First Quarter Report – 2008
Purpose of Report
The following information
summarizes the financial activities of the City of
The first section provides
budgetary highlights from the major funds of the City, including the General,
Recreation, and Transportation Funds, which are partially funded by property
taxes, and the Water & Sewer, Sanitation, Storm Water and Public Golf
Course Funds, which are enterprise funds supported by user fees. Section two provides tables comparing year to
date financial activities to the budget and results for the same period in the
two previous years. Included in the third
section is a summary of the investment activities for the year. The final section summarizes the amount of
outstanding debt.
I. BUDGETARY HIGHLIGHTS
General Fund
● General Fund
revenues collected in the first quarter of 2008 increased $1,119,045 or 7.1% over
the first quarter of 2007 and represent 30.4% of budget.
● A portion of
the increase in revenue was the $356,563 rise in taxes (3% increase in property
taxes; 15.5% increase in franchise fees collected) over the same period last
year.
● Another component
of the increase in General Fund revenue was a 40.6% increase in
intergovernmental revenues. This
includes an increase in Liquor tax of $17,714.
Also included is $56,611 of state revenue sharing. Known as the slider, this revenue from the
State is meant to offset the impact of the machinery and equipment exemption,
however, the actual amount is significantly less than the loss of property tax revenue
due to the exemption. We did not budget
this revenue for 2008.
● Sales tax
receipts increased $505,035, or 9.3%, from the same period in 2007 and
represent 26.1% of the amount budgeted for 2008.
● Licenses and
permit fees decreased 6.1% from the same period last year. Much of this decrease was in building permits
and inspections, which decreased 17.2 % from the first quarter of 2007. This is the second consecutive year for
decreases in these fees.
● Revenue from
service charges decreased 1.6% from the first quarter of 2007. Most of the decrease can be attributed to a
decrease of almost 52% in revenues from engineering fees.
● Fines in the
General Fund increased by 8.3% from the first quarter last year and represent
23.6% of the amount budgeted in 2008.
Police Officer ticket revenue increased by $11,434, or 17.3%, while
municipal court fines and fees increased by $33,645, or 7%.
● Interest
revenue in the General Fund was down significantly compared to the same period
in 2006 due to the timing of our investments.
Only 5.8% of the budget for interest in 2008 has been collected as of
the end of this quarter.
● Miscellaneous
income increased by 36.7% over the first quarter last year and represent 27.8%
of budget. This is also likely a timing issue
related to reimbursements for ambulance service from
● Overall, General
Fund expenditures were only 20.4% of budget.
The total decreased by $263,917, or 2.1% under the first quarter of 2007.
● Public
safety expenditures were up 3.7% from this period last year. Police expenditures in the General Fund increased
just over 10% or $293,045, while Fire Medical expenditures decreased $85,206 or
3% from the first quarter of last year.
● Parks and
Recreation expenditures from the General Fund decreased $87,045, or 11.9%, over
the same period last year.
● At first
glance, it appears Public Works expenditures decreased 36.1% from the first
quarter of 2007. However, almost half of
the $465,362 decrease is due to the merger of the planning and neighborhood
service departments. All of the building
inspection and code enforcement expenditures are now reflected in general
government category instead of public works.
A large part of the remainder of the decrease can be attributed to large
encumbrances in street maintenance and building maintenance made in 2007 but
not in 2008.
● Only four divisions
in the General Fund have expended more than 25% of budget at the end of the
first quarter of 2008:
§
Municipal
Court (34.6%) due to a large encumbrance for the lease of office space.
§
Health
(37.8%) due to the payment to the Health Department for their operations.
§
Airport
(32.9%) due to encumbrances for equipment, repairs, and janitorial services.
§
Levee
Maintenance (27.1%) due to an encumbrance for equipment.
Special Revenue Funds
● Recreation
Fund revenues increased $40,649.61, or 4.6%, over the same period last
year. The majority of the increase was in
service charges, which were up 6.4% from the first quarter of 2007, part of
which can be attributed to an increase in aquatics and other class fees. The amount of sales tax transferred into the
fund to cover budgeted expenditures increased 3.4% in 2008.
● Recreation
Fund expenditures in the first quarter of 2008 represent 18.7% of budget but will
likely increase during the summer recreation season.
● Public
Transportation Fund revenues are higher than in the same period last year due
to a slight increase in the levy for the Transportation Fund for 2008. Fare box revenues also increased over this
quarter last year by $20,994, which represents an increase of 42.4%.
● Expenditures
in the Public Transportation Fund are only 21.1% of budget and represent an
increase of $47,693 over the same period last year. The allocation of salary and other operating
expenses paid by federal grant funds decreased compared to this period in 2076,
resulting in an increase in the amount of local funds expended.
● Water and
Sewer Fund revenue was $344,079, or 5.4% more than the same period last year
due to increased service charges. Water
and Sewer Fund expenses decreased 3% over the first quarter of 2007 and
represent 22% of budget.
● Revenue in
the Sanitation Fund was up $113,128, or 4.9%, from the first quarter of 2007. Expenses were 23% of budget and increased 3.4%
over this period last year.
● Golf Course
Fund revenue was 7% of budget due to the seasonality of rounds played. Revenue was 5.5% less than in the first
quarter of 2007. Golf Course Fund
expenses were 22.4% of budget and $6,062 more than expenditures made in the
first three months of 2007. Included in expenditures
are a number of encumbrances including golf course equipment, chemicals and gas.
II. REVENUE – EXPENDITURE TABLES
The table below shows revenues by
source and expenditures by category for three years. General Government expenditures include City
Commission, City Manager’s office, Public Information, Planning, Human Relations,
City Clerk, Personnel, Risk Management, Finance, General Overhead, Information
Systems, Legal Services, and Municipal Court.
Public Safety includes Police, Fire Medical, and Health. Public Works includes Street Maintenance,
Engineering, Traffic, Airport, Building Maintenance, Street Lights, Levee
Maintenance, Building Maintenance, Building Inspections, and Code
Enforcement.
|
2006 |
|
|
|
|
|
|
||
|
|
Water & |
|
Sanitation |
|
Storm |
|
Golf |
|
|
Revenue
Sources |
Sewer |
% |
|
% |
|
% |
|
% |
|
Intergovernmental |
- |
|
21,250 |
|
60,944 |
|
- |
|
|
Service
Charges |
$5,865,365 |
27.6 |
$2,095,915 |
25 |
$670,787 |
25.3 |
$94,492 |
8.7 |
|
Interest |
339,210 |
113.1 |
23,742 |
52.8 |
7,956 |
33.9 |
0 |
|
|
Miscellaneous |
32,573 |
|
37,458 |
40.7 |
235 |
|
1,787 |
|
|
Total
Revenues |
$6,237,148 |
28.9% |
$2,157,115 |
25.6% |
$678,978 |
27.7% |
$
96,279 |
8.8% |
|
|
|
|
|
|
|
|
|
|
|
Expenses |
|
|
|
|
|
|
|
|
|
Operations |
8,373,968 |
27.2 |
2,470,800 |
23.8 |
700,462 |
18.7 |
197,754 |
19.3 |
|
Net
Income |
(2,136,820) |
|
(313,685) |
|
(21,484) |
|
(101,475) |
|
|
|
|
|
|
|
|
|
|
|
|
2007
|
|
|
|
|
|
|
||
|
|
Water & |
|
Sanitation |
|
Storm |
|
Golf |
|
|
Revenue
Sources |
Sewer |
% |
|
% |
|
% |
|
% |
|
Intergovernmental |
- |
|
16,844 |
|
- |
|
|
|
|
Service
Charges |
$5,682,365 |
21.5% |
$2,192,341 |
24.6% |
$679,839 |
24.3% |
$72,909 |
7.3% |
|
Interest |
447,284 |
59.6% |
42,139 |
93.6% |
27,298 |
54.6% |
0 |
|
|
Miscellaneous |
276,797 |
184.5% |
58,244 |
52.9% |
0 |
|
1,871 |
|
|
Total
Revenues |
$6,406,446 |
23.4% |
$2,309,568 |
25.4% |
$707,137 |
24.8% |
$
74,780 |
7.5% |
|
|
|
|
|
|
|
|
|
|
|
Expenses |
|
|
|
|
|
|
|
|
|
Operations |
$8,992,718 |
23.9% |
$2,450,528 |
22.6% |
$734,373 |
13.1% |
$212,279 |
21.1% |
|
Net
Income |
(2,586,272) |
|
(140,960) |
|
(27,236) |
|
(137,499) |
|
|
|
|
|
|
|
|
|
|
|
|
2008
|
|
|
|
|
|
|
||
|
|
Water & |
|
Sanitation |
|
Storm |
|
Golf |
|
|
Revenue
Sources |
Sewer |
% |
|
% |
|
% |
|
% |
|
Intergovernmental |
0 |
|
0 |
|
0 |
|
|
|
|
Service
Charges |
6,409,040 |
21.8% |
2,287,458 |
24.4% |
696,273 |
24.4% |
62,415.27 |
6.2% |
|
Interest |
301,988 |
33.6% |
15,052 |
15.1% |
5,969 |
22.1% | ||