HomeMy WebLinkAbout04/21/2020 04D 2020 1st Quarter Financial ReportB US INE S S O F T HE C I T Y C O UNC I L
YAK I M A, WAS HING T O N
AG E ND A S TAT E M E NT
I tem No. 4.D.
F or Meeting of: April 21, 2020
I T E M T IT L E :2020 1st Quarter F inancial Report
S UB M IT T E D B Y:S teve Groom, Director of Finance and Budget
S UM M ARY E X P L ANAT I O N:
The F irst Quarter F inancial Report for 2020 is attached and consists of the following:
1. S ummary Narrative
2. Financial Reports
Fund Balance Summary
Revenue and E xpenditure 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 F unds - Revenue, E xpenditure and F und B alance S ummary
I T E M B UD G E T E D:NA
S T RAT E G I C P RI O RI T Y:P ublic Trust and Accountability
AP P RO V E D F O R S UB M IT TAL B Y T HE C IT Y M ANAG E R
RE C O M M E ND AT I O N:
Review only. S ubmitted for routine transparency and accountability.
AT TAC HM E NT S :
Description Upload Date Type
report 4/14/2020 Cover Memo
1
FINANCE DEPARTMENT
To:Mayor and City Council
Alex Meyerhoff, Interim City Manager
From:Steve Groom, Finance Department
Kathy Miles, Financial Services
Date:April 21, 2020
Subject:2020 1st Quarter Financial Update
This financial update is an unaudited report for the 1st quarter ended March 31, 2020, One quarter, or
25% of the year, intended to inform and assist governance decisions for future planning. In total, city
revenues are at 19.1% of budget and expenditures are at 17.7% of budget. The timing of Property Tax
Revenue, coming in, and the timing of Capital Fund Expenditures, going out, are always the biggest
reason that revenues and expenditures are well below 25% at this point in the year.
Cash position and revenue charts on the following pages provide insight into the monitoring of revenue
and the management of expenses. The Quarterly Treasury report, a separate report also available on the
City's website, provides further cash and investment analysis.
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 21.9%; the largest components are:
•Sales Tax is at 8.2%.
•Property Tax is at 23.9%.
•Utility and Franchise Taxes are at 25.4%.
General Fund Expenditures in total are at 20.5%; the largest components are:
•Police expenditures are at 20.2%.
•Fire Expenditures are at 21.4%.
•Information Technology expenditures are at 23.5%.
2
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 March at $94.3 million. Each month is best compared to the same month in
previous years to account for seasonality and other annual events.
Sales Tax
This is the largest single funding source for the city. The 1st quarter cumulative $7.4 million exceeds
budget by $291,000 and exceeds prior year by $324,000. In coming months we expect to see a material
decrease due to the COVID-19 Emergency, however March actual results will not be received until May.
Finance Quarterly Report - Page 2
3
Property Tax
The 1st quarter cumulative revenue of $1,716,000 is down $95,000 below budget and $17,000 below prior
year. The 2020 budget increased by $3 million due to assessed valuations; preliminary receipts are
slightly favorable to budget however the first primary installments are paid in April .
Water
The 1st quarter cumulative revenue of $2.0 million through March is up $148,000 over budget and
$258,000 over prior year.
Finance Quarterly Report - Page 3
4
Refuse
The 1st quarter cumulative revenue of $1.6 million is up $206,000 over budget and $160,000 over prior
year.
Lodging Tax
The 1st quarter cumulative revenue of $274,000 is up $30,000 over budget and up $26,000 over prior year.
In the coming months we expect to see a material decrease due to the COVID-19 Emergency, however
March actual results will not be received until May.
Finance Quarterly Report - Page 4
5
Airport
The 1st quarter cumulative revenue of $351,000 is up $18,000 over budget and up $34,000 over prior year.
In the coming months we expect to see a material decrease due to the COVID-19 Emergency. This
measure includes all airport revenues which include airline landing fees, commercial rents, parking lot
revenue, car rental and general aviation.
Building Permits
The 1st quarter cumulative revenue of $193,000 are down $144,000 below budget and $95,000 below prior
year, the first indicator of the COVID-19 Emergency's impact.
Finance Quarterly Report - Page 5
6
CITY-WIDE FUND BALANCE SUMMARY
CHANGE IN FUND BALANCE
2020 As of March 31st
Beginning 2020 2020 Ending
Balance Actual Rev.Actual Exp.Balance
General Fund $10,987,514 $15,272,032 $14,251,584 $12,007,962
Parks and Recreation 661,337 396,768 958,838 99,267
Street & Traffic Operations 179,146 673,779 1,268,837 (415,912)
General Government Subtotal 11,827,997 16,342,579 16,479,259 11,691,317
Other Governmental Operating Funds 5,708,398 2,774,601 2,726,146 5,756,853
Government Capital Funds 13,884,602 2,069,194 974,045 14,979,751
Enterprise Operating Funds 16,310,618 13,345,334 11,328,045 18,327,907
Enterprise Capital Funds 33,661,825 549,529 1,255,538 32,955,816
Internal Service Funds 2,920,735 1,220,216 2,030,715 2,110,236
Employee Benefit Reserve 1,720,117 3,605,217 4,073,631 1,251,703
Risk Management Reserves 2,737,608 1,268,594 2,073,472 1,932,730
Debt Service & Agency Funds 3,954,278 1,152,815 271,170 4,835,923
Total $92,726,178 $42,328,079 $41,212,021 $93,842,236
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
7
CITY WIDE REVENUES & EXPENDITURES BY FUND GROUPING
REVENUE COMPARISON
(Budget vs. Actual)
2019 2020
Annual
Actual %Amended Actual %
as of 3/31 Rec'd Budget as of 3/31 Rec'd
General $14,881,563 22.1 %$69,882,924 $15,272,032 21.9 %
Parks and Recreation 666,705 12.7 %5,531,468 396,768 7.2 %
Street & Traffic Operations 657,840 11.4 %8,661,450 673,779 7.8 %
General Government Subtotal 16,206,108 20.6 %84,075,842 16,342,579 19.4 %
Other Government Operating Funds 2,233,170 13.2 %14,118,887 2,774,601 19.7 %
Government Capital Funds 1,429,762 3.4 %13,616,426 2,069,194 15.2 %
Enterprise Operating Funds 12,185,659 20.1 %61,170,191 13,345,334 21.8 %
Enterprise Capital Funds 1,771,413 8.9 %13,009,100 549,529 4.2 %
Internal Service Funds 1,192,764 19.3 %6,122,344 1,220,216 19.9 %
Employee Benefit Reserves 3,884,392 23.7 %16,480,664 3,605,217 21.9 %
Risk Management Reserve 1,057,824 24.3 %5,037,870 1,268,594 25.2 %
Debt Service & Agency Funds 1,264,549 16.8 %7,809,554 1,152,815 14.8 %
Total $41,225,641 16.3 %$221,440,878 $42,328,079 19.1 %
EXPENDITURE COMPARISON
(Budget vs. Actual)
2019 2020
Annual
Actual %Amended Actual %
as of 3/31 Exp'd Budget as of 3/31 Exp'd
General $15,577,762 22.9 %$69,519,996 $14,251,584 20.5 %
Parks and Recreation 884,459 17.0 %5,531,468 958,838 17.3 %
Street & Traffic Operations 1,610,845 21.0 %8,661,450 1,268,837 14.6 %
General Government Subtotal 18,073,066 22.4 %83,712,914 16,479,259 19.7 %
Other Government Operating Funds 3,654,381 21.4 %13,848,344 2,726,146 19.7 %
Government Capital Funds 1,629,364 3.6 %12,250,748 974,045 8.0 %
Enterprise Operating Funds 12,302,386 19.8 %62,433,441 11,328,045 18.1 %
Enterprise Capital Funds 1,239,017 4.5 %25,268,221 1,255,538 5.0 %
Internal Service Funds 1,072,810 11.1 %6,453,798 2,030,715 31.5 %
Employee Benefit Reserves 3,341,442 20.7 %16,360,119 4,073,631 24.9 %
Risk Management Reserve 2,182,790 50.7 %5,042,916 2,073,472 41.1 %
Debt Service & Agency Funds 273,624 3.6 %7,802,697 271,170 3.5 %
Total $43,768,880 16.2 %$233,173,198 $41,212,021 17.7 %
Finance Quarterly Report - Page 7
8
GENERAL GOVERNMENT REVENUE DETAIL
GENERAL GOVERNMENT REVENUES
2020
Revenues as of March 31 Amended Percent
General Fund 2018 2019 2020 Budget Rec'd
Property Tax $1,124,576 $958,095 $868,036 $10,606,500 8.2 %
General Sales Tax 4,324,326 4,305,744 4,540,129 18,552,000 24.5 %
Crim. Justice Sales Tax 891,971 864,547 886,372 3,704,701 23.9 %
Utility & Franchise Taxes 4,531,031 4,561,033 4,859,046 19,141,920 25.4 %
Other Taxes 263,485 260,909 259,357 1,080,000 24.0 %
Licenses and Permits 707,968 774,842 693,790 1,905,970 36.4 %
Intergov't Revenues 1,021,831 843,945 975,432 3,858,942 25.3 %
Charges for Services 2,015,805 1,812,328 1,818,420 7,714,341 23.6 %
Fines and Forfeitures 457,121 429,505 351,851 1,812,000 19.4 %
Other Revenue 133,307 70,615 19,600 1,506,550 1.3 %
Total General Fund 15,471,421 14,881,563 15,272,033 69,882,924 21.9 %
Parks & Recreation
Property Tax 227,453 195,506 213,089 2,826,147 7.5 %
Intergov't Revenues 17,630 11,539 28,819 69,330 41.6 %
Charges for Services 218,056 148,935 141,029 975,250 14.5 %
Other Revenue 360,396 310,725 13,832 1,660,740 0.8 %
Total Parks & Recreation 823,535 666,705 396,769 5,531,467 7.2 %
Streets
Property Tax 253,149 238,374 302,826 4,016,314 7.5 %
Intergov't Revenues 373,772 362,215 359,160 1,513,000 23.7 %
Charges for Services 1,650 7,766 850 676,636 0.1 %
Other Revenue 3,695 49,484 10,942 2,455,500 0.4 %
Total Streets 632,266 657,839 673,778 8,661,450 7.8 %
Total General Government $16,927,222 $16,206,107 $16,342,580 $84,075,841 19.4 %
Finance Quarterly Report - Page 8
9
GENERAL GOVERNMENT EXPENDITURE DETAIL
GENERAL GOVERNMENT EXPENDITURES
2020
Expenditures as of March 31 Amended Percent
2018 2019 2020 Budget Exp'd
Police $6,348,872 $6,633,407 $6,211,415 $30,737,805 20.2 %
Fire 3,284,915 3,572,082 3,310,567 15,482,039 21.4 %
Information Technology 952,896 915,238 975,309 4,146,602 23.5 %
Code Administration 442,956 414,471 413,649 1,986,531 20.8 %
Legal 388,030 428,992 467,710 1,980,706 23.6 %
Finance 377,936 391,959 419,509 1,906,304 22.0 %
Interfund Distributions 1,119,696 713,867 —1,879,760 —%
Municipal Court 363,584 370,439 364,729 1,783,999 20.4 %
Firemen's Relief/Pension 344,077 406,789 367,288 1,176,376 31.2 %
Indigent Defense 164,731 172,351 268,579 1,050,000 25.6 %
Police Pension 236,308 241,656 242,010 867,197 27.9 %
Engineering 169,247 188,854 156,681 797,206 19.7 %
City Clerk/Records 105,595 101,707 117,901 779,047 15.1 %
Human Resources 170,136 189,483 181,709 770,739 23.6 %
Planning 155,313 157,953 185,936 823,262 22.6 %
Purchasing 144,361 149,158 113,095 686,784 16.5 %
City Hall Facility 165,903 129,567 131,402 604,700 21.7 %
City Management 103,298 119,093 104,264 572,936 18.2 %
Clean City Program ——170 385,288 —%
Parking 37,210 42,775 37,831 280,187 13.5 %
City Council 122,010 105,870 103,512 275,790 37.5 %
Economic Development 101,177 86,054 52,956 252,548 21.0 %
Intergovernmental 31,483 47,088 25,361 162,689 15.6 %
Contingency ———160,000 n/a
Total General Fund 15,329,734 15,578,853 14,251,583 69,548,495 20.5 %
Parks & Recreation Fund 995,852 884,459 958,838 5,531,468 17.3 %
Street & Traffic Ops.645,147 1,610,845 1,268,837 8,661,450 14.6 %
Total General Government $16,970,733 $18,074,157 $16,479,258 $83,741,413 19.7 %
Finance Quarterly Report - Page 9
10
OTHER FUNDS DETAIL
OTHER GOVERNMENT OPERATING FUNDS
2020 As of March 31th
Beginning 2020 2020 Ending
Fund Balance Actual Rev.Actual Exp.Balance
Economic Development $54,454 $27,161 $9,040 $72,575
Neighborhood Development 703,369 477,680 148,891 1,032,158
Community Relations 799,493 164,396 137,008 826,881
Cemetery 149,216 33,815 80,322 102,709
Emergency Services 78,401 136,911 304,895 (89,583)
Public Safety Communication —
Police Grants 1,199,193 65,273 89,595 1,174,871
PBIA (Park/Bus Improvement Area)57,284 49,050 4,460 101,874
Trolley 45,791 1,275 358 46,708
Front Street Bus Improvement Area 3,546 600 3,315 831
Convention Center (Tourist Promo)287,722 250,428 383,090 155,060
Capitol Theatre 34,275 121,002 115,024 40,253
PFD - Convention Center 1,043,475 254,831 216,576 1,081,730
Tourism Promotion Area 80,263 115,071 80,004 115,330
PFD - Capitol Theatre 266,291 193,053 178,564 280,780
Total Other Gov't Operating Funds $4,802,773 $1,890,546 $1,751,142 $4,942,177
GOVERNMENTAL CAPITAL FUNDS
2020 As of March 31th
Beginning 2020 2020 Ending
Fund Balance Actual Rev.Actual Exp.Balance
Arterial Street $2,251,360 $1,140,616 $446,195 $2,945,781
Central Bus District Capital 61,038 7,324 —68,362
Capitol Theatre Construction 201,017 15,000 —216,017
Yakima Redevelopment Area 1,566,930 —46,175 1,520,755
Parks & Recreation Capital 395,207 108,348 108,812 394,743
Fire Capital 504,061 15,043 20,621 498,483
Law and Justice Capital 729,782 125,093 101,047 753,828
Public Works Trust Construction 3,120,163 240,448 43,937 3,316,674
REET 2 Capital 1,601,740 240,448 —1,842,188
Street Capital 2,178,084 21,743 4,299 2,195,528
Convention Center Cap Improvement 713,946 155,131 202,959 666,118
Reserve for Capital Improvement 561,273 ——561,273
Total Gov't Capital Funds $13,884,601 $2,069,194 $974,045 $14,979,750
Finance Quarterly Report - Page 10
11
ENTERPRISE OPERATING FUNDS
2020 As of March 31th
Beginning 2020 2020 Ending
Fund Balance Actual Rev.Actual Exp.Balance
Airport Operating $227,055 $351,088 $417,621 $160,522
Stormwater Operating 1,418,779 544,795 513,394 1,450,180
Transit Operating 5,269,065 1,815,303 1,825,907 5,258,461
Refuse 2,239,915 1,823,127 1,663,434 2,399,608
Wastewater Operating 4,596,230 5,826,598 3,946,749 6,476,079
Water Operating 2,220,102 2,226,908 1,952,364 2,494,646
Irrigation 721,032 533,951 658,586 596,397
Utility Services (381,561)223,563 349,989 (507,987)
Total Enterprise Operating Funds $16,310,617 $13,345,333 $11,328,044 $18,327,906
ENTERPRISE CAPITAL FUNDS
2020 As of March 31th
Beginning 2020 2020 Ending
Fund Balance Actual Rev.Actual Exp.Balance
Airport Capital $(765,650)$82,018 $62,594 $(746,226)
Stormwater Capital 4,076,681 —681,588 3,395,093
Transit Capital 5,669,427 2,017 —5,671,444
Wastewater Facilities Capital 4,034,146 12,771 112,115 3,934,802
Wastewater Construction Capital 8,181,012 —99,041 8,081,971
Wastewater Capital 4,567,644 —26,720 4,540,924
Water Capital 3,224,551 —113,426 3,111,125
Irrigation Capital 4,674,015 452,722 160,055 4,966,682
Total Enterprise Capital Funds $33,661,826 $549,528 $1,255,539 $32,955,815
INTERNAL SERVICE FUNDS
2020 As of March 31th
Beginning 2020 2020 Ending
Fund Balance Actual Rev.Actual Exp.Balance
Equipment Rental $1,575,109 $856,347 $1,692,575 $738,881
Environmental 625,645 37,093 34,089 628,649
Public Works Administration 719,981 326,776 304,050 742,707
Total Enterprise Operating Funds $2,920,735 $1,220,216 $2,030,714 $2,110,237
Finance Quarterly Report - Page 11
12
EMPLOYEE BENEFIT RESERVES
2020 As of March 31th
Beginning 2020 2020 Ending
Fund Balance Actual Rev.Actual Exp.Balance
Unemployment Comp Reserve $258,419 $52,972 $20,566 $290,825
Employees Health Ben Reserve 667,119 3,127,829 3,791,548 3,400
Worker’s Comp Reserve 750,120 424,417 251,797 922,740
Wellness/EAP 44,459 —9,719 34,740
Total Employee Benefit Reserve $1,720,117 $3,605,218 $4,073,630 $1,251,705
RISK MANAGEMENT RESERVE
2020 As of March 31th
Beginning 2020 2020 Ending
Fund Balance Actual Rev.Actual Exp.Balance
Risk Management Reserve $2,737,608 $1,268,594 $2,073,472 $1,932,730
DEBT SERVICE & AGENCY FUNDS
2020 As of March 31th
Beginning 2020 2020 Ending
Fund Balance Actual Rev.Actual Exp.Balance
GO Bond Redemption
2002 GO Convention Center $162,617 $244,000 $—$406,617
2005 GO Various Bonds 11,939 176,736 —188,675
1996 GO LTD - Convention Center 75,485 81,479 —156,964
LID Debt Service Control —(7,926)—(7,926)
Total GO Bond Redemption $250,041 $502,215 $—$744,330
Water/Sewer Revenue Bond Redemption
WW Rev Bond & 2008 Debt Service 278,351 —(18,790)297,141
Irrigation Bond Debt Service 127,407 —26,460 100,947
WW Rev Bond Rsv & 2012 Debt Svc 2,582,390 —(28,200)2,610,590
Total W/S Rev Bond Redemption $2,988,148 $—$(20,530)$3,008,678
Agency Funds
Yakcorps —656,276 291,699 364,577
Cemetery Trust 716,090 2,251 —718,341
Total Agency Funds $716,090 $658,527 $291,699 1,082,918
Finance Quarterly Report - Page 12
13