HomeMy WebLinkAbout2008-08-25 Correspondence~s ~/ate
Date: August 25, 2008
To: Kevin O'Malley, Finance Director
Michael Lombardo, City Manager
From: Leigh Lewis, Management Analyst
Re: Budget to Actual Comparison
for the Fiscal Year Ended June 30, 2008
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CITY OF IOWA CITY
The purpose of this report is to examine revenue and expenditures on a cash basis through June 30, 2008, for the
General and business-type funds.
General Fund -Overview
Activity within the Streets and Traffic Engineering Divisions has traditionally been accounted for within Iowa City's
General Fund. These two divisions are funded entirely (100%) from Road Use Tax revenue, for which reason they
were moved to the Road Use Tax Fund at the start of FY2008. This change reduces General Fund revenue and
expenditure projections by $4.4 million this fiscal year.
General Fund -Revenue and Other Financing Sources
General Fund revenue and other financing sources total $ 47.6 million for the year and are 106% of the original
budget estimate. During the course of the year, amendments increased General Fund revenue projections by $2.5
million, and include the following:
• Interfund loan for Fire Station #2 demolition and reconstruction ($975,000);
• Interest Income ($447,000);
• Transit Reserve Funding ($440,000);
• Revision of funding for Airport UI Hangar Construction -Interfund Loan will come from Landfill instead of
General Fund (-$400,000);
• Federal & State Grants ($203,000);
After amendments, actual receipts are 100% of budget.
General Fund -Expenditures
General Fund expenditures of $49.9 million are one hundred and eight percent (108%) of the original budget of
$46.3 million. Expenditures were amended for an additional $6.4 million in FY2008, including the following:
• FY2007 budget appropriations -authority for open purchase orders and projects ($1,138,000)
• Capital Improvement Program (CIP) funding:
o Fire Station #2 -Demolition and Reconstruction ($1,950,000)
o Senior Center - Boiler, Roof & Restrooms ($462,000)
o Sand Lake -Land Acquisition ($350,000)
o City Attorney -Remodel ($225,000)
• Transit reserve funding -from operations ($440,000)
• Police Department Target Range -land acquisition using forfeiture monies ($326,000)
After amendments, General Fund expenditures are ninety-five percent (95%) of the amended budget of $52.7
million.
The following graphs provide a comparison between FY2007 and FY2008 receipts and expenditures, with the
exclusion of property tax revenue.
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General Fund Revenue
Fiscal Year Comparison by State Classification
FY2008 Total: $47.6 Million
$12.0
$10.0
;A $8.0
N
o $6.0
0
c $4.0
$2.0
$0.0
', $10.8
^ FY2007: $44.9 Million
o FY2008: $47.6 Million
$4.4 ' $4.1 '
' $1.8' $1.7.
$1
3 $1
2 '
.
. $0.1
Charges Intergovt. Misc. Licenses & Other City Use of Interfund Sale of
for Fees & Permits Taxes Money & Transfers Assets
Services Property
Note: Property tax receipts (not shown) total $21.6 million in FY2007 and $22.2 million in FY2008.
General Fund Expenditures
Fiscal Year Comparison by State Program Area
FY2008 Total: $49.9 Million
$18.0
$16.0
$14.0
$12.0
w
H $10.0
m
p° $8.0
w
0
N
c $6.0
~ $4.0
$2.0
$0.0
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Public Public- Culture & General Comm. 8 Interfund
Safety Works Recreation Govt. Econ. De v. Transfers
State Program Area
General Fund Cash Balance
The General Fund cash balance at June 30, 2008, is $19,275,858. Of this amount, $1.91 million is restricted in
use and $1.87 is held in reserve for equipment replacement and parkland acquisition /development.
Funds encumbered (but not paid) at June 30, 2008, include $1.5 million in purchase orders.
BUSINESS-TYPE FUNDS
The Business-Type Funds include Parking, Wastewater, Water, Refuse, Landfill, Airport, Stormwater and
Broadband Telecommunications. Operations are primarily funded from user fees and charges for the services
provided to individual customers. The following summaries examine operational revenue and expenditures by
comparison to the original budget. Amendments are highlighted where significant.
Parking Fund
Parking revenue totals $8.0 million at fiscal year end, having received a $3.05 million interfund loan to provide
financing for land acquisition at 435 South Linn Street. This parcel is intended for development of a mixed-use
parking facility in the Near Southside Neighborhood.
Operating revenue, excluding one-time transactions, declined by three percent (-3%) in FY2008 to $4.9 million. The
majority of this decrease is seen in ticket revenue due to staffing changes.
Parking expenditures of $6.8 million are ninety percent (90%) of budget, with $197,000 in appropriations remaining
for capital projects.
Cash balance at the end of the fiscal year is $3.8 million, with $228,000 in restricted cash.
Wastewater Treatment
Wastewater revenue of $13.3 million is 99% of the original budget at June 30, 2008. User fees remain steady while
interest revenue has declined from FY2007.
Total expenditures are ninety-three percent (93%) of budget at $11.9 million, with $406,000 remaining for capital
project financing. Debt service payments represent sixty-one percent (61%) of Wastewater's expenditures in
FY2008.
The cash balance at fiscal year-end is $8.9 million.
Water Operations
Revenue of $9.4 million is 101 % of budget at June 30, 2008.
Expenditures of $10.2 million are ninety-seven percent (97%) of the original budget. Amendments totaling $2.8
million include financing for the following capital projects:
$726,000 Highway 218 Extension
$603,000 Mormon Trek Box Culvert - FY07 appropriation
$477,000 McCollister Boulevard
$400,000 Lower West Branch Road - FY07 appropriation
$165,000 Newton Road /Valley /Lincoln - FY07 appropriation
$100,000 North Dodge - FY07 appropriation
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After amendments, expenditures are seventy-seven percent (77%) of budget with $1.9 million remaining in capital
project financing and $594,000 in appropriations for capital outlay.
Cash balance at June 30, 2008 is $13.3 million, of which $458,481 is restricted in use.
Refuse Collection Fund
Revenue is 102% of original budget at $2.6 million. A rate increase of $1.00 per month went into effect July 1,
2007, and an additional increase of $.50 per month was approved by City Council for July 1, 2008.
Expenditures are 97% of budget at $2.6 million. The ending cash balance at June 30, 2008 is $476,501.
Landfill Operations Fund
Total revenue of $6.6 million exceeds the original budget estimate of $6.3 million. Expenditures total $9.2 million
and are eighty-seven percent (87%) of the amended budget at fiscal year-end.
Expenditures were amended by $5.3 million in FY2008 to provide funding for a number of capital projects. These
include a $3,050,000 loan to Parking for the Near Southside Facility; a $975,000 loan for redesign and
construction of Fire Station #2 at Emerald Street and Melrose Avenue; $700,000 for land acquisition at the landfill,
and a $400,000 loan to the Airport for construction of a new hangar. Loan proceeds are typically transferred as
required by project expenditures. Airport had received $47,000 of the authorized $400,000 at fiscal year-end, all
other funds were utilized as planned.
Excluding these items, operating costs are nineteen percent (19%) higher at June 30, 2008 than they were in the
prior year. The quarterly solid waste fee that is paid to the Iowa DNR was considerably lower in FY2007 due to
the reduced fee for tornado-related storm debris during the fall of 2006.
Landfill's Vehicle (and equipment) Rental costs were considerably higher at $525,000 for the year, an increase of
twenty-eight percent (28%) over FY2007 and fifty-one percent (51 %) over the three fiscal years 2006 - 2008.
City Vehicle Rental is an internal service charge from the Equipment Division intended to cover the cost of vehicle
fuel, routine maintenance and repairs. The increase observed for Landfill Operations is more dramatic as the
combined result of increased fuel prices and the rate of consumption for large equipment.
Ending cash balance at June 30, 2008, is $24,269,519. Of this amount, $11.9 million is restricted in use by Iowa
State Code for cell closure, post-closure, planning and waste reduction requirements. An additional $1.3 million is
in compliance with the City's financial policy on equipment replacement reserves.
Airport Fund
Total revenue for Airport Operations is $2.1 million at fiscal year-end, with general levy property tax support of
$112,000. The original budget estimate was amended to provide authorization of a $400,000 interfund loan from
Landfill cash. Of this amount, $47,000 was received and transferred to the intended project(s) prior to fiscal year-
end. An amendment will be processed for the remainder of the loan to be made in FY2009.
Airport expenditures total $2.5 million at fiscal year-end. The original budget was amended by $938,000 to provide
funding to the West Terminal Apron and UI Hangar projects. With $518,000 utilized through June 30, 2008, an
amendment of $419,000 will be processed to carry the remaining appropriation over to FY2009.
Both revenue and expenditures exceed the amended budget due to sale of three lots and outlots in the North Airport
Commercial area in May, 2008 for $1.6 million. Proceeds from the sale were transferred to debt service for
repayment of bonds issued when the property was originally developed.
The Airport Fund's cash balance at June 30, 2008 is $60,229, with $10,067 restricted in use
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Storm Water Management Fund
Total revenue of $667,000 exceeds both original and amended budget estimates due to interest revenue and
increased receipts from storm water management fees.
Expenditures of $412,000 are sixty-four percent (64%) of the original budget due to early funding of the storm water
portion of Gilbert / Bowery / Prentiss intersection improvements in FY2007 and pending expenditures for utility billing
software.
The cash balance at fiscal year-end is $1,212,532.
Broadband Telecommunications Fund
Broadband Telecommunications received $871,000 in FY2008, a thirteen percent (13%) increase over FY2007.
Expenditures of $737,000 are eighty-seven percent (87%) of budget. Cash balance at June 30, 2008, is
$1,197,580.
Notes:
The following items impact operating revenue and expenditures within the General Fund and each of the
Business-Type Funds.
- Health insurance claims are down four percent (-4%) from the prior fiscal year at $5.8 million, with a
three-year average of $5.6 million.
- Interest Income on idle funds is $6.4 million through June 30, 2008, with $1.7 million in General Fund.
- Vehicle fuel expenditures totaled $2.3 million for all funds in FY2008. The average weekly price per
gallon of diesel increased thirty-eight percent (38%) from $2.12 in FY2007 to $2.91 FY2008. Gasohol
increased twenty-seven percent (27%) from $2.03 to $2.57/gallon this fiscal year.
- Heating fuel and gas expenditures of $645,000 are up eighteen percent (18%) from the prior year.
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$15.0
$1z.o
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Business -Type Funds
Revenue Comparison
FY2008 to Prior Fiscal Year
(in millions)
~`?`~ ! $13.3
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~~~a ®FY2007 Actual
^aµ'~ ®FY2008 Actual
~` Ess
$6.6
Fr
E2.6
$2.1 - -
$0.9
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parking Wastewater Water Refuse Landfill Airport Stormwater Broadband
Telecomm.
Business -Type Funds
Expenditure Comparison
FY2008 to Prior Fiscal Year
(in millions)
$14.0
$11.9
$12.0 - - _ - - - - - -
$10.2
$10.0 - - -- - $9.2 - - -- --
^ FY2007 Actual
~o
$s.o -
o° $s'8 ®FY2008 Actual
0
o $6.0 ~~ " - - - - -- -
$4.0 - _.
$2.6 $2.5
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$2.0 $0.7
$0.4
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0.0
Parking Wastewater Water Refuse Landfill Airport Stormwater Broadband
Telecomm.
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