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HomeMy WebLinkAbout2010-01-26 - City Commission Special Workshop Meeting MinutesSPECIAL WORKSHOP ' QUARTERLY FINANCIAL UPDATE Tuesday, January 26, 2010 CALL TO ORDER: Mayor Talabisco called the special workshop meeting to order at 9:00 a.m. on Tuesday, January 26, 2010 at the Tamarac Recreation Center, 7501 N University Drive, Tamarac, FL. PRESENT: Mayor Beth Talabisco, Vice -Mayor Harry Dressler, Commissioner Pamela Bushnell, Commissioner Patricia Atkins -Grad, and Commissioner Diane Glasser. ALSO PRESENT: City Manager Jeffrey L. Miller, Assistant City Attorney Julie Klahr, Deputy City -Manager- Michael C. Cernech, Assistant City Manager Diane Phillips, Financial Services Director Mark Mason, Human Resources Director Maria Swanson, Public Works Director Jack Strain, Community Development Director Jennifer Bramley, Chief Building OfficialDirector Claudio Grande, Fire Chief Mike Burton, Director of Parks and Recreation Greg Warner, Director of Utilities Ray Gagnon, I.T. Director Levent Sucuoglu, City Clerk Marion Swenson, Public and Economic Affairs Officer Andy Berns, and Management and Budget Analyst Kareyann Ashworth. t Mayor Talabisco spoke of a possible recycling center across from Hamptons Inn off the Sawgrass Expressway on Commercial Boulevard in the City of Sunrise. City Manager Miller said the City would follow the item and keep the Mayor and City Commission informed as to its progress. Mayor Talabisco led the pledge of allegiance. City Manager Miller said staff is responding to a request from the Mayor and City Commission for additional financial information in preparation for the June/July budget workshops, public hearings and adoption of the FY11 budget. Staff is not asking the Mayor and City Commission to make any decisions today. Financial Services Director Mason gave a presentation on the City of Tamarac's financial report for the 15t quarter FY2010 as well as a financial outlook FY2010 and beyond (a copy of which is attached and incorporated as part of these minutes.) Mayor Talabisco called for a recess at 10:17 a.m. and reconvened the special workshop at 10:37 with all present as before. Page 1 of 2 January 26, 2010 Quarterly Financial Update Deputy City Manager Cernech spoke of the budget process and upcoming financial updates that will be provided to the Mayor and City Commission to keep them engaged I in the City's financial matters. Assistant City Attorney Klahr informed the Mayor and City Commission there is a statute in place that sets forth the process should the Mayor and City Commission disagree with any decisions made by the City of Sunrise with regard to the recycling station. There being no further business to come before the Mayor and City Commission, Mayor Talabisco adjourned the special workshop quarterly financial update at 12:10 p.m. .......... -- - Marion Swenson, CIVIC -- City Clerk = __ - T l Page 2 of 2 January 26, 2010 Quarterly Financial Update CITY OF TAMARAC INTEROFFICE MEMORANDUM TO: Jeffrey L. Miller City Manager FROM: Mark C. Mason Director of Financial Services DATE: January 25, 2010 RE: Quarterly Financial Review —18' Quarter FY 2010 The purpose of this report is to provide the Mayor and City Commission with the status of the Fiscal Year 2010 Budget. This report covers the period of October 2009 through December 2009. The City Commission adopted a balanced budget for fiscal year 2010 totaling $94.6 million. This budget has been adjusted as a result of prior year encumbrances (commitments related to unperformed contracts for goods and services) having been rolled -over into the new fiscal year. Encumbrances that are not related to capital projects must be re -budgeted. Budget amendment #1 will formally address this adjustment as well as various other adjustments for consideration by the City Commission. The financial transactions of the City are budgeted and accounted for within six types of funds. Each fund type has a different source of revenue and/or certain restrictions on the use of the revenues. The table below lists the current budget by fund type. Fund Type FY 2010 Adopted FY 2010 Adjusted Difference General $ 44,776,200 $ 47,701,513 $ 2,925,313 Special Revenue 16,997,250 25,721,477 8,724,227 Debt Service 2,860,400 2,860,400 - Capital Projects 1,755,000 8,571,601 6,816,601 Enterprise 25,920,150 30,121,058 4,200,908 Internal Service 2,276,850 2,278,525 1,675 Total $ 94,585,850 $ 117,254,574 $ 22,658,724 GENERALFUND The General Fund provides basic City services and operations such as parks and recreation services, general government, general planning, zoning and code enforcement, and general maintenance. The primary revenue sources for the general fund are property taxes, half -cent sales tax, franchise fees, state -shared revenues, and charges for services which include administrative service fees to other operating funds. An analysis of current year revenues and expenditures indicates revenues above benchmark which is related to the current period ad valorem tax revenue and expenditures as planned and within acceptable parameters. Jeffery L. Miller January 22, 2010 Page 2 Revenue The table below provides a summary of the major revenue sources of the general fund. ACTUAL ACTUAL ACTUAL AS %OF AS %OF AS %OF BUDGET BUDGET BUDGET REVENUES BUDGET ACTUAL FY 2010 FY 2009 FY 2008 Property Tax $ 18,406,000 $ 14,600,538 79.32% 76.760/. 73.66% Franchise Fees & Communication Services Tax 9,123,970 1,728,975 18.95% 17.61% 10.82% Licenses & Permits 2,224,470 1,065,807 47.91% 34.490/0 33.730/ Shared Revenue 5,597,620 835,243 14.92% 16.09% 16.91% Charges for Service 1,476,900 347,511 23.530/. 19.05% 21.20% Other (Fines, Interest, Miscellaneous) 1,902,070 451,214 23.72% 8.61% 12.430/ Administrative Service Fees 5,633,070 1,408,268 25.000/. 25.00% 25.00% Interfund Transfers 412,100 103,025 25.000/. 25.00% 25.000/ Total Current Revenues $ 44,776,200 $ 20,540,561 45.87% 41.48% 41.130/ Reserves & Surplus 2,925,313 - 0.00% 100.00% 100.00% Total Revenues $ 47,701,513 $ 20,540,581 43.06% 41.48% 41.13% Property Tax Property tax is the single largest revenue source in the general fund and represents 38.6% of budgeted revenue sources and 41.1% of the actual current revenue (total revenue less reserves). Property tax revenue is collected by the Broward County Revenue Collector with periodic distribution being made to the various taxing authorities. Per Truth in Millage (TRIM) requirements, the City budgets at 95% to allow for discounts and delinquencies. Tax bills are sent to property owners in late October/early November with unpaid taxes becoming delinquent on April 1 of each year. Franchise Fees & Communication Services Tax Franchise fees are collected for electric, solid waste and towing on a monthly basis with direct remittance to the City from service providers. The communications services tax is applicable to cable and telephone services (replaced franchise fees) and payment from providers is made to the State of Florida who remits the amount less a collection fee back to counties and municipalities on a monthly basis. Licenses & Permits Recorded year-to-date revenues are at 47.9% of budget. Fees for the permitting and inspection activities are above the 25% benchmark due to the increase in the number of permits issued from the same period last year. The number of permits issued in the first quarter of 2010 was 1,287. This compares to 1,151 in the first quarter of 2009. The 2010 business tax revenue, formally occupational license fees, was primarily received in fiscal year 2009 with the revenue recorded as unearned until the start of the fiscal year 2010 as licenses are effective from October 1 through September 30. Of the established budget of $680,000, 89.0% or $605,366 has been realized. Shared Revenue The half -cent sales tax is the second largest single source of revenue in the general fund and the largest of the state -shared revenues. The distribution program is supported by the transfer of 8.814% of the state's net sales tax proceeds into the Local Government Half -Cent Sales Tax Clearing Trust Fund. The actual distribution to counties and municipalities is based on a population formula. Jeffery L. Miller January 22, 2010 Page 3 Receipts for the first three months of the year are below benchmark for the half cent sales tax. The half -cent sales tax is budgeted at $2,888,700 with actual receipts of $469,027 which is 5.65% of the budgeted amount. Typically, funds received in January, February and May represent three of the largest distributions for the year as they relate to sales tax generated from December through April sales. Charges for Service This revenue category consists of City fees related to general government, public safety, physical environment, transportation, and culture/recreation. Fees for these services are slightly below the 25% benchmark. Revenues are budgeted at $1,476,900 of which $347,511 or 23.5% has been recorded. Fees for culture/recreation activities are below the 25% benchmark at 18.7% collection rate to date. This is primarily due to the Aquatic Center pool area being closed from December through February of each year. Other (Fines, Interest, Miscellaneous) Other revenue is at 10.1% of budget. Ordinance violations are budgeted at $125,210 with $73,400 received through December 31st. Interest income is budgeted at $565,920 for which the earnings will be recorded following the completion of the Comprehensive Annual Financial Report (CAFR). Administrative Service Fees A component of this category is the interfund service payments from the enterprise funds based on the annual full cost allocation plan. The budgeted amount for the full cost allocation charges is transferred monthly at a 1/12 basis of a calculated reimbursement for general administrative support. Interfund Transfers Interfund transfers include the reimbursement to the General Fund from the Special Revenue funds through the full cost allocation plan with transfers occurring monthly on a 1/12 basis. Expenditures The table below provides information on first quarter expenditures for the general fund by department. TOTAL %OF BUDGETED ACTUAL INCLUDING BUDGET DEPARTMENT EXPENDITURES EXPENDITURES ENCUMBRANCES ENCUMBRANCES UTILIZED City Commission $ 703,330 $ 237,665 $ 3,475 $ 241,140 34.29% City Manager 1,812,320 428,571 66,427 494,998 27.31%, City Attorney 497,100 86,120 294,553 380,673 76.58% City Clerk 686,190 224,535 68,499 293,034 42.70% Financial Services 1,826,520 393,914 52,973 446,887 24.47% Human Resources 957,417 256,318 25,874 282,192 29.47% Community Development 1,331,645 301,437 19,791 321,228 24.12%, Building 1,765,826 448,726 11,431 460,157 26.06% BSO 10,916,050 2,740,975 88,906 2,829,881 25.92% Public Works 9,529,450 1,784,037 1,105,563 2,889,600 30.32% Parks & Recreation 4,030,315 966,430 306,493 1,272,923 31.58% Information Technology 1,518,420 353,477 32,726 386,203 25.43% Non -Departmental 12,126,930 65,778 54,993 120,771 1.000/0 Total Expenditures $ 47,701,513 $ 8,287,983 $ 2,131,704 $ 10,419,687 21.840/a The expenditures for most departments are at or very near benchmark levels of 25.0% Jeffery L. Miller January 22, 2010 Page 4 • City Commission is above the 25.0% benchmark as annual membership payments for the Florida League of Cities, Florida League of Mayors and Broward League of Cities have been made. In addition, grants and aid payments have been distributed to both the Tamarac Chamber of Commerce and the Aging and Disability Resource and represent 34.8% of actual expenditures. • The City Manager's office exceeds the benchmark due to encumbrances of $66,427. A significant encumbrance of $54,643 is for Franklin Communications, for printing publications on behalf of the Public Information Board Division. • The City Attorney's office exceeds the benchmark due to an encumbrance of $294,553 which represents the contract for the City's legal counsel. • The City Clerk Department within the general fund exceeds the benchmark due to actual expenditures of $224,535. Significant operating expenditures include $73,677 for election costs and $14,826 for advertising costs. • The Human Resources Department is above the benchmark due to encumbrances of $25,874. Significant encumbrances include $8,685 for US Healthworks — Florida for medical screenings for new employees and $5,000 encumbrance for job advertisements placed in area newspapers. • The Public Works Department exceeds the benchmark primarily due to encumbrances for contractual services. Significant encumbrances include $560,344 for Prestige Property Management for lawn maintenance services including designated park sites and $183,638 for American Facility Services for the City's custodial services. • The Parks and Recreation Department is above the benchmark due to encumbrances of $306,493. A significant encumbrance of $218,299 is for Jeff Ellis Management for the management of the aquatic center pool facility. The table below provides a summary of general fund expenditures by category. DEPARTMENT TOTAL BUDGETED ACTUAL INCLUDING EXPENDITURES EXPENDITURES ENCUMBRANCES ENCUMBRANCES %OF BUDGET UTILIZED Salaries $ 9,792,020 $ 2,495,705 $ $ 2,495,705 25.49% Overtime 57,900 32,392 32,392 55.94% Benefits 5,619,240 1,442,229 439 1,442,668 25.670/. Contractual Services 14,116.157 3,182,854 2,056,766 5,239,620 37.12% Travel 260,851 10,231 5,394 15,625 5.990/6 Other Operating 4,357,936 997,195 1,153,043 2,150,238 49.34% Capital Outlay 2,383,149 44,637 53,053 97.690 4.10% Non -Departmental 11,114,260 82.740 82,740 165,480 1.49% Total $ 47,701,513 $ 8,287,983 $ 3,351,435 $ 11,639,418 24.40% Entries for the transfers from the general fund are included in the Non -Departmental category and include $5,258,810 for Fire Rescue, $1,005,000 for General Capital Improvement, $2,601,700 for Revenue Bond (debt service), and $200,000 for grant match. Jeffery L. Miller January 22, 2010 Page 5 DEBT SERVICE FUNDS The debt service fund is used to account for long-term debt obligations for capital improvements funded by general obligation bonds and/or revenue bonds. The primary revenue sources are property taxes and interfund transfers. Currently, there are five bond issue payments made through these funds. ACTUAL AS FY 2010 FY 2010 YTD OF BUDGET REVENUES ADJUSTED ACTUAL FY 2010 Property Tax $ 258,700 $ 195,210 75.46% Interfund Transfers 2,601,700 - 0.000/0 Total Revenues $ 2,860,400 $ 195,210 6.820/0 EXPENDITURES 1998 GO Bonds $ 258,700 $ 0.000/0 1999 Revenue Bonds 693,600 0.000/0 2002 Revenue Bonds 1,054,200 0.000/0 2004 CIP Revenue Bond 6,000 2,500 41.67% 2005 Revenue Bonds 835,900 0.000/0 Various Fees 12,000 1,669 13.910 Total Expenditures $ 2,860,400 $ 4,169 0.150/0 Principal payments for the various bonds are due annually while the interest is due semi-annually. SPECIAL REVENUE FUNDS Special revenue funds are used for specific purposes and the associated revenue is dedicated for a single purpose only. The funds in this category include the fire assessment fee, Broward Sheriff law enforcement trust fund (LETF), public art fees, various grants fund, community development block grant (CDBG), local housing assistance (SHIP), Home (HUD) grant, community development block grant (CDBG) disaster recovery, neighborhood stabilization (NSP), American Recovery and Reinvestment Act (ARRA) grant, and miscellaneous donations and sponsorships. In addition to the current budgeted revenues that are anticipated during the fiscal year, existing cash balances (reserves and surplus) are also budgeted in support of the expenditures that are planned during the fiscal year. The table on the following page provides a summary of the receipts through the end of the first quarter in the various funds. ACTUAL AS % REVENUES CURRENT BUDGETED REVENUE RESERVES & SURPLUS TOTAL BUDGET ACTUAL REVENUE OF CURRENT BUDGETED REVENUE Fire Rescue $ 16.132,430 $ 1,649,943 $ 17,782,373 7,477,132 46.35% Law Enforcement Trust - - - 8,716 100.000% Public Art - 153,018 153,018 41,296 100.00% Grants Fund 827,722 - 827,722 273,667 33.06% Community Development Block Grant 995,741 - 995,741 79.611 8.00% State Housing Initative Program 268,138 - 268,138 38.248 14.26% Home (HUD) 166,400 - 166,400 18.429 11.08% CDBG Disaster Recovery 936,739 - 936,739 - 0.00% Neighborhood Stabilization Grant 4,046,446 - 4,046,446 1,117,202 27.61% American Recovery & Reinvestment Act 544,900 - 544,900 - 0.00% Donations & Sponsorship - - - 6,911 100.00% Total Revenues $ 23,918,516 $ 1,802,961 $ 25,721,477 $ 9,061,212 37.88% Jeffery L. Miller January 22, 2010 Page 6 • The receipts in the fire rescue fund are related to the fees that are collected for transports, inspections, plan reviews, and fire assessment. Fire Assessment fees are collected via property tax bill by the Broward County Revenue Collector. Fees are distributed to the City periodically between November and April. Receipts are budgeted at $8,785,400 of which 78.3% or $6,874,500 has been collected to date. • Law Enforcement Trust funds are utilized to maintain a high level, competent and professional police service. Funds are appropriated as programs are requested and approved by both BSO and the City. • The Public Art fund was created to account for the public art activities in the City. Funds are appropriated as artwork projects are brought to the Commission for consideration. • The Grants fund accounts for a significant portion of grant activity in the City. Revenues are budgeted as grant agreements are approved by the Commission via various resolutions. • The Community Development Block Grant fund (CDBG) is an agreement between the US Department of Housing and Urban Development (HUD) and accounts for revenues and expenditures related to housing rehabilitation, qualified public safety programs, and public services. Reimbursement from HUD for first quarter CDBG expenses is expected to be received in the second quarter. • The State Housing Initiative Program (SHIP) fund is revenues received from the State Housing Initiatives Partnership for the purpose of providing affordable housing. Reimbursement from the State for first quarter SHIP expenses are expected to be received in the second quarter. • The Home fund accounts for revenues received for low to middle income families who need assistance with home rehabilitation in order to comply with City code. Requests are submitted periodically to Broward County for reimbursement. • The Community Development Block Grant Disaster Recovery fund accounts for revenues received from Department of Community Affairs to address the City's needs following the 2005 hurricane season. Funds are collected and reimbursed quarterly as with the CDBG fund. Reimbursement for first quarter expenses is expected to be received in the second quarter. • The Neighborhood Stabilization grant fund accounts for funds received from the Housing and Economic Recovery Act of 2008 to address foreclosures and abandoned properties within the City. As with CDBG, reimbursement for first quarter expenditures is expected to be received in the second quarter. The actual revenues of $1,117,202, realized in the table above, are revenues rolled over from fiscal year 2009 which were previously received and committed to expenditures. • The American Recovery and Reinvestment Act (ARRA) fund accounts for various programs designed to stimulate the economy. Revenues received are dedicated to the City's energy conservation initiatives. • The Donations and Sponsorship fund is not budgeted on an annual basis however is designed to track revenues received as contributions or donations. Such revenues are received from outside sources on behalf of various programs such as United Way, Fire — Car Seat Program, Haiti Relief Fund, Historical Society, etc. The table below provides expenditure data for the special revenue funds. Jeffery L. Miller January 22, 2010 Page 7 TOTAL TOTAL AS TOTAL ACTUAL INCLUDING % OF EXPENDITURES BUDGET EXPENDITURES ENCUMBRANCES ENCUMBRANCES BUDGET Fire Rescue $ 17,782,373 $ 3,934,174 $ 437,249 $ 4,371,423 24.58% Law Enforcement Trust - 20,000 4,000 24,000 100.000/6 Public Art 153,018 640 30,261 30,901 20.199/6 Grants Fund 827,722 66,002 140,200 206,202 24.91% Community Development Block Grant 995,741 141,833 215,556 357,389 35.89% State Housing Initiative Program 268,138 99,785 138,193 237,978 88.75% Home (HUD) 166,400 56,031 121,746 177,777 106.84% CDBG Disaster Recovery 936,739 88,110 224,244 312,354 33.34% Neighborhood Stabilization Grant 4,046,446 612,284 853,914 1,466,198 36.23% American Recovery & Reinvestment Act 544,900 - - - 0.00% Donations & Sponsorship - 946 442 1.388 100.00% Total Expenditures $ 25,721,477 $ 6,019,805 $ 2,165,805 $ 7,185,610 27.94% The expenditures for some funds are at or very near benchmark levels of 25%. Those funds include fire rescue, public art and grants. Expenditures currently approved via the Law Enforcement Trust fund will be brought forth for appropriation on budget amendment #1. Funds have been approved by the Commission for both the NAYS program for Parks & Recreation and the Tamarac Explorer Post program for BSO. Grant funds including Community Development Block Grant, State Housing Initiative Program, Home, CDBG Disaster Recovery, Neighborhood Stabilization, and American Recovery and Reorganization Act are all above the 25% benchmark. Reimbursement for first quarter expenditures is expected to be received in the second quarter. CAPITAL PROJECT FUNDS Capital project funds are used to purchase and construct capital facilities and are typically multi -year projects. These funds are supported by various funding sources such as existing cash, transfers from other operating funds, and loan/debt proceeds. Only the current year appropriation is identified in the operating budget ordinance. The transfers of existing City funds to these capital project funds are made periodically throughout the fiscal year. Loan/debt proceeds are not typically obtained until the City begins incurring construction costs. The following table provides expenditure data for the capital project funds. BALANCE OF TOTAL %OF PREVIOUS YEAR FY 2010 TOTAL PROJECT ACTUAL INCLUDING TOTAL EXPENDITURES APPROPRIATIONS FUNDING FUNDING ENCUMBRANCES EXPENDITURES ENCUMBRANCES UTILIZED Aquatic Center Annex $ 777,167 $ - $ 777,167 $ 14,081 $ - $ 14,081 1.81 % Bikeway Paths 902,390 - 902,390 1,200 - 1,200 0.13% Bldgs - HVAC R&R Program 132,856 95,000 227,856 - - - 0.00% Bldgs - Roofing Sys R&R 291,247 160,000 451,247 - - - 0.00% City Wide Guard Rail Impry - 50,000 50,000 - - - 0.000/0 Comm Development Init 250,000 - 250,000 - - - 0.001/6 Fire St #41 & #78 - Facades 839,734 - 839,734 633,884 1,600 635,484 75.68% Fire Station East - 750,000 750,000 - - - 0.00% Geographic Info System 90,114 - 90,114 - - - 0.00% Hurricane Preparation 1,520,629 - 1,520,629 - - - 0.00% Main Street Project 673,530 - 673,530 126,739 - 126,739 18.82% Open Space Reclamation 150,546 - 150,546 - - - 0.00% Pine Island Rd Overpass - 168,000 168,000 - - - 0.00% Sidewalk Repair & Maim - 25,000 25,000 20,000 - 20,000 80.00% Streets Improvement Prgm 517,176 - 517,176 41,204 - 41,204 7.97% Tamarac Park Renovation 365,920 - 365,920 27B,810 16,053 294,863 80.581/. Traffic Calming Program - 25,0D0 25,000 - - - 0.00% Waters Edge Park 305,292 482,000 787,292 - - - 0.00'/0 Total Expenditures $ 6,816,601 $ 1,765,000 $ 8,571,601 $ 1,116,918 $ 17,653 $ 1,133,571 13.22% Jeffery L. Miller January 22, 2010 Page 8 Several capital improvement projects listed above currently do not have FY 2010 expenditures associated. • Aquatic Center Annex also known as Skate Park includes a $14,081 encumbrance for consulting services as it relates to the development of the park. • The Bikeway Paths project includes an encumbrance of $1,200 for a planning consultant to assist with the design of the park. Fire Station 41 & 78 Facades includes an encumbrance of $633,884 for the remaining construction to be completed on the project. • Main Street includes an encumbrance of $126,739 for engineering service in relation to the development of the proposed Main Street corridor. • Sidewalk Repair & Maintenance includes an encumbrance of $20,000 for Tran Construction for the removal and installation of sidewalk as necessary. • The Streets Improvement program includes an encumbrance of $41,204. Significant encumbrances include $34,900 for Corzo Castella for design services for median improvements along Nob Hill Road from Westwood Drive to Southgate Boulevard and $6,090 for Tran Construction to remove and replace damaged curb along the southbound lanes of Hiatus Road south of McNab Road and north of NW 671" Street. • The Tamarac Park Renovation project is nearing completion. Significant encumbrances include $20,597 for various equipment purchases and $258,213 for the remaining construction of the facility. ENTERPRISE FUNDS Enterprise funds are used to account for services provided to specific users or segments of the community. The funds are operated similar to a private business. The primary funding source for an enterprise fund is user fees. The table on the following page provides a summary of the revenue budget for these funds. CURRENT ACTUAL AS % OF CURRENT BUDGETED RESERVES & TOTAL ACTUAL BUDGETED REVENUES REVENUE SURPLUS BUDGET REVENUE REVENUE Stormwater Management $ 4,991,030 $ 1,290,607 $ 6,281,637 $ 1,199,496 24.03% Utilities 19,237,120 1,160,928 20,398,048 5,524,597 28.72% Utilities C.I.A.0 - 388,690 388,690 - 100.00% Utilities Renewal & Replacement 681,960 2,370,723 3,052,683 - 0.00% Total Revenues $ 24,910,110 $ 5,210,948 $ 30,121,058 $ 6,724,093 26.99% Stormwater The annual stormwater fees are currently collected on the water bills. Revenues are recognized per billing period. As of the end of December, $1.2 million or 24% of budgeted revenue has been billed to customers with $1,179,594 collected to date. Utilities - Water & Sewer Fund As illustrated in the table, year-to-date actual receipts, as a percentage of the current budget are slightly above the first quarter benchmark of 25%. As of the end of December, $5.5 million or 29% of budgeted revenue has been billed to customers with $6,946,422 collected to date. A capacity refund in the amount of $832,575 was received from the Broward County Board of Commissioners Jeffery L. Miller January 22, 2010 Page 9 Utilities — Contribution in Aid of Construction The primary source of revenue for this fund is impact fees charged to developers to assist with the expansion of the utility's infrastructure made necessary by new development. Due to economic conditions and the City's limited expansion opportunities, revenues for new development are non-existent. The budgeted revenue of $388,690 was appropriated during the Capital Improvement Program rollovers to support the Main Street project as currently funded. Utilities — Renewal & Replacement The primary source of revenue for this fund is an annual transfer from the Utilities Operating Fund and is used to account for the State of Florida grant for wastewater. Revenues in this fund can only be used for renewal and replacement of the sanitary sewer system. The table below provides expenditure data for the enterprise funds TOTAL TOTAL AS TOTAL ACTUAL INCLUDING %OF EXPENDITURES BUDGET EXPENDITURES ENCUMBRANCES ENCUMBRANCES BUDGET Stormwater Management $ 6,281,637 $ 583,115 $ 245,801 $ 828,916 13.200/6 Utilities 20,398,048 3,324,920 3,699,730 7,024,650 34.440/6 Utilities C.I.A.0 388,690 14,530 - 14,530 3.740/6 Utilities Renewal & Replacement 3,052,683 86,948 433,012 519,960 17.030/6 Total Expenditures $ 30,121,058 $ 4,009,513 $ 4,378,543 $ 8,388,056 27.85% Stormwater, Utilities CIAC and Utilities Renewal & Replacement are all significantly below the 25% benchmark for the first quarter. The Utilities fund exceeds the benchmark due to encumbrances of $3,699,730. A significant encumbrance includes $2,902,612 payable to Broward County Board of Commissioners for charges related to wastewater disposal. INTERNAL SERVICE FUNDS The costs of these insurance programs are being budgeted and accounted for in an internal service fund. An internal service fund is a type of proprietary fund — a fund used to account for a government's business -type activities. Internal service funds are expressly designed to function on a cost -reimbursement basis. The internal service fund receives revenue (charges for services) from the operating funds to cover the cost of premiums, administrative charges of third party administrator, and claims. For property/casualty, monthly transfers of funds are made from the general, water and sewer, and stormwater funds and are based on a percentage value for each fund. For workers' compensation, revenue flows through payroll entries and are budgeted in each individual department/division. The table below provides a summary of the revenues and expenditures for this fund. Jeffery L. Miller January 22, 2010 Page 10 ACTUAL AS %OF CURRENT CURRENT BUDGETED RESERVES & ACTUAL BUDGETED REVENUES REVENUE SURPLUS TOTAL BUDGET REVENUE REVENUE Risk Management $ 2.278,525 $ $ 2,278,525 $ 571,750 25.090/6 Total Revenues $ 2,278,525 $ $ 2,278,525 $ 571,750 25.09% TOTAL TOTAL AS TOTAL ACTUAL INCLUDING % OF EXPENDITURES BUDGET EXPENDITURES ENCUMBRANCES ENCUMBRANCES BUDGET Risk Management $ 2,278,525 $ 307,722 $ 37,439 $ 345,161 15.15% Total Expenditures $ 2,278,525 $ 307,722 $ 37,439 $ 345,161 15.15% The internal service fund for risk management paid $185,759 related to property/liability premiums, $15,588 related to flood premiums and $7,457 related to city property claims in the first quarter. CONCLUSION This report is intended to provide a summary level review of the budget to actual results of the various operating funds. Additionally, it should be kept in mind that budget to actual results reported here are in a different format than prescribed for financial reporting purposes and should not be confused. For the first quarter the general fund expenses and encumbrances are at 21.8% of budget which is below the benchmark of 25%. Special revenue funds expenses and encumbrances are 27.9% of budget and are above the benchmark of 25%. This is primarily due to the reimbursement for first quarter expenditures are expected to be received in the second quarter. Capital project funds expenses and encumbrances are 13.2% of budget which is well below the benchmark of 25%. This is due to the nature of the capital projects with timing for startups of the Capital Plan as well as current projects underway. The enterprise funds overall are operating at anticipated levels to this point in the fiscal year. The internal service funds expenditures are below the benchmark of 25%. 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