Loading...
HomeMy WebLinkAbout02/18/2020 06D 2019 4th Quarter Financial Report a\'4\lyy bxk ik 1 PPP d g. P A PPPPPc s' lii it tYlltYlA.\ta. BUSINESS OF THE CITY COUNCIL YAKIMA, WASHINGTON AGENDA STATEMENT Item No. 6.D. For Meeting of: February 18, 2020 ITEM TITLE: 2019 4th Quarter Financial Report SUBMITTED BY: Steve Groom, Director of Finance & Budget SUMMARY EXPLANATION: The Fourth Quarter Financial Report for 2019 is attached and consists of the following: 1. Summary Narrative 2. Financial Reports • Cash Balance Trend • Material Revenue Performance Charts • 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 APPROVED FOR SUBMITTAL BY THE CITY MANAGER RECOMMENDATION: Review only. Submitted for routine transparency and accountability. ATTACHMENTS: Description Upload Date Type D 4th C carter e rk /012020 x uti um a 2 1, , ,` FINANCE DEPARTMENT £0 To: Mayor and City Council Alex Meyerhoff,Interim City Manager From: Steve Groom,Finance Department Kathy Miles,Financial Services Date: February 18,2020 Subject: 2019 4th Quarter Financial Update This financial update is an unaudited report for the 4th quarter ended December 31,2019,One year,or 100%of the year,intended to inform and assist governance decisions for future planning. In total,city revenues are at 82.2%of budget and expenditures are at 75.3%of budget. The timing of Property Tax Revenue and the timing of Capital Fund Expenditures are always the biggest reason that revenues and expenditures are well below 100%. Cash position and revenue charts on the following pages provide insight into the monitoring of revenue and the management of expenses. Quarterly Treasury report provides further cash analysis separately. All invoices are not yet received and complete accrual analysis is done at year-end,not quarterly,so this report is intended as a progress report. General Fund's Performance to Budget General Fund Revenues in total are at 99.6%;the largest components are: • Sales Tax is at 100.0%. • Property Tax is at 100.9%, up from year end estimates. • Utility and Franchise Taxes are at 95.6%. Utility Tax (Revenue),falling short of budget at year- end by$831,926. General Fund Expenditures in total are at 94.3%;the largest components are: • Police expenditures are at 94.4%. • Fire Expenditures are at 102.4%. • Information Technology expenditures are at 90.8%. 3 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 December at$96.1 million,an all-time high. Each month is best compared to the same month in previous years to account for seasonality and other annual events. CASH AND INVESTMENTS HISTORY $ton,ono,ono — $S0,)OO,000 — $60,n00,O0n — $4o,)On,OOn — $20,000,O00 — $ll 1 I I I I I I I I I I I \to ©�\c r-4v\ �ti� ti�<1 ,, A ,vA ti�<1 ���\� ���\� ��\� ��\� ���\� ��tiq ���\a ,,,A1� \\ _ �`� v\ 'A (IA vOA \\ aA \ \ \ 1\ • A Sales Tax This is the largest single funding source for the city. Following a sluggish 1st and 2nd quarter largely defined by poor weather,3rd and 4th quarter receipts improved,exceeding prior year by$1,086,262 (or 3.6%). Year-end budget was$31.2 million. SALES TAX REVENUE S35,OOO,On0 — s3n,0oo,ono $25,000,000 — S20,000,000 — S15,000,000 — S10,000,000 — S5,000,000 — $o Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec t Current Year Cumulative Prior Year Cumulative Budget Cumulative Finance Quarterly Report-Page 2 4 Property Tax The 2Dl9 budget increased by$3 million due to assessed valuations; were below expectation for the 1st guazte�but improved in the 2nd and 3rd quarter,and achievedbudget at year-end. 78LQP2QIY TAX REVENUE �zs'ouo'uoo — $zu'ouu'ouo �o'ouo'uoo $|u'ouu'ouo Ss'wo'uoo $» 1^n Feb muz Apr May }'m Jul Aug Sep Oct Nov Dec — Current Year Cumulative Prior Year Cumulative oudA.t[umuuuv" Water Water revenue iyu sl��tl io b t� l � d t ��ttb d ftb 4tb te btiv f` ,,� �overf`r r�ea� u eop� u 8e � eeo o e guar � cuzuu e is just under budget by$125,027. WATER REVENUE �o'ouo'uoo Sm'uon'uoo s*'wu'000 s6'mo.ono S+'mo.uoo sz.00Kuw $» Jan Feb w/a, Apr may Jun Jul Aug 5,p Oct Nov Dec — Current Year Cumulative Prior Year cxmu|^a,, Budget Cumulative Finance Quarterly Report'Page 3 5 Refuse Refuse revenue is up after four quarters-$345,580 over budget,overcoming a negative 1st quarter that had been trailing budget by$90,000. REFUSE REVENUE $7,000,000 $6,000,000 55,000,000 $4,000,000 $3,000,000 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,and was running under both budget and prior year but picked up with June receipts. At the end of 2019,it is under budget by$52,092. 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 ::::: $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 6 Airport Airport revenue is up,exceeding budget by$47,791 after four quarters. This measure includes all airport revenues which include airline landing fees,commercial rents,parking lot revenue,car rental and general aviation. AIRPORT REVENUE S1,600,000 $1,400,000 S1,200,000 $1,000,000 $800,000 $600,000 $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,ended the year at$814,050,ahead of budget by$204,050. BUILDING PERMIT REVENUE sl,000,000 — $800,000 — , ,, •..,.-'""a $600,000 — $400,000 — $200,000 — 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 7 CITY-WIDE FUND BALANCE SUMMARY CHANGE IN FUND BALANCE 2019 As of December 31st Beginning 2019 2019 Ending Balance Actual Rev. Actual Exp. Balance General Fund $ 9,061,873 $ 67,208,532 $ 64,039,734 $ 12,230,671 Parks and Recreation 283,427 4,773,450 4,903,975 152,902 Street&Traffic Operations 470,252 5,399,623 5,574,420 295,455 General Government Subtotal 9,815,552 77,381,605 74,518,129 12,679,028 Other Governmental Operating Funds 5,541,290 13,183,949 13,313,228 5,412,011 Government Capital Funds 15,485,084 13,682,590 16,945,877 12,221,797 Enterprise Operating Funds 15,778,548 59,535,884 56,860,654 18,453,778 Enterprise Capital Funds 36,213,777 11,683,509 10,793,105 37,104,181 Internal Service Funds 4,777,031 5,721,899 6,675,806 3,823,124 Employee Benefit Reserve 432,616 14,597,964 13,865,916 1,164,664 Risk Management Reserves 1,802,216 4,411,668 3,553,205 2,660,679 Debt Service&Agency Funds 2,456,990 7,508,542 7,311,658 2,653,874 Total $ 92,303,104 $ 207,707,610 $ 203,837,578 $ 96,173,136 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 8 CITY WIDE REVENUES & EXPENDITURES BY FUND GROUPING REVENUE COMPARISON (Budget vs.Actual) 2018 2019 Annual Actual % Amended Actual % as of 12/31 Rec'd Budget as of 12/31 Rec'd General $ 64,309,071 95.6% $ 67,484,430 $ 67,208,532 99.6% Parks and Recreation 5,179,786 94.7% 5,259,740 4,773,450 90.8% Street&Traffic Operations 6,286,209 113.0% 5,782,582 5,399,623 93.4% General Government Subtotal 75,775,066 96.7% 78,526,752 77,381,605 98.5% Other Government Operating Funds 13,164,784 88.8% 16,970,561 13,183,949 77.7% Government Capital Funds 25,670,636 55.1% 42,444,961 13,682,590 32.2% Enterprise Operating Funds 58,978,936 102.0% 60,530,047 59,535,884 98.4% Enterprise Capital Funds 9,784,358 50.1% 19,892,710 11,683,509 58.7% Internal Service Funds 5,982,355 97.8% 6,167,579 5,721,899 92.8% Employee Benefit Reserves 14,353,682 99.7% 16,388,226 14,597,964 89.1% Risk Management Reserve 4,374,653 104.8% 4,345,936 4,411,668 101.5% Debt Service&Agency Funds 14,545,077 133.9% 7,529,200 7,508,542 99.7% Total $ 222,629,547 88.1% $ 252,795,972 $ 207,707,610 82.2% EXPENDITURE COMPARISON (Budget vs.Actual) 2018 2019 Annual Actual % Amended Actual % as of 12/31 Exp'd Budget as of 12/31 Exp'd General $ 63,997,924 95.6% $ 67,922,046 $ 64,039,734 94.3% Parks and Recreation 4,931,743 87.7% 5,190,778 4,903,975 94.5% Street&Traffic Operations 6,665,852 121.7% 7,662,384 5,574,420 72.8% General Government Subtotal 75,595,519 96.9% 80,775,208 74,518,129 92.3% Other Government Operating Funds 11,894,717 80.5% 17,090,902 13,313,228 77.9% Government Capital Funds 18,378,377 43.5% 45,810,256 16,945,877 37.0% Enterprise Operating Funds 55,802,440 93.3% 62,261,384 56,860,654 91.3% Enterprise Capital Funds 6,618,742 24.1% 27,327,123 10,793,105 39.5% Internal Service Funds 4,800,368 74.7% 9,668,153 6,675,806 69.0% Employee Benefit Reserves 13,158,672 87.5% 16,128,416 13,865,916 86.0% Risk Management Reserve 3,679,290 91.5% 4,301,306 3,553,205 82.6% Debt Service&Agency Funds 14,407,945 132.8% 7,516,225 7,311,658 97.3% Total $ 204,336,070 79.0% $ 270,878,973 $ 203,837,578 75.3% Finance Quarterly Report-Page 7 9 GENERAL GOVERNMENT REVENUE DETAIL GENERAL GOVERNMENT REVENUES 2019 Revenues as of 12/31 Amended Percent General Fund 2017 2018 2019 Budget Rec'd General Sales Tax $ 16,679,197 $ 17,483,952 $ 18,178,576 $ 18,173,950 100.0% Criminal Justice Sales Tax 3,380,679 3,624,037 3,622,593 3,584,560 101.1% Property Tax 12,592,341 9,960,041 10,651,947 10,557,065 100.9% Utility&Franchise Taxes 16,625,263 17,447,022 18,144,153 18,976,079 95.6% Charges for Services 8,776,929 9,169,186 7,926,764 8,012,893 98.9% State Shared Revenue 2,245,826 2,214,930 2,039,963 2,242,469 91.0% Other Intergovernmental 847,856 686,216 734,645 740,490 99.2% Fines and Forfeitures 1,826,935 1,755,518 1,628,806 1,939,817 84.0% Other Taxes&Fees 1,541,629 1,665,150 1,591,001 1,655,074 96.1% Licenses and Permits 856,077 1,033,260 1,207,407 939,850 128.5% Other Revenue 837,958 1,008,038 1,482,677 662,183 223.9% Total General Fund 66,210,690 66,047,350 67,208,532 67,484,430 99.6% Parks&Recreation Property Tax 2,583,260 2,505,558 2,560,000 2,560,000 100.0% Charges for Services 834,115 894,196 811,665 884,050 91.8% State Shared Revenue 23,100 23,830 23,830 23,830 100.0% Other Intergovernmental 60,926 67,334 53,365 50,500 105.7% Transfers from other Funds 1,513,060 1,519,940 1,168,922 1,513,060 77.3% Other Revenue 210,721 168,928 155,668 228,300 68.2% Total Parks&Recreation 5,225,182 5,179,786 4,773,450 5,259,740 90.8% Streets Property Tax 3,116,609 3,629,305 3,121,325 3,121,325 100.0% Charges for Services 402,773 912,379 652,852 720,000 90.7% State Shared Revenue 1,317,201 1,319,421 1,272,945 1,319,812 96.4% Other Intergovernmental 184,137 252,484 244,529 246,900 99.0% Other Taxes&Fees 150,000 Transfers from other Funds 144,000 176,545 Other Revenue 2,573,221 28,620 107,972 48,000 224.9% Total Streets 7,593,941 6,286,209 5,399,623 5,782,582 93.4% Total General Government $ 79,029,813 $ 77,513,345 $ 77,381,605 $ 78,526,752 98.5% Finance Quarterly Report-Page 8 10 GENERAL GOVERNMENT EXPENDITURE DETAIL GENERAL GOVERNMENT EXPENDITURES 2019 Expenditures as of 12/31 Amended Percent 2017 2018 2019 Budget Exp'd Police $ 28,657,996 $ 29,260,677 $ 28,791,478 $ 30,514,794 94.4% Fire 13,436,007 14,403,116 15,039,325 14,693,496 102.4% Information Technology 3,521,662 3,343,615 3,369,949 3,711,761 90.8% Interfund Distributions 4,187,350 2,085,575 1,765,911 2,143,060 82.4% Code Administration 1,783,601 1,934,180 1,898,032 1,974,496 96.1% Legal 1,616,593 1,656,089 1,721,211 1,938,043 88.8% Finance 1,553,313 1,553,518 1,514,545 1,787,366 84.7% Municipal Court 1,439,477 1,601,371 1,614,253 1,711,215 94.3% Firemen's Relief/Pension 1,126,446 1,123,935 1,152,205 1,216,963 94.7% Indigent Defense 1,021,792 1,015,983 1,053,270 1,050,000 100.3% Police Pension 815,405 798,375 773,819 929,497 83.3% Engineering 660,751 686,953 664,110 778,311 85.3% Human Resources 613,633 685,227 742,607 768,113 96.7% City Clerk/Records 636,541 622,093 460,093 717,207 64.2% Planning 577,096 610,984 707,066 707,117 100.0% Purchasing 557,489 600,219 687,952 647,613 106.2% City Management 395,581 424,018 568,829 648,681 87.7% City Hall Facility 550,676 495,872 561,193 602,352 93.2% Economic Development 595,405 399,622 281,423 313,243 89.8% City Council 253,907 252,979 243,632 275,686 88.4% Parking 156,750 176,663 144,525 186,854 77.3% Intergovernmental 156,361 150,680 146,617 162,689 90.1% State Auditor 127,883 116,180 127,072 130,000 97.7% Contingency 313,489 n/a Total General Fund 64,441,715 63,997,924 64,029,117 67,922,046 94.3% Parks&Recreation Fund 5,473,986 4,931,743 4,903,975 5,190,778 94.5% Street&Traffic Ops. 7,295,657 6,665,852 5,574,420 7,662,384 72.8% Total General Government $ 77,211,358 $ 75,595,519 $ 74,507,512 $ 80,775,208 92.2% Finance Quarterly Report-Page 9 11 OTHER FUNDS DETAIL OTHER GOVERNMENT OPERATING FUNDS 2019 As of December 31th Beginning 2019 2019 Ending Fund Balance Actual Rev. Actual Exp. Balance Economic Development $ 70,321 $ 113,863 $ 128,380 $ 55,804 Neighborhood Development 862,584 1,523,981 2,094,768 291,797 Community Relations 741,290 647,033 585,300 803,023 Cemetery 118,508 333,618 301,809 150,317 Emergency Services 9,414 1,413,463 1,258,658 164,219 Public Safety Communication 718,371 4,222,803 3,962,332 978,842 Police Grants 1,185,643 394,355 378,425 1,201,573 PBIA(Park/Bus Improvement Area) 63,947 165,033 131,696 97,284 Trolley 19,856 11,275 31,512 (381) Front Street Bus Improvement Area 1,090 5,276 2,820 3,546 Convention Center(Tourist Promo) 377,237 1,581,047 1,677,649 280,635 Capitol Theatre 34,144 471,498 471,867 33,775 PFD-Convention Center 1,028,440 963,328 971,359 1,020,409 Tourism Promotion Area 69,902 607,833 607,833 69,902 PFD-Capitol Theatre 240,544 729,541 708,819 261,266 Capitol Theatre Reserve Total Other Gov't Operating Funds $ 5,541,291 $ 13,183,947 $ 13,313,227 $ 5,412,011 GOVERNMENTAL CAPITAL FUNDS 2019 As of December 31th Beginning 2019 2019 Ending Fund Balance Actual Rev. Actual Exp. Balance Arterial Street $ 2,147,691 $ 5,998,459 $ 7,637,102 $ 509,048 Central Bus District Capital (532,523) 593,561 61,038 Capitol Theatre Construction 149,087 60,000 8,070 201,017 Yakima Redevelopment Area 2,230,389 1,016,432 1,479,187 1,767,634 Parks&Recreation Capital 4,021,729 126,423 3,752,945 395,207 Fire Capital 393,621 108,438 77,062 424,997 Law and Justice Capital 444,425 606,159 395,258 655,326 Public Works Trust Construction 2,980,111 1,396,571 1,256,519 3,120,163 REET 2 Capital 1,060,389 1,316,672 775,320 1,601,741 Street Capital 951,821 1,690,275 464,012 2,178,084 Convention Center Cap Improvement 1,056,992 759,600 1,070,321 746,271 Reserve for Capital Improvement 581,353 10,000 30,080 561,273 Total Gov't Capital Funds $ 15,485,085 $ 13,682,590 $ 16,945,876 $ 12,221,799 Finance Quarterly Report-Page 10 12 ENTERPRISE OPERATING FUNDS 2019 As of December 31th Beginning 2019 2019 Ending Fund Balance Actual Rev. Actual Exp. Balance Airport Operating $ 86,890 $ 1,458,243 $ 1,310,454 $ 234,679 Stormwater Operating 1,115,074 3,622,578 3,661,356 1,076,296 Transit Operating 3,856,311 7,283,880 8,298,131 2,842,060 Refuse 1,435,369 8,041,634 7,338,664 2,138,339 Wastewater Operating 6,299,131 24,937,092 22,933,884 8,302,339 Water Operating 1,983,267 10,707,468 9,909,580 2,781,155 Irrigation 1,002,506 1,900,390 1,802,413 1,100,483 Utility Services 1,584,599 1,606,171 (21,572) Total Enterprise Operating Funds $ 15,778,548 $ 59,535,884 $ 56,860,653 $ 18,453,779 ENTERPRISE CAPITAL FUNDS 2019 As of December 31th Beginning 2019 2019 Ending Fund Balance Actual Rev. Actual Exp. Balance Airport Capital $ 458,802 $ 2,955,622 $ 3,385,969 $ 28,455 Stormwater Capital 5,394,934 1,200,000 1,846,058 4,748,876 Transit Capital 6,291,546 1,119,966 646,480 6,765,032 Wastewater Facilities Capital 3,133,277 1,000,000 99,132 4,034,145 Wastewater Construction Capital 7,080,518 2,911,383 1,654,004 8,337,897 Wastewater Capital 5,354,196 628,531 915,414 5,067,313 Water Capital 4,276,005 501,500 1,329,058 3,448,447 Irrigation Capital 4,224,499 1,366,508 916,992 4,674,015 Total Enterprise Capital Funds $ 36,213,777 $ 11,683,510 $ 10,793,107 $ 37,104,180 INTERNAL SERVICE FUNDS 2019 As of December 31th Beginning 2019 2019 Ending Fund Balance Actual Rev. Actual Exp. Balance Equipment Rental $ 3,650,802 $ 4,337,817 $ 5,295,033 $ 2,693,586 Environmental 555,685 143,878 253,398 446,165 Public Works Administration 570,544 1,240,204 1,127,375 683,373 Total Enterprise Operating Funds $ 4,777,031 $ 5,721,899 $ 6,675,806 $ 3,823,124 Finance Quarterly Report-Page 11 13 EMPLOYEE BENEFIT RESERVES 2019 As of December 31th Beginning 2019 2019 Ending Fund Balance Actual Rev. Actual Exp. Balance Unemployment Comp Reserve $ 193,601 $ 222,987 $ 162,793 $ 253,795 Employees Health Ben Reserve 223,546 12,273,352 12,206,229 290,669 Worker's Comp Reserve (13,652) 2,051,475 1,440,184 597,639 Wellness/EAP 29,121 50,150 56,710 22,561 Total Employee Benefit Reserve $ 432,616 $ 14,597,964 $ 13,865,916 $ 1,164,664 RISK MANAGEMENT RESERVE 2019 As of December 31th Beginning 2019 2019 Ending Fund Balance Actual Rev. Actual Exp. Balance Risk Management Reserve $ 1,802,216 $ 4,411,668 $ 3,553,205 $ 2,660,679 DEBT SERVICE &AGENCY FUNDS 2019 As of December 31th Beginning 2019 2019 Ending Fund Balance Actual Rev. Actual Exp. Balance GO Bond Redemption 2002 GO Convention Center $ 166,440 $ 1,027,102 $ 1,030,925 $ 162,617 2005 GO Various Bonds 8,733 3,531,619 3,535,614 4,738 1996 GO LTD-Convention Center 73,292 335,529 349,070 59,751 LID Debt Service Control Total GO Bond Redemption $ 248,465 $ 4,894,250 $ 4,915,609 $ 227,106 Water/Sewer Revenue Bond Redemption Water Rev Bonds&Debt Service $ 366,880 $ $ $ 366,880 WW Rev Bond&2008 Debt Service (20,419) 415,963 394,219 1,325 Irrigation Bond Debt Service (24,038) 320,154 265,103 31,013 WW Rev Bond Rsv&2012 Debt Svc 1,584,282 1,164,500 1,127,833 1,620,949 Total W/S Rev Bond Redemption $ 1,906,705 $ 1,900,617 $ 1,787,155 $ 2,020,167 Agency Funds Yakcorps (382,575) 669,982 596,895 (309,488) Cemetery Trust 684,396 43,694 12,000 716,090 Total Agency Funds $ 301,821 $ 713,676 $ 608,895 406,602 Finance Quarterly Report-Page 12