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HomeMy WebLinkAbout05/04/2021 04B 2021 1st Quarter Financial Report 't..an,gtntj ka E$A 1 aY BUSINESS OF THE CITY COUNCIL YAKIMA, WASHINGTON AGENDA STATEM ENT Item No. 4.B. For Meeting of: May 4, 2021 ITEM TITLE: 2021 1st Quarter Financial Report SUBMITTED BY: Steve Groom, Director of Finance and Budget Kimberly Domine, Financial Services Division Manager SUMMARY EXPLANATION: The First Quarter Financial Report for 2021 is attached and consists of the following: 1. Summary Narrative 2. Financial Reports • Fund Balance Summary • R• evenue and Expenditure Comparison to Budget and Actual Year-to-Date • G• eneral Government Revenue Historical Year-to-Date Detail • G• eneral Government Expenditure Historical Year-to-Date Detail • O• ther 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 2 21 1 Financial repo 4/2 /2021 xecuti um ma 2 fi FINANCE DEPARTMENT kiilkinior .. ..A .v, To: Mayor and City Council Bob Harrison From: Steve Groom Kimberly Domine Kathy Miles Date: April 6,2021 Subject: 2021 1st Quarter Financial Update This financial update is a preliminary,unaudited,report for the 1st quarter ended March 31,2021,one quarter,or 25%of the year,intended to inform and assist governance decisions for future planning. In total,city revenues are at 17.0% of budget and expenditures are at 18.0% of budget. The timing of Property Tax Revenue,coming in,and the timing of Capital Fund Expenditures,going out,are normally the biggest reasons that revenues and expenditures are 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. This report is a progress report until the annual independent audit is completed because complete accrual analysis for invoices not yet received is only done at year-end,not quarterly. COVID-19's economic effects on City revenues The American Rescue Plan Act (ARPA) will positively impact 2021 as details become known,increasing budgeted revenues and expenses and will affected "normal"budgetary percentages in the accompanying reports uniquely as this year progresses. The economic effects of COVID-19, and the CARES Act, affected 2020 uniquely,complicating comparison to prior year. As has been monitored and reported continuously,there was a substantial economic effect on the City's budgeted revenues: • Sales Tax had significant downturns during two months in 2020,and has since recovered to exceed 2021 budgeted levels,achieving 109.1% of budget through March • Lodging Tax had a significant downturn in 2020 due to the economic effects of the COVID-19 pandemic and began 2021 with a January remittance that was 53% of January 2019 (pre-COVID). February and March improved, 62% and 78%respectively of 2019 same-month levels. 3 • Building Permits, Fire Inspection Fees,Gambling Revenues and Utility Taxes all decreased during 2020,are continuing below budget in 2021 and are being monitored monthly. General Fund's Performance to Budget General Fund Revenues in total are at 21.8%;the largest components are: • Property Tax is at 10.0%. • Sales Tax is at 25.7%. • Utility and Franchise Taxes are at 24.8%. • Gambling Tax is at 9.5%due to most 1st quarter remittances not yet received • Building Permits is at 18.5% • Fire Inspection Fees is at 2.3%due to low inspection volume during COVID General Fund Expenditures in total are at 21.4%. The largest component variances are: • Police expenditures are at 20.2% • Fire Expenditures are at 22.3%. • Information Technology expenditures are at 27.3%. • Legal expenditures are at 26.6%due to retirement payout in the first quarter. • City Council is at 36.2%due to annual Dues& Subscriptions paid in the first quarter. 4 CASH POSITION AND REVENUE UPDATE City staff monitors revenues and managing expenses continuously. Cash &Investments As a current over-all indicator, the 4-year historic core city-wide cash and investments balance trend shows March at$95.1 million. Each month is best compared to the same month in previous years to account for seasonality and other annual events. March's cash balance is lower than prior year primarily due to$4.4 million in Mill Site reimbursement not yet received. CASH AND INVESTMENTS HISTORY 5125.00a0no - 5700,000,000 $75,000,000 $50,000,000 S25,000,000 $0 1co Sales Tax This is the largest single funding source for the city,and includes revenues across several funds. The 1st quarter cumulative of$4.9 million exceeds budget by$399,906 or 8.1% and is greater than prior year by $410,732. The city receives sales tax from the State on a 2-month lag from the actual point-of-sale transactions so these figures are for actual transactions through January. The graph below shows Sales Tax revenues for General Fund (see p. 9). SALES TAX REVENUE S20,000,000 - S10,000,000 — 50 Jan Feb Mar Apr May Jim Jul Aug Sep Oct Nov Dec Budget Cumulative S Current Year Cumulative Prior Year Cumulative Finance Quarterly Report-Page 3 5 Property Tax The 1st quarter cuniulative revenue tracked roughly on budget. The 2021 budget increased by$317,000 due to assessed valuations (a combination of existing capped at 1%and new goiyvth). 0 PROPERTY TAX REVENUE S30,000,000 - S20,000,0110 $10,000,000 Jan FLb NI at Apt NI Jun JulAug Sep (./c1 Nov Dec Budget Cumulative Cunent Yea"Cumulative Prior Year Cumulative Water The ist quarter cumulative revenue of$2.0 million throu0gh March is down$122,440. AVATER REVENUE S15,000,000 - 1 0,000,000 $5,000,000 U 5 1 1 5 5 Jan FLb NI at Apt NI Jun JulAug ClS Nov Dec Budget Cumulative Cunent Yea"Cumulative Prior Year Cumulative inance Qnzoterly Report 6 Refuse The 1st quarter cumulative revenue of$1.6 million is up$796 over budget and $4,569 over prior year. REFUSE REVENUE $7,500,000 — $5,000,000 $2,500,000 SO 5 Jan FebJun Jul Aug SeP Mary Apr MaOct Nov Dec VV Budget CAMILLiat1V0 III O Year Cumulative Prim Year Cumulalive Lodging Tax The 1st quarter cumulative revenue of 595,731 is up$2,299 over budget and down 5116,743 compared to prior year. The comparison of each month's revenue to the same month in prior year is improving,down 47°/0 38°/0 and 22%respectively for January,February and March. In the coming months through 2022 revehue is expected to fall short of prior year due to the continuing economic effects of the COVID-19 pandemic. LODGING TAX REVENITE $1,500,000 —. $1,000,000 $5o0,000 SO t 5 Jan Feb Mar Apr May Jun Jul Au. Sp Oct Nov Dec Budget CAMILLiat1V0 LUSO 11.Year Cumulative Prim Veal Cumulaliw Finance Quarterly Report-Page 5 7 Real Estate Excise Tax(REET I & combined) The 1st quarter cumulative revenue of$592,834 is up 947,898 over budget and up.51111 938 over prior year. REET 1 I REET2 S3,000,000 - s2,n00,000 $1,000,000 sI' I I 5 J art -ci Ii Apt NI ay Jun Jul Aug Sep Ckt. Nov Dec Budget Cumulative Current Yew.Cumulative Prior Year Cumulative Building Permits The ist quarter cumulative revenues of 5159,432 are down S116,017 below budget and $33,076 below prior year. B U1LDING PERAIIT RES/EBEL' s i,o00,000 SS00,000 $() J at Febt Apr l un Jul Augu t o Dec BudgetCIMI11181PA: C IIITOSIt Year C111111112LINt. I'll or Year C111111115)ill inance Quaoterly Report-Page 6 8 CTTY-WIDE FUND BALANCE SUMMARY CHANGE IN FUND BALANCE 2021 As of March 31st Beginning 2(121. 2021 Ending Balance Actual Rev. Actual Exp. Balance General Fund S 13,295,598 $ 15;154;293 S 15,123,315 $ 13326,576 Parks and Recreation 1,060,444 687;940 869,018 879,336 Street&Traffic Cnperatiens 915,423 756,443 1,1193,71.4 778,1.57 General Government Subtotal 15,271,465 16,5987676 17,386,077 14,484,064 Other Governmental Operating Funds 55,120,2,19 2,263 419 3,251,213 1,429,155 Government Capital Funds 19,731,255 1,352,972 6,652,519 14,431,678 Enterprise Operating Funds 25,831,262 1278,309 11,8,13,312 26,718,729 Er dory rise Capital Funds 41,263,704 2,621703B 1,72(1,799 42,163,943 Intern I Service Funds 4,777,916 1,627,769 2,020,450 4,385,735 Employee Benefit Reserve 5,6(19,521 3,716,938 4,0 :3,151 57Z33,30B Risk Management Reserves 3,376,377 1,339,209 2,448,686 2;266,900 Debt Service&Agency Funds 1,251,563 1,382,778 252,114 5,381,927 Total S 125,539,312 $ 43,661,138 S 49,672,211 $ 119,528,239 This is a progress report to provide transparency and accountability. This table shows fund balances by fund at this point in time, and some negative balances are typical for the first three quarters due to timing of seasonal fluctuations such as Property Tax revenues that come in twice a year,and debt payments made periodically,as well as other seasonal factors. This is intended to provide transparency and accountability but is a snapshot, not a reliable measure of predicted year-end. Annual audited financial reports are provided annually and can be compared year to year. Finance QuarterlyReport-rage 7 9 CITY WIDE REVENUES & EXPENDITURES BY FUND GROUPING REVENUE COMPARISON (Budget vs. Actual) 2020 202:1. Annual Actual % Amended Actual % as of 3/31 Reed Budget as of 3/31 Reed General $ 15,273,262 20.3 1, $ 69,670,332 $ 15,151,293 21.8 % Parks and Recreation 764,62B 13.8 % 5,795,833 687,940 11.9 % Street &TrafficOperations 673,779 7.8 % 6,353,125 756/443 11.9 General Government Subtotal 16,711,669 18.7 % B1,819,290 16,598,676 20.3 % Other Government Operating Funds 2,710,110 15.0 (1,0 17,076,388 2,263/119 13.3 % Government Capital Funds 2,072,557 5.1 % 23,012,795 1,352,972 5.9 Interprise Operating Funds 13,138,073 19.7 % 67,1.09,670 11/755,309 19.0 Enterprise Capital Fill ds 1,509,020 11.6 % 31,845,671 2,621,0:38 8.2 % Internal Senile I u rids 1,57)7671. 18.6 % 7,135,396 1,6'17,769 22.5 % Employee Benefit Reserves 3,605,217 21.9 1, 16,293,913 3,716,938 22.8 % Risk Management Reserve 1,268,594 25.2% 5,126,916 1,339,209 26.1 % Debt Service&Agency Funds 1,232,195 7.6 % 7,195,303 1,382,778 18.1 % Total $ 43,820,436 16.1 % $ 2 r7,0157:372 $ 43,661,1.38 17.0 % EXPENDITURE COMPARISON (Budget vs. Actual) 2(1211 2021. Annual Actual % Amended Actual as of 3/31 Exp'd Budget as of 3/31 Exp'd General $ 14,957,227 20.0 % $ 70,522,757 $ 15,123,315 21.4 % ('arks and Recreation /70,987 17.3 % 5,816,608 869,018 149 % Street&Traffic (.lperatiorio 649,216 7.5 % 6,352,464 1,393,714 21.9 % General Government Subtotal 16,5777,430 18.6 % 82,691,829 17,386,077 21.0 % Other Government Operating Funds 2,781,313 15.1 % 20,050,241 3,254,213 16.2% Government Capital Funds 296,403 .8 % 30,898,341 6,655'1,549 21.5 Enterprise Operating Funds 12,227,07B 17.2 % 66,900,225 11,843,842 17.7 % Interprise Capital kinds 1,335,01.) 5.3 % 36,428,968 1.,710,799 4.7 Internal Service Funds 2,395,913 22.2% 9,359,017 2,020,150 21.6 % Employee Benefit Reserves 4,076,214 25.1 % 16,433,061 4,093,151 249 % Risk Management Reserve 2,075,807 11.1 % 5,688,793 2/118,686 13.0 °% Debt Service&Agency Funds 271.,170 1.7 % 7,554,3(12 252,414 3.3 % 'total S 42,036,370 14.6 % S 276,004,780 $ 49,67121:I. 18.) Finance Quarterly Rep ort-page S 10 GENERAL GOVERNMENT REVENUE DETAIL GENERAL GOVERNMENT REVENUES 2021 Revenues as of March 31. Amended Percent Genera I Fund 2019 2021) 21)21 Budget Reed Property Tax S 958,095 $ 868,036 S 910,407 $ 9,129,830 10.0 General Sales Tax 1,305,714 1;510,129 1,967,269 19,357,000 25.7 Criminal Justice Sales Tax 864,547 886,372 1,017,169 4,053,000 25.1 ^/ Utility& I ranchise. Taxes 4,561.,033 4,859,046 4,940,000 19,914,735 24.8 % Other Taxes 260,909 256,920 2,174 1,073,000 0.29b i enses and Permits 774,842 693,790 41.1,690 1,888,700 21.8 lntergov't Revenues 843,t45 954,7Tr1 692,708 3,973,216 17.4 1 Charges for Services 1,812,328 1,812,731 1,738,884 7,138,251 24.4 % Fines and Forfeitures 129,505 351,851 203,033 1,862,800 10.9 Other Revenue 70,615 19,600 270,958 1,279,800 21.29b total General Fund 14,ki81,5U8 15,273,262 1.5,154,792 61,670,332 21.8 % Parks Sz Recreation Property Tax 195,506 213,089 250,624 2752,528 9.1 58 lntergov't Revenues 11,539 28,819 5,958 69,330 8.6 charges for Services 148,935 141,029 S1,399 955,250 8.5 % Other Revenue 310,725 381,691 349,959 2,018,725 17.358 Iota I Parks&Recreation 666,705 764,628 687940 5,795,833 1.:1.9 % Streets Property Tax 238,371 302,826 399,911 4,392,125 9.1 1 Inter ov t Revenues 362,215 359,160 316,583 1,408,000 22.5 % Charges for Services 7,766 S50 2,970 505,000 0.6 % Other Revenue 49,484 10,942 36,977 48,000 77.0 Total Streets 657,839 673,778 756,444 6,353,125 11.9 Total General Government S 16,206,107 $ 16,711,668 S 16,598,676 $ 81,819,290 20.3 % Finance Quarterly Rep ort-rage 9 ii GENERAL GOVERNMENT EXPENDITURE DETAIL GENERAL GOVERNMENT EXPENDITURES 2021 Expenditures as of Ma rrh 31 Amended Percent 2019 2020 2021 Budget Exp'd Police $ 6,633,407 $ 6,537754 5 5.,999,658 $ 29,773,549 20.2 Fire 3,572,082 3,452;770 3,489,470 15,658,328 22.3 % Information Technology 915,238 1,021,395 1,192,440 4,371,084 27.3 Finance 391,959 420,750 571,541 2,670,999 21.4% Interfund Distributions 713,867 420,411 391,415 2,212,053 17.7% Legal 428,992 469,347 547,918 2,057,127 26.6 % Code Administration 414,471 420;739 412,554 1,911,326 21.6 % Municipal Court 370,439 365,299 378,547 1,763;503 21.5 City Management 119,093 84,045 148,733 1,227550 12.1 % Firemen's Relief/Pension 406,789 367,288 334,054 1,176,390 28.4% Indigent Defense 172,351 268,579 274,138 1,050,000 26.1. % Engineering 188,854 1.58,553 207,926 955,317 21..8 % Police Pension 241,656 241,519 226,629 872;197 26.0 % Human Resources 189,483 183,433 172,152 818,769 21.0 % Planning 157,953 187154 181,889 796,695 22.8 CityClerk/Records 101,707 (111,312) 113,371 791,632 14.3 % City Hall Facility 129,567 1.34,144 92,278 455,460 20.3 % Purchasing 149,158 113,426 102,990 447,309 23.0 % Clean City Program1 170 44,912 441,008 10.2% Economic Development 86,054 53,006 60,810 342;145 17.8 % City Council 10 ,870 105,105 103,137 284,786 36.2% Parking 42,775 38,290 35,1.57 258,994 13.6 % Intergovernmental 47,088 25,361. 41,597 170,288 24.4 % Contingency - - - -- n/a Total General Fund 15,578,853 14;957,226 15,123,316 70,506,509 21.4% Parks&Recreation Fund 884,459 970,987 869,048 5,816,608 14.9 % Street&Traffic Ops. 1,610,845 649,216 1,393,714 6,352,464 21.9 % Total General Government $ 18,074,157 $ 16,577,429 $ 17,386,078 $ 82,675,581 21.0 % t Expenditures commented following the Nov 2019 Clean Cities funding increase in solid waste utility tax Finance Quarterly Report-Page 10 12 OTHER FUNDS DETAIL OTHER GOVERNMENT OPERATING FUNDS 2021 As of March 31 Beginning 2021 2021 Ending Fund Balance Actual Rev. Actual Exp. Balance Economic Development $ 53,014 $ $ $ 53,014 Neighborhood Development 453,104 50,000 450,706 52,398 Community Relations 881,473 163,257 154,998 889,732 Cemetery 133,228 39,341. 79,520 93,049 Emergency Services 99,131 160,192 317,710 (58,387) Public Safety Communication 910,846 905,574 1,074,251 742,169 Police Grants 1,036,623 50,918 70,046 1,017,495 PBIA(Park/Bus Improvement Area) 75,810 52,888 563 128,135 Trolley 48,500 1,275 1,883 47.892 Front Street Bus Improvement Area 4,278 950 - 5,228 Convention Center(Tourist Promo) 184,296 200,544 460,813 (75,973) Capitol Theatre 53,872 92,280 103,643 42,509 PFD-Convention Center 1,228,948 259,471 290,078 1,198;341 Tourism Promotion Area 53,971 90,194 92,054 52.111 PFD-Capitol Theatre 203,157 196,566 157,977 241,746 Total Other Gov't Operating Funds $ 5,420,251 $ 2,263,450 $ 3,254,242 $ 4,429,459 GOVERNMENTAL CAPITAL FUNDS 2021 As of March 31 Beginning 2021 2021 Ending Fund Balance Actual Rev. Actual Exp. Balance Arterial Street $ 2,049,246 $ 120,710 $ 278,343 $ 1,891,613 Central Bus 1)istrict Capital 72,576 2,521. 5,805 69,292 Capitol Theatre Construction 259,770 15,000 3,332 271,438 Yakima Redevelopment Area 736,562 4,479,487 (3,747 925) Parks&Recreation Capital 391,355 2,823 14,408 379;770 Fire Capital 381,861 17,500 3,777 395,584 Law and Justice Capital 1,02,340 124,555 80,760 1,069,135 Public Works Trust Construction 3,544 984 302,315 16,693 3,830,606 RE.E.1 2 Capital 2,004,985 296,417 72,732 2,228,670 Street Capital 3,833,625 411,456 138,082 4,106,999 Convention Center Cap Improvement 5,043,523 59,675 1,559,131 3,544;067 Reserve for Capital Improvement 387,427 387,427 Total Gov't Capital Funds $ 19,731,254 $ 1,352,972 $ 6,652,550 $ 14,431.676 2 YRDA capital fund shows a negative ending fund balance due to the tuning of :reimbursement grant billing not yet received of approximately$4.4 million. Finance Qnarterly Report-Page 11 13 ENTERPRISE OPERATING FUNDS 2021 As of March 31 Beginning 2021 2021 Ending Fund Balance Actual Rev. Actual Exp. Balance Airport Operating S 601,551 $ 333,632 $ 3T1,579 $ 596,604 Stomiwater Operating 1,179,947 537,147 835,071. 981,013 Transit Operating ',v 6,254 1.,S31.,75 i 193%945 7,468,064 Refuse 3,055,230 1.,809,565 1,650,773 3,214,572 Wastewater Operating 8,131,271 55,631,611 1,651,546 9,T11.372 Water Operating 3,953,702 2,087,338 1,775,028 4,266,012 Irrigation 930,305 524,229 617,400 807,131 Total Enterprise Operating Funds $ 25,834,263 $ 12,758,310 $ 11,843,842 $ 26,748,731 ENTERPRISE CAPITAL FUNDS 2021. As of March 31. Beginning 2021 2021 Ending Fund Balance Actual Rev. Actual Exp. Balance Airport Capital S 789,623 $ 723,579 $ 817,676 $ 695,526 Storuuvater Capital 5,129,72(1 304,500 48,308 5,385,912 Transit Capital 6,101,037 9,800 1.4,886 6,096,951. Wastewater a ilities Capital 4,809,220 239,917 56,975 4,992,1.6.2 Wastewater Construction Capital 8,144,051 375,000 386,632 8,132,419 Wastewater Capital 5,281,555 190,800 5,093,755 Water Capital 5,053,912 600,000 38,906 5,615,036 Irrigation Capital 5,95(1,556 11682411 166,617 6,152,182 Total Enterprise Ca pital Funds $ 41,263,704 $ 2,621,039 $ 1,720,800 $ 42,1.63,943 INTERNAL SERVICE FUNDS 2021 As of March 31 Beginning 2021 2021 Ending fund Balance Actual Rev. Actual Exp. Balance Lrpnpment Rental S 3,510,021 $ 1,003,657 $ 1,182,461. $ 3,341,117 Lrrvlrllnmei dal 551,877 (412) 5,288 546,177 Public Works Administration 721,025 341,103 333,173 728,955 Utility Services' (15,006) 283/122 199,527 (231,111) Total Enterprise Operating Funds S 4;777,917 $ 1,627,770 $ 2,020,449 $ 1,385,238 Utility Services ade rnrL service fro id is i re;-atn,•due to timing; internal service funds cover costs over long term. Finance Quarterly Report-rage 12 14 EMPLOYEE BENEFIT RESERVES 21121. As of Manh 31. Beginning 2021 2021 Ending Fund Balance Actual Rev. Actual Exp. Balance UuciI iploymet it Comp Reserve $ 296,730 $ 54,090 $ 20,635 $ 330,1B5 Employees Health Ben Reserve 4,362,388 3,235,437 3,537,151 4,060,674 Workers Comp Reserve 841,693 427,411 530,077 739,027 Wellness/EAP 108,710 5,288 103,422 Total Employee Benefit Reserve $ 5,609,521 $ 3,716,938 $ 4,093,151 $ 5,233;308 RISK MANAGEMENT RESERVE 2021. As of March 31. Beginning 2021 2021 Ending Fund Balance Actual Rev. Actual Exp. Balance Risk Management Reserve $ 3;376,377 $ 1,339,209 $ 2,448,686 $ 2,266;900 DEBT SERVICE & AGENCY FUNDS 2021 As of Ma n.h.31 Beginning 2021 2021 Ending Fund Balance Actual Rev. Actual Exp. Balance GO Bond Redem ption 2002 CC Convent ion Center 217,154 290,531. 507,685 2005 CC Various Bonds 17,239 213261 230503 1996 GO LTD-Convention Center 44,684 44,634 LID Debt Sennce Control 285 235 'Dotal GO Bond Redemption $ 279,077 $ 504,080 $ - $ 783,157 Water/Sewer Revenue Bond Redemption. WW Rev Bond&2008 Debt Service $ 343,871 $ $ (5,988) $ 349,859 Irrigation Bond Debt Service 170,953 136,275 (7,713) 323,941 WW Rev Bernd Rsv IQ 2017 I Svc 2,634,044 (21,533) 2,6R5,877 Total tA76 Rev Bond Redemption $ 3,I57,SnK $ 1.36275 $ (35,234) $ 3,329,377 Agency Funds YakCorps 99,950 739,425 287647 551,728 Cell eheroTrust 717,66B "2,997 - 720,665 Total Agency Funds $ 817,61B $ 742,422 $ 287,647 1,272,393 Finance Quarterly Report-rage 13