 0.00 0.00% Total Expenditures 17,939,121.00 17,922,496.00 4,425,685.52 24.69% Revenues Over (Under) Expenditures 0.00 0.00 (3,621,291.81)  Benchmark 2022 2022 Actual thru 25% Description Original Amended March Percent Budget Budget 2022 of Budget OTHER OPERATING FUNDS LIBRARY FUND Revenues 843,892.00 860,517.00 1,392.99 0.16% A Expenditures 843,892.00 860,517.00 174,301.48 20.26% Revenues Over (Under) Expenditures 0.00 0.00 (172,908.49) DOUG WOOG ARENA Revenues 1,075,454.00 1,075,454.00 301,779.82 28.06% Expenditures 927,621.00 974,917.00 209,294.28 21.47% Revenues Over (Under) Expenditures 147,833.00 100,537.00 92,485.54 AIRPORT OPERATING FUND Revenues 1,357,442.00 1,357,442.00 428,719.24 31.58% M Expenditures 1,227,396.00 1,236,125.00 207,360.50 16.78% Revenues Over (Under) Expenditures 130,046.00 121,317.00 221,358.74 STORM WATER UTILITY FUND Operating Revenues and Grants 673,010.00 673,010.00 42,434.66 6.31% N Expenditures - Operating 364,902.00 364,902.00 196,584.18 53.87% O Transfers - Capital 40,000.00 40,000.00 31,602.00 79.01% O Revenues Over (Under) Expenditures 268,108.00 268,108.00 (185,751.52) STREET LIGHT UTILITY FUND Revenues 330,100.00 330,100.00 22,347.27 6.77% N Expenditures 291,762.00 291,762.00 46,221.57 15.84% Revenues Over (Under) Expenditures 38,338.00 38,338.00 (23,874.30) WATER AND SEWER UTILITY FUND Revenues Administration 40,000.00 40,000.00 0.00 0.00% Water Utility 2,766,725.00 2,766,725.00 229,249.81 8.29% N Sewer Utility 4,291,300.00 4,291,300.00 413,420.35 9.63% N Total Revenues 7,098,025.00 7,098,025.00 642,670.16 9.05% Expenditures Adminsitration 491,682.00 494,436.00 112,323.45 22.72% Water Utility 1,070,236.00 1,077,625.00 253,575.67 23.53% Sewer Utility 3,635,084.00 3,640,659.00 1,149,080.16 31.56% P Total Expenditures 5,197,002.00 5,212,720.00 1,514,979.28 29.06% Transfers Water Utility 1,256,125.00 1,256,125.00 56,201.00 4.47% Sewer Utility 50,000.00 50,000.00 106,751.00 213.50% O Total Transfers 1,306,125.00 1,306,125.00 162,952.00 12.48% Net Income (Loss) 594,898.00 579,180.00 (1,035,261.12) CENTRAL GARAGE - INTERNAL SERVICE FUND Revenues 1,496,213.00 1,496,213.00 400,277.00 26.75% Q Expenditures 1,335,699.00 1,340,498.00 223,692.58 16.69% Net Income (Loss) 160,514.00 155,715.00 176,584.42  Benchmark 2022 2022 Actual thru 25% Description Original Amended March Percent Budget Budget 2022 of Budget OTHER OPERATING FUNDS ECONOMIC DEVELOPMENT AUTHORITY Revenues 340,084.00 340,084.00 0.00 0.00% A Expenditures 340,084.00 270,890.00 66,056.12 24.38% Revenues Over (Under) Expenditures 0.00 69,194.00 (66,056.12) EDA - HOUSING (HRA LEVY) Revenues 441,776.00 441,776.00 27,145.42 6.14% A Expenditures 441,257.00 424,194.00 65,448.02 15.43% Revenues Over (Under) Expenditures 519.00 17,582.00 (38,302.60) HRA - PUBLIC HOUSING Revenues 2,038,000.00 2,038,000.00 163,887.93 8.04% R Operating Expenses 1,957,144.00 1,957,144.00 369,352.63 18.87% Capital Expenses 0.00 0.00 (11,103.35) 0.00% S Net Income (Loss) 80,856.00 80,856.00 (194,361.35) Red amounts in the 2022 Amended Budget column are recommended budget changes. Tickmark Explanations for Budget VS Actual Variances A. Taxes will be received in June/July and December/January B. 1st quarter Franchise fees come in April C. LGA is received in July and December D. Interest earnings are posted semi‐annually and other minor revenues are unpredictable E. Legal service invoices for two months only F. Criminal legal services paid in April for January and February G. Elections costs will be charged in August and November H. Composite site costs occur May through October I. Assistant Finance Director position vacant during the quarter J. Paid two quarters for Fire K. Pools are only open June through August L. Recreation programs have been limited in the first quarter M. Certain revenues come in at the start of the year at the Airport (land leases) N. Utility revenues are based on service delivery, bills issued in Jan, Feb, Mar of 2022 are accrued back to the 2021 books as they are for services delivered in 2021. This is an annual occurrence. O. Memberships and bond payments made in 1st quarter P. Sanitary Sewer has 4 months of MCES charges Q. Sale of assets and insurance proceeds are not budgeted R. Activity from management company has not been updated for all of 2022 S. Capital expenses for Public Housing is not budgeted