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BUSINESS OF THE CITY COUNCIL
YAKIMA, WASHINGTON
AGENDA STATEM ENT
Item No. 10.
For Meeting of:August 5, 2019
ITEM TITLE: 2019 2nd Quarter Financial Report
SUBMITTED BY: Steve Groom, Director of Finance and Budget
SUMMARY EXPLANATION:
The Second Quarter Financial Report for 2019 is attached and consists of the following:
1. Summary Narrative
2. Financial Reports
• Cash Balance Trend - NEW
• Material Revenue Performance Charts - NEW
• Fund Balance Summary
• Revenue and Expenditure Comparison to Budget and Actual Year-to-Date
• General Government Revenue Historical Year-to-Date Detail
• General Government Expenditure Historical Year-to-Date Detail
• Other Funds - Revenue, Expenditure and Fund Balance Summary
ITEM BUDGETED: NA
STRATEGIC PRIORITY: Public Trust and Accountability
ir
APPROVED FOR
SUBMITTAL: ierCity Manager
STAFF RECOMMENDATION:
Review only. Submitted for routine transparency and accountability.
BOARD/COMMITTEE RECOMMENDATION:
ATTACHMENTS:
Description Upload Date Type
D 2019 rid darter Financial umrra 7/22/201 x uti um a
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R` . ,s FINANCE DEPARTMENT
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To: Mayor and City Council
Cliff Moore,City Manager
From: Steve Groom,Finance Department
Kathy Miles,Financial Services
Date: May 21,2019
Subject: 2019 2nd Quarter Financial Update
This financial update is an unaudited report for the 2nd quarter ended June 30,2019,6 months or 50%of
the year,intended to inform and assist governance decisions for future planning. In total,city revenues
are at 36.8%of budget and expenditures are at 35.7%of budget. The timing of Property Tax Revenue and
the timing of Capital Fund Expenditures are the biggest reason that revenues and expenditures are well
below 50%.
New cash position and revenue charts are introduced to this report on following pages that provide insight into
the monitoring of revenue and the management of expenses..
All invoices are not yet received and complete accrual analysis is not done quarterly,so this report is
intended as a progress report.
General Fund's Performance to Budget
General Fund Revenues in total are at 49.6%;the largest components are:
• Sales Tax is at 47.2%,which is in line with prior year but lagging budget expectations
• Property Tax is at 58.4% due primarily to timing since April and October have the largest
receipts. This timing impacts the General Fund fund balance significantly but is expected to
be on right on target at year-end
• Utility and Franchise Taxes are at 45.9%
General Fund Expenditures in total are at 46.3%;the largest components are:
• Police expenditures are at 45.8%
• Fire Expenditures are at 52.1%
• Information Technology expenditures are at 44.2%
4
REVENUE FORECAST
The City Council's current top strategic objective is improving the General Fund's fund balance. To
accomplish that goal,the City is monitoring revenues and managing expenses. By managing to budget,
the City will stay on track to meet its policy goal by 2023.
Cash& Investments
As a current over-all indicator,the 4-year historic city-wide cash and investments balance trends,
inclusive of all funds,shows June at$89.0 million;May was an all-time high$92.9 million. Each month is
best compared to the same month in previous years to account for seasonality and other annual events.
CASH AND INVESTMENTS HISTORY
$100,000,000 —
$80,000,000 —
$60,000,000 —
$40,000,000 —
$20,000,000 —
$ll 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1
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Sales Tax
This is the largest single funding source for the city. Following a sluggish 1st quarter largely defined by
poor weather,2nd quarter receipts improved,exceeding prior year by$220,000,but still under budget
slightly by$200,000 or 1.4%of the 6-month budget of$14.4 million. Year-end budget is$31.2 million.
SALES TAX REVENUE
S35,0o0,000
S30,000,000 — ---
$25,000,000 —
s20,000,000 —
S15,000,000 —
Sio,000,000 —
S5,000,000 —
$o
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
Current Year Cumulative Prior Year Cumulative Budget Cumulative
Finance Quarterly Report-Page 2
n
Property Tax
The 2Dl9 budget increased by$3 million due to assessed valuations; were below expectation for
1stgoarre�improved in quarter and e�pecredtobeon-track by year-end.
7OLQP2QIY TAX REVENUE
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- {u,nntrmrCumu|vuv, Prior Year Cumulative oudA,t[umuuuv"
Water
Water revenue iyu slightly,both prior dbudget. ^�ttb d of 2od quarter, cumulative
f` ,,� )\ o overf` or�earao the o e gua e� cuznu e
exceeds budget by$156,000.
WATER REVENUE
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Current Year Cumulative Prior Year cxmu|^a,, Budget Cumulative
Finance Quarterly Report'Page 3
6
Refuse
Refuse revenue is up after 2 quarters-$18,000 over budget,overcoming a negative 1st quarter that had
been trailing budget by$90,000.
REFUSE REVENUE
$7,000,000
$6,000,000 .---
55,000,00o
$4,000,000
S3,000,000
S2,000,000
$1,000,000
SO
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
Current Year Cumulative Prior Year Cumulative Budget Cumulative
Lodging Tax
Lodging tax was typically slow in the 1st quarter,was running under both budget and prior year but
picked up with June receipts. It is now trailing budget by$43,000. There were no known events or lack
of events that exerted a material influence on lodging activity. Two new local hotels have opened in
2020,adding 171 rooms to the existing supply of 1,855 hotel rooms.
LODGING TAX REVENUE
$2,000,000
$1,500,000
91,000,000
$500,000
SO
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
Current Year Cumulative Prior Year Cumulative Budget Cumulative
Finance Quarterly Report-Page 4
7
Airport
Airport Revenue is up,exceeding budget by$62,000 after 2 quarters. This measure includes all airport
revenues which include airline landing fees,commercial rents,parking lot revenue,car rental and
general aviation.
AIRPORT REVENUE
$1,600,000
$1,400,000
S1,200,000
$1,000,000
$800,000
$600,000
$400,000
$200,000
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
Current Year Cumulative Prior Year Cumulative Budget Cumulative
Building Permits
Building permit revenues,budgeted to reach$610,000 by year-end,are currently up to$520,000,ahead of
budget by$171,000.
BUILDING PERMIT REVENUE
s800,000 —
$700,000 — -
S600,000
$500,000
S400,000 —
S300,000
$200,000
$100,000 —
so
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
Current Year Cumulative Prior Year Cumulative Budget Cumulative
Finance Quarterly Report-Page 5
8
CITY-WIDE FUND BALANCE SUMMARY
CHANGE IN FUND BALANCE
2019 As of June 30th
Beginning 2019 2019 Ending
Balance Actual Rev. Actual Exp. Balance
General Fund $ 9,061,873 $ 33,449,987 $ 31,160,050 $ 11,351,810
Parks and Recreation 283,427 2,248,749 2,179,111 353,065
Street&Traffic Operations 470,252 2,876,042 2,885,875 460,419
General Government Subtotal 9,815,552 38,574,778 36,225,036 12,165,294
Other Governmental Operating Funds 5,541,290 5,620,965 6,534,567 4,627,688
Government Capital Funds 16,335,084 3,547,180 7,194,862 12,687,402
Enterprise Operating Funds 12,421,825 27,163,672 26,331,032 13,254,465
Enterprise Capital Funds 38,219,896 4,024,271 3,510,588 38,733,579
Internal Service Funds 3,883,038 2,894,894 2,492,908 4,285,024
Employee Benefit Reserve 2,910,659 6,311,990 6,866,152 2,356,497
Risk Management Reserves 1,856,654 1,088,453 2,663,170 281,937
Debt Service&Agency Funds 4,452,447 3,598,288 3,346,627 4,704,108
Total $ 95,436,445 $ 92,824,491 $ 95,164,942 $ 93,095,994
This table shows fund balances by fund at this point in time,however due to seasonal fluctuations such
as Property Tax revenues that come in twice a year, and dept payments made periodically,as well as
other seasonal factors, this is intended to provide transparency and accountability but it not a reliable
measure of predicted year-end.
Finance Quarterly Report-Page 6
9
CITY WIDE REVENUES & EXPENDITURES BY FUND GROUPING
REVENUE COMPARISON
(Budget vs.Actual)
2018 2019
Annual
Actual % Amended Actual %
as of 6/30 Rec'd Budget as of 6/30 Rec'd
General $ 34,043,201 50.6% $ 67,465,430 $ 33,449,987 49.6%
Parks and Recreation 2,722,278 49.8% 5,259,740 2,248,749 42.8%
Street&Traffic Operations 2,490,481 44.8% 5,782,582 2,876,042 49.7%
General Government Subtotal 39,255,960 50.1% 78,507,752 38,574,778 49.1%
Other Government Operating Funds 6,165,859 41.6% 16,900,561 5,620,965 33.3%
Government Capital Funds 6,520,007 14.0% 42,223,961 3,547,180 8.4%
Enterprise Operating Funds 26,741,637 46.3% 60,490,047 27,163,672 44.9%
Enterprise Capital Funds 3,943,301 20.2% 19,892,710 4,024,271 20.2%
Internal Service Funds 2,211,792 36.2% 6,167,579 2,894,894 46.9%
Employee Benefit Reserves 6,761,460 47.0% 16,388,226 6,311,990 38.5%
Risk Management Reserve 2,123,479 50.9% 4,345,936 1,088,453 25.0%
Debt Service&Agency Funds 8,055,877 74.2% 7,529,200 3,598,288 47.8%
Total $ 101,779,372 40.3% $ 252,445,972 $ 92,824,491 36.8%
EXPENDITURE COMPARISON
(Budget vs.Actual)
2018 2019
Annual
Actual % Amended Actual %
as of 6/30 Exp'd Budget as of 6/30 Exp'd
General $ 33,396,535 49.9% $ 67,358,718 $ 31,160,050 46.3%
Parks and Recreation 2,664,284 47.4% 5,169,394 2,179,111 42.2%
Street&Traffic Operations 2,050,654 37.4% 7,662,384 2,885,875 37.7%
General Government Subtotal 38,111,473 48.8% 80,190,496 36,225,036 45.2%
Other Government Operating Funds 5,675,073 38.4% 16,992,455 6,534,567 38.5%
Government Capital Funds 6,281,107 14.9% 45,504,256 7,194,862 15.8%
Enterprise Operating Funds 27,885,402 46.6% 62,221,384 26,331,032 42.3%
Enterprise Capital Funds 3,015,509 11.0% 24,627,123 3,510,588 14.3%
Internal Service Funds 1,478,833 23.0% 9,238,850 2,492,908 27.0%
Employee Benefit Reserves 6,693,080 44.5% 16,128,416 6,866,152 42.6%
Risk Management Reserve 2,434,751 60.5% 4,301,306 2,663,170 61.9%
Debt Service&Agency Funds 6,598,214 60.8% 7,516,225 3,346,627 44.5%
Total $ 98,173,442 37.9% $ 266,720,511 $ 95,164,942 35.7%
Finance Quarterly Report-Page 7
10
GENERAL GOVERNMENT REVENUE DETAIL
GENERAL GOVERNMENT REVENUES
2019
Revenues as of 6/30 Amended Percent
General Fund 2017 2018 2019 Budget Rec'd
General Sales Tax $ 7,847,214 $ 8,413,207 $ 8,582,881 $ 18,173,950 47.2%
Criminal Justice Sales Tax 1,561,128 1,748,032 1,689,479 3,584,560 47.1%
Property Tax 6,846,559 7,178,554 6,162,064 10,557,065 58.4%
Utility&Franchise Taxes 7,474,102 7,706,369 8,702,763 18,976,079 45.9%
Charges for Services 4,359,035 4,684,812 4,089,159 7,993,893 51.2%
State Shared Revenue 1,165,289 1,263,086 1,065,737 2,242,469 47.5%
Other Intergovernmental 420,529 332,566 297,817 740,490 40.2%
Fines and Forfeitures 913,029 932,600 839,074 1,939,817 43.3%
Other Taxes&Fees 960,937 970,745 915,301 1,655,074 55.3%
Licenses and Permits 432,767 581,628 739,095 939,850 78.6%
Other Revenue 182,856 231,602 366,616 662,183 55.4%
Total General Fund 32,163,445 34,043,201 33,449,986 67,465,430 49.6%
Parks&Recreation
Property Tax 1,437,086 1,541,401 1,412,195 2,560,000 55.2%
Charges for Services 497,100 514,765 452,890 884,050 51.2%
State Shared Revenue 11,550 11,915 11,915 23,830 50.0%
Other Intergovernmental 19,462 36,370 9,952 50,500 19.7%
Transfers from other Funds 643,524 535,072 292,134 1,513,060 19.3%
Other Revenue 120,006 82,754 69,663 228,300 30.5%
Total Parks&Recreation 2,728,728 2,722,277 2,248,749 5,259,740 42.8%
Streets
Property Tax 1,956,315 1,715,537 1,721,843 3,121,325 55.2%
Charges for Services 254,400 4,150 292,618 720,000 40.6%
State Shared Revenue 621,352 630,378 589,736 1,319,812 44.7%
Other Intergovernmental 58,615 126,468 122,280 246,900 49.5%
Other Taxes&Fees 150,000 -%
Transfers from other Funds 88,272 176,545 50.0%
Other Revenue 19,276 13,948 61,293 48,000 127.7%
Total Streets 2,909,958 2,490,481 2,876,042 5,782,582 49.7%
Total General Government $ 37,802,131 $ 39,255,959 $ 38,574,777 $ 78,507,752 49.1%
Finance Quarterly Report-Page 8
11
GENERAL GOVERNMENT EXPENDITURE DETAIL
GENERAL GOVERNMENT EXPENDITURES
2019
Expenditures as of 6/30 Amended Percent
2017 2018 2019 Budget Exp'd
Police $ 14,330,516 $ 14,719,266 $ 13,846,141 $ 30,250,940 45.8%
Fire 6,524,331 6,870,171 7,434,761 14,259,577 52.1%
Information Technology 1,858,728 1,778,458 1,639,512 3,711,761 44.2%
Interfund Distributions 2,135,924 2,261,197 753,867 2,143,060 35.2%
Code Administration 896,290 928,453 960,044 1,974,496 48.6%
Legal 782,210 811,792 884,053 1,938,043 45.6%
Finance 786,003 765,690 754,934 1,787,366 42.2%
Municipal Court 702,212 766,571 778,911 1,711,215 45.5%
Firemen's Relief/Pension 589,804 611,537 657,309 1,216,963 54.0%
Indigent Defense 517,189 419,426 524,724 1,050,000 50.0%
Police Pension 459,257 450,848 414,133 929,497 44.6%
Engineering 352,233 345,714 347,753 778,311 44.7%
Human Resources 304,443 343,376 367,947 768,113 47.9%
City Clerk/Records 219,505 227,490 217,897 717,207 30.4%
Planning 285,799 306,716 336,255 707,117 47.6%
Purchasing 274,749 295,713 304,673 647,613 47.0%
City Management 203,775 211,501 267,067 629,681 42.4%
City Hall Facility 370,011 251,528 211,318 602,352 35.1%
Economic Development 252,042 189,840 144,407 313,243 46.1%
City Council 158,630 171,081 143,023 275,686 51.9%
Parking 83,361 78,854 80,995 186,854 43.3%
Intergovernmental 96,759 91,313 86,194 162,689 53.0%
State Auditor 11,526 4,009 130,000 3.1%
Contingency 500,000 313,489 n/a
Total General Fund 32,195,297 33,396,535 31,159,927 67,205,273 46.4%
Parks&Recreation Fund 2,701,738 2,664,284 2,179,111 5,169,394 42.2%
Street&Traffic Ops. 2,759,671 2,050,654 2,885,875 7,662,384 37.7%
Total General Government $ 37,656,706 $ 38,111,473 $ 36,224,913 $ 80,037,051 45.3%
Finance Quarterly Report-Page 9
12
OTHER FUNDS DETAIL
OTHER GOVERNMENT OPERATING FUNDS
2019 As of June 30th
Beginning 2019 2019 Ending
Fund Balance Actual Rev. Actual Exp. Balance
Economic Development $ 70,321 $ 49,798 $ 46,392 $ 73,727
Neighborhood Development 862,584 156,756 1,338,462 (319,122)
Community Relations 741,290 328,100 281,530 787,860
Cemetery 118,508 152,655 157,327 113,836
Emergency Services 9,414 806,916 465,033 351,297
Public Safety Communication 718,371 2,092,877 1,954,727 856,521
Police Grants 1,185,643 151,297 110,690 1,226,250
PBIA(Park/Bus Impr Area) 63,947 91,422 86,521 68,848
Trolley 19,856 1,275 26,688 (5,557)
Front Street Bus Impr Area 1,090 3,000 2,770 1,320
Cony Center(Tourist Promo) 377,237 530,888 833,456 74,669
Capitol Theatre 34,144 214,063 228,111 20,096
PFD-Convention Center 1,028,440 454,487 477,906 1,005,021
Tourism Promotion Area 69,902 243,127 184,045 128,984
PFD-Capitol Theatre 240,544 344,305 340,909 243,940
Capitol Theatre Reserve
Total Other Gov't Oper Funds $ 5,541,291 $ 5,620,966 $ 6,534,567 $ 4,627,690
GOVERNMENTAL CAPITAL FUNDS
2019 As of June 30th
Beginning 2019 2019 Ending
Fund Balance Actual Rev. Actual Exp. Balance
Arterial Street $ 2,147,691 $ 588,259 $ 2,545,653 $ 190,297
Central Bus District Capital (532,523) 17,899 (514,624)
Capitol Theatre Construction 149,087 30,000 8,070 171,017
Yakima Redevelopment Area 3,080,389 16,432 78,223 3,018,598
Parks&Recreation Capital 4,021,729 69,638 3,476,124 615,243
Fire Capital 393,621 80,402 16,200 457,823
Law and Justice Capital 444,425 281,798 33,906 692,317
Public Works Trust Construction 2,980,111 669,280 270,554 3,378,837
REET 2 Capital 1,060,389 586,845 475,488 1,171,746
Street Capital 951,821 827,328 232,649 1,546,500
Convention Center Cap Impr 1,056,992 379,300 44,603 1,391,689
Reserve for Capital Impr 581,353 13,393 567,960
Total Gov't Capital Funds $ 16,335,085 $ 3,547,181 $ 7,194,863 $ 12,687,403
Finance Quarterly Report-Page 10
13
ENTERPRISE OPERATING FUNDS
2019 As of June 30th
Beginning 2019 2019 Ending
Fund Balance Actual Rev. Actual Exp. Balance
Airport Operating $ 151,561 $ 715,266 $ 646,949 $ 219,878
Stormwater Operating 1,157,263 2,127,603 1,797,413 1,487,453
Transit Operating 4,124,523 3,579,458 3,912,846 3,791,135
Refuse 1,573,403 3,683,417 3,168,345 2,088,475
Wastewater Operating 3,342,077 11,001,591 10,417,652 3,926,016
Water Operating 1,444,364 4,492,476 4,669,699 1,267,141
Irrigation 628,633 935,615 972,617
Utility Services 628,246 745,511 (117,265)
Total Enterprise Oper Funds $ 12,421,824 $ 27,163,672 $ 26,331,032 $ 12,662,833
ENTERPRISE CAPITAL FUNDS
2019 As of June 30th
Beginning 2019 2019 Ending
Fund Balance Actual Rev. Actual Exp. Balance
Airport Capital $ 942,680 $ 251,580 $ 305,603 $ 888,657
Stormwater Capital 5,605,362 601,265 834,023 5,372,604
Transit Capital 5,306,396 52,546 355,873 5,003,069
Wastewater Facilities Capital 3,133,277 489,917 49,307 3,573,887
Wastewater Const Capital 8,892,317 1,450,000 1,066,215 9,276,102
Wastewater Capital 5,787,084 300,917 547,785 5,540,216
Water Capital 4,324,604 250,750 265,552 4,309,802
Irrigation Capital 4,228,176 627,297 86,230 4,769,243
Total Enterprise Oper Funds $ 38,219,896 $ 4,024,272 $ 3,510,588 $ 38,733,580
INTERNAL SERVICE FUNDS
2019 As of June 30th
Beginning 2019 2019 Ending
Fund Balance Actual Rev. Actual Exp. Balance
Equipment Rental $ 2,734,045 $ 2,170,581 $ 1,871,528 $ 3,033,098
Environmental 523,398 104,214 116,870 510,742
Public Works Admin 625,596 620,100 504,510 741,186
Total Enterprise Oper Funds $ 3,883,039 $ 2,894,895 $ 2,492,908 $ 4,285,026
Finance Quarterly Report-Page 11
14
EMPLOYEE BENEFIT RESERVES
2019 As of June 30th
Beginning 2019 2019 Ending
Fund Balance Actual Rev. Actual Exp. Balance
Unemployment Comp Rsv $ 195,511 $ 141,937 $ 80,255 $ 257,193
Employees Health Ben Rsv 2,684,307 5,086,081 6,153,229 1,617,159
Worker's Comp Rsv (4,275) 1,083,972 605,648 474,049
Wellness/EAP 35,116 27,020 8,096
Total Employee Ben Reserve $ 2,910,659 $ 6,311,990 $ 6,866,152 $ 2,356,497
RISK MANAGEMENT RESERVE
2019 As of June 30th
Beginning 2019 2019 Ending
Fund Balance Actual Rev. Actual Exp. Balance
Risk Management Reserve $ 1,856,654 $ 1,088,453 $ 2,663,170 $ 281,937
DEBT SERVICE &AGENCY FUNDS
2019 As of June 30th
Beginning 2019 2019 Ending
Fund Balance Actual Rev. Actual Exp. Balance
GO Bond Redemption
2002 GO Convention Center $ 166,440 $ 513,469 $ 558,863 $ 121,046
2005 GO Various Bonds 8,733 1,894,196 2,297,557 (394,628)
1996 GO LTD-Convention Center 73,292 154,561 7,035 220,818
LID Debt Service Control 108,785 108,785
Total GO Bond Redemption $ 248,465 $ 2,562,226 $ 2,863,455 $ 56,021
Water/Sewer Revenue Bond Redemption
Water Rev Bonds&Debt Service $ 590,003 $ $ $ 590,003
WW Rev Bond&2008 Debt Service 260,397 62,531 41,688 281,240
Irrigation Bond Debt Service 120,276 82,577 27,526 175,327
WW Rev Bond Rsv&2012 Debt Svc 2,548,911 103,700 69,133 2,583,478
Total W/S Rev Bond Redemption $ 3,519,587 $ 248,808 $ 138,347 $ 3,630,048
Agency Funds
Yakcorps 669,982 344,826 325,156
Cemetery Trust 684,396 8,486 692,882
Total Agency Funds $ 684,396 $ 678,468 $ 344,826 1,018,038
Finance Quarterly Report-Page 12