City of Lawrence, Kansas

Fiscal Year Report – 2005

Purpose of Report

The following information summarizes the unaudited financial activities of the City of Lawrence for the 2005 fiscal year and advises the City Commission as to year end budgetary conditions.  In the first section, the budgetary highlights from the major funds of the City are itemized, 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.  The second section provides tables that compare year to date financial activities to the budget. Included in the third section is a summary of the investment activities for the period.  The fourth section summarizes the amount of outstanding debt.  The final section provides information on capital project financing.

I.  BUDGETARY HIGHLIGHTS

General Fund

● General Fund revenues were 107.1% of budget and increased by $2.7 million or 5.9% compared to last year.

● The $2.7 million increase in revenue was partially the result of a $719,000 increase in interest earnings due to the large rise in short term interest rates.

● There was an increase of a $540,000 in property taxes.  The property tax increase was the net result of a 6.5% growth in assessed valuation and a 1.0% decrease in the 2004 levy for the 2005 budget.

● Another component of the increase in General Fund revenue was a $580,000, or 2.8%, rise in sales tax distributions.  However, year to date city and county sales tax distributions were below the 4% growth rate projected in the 2006 budget.

● An additional increase in General Fund revenue was a $316,000 increase in court fines over 2004.  Court costs were increased in September 2004.

● General Fund expenditures were 98.3% of budget and increased by 16.1% over last year.  As a reminder, over $600,000 of budgeted capital outlay expenditures were moved from the General Fund to the Equipment Reserve Fund in 2004.  The only department receiving funding from the General Fund to expend over 100% of their budget was Parks and Recreation as a result of Memorial Park expenditures.  The cemetery expenditures were $52,000 over budget.

Special Revenue Funds

● Recreation Fund service charge revenues increased by 8.1% compared to the previous year.  The increase is primarily the result of increases in pool revenue.    

● Recreation Fund expenditures equaled 95.5% of budget. 

● Public Transportation Fund expenditures were only 79.2% of budget.  The amount includes a $215,000 encumbrance to MV Transportation. 

Enterprise Funds

● Water and Sewer Fund revenue increased 14.7% over 2004 and easily surpassed budget.   The increase was primarily the result of the 4% water rate increase and 9% sewer rate increase.   The rate increases were approved to build up cash balances to finance future capital improvement projects and cover increased operating costs.

● Water and Sewer Fund operating expenses were 98.4% of budget.  Expenditures were greater than revenue due to the transfer of $10 million to provide future cash financing of capital projects.

● The Storm Water budget was amended to account for over $5 million in debt proceeds and retirements. 

● Golf Course Fund revenue showed modest improvement during the year increasing by 2.5% over 2004 and ending the year 85.9% of budget.  

● Golf Course Fund expenses were 84.7% of budget.   It is anticipated that the Golf Course Fund will be merged with the Recreation Fund in 2007.

II.  REVENUE – EXPENDITURE TABLES

Fiscal Year Fund Analysis

		2004	% of budget		2005	% of budget
General Fund
	Revenue Source
	Taxes	$15,475,890		105.1	$16,271,716	101.6
	Sales Tax	20,740,305		115.9	21,318,109	106.6
	Licenses & Permits	1,121,828		175.3	1,082,191	140.5
	Intergovernmental	716,688		111.6	710,932	110.7
	Service Charges	402,638		108.4	683,640	177.8
	Fines	2,321,690		154.8	2,637,520	130.5
	Interest	369,078		73.8	1,087,619	271.9
	Miscellaneous	3,259,492		109.9	2,930,185	88.9
	Transfers	1,195,000		100.0	1,595,525	100.0
	Total Revenue	45,602,609		112.5	48,317,437	107.1
	Expenditures
	General Government	13,938,737		97.4	15,923,808	97.5
	Public Safety	19,616,373		92.8	23,067,366	99.3
	Public Works	4,816,811		94.0	5,472,307	95.1
	Parks & Recreation	2,581,307		97.2	2,950,773	101.1
	Total Expenditures	40,953,228		94.6	47,414,254	98.3
	Revenues over Expenditures	4,649,381			903,183

		2004	% of budget	2005	% of budget
Recreation Fund
	Revenue Source
	Taxes	$390,817	105.5	$318,183	101.5
	Service Charges	1,304,358	96.9	1,409,866	104.5
	Miscellaneous	1,192		4,231
	Transfers	1,200,000	100.0	1,304,000	100.0
	Total Revenue	2,896,367	99.2	3,036,280	101.9
	Expenditures
	Parks & Recreation	2,805,933	90.6	3,085,956	95.5
	Total Expenditures	2,805,933	90.6	3,085,956	95.5
	Revenues over Expenditures	90,434		(49,676)

			2004		% of budget		2005		% of budget
Transportation Fund
	Revenue Source
	Taxes		$1,284,831		102.9		$1,108,497		102.0
	Service Charges		148,907		156.7		164,486		191.3
	Miscellaneous		19,089		0.0		235		0.0
	Total Revenue		1,452,827		108.1		1,273,218		104.3
	Expenditures
		Public Transportation		1,306,220		64.8		1,605,841		79.2
	Total Expenditures		1,306,220		64.8		1,605,841		79.2
	Revenues over (under) Expenditures		146,607				(332,623)

2005 Enterprise Funds	Water & Sewer		Sanitation		Storm		Golf
		%		%		%		%
Revenue Sources
Service Charges	$24,666,589	115.9	$8,350,142	104.6	$2,767,975	108.5	935,963	85.9
Interest	1,220,590	349.7	117,072	193.5	97,093	647.2	0
Intergovernmental	0		0		60,944		0
Miscellaneous	48,956		170,061	343.6	5,219,996	100.0	0
Total Revenues	25,936,135	119.9	8,637,275	106.7	8,146,008	114.4	935,963	85.9
Expenses
Operations	33,954,544	98.4	8,848,917	89.2	8,906,259	98.9	993,121	84.7
Net Income	(8,018,409)		(211,642)		(760,251)		(57,158))