HomeMy WebLinkAboutGeneral Fund Status Report FY22 General Fund Status Report— FY 2022 2nd Quarter
Please see accompanying summary detail (pages 4-8)
General Fund Summary
The City budgeted to end FY 2021 with $14,131,852 in combined general fund reserves. For FY 2022 the
City budgeted $133,116,350 in total revenues including transfers and $151,291,350 in total expenditures
for an estimated ending fund balance of$14,731,852.The City's General Fund budget includes
$18.875M in American Plan Rescue Plan Act money to be used to support government services to the
extent of revenue losses due to COVID-19.
The City's fund balance policy recommends a fund balance between 12%and 15% of expenditures.The
City's annual financial audit is now complete, finding that the City has exceeded this threshold through a
combination of one-time savings, state and federal support, and improved income tax collections.The
Administration has reserved these excess funds into committed fund balance pending further action and
discussion by City Council and the Administration related to City Ordinance and Budget Policies.
The City will provide a mid-year budget amendment to account for these one-time funds within
the context of broader financial challenges and a continued structural deficit.
City of Lansing 2021/2022 General Fund Budget
$151.3 M
Capital/Fund Transfers
Fleet Expense 4% Debt Service
Information 3% 1% Engineering
°
Technology ° Retirement/Fixed
4% Costs
Recreation&Culture- 31%
4%
Community 4�j
Development
6%
Public Service
7%
General
Government
9%
Police Department
Fire Department 17%
13%
(continued)
Revenue Summary
General Fund revenues collected through the second quarter of Fiscal Year 2022 (July—December) are
on track with expectations for the amended budget.
• Property Taxes are 35%of the general fund budget and are largely collected at the beginning of
the fiscal year. While revenue currently exceeds budgeted amounts, it remains subject to tax
appeals and other adjustments throughout the year.
• Income Tax collections, 22%of the general fund budget, are above our conservative estimates
for the beginning of the fiscal year.The City had previously budgeted an approximately 25%
impact from COVID-19, consistent with other communities in Michigan. Projections of significant
refunds did not materialize, providing the City with a significantly improved outlook for the
current fiscal year.
• Return on Equity is received in December and June.The current contract includes a guaranteed
$25M payment to the City and 3%of the Lansing Board of Water and Light's June 1 to May 31
revenue in excess of$409,836,066. Specifically, revenue from retail and wholesale sales of
chilled water, electric, steam, heat, and water utilities.This is 19%of the general fund budget
that is set at a fixed dollar amount.
• State Revenues are on track with October and December revenue sharing payments received by
the City. Some risk remains as constitutional revenue sharing will be adjusted to account for the
2020 Census beginning with the February payment.The City also received a smaller grant for
fire protection of state owned facilities than projected for the year. State revenues make up 15%
of the general fund budget.
• Charges for Services are slightly below average for this time with public safety charges,
reimbursements, and code compliance being the largest sources.This may be adjusted as cash
receipts are accounted for or for minor accruals. This makes up 6%of the general fund budget.
• Fines and Forfeitures are slightly below previous years to date.This is tied to District Court
activities.This category makes up 1%of general fund revenues.
• Licenses and Permits are ahead compared to previous years.This is due to the timing of various
licenses, many of which are managed by the Clerk's office.
• Interest and Rents are less than a percent of the City's budget. Collections are currently above
previous year collections.
• Other Revenues are below previous year collections for this time.This category makes up only
1%of General Fund revenues.
(continued)
Expenditure Summary
Departmental expenditures are largely below first quarter targets considering the timing of payroll and
major contracts,with Internal Audit and Economic Development & Planning only slightly ahead of
expectations for this time of year. The City is in the process of returning to full capacity while being
aware of the continued challenges of the COVID-19 pandemic.
Dec. 31 YTD Expenditure Actuals vs Estimate
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Conclusion
The Administration continues to monitor expenditures and seek out necessary savings to maintain vital
services while also making strategic investments to grow the City's economy and strengthen the quality
of life for residents, workers, business owners, and visitors. Due to the American Rescue Plan Act the
City is able to continue services despite the negative impacts of the COVID-19 pandemic. While there is
good news in terms of recovery, significant challenges remain in balancing the fiscal health of the City.
The general fund budget report is presented in several formats for informational value as follows. After
a separate revenue and expenditure summary,the City's general fund is presented as formally adopted
in appropriation detail showing personnel vs. operating expenditures,then in governmental detail it is
summarized by purpose. In this last view, retirement and information technology costs are displayed
separately from departments to better represent their costs to the City's general fund.
December 31, 2022 Revenue Summary
Fiscal Year July 1, 2021 -June 30, 2022
FY 2022 FY 2022 FY 2022 Dec. 31 3 Year
General Fund Revenues Adopted Amended Dec. 31 Percent Dec. 31
Budaet Budaet Actuals YTD Ava.
Property Taxes
Non-Dedicated 34,325,000 34,325,000 37,471,021
Dedicated - Police 3,525,000 3,525,000 3,525,000
Dedicated - Fire 3,525,000 3,525,000 3,525,000
Dedicated - Roads 2,350,000 2,350,000 2,350,000
Dedicated - Parks 2,350,000 2,350,000 2,350,000
Total 46,075,000 46,075,000 49,221,021 106.8% 100.0%
Income Taxes
City Income Tax 29,380,800 29,380,800 12,509,435
Total 29,380,800 29,380,800 12,509,435 42.6% 36.4%
Return on Equity
Board of Water and Light 25,000,000 25,000,000 12,500,000
Total 25,000,000 25,000,000 12,500,000 50.0% 51.1%
State Revenues
Revenue Sharing 15,598,000 15,598,000 5,981,317
Fire Reimbursement Grants 3,250,000 3,250,000 2,620,079
Personal Property Tax Reimbursement 900,000 900,000 852,804
Recreational Marijuana 350,000 350,000 -
Liquor License Fee 70,000 70,000 56,726
Total 20,168,000 20,168,000 9,510,925 47.2% 45.8%
Charges for Services
Public Safety 4,368,850 4,368,850 1,567,492
Reimbursements 2,348,150 2,348,150 1,135,363
Code Compliance 1,091,000 1,091,000 508,595
Recreation Fees 415,500 415,500 239,860
Appeals&Petitions 84,350 84,350 51,145
Work for Others 35,200 35,200 122,971
Central Stores 1,500 1,500 930
Subscriptions and Information 300 300 45
Total 8,344,850 8,344,850 3,626,402 43.5% 44.0%
Fines and Forfeitures
Fines and Forfeitures 1,777,600 1,777,600 583,280
Total 1,777,600 1,777,600 583,280 32.8% 48.3%
Licenses&Permits
Cable Franchise Fees 1,000,000 1,000,000 244,187
Marihuana Licenses 600,000 600,000 420,000
Business Licenses 65,250 65,250 45,630
Non-Business Licenses 37,600 37,600 15,516
Building Licenses&Permits 17,250 17,250 3,400
Total 1,720,100 1,720,100 728,733 42.4% 23.8%
Interest&Rents
Interest Income 210,000 210,000 350,299
Total 210,000 210,000 350,299 166.8% 48.5%
Other Revenues
Miscellaneous 173,000 173,000 42,331
Sale of Fixed Assets 102,000 102,000 10,000
Donations&Contributions 65,000 78,614 102,122
Total 340,000 353,614 154,453 43.7% 91.0%
Total General Fund
Operating Revenue 133,016,350 133,029,964 89,184,548 67.0% 60.6%
Transfers from Other Funds 100,000 100,000 100,000
Total 133,116,350 133,129,964 89,284,548 67.1% 60.2%
December 31, 2021 Departmental Summary
Fiscal Year July 1, 2021 -June 30, 2022
FY 2022 FY 2022 FY 2022 Dec. 31 3 Year
General Fund Appropriations Adopted Amended Dec. 31 Percent Dec. 31
Budget Budget Actuals YTD Target
Beginning General Fund Balance 5,336,531 5,336,531 5,336,531
Beginning Budget Stab. Fund Balance 8,795,321 8,795,321 8,795,321
Total General Fund Reserves 14,131,852 14,131,852 14,131,852
Revenues(detail on previous page) 133,116,350 133,129,964 89,284,548 67.1% 60.2%
Departmental Expenditures:
Council 664,446 664,446 288,625 43.4% 47.1%
Internal Audit 194,724 194,724 92,474 47.5% 46.1%
Mayor's Office 1,618,281 1,618,281 676,804 41.8% 46.4%
Office of Community Media 583,262 583,262 247,403 42.4% 46.7%
District Court 6,329,859 6,329,859 2,751,947 43.5% 47.0%
Circuit Court Building Rental 285,000 285,000 2,185 0.8% 1.2%
City Clerk's Office 1,485,525 1,485,525 703,915 47.4% 46.9%
Neighborhood &Citizen Engagement 1,232,199 1,332,199 530,205 39.8% 47.7%
Economic Development&Planning 6,093,740 6,093,740 2,952,637 48.5% 46.7%
Finance Department 2,007,522 2,007,522 918,775 45.8% 47.0%
City Assessor 1,967,154 1,967,154 790,236 40.2% 46.6%
Treasury/Income Tax 2,384,813 2,384,813 1,089,583 45.7% 47.0%
Human Resources Department 2,572,681 2,572,681 967,968 37.6% 47.8%
City Attorney's Office 2,450,461 2,450,461 1,076,160 43.9% 46.4%
Police Department 49,911,211 50,004,825 22,892,201 45.8% 48.0%
Fire Department 38,811,479 38,811,479 18,410,410 47.4% 48.0%
Public Service 12,677,987 12,677,987 4,090,889 32.3% 48.9%
Human Relations&Community Services 1,934,094 1,934,094 822,046 42.5% 46.4%
Parks& Recreation Department 9,017,392 9,017,392 3,482,685 38.6% 47.3%
Human Service Agency Support 1,800,000 1,800,000 666,649 37.0% 46.3%
Non-Departmental Expenditures:
Library Building Rental 135,000 135,000 61,005 45.2% 50.0%
Operating Subsidies to Other Funds 1,255,000 1,255,000 1,255,000 100.0% 100.0%
Contingency 300,000 - -
City Supported Agencies/MRJEA 467,500 767,500 43,050 5.6% 20.5%
Capital Improvements 5,522,000 5,522,000 5,522,000 100.0% 100.0%
Debt Service &Penalties 990,020 990,020 30,585 3.1% 50.0%
Vacancy Factor (1,400,000) (1,400,000) -
Expenditures 151,291,350 151,484,964 70,365,439 46.5% 49.9%
Net Impact on Fund Balance (18,175,000) (18,355,000)
Federal Stimulus Reimbursement 18,875,000 18,875,000
Ending General Fund Reserves 14,831,852 14,651,852
December 31, 2021 Budget Appropriation Summary
Fiscal Year July 1, 2021 -June 30, 2022
FY 2022 FY 2022 FY 2022 Dec. 31 3 Year
Estimated Revenues Adopted Amended Dec. 31 Percent Dec. 31
Budget Budget Actuals YTD Avg.
Property Taxes 46,075,000 46,075,000 49,221,021
Income Taxes 29,380,800 29,380,800 12,509,435
Return on Equity 25,000,000 25,000,000 12,500,000
State Revenues 20,168,000 20,168,000 9,510,925
Charges for Services 8,344,850 8,344,850 3,626,402
Fines& Forfeitures 1,777,600 1,777,600 583,280
Licenses&Permits 1,720,100 1,720,100 728,733
Interest& Rent 210,000 210,000 350,299
Other Revenue 340,000 353,614 154,453
Total Revenues 133,016,350 133,029,964 89,184,548 67.0% 60.6%
FY 2022 FY 2022 FY 2022 Dec. 31 Dec. 31
Appropriations Adopted Amended Dec. 31 Percent Target
Budaet Budget Actuals YTD Exp.
Council
Personnel 477,506 477,506 218,235
Operating 186,940 186,940 70,390
Total 664,446 664,446 288,625 43.4% 47.1%
Internal Audit
Personnel 182,369 182,369 87,564
Operating 12,355 12,355 4,910
Total 194,724 194,724 92,474 47.5% 46.1%
Courts
Personnel 5,136,026 5,136,026 2,325,462
Operating 1,478,833 1,478,833 428,669
Total 6,614,859 6,614,859 2,754,131 41.6% 45.0%
Mayor's Office
Personnel 1,421,507 1,421,507 611,477
Operating 196,774 196,774 65,327
Total 1,618,281 1,618,281 676,804 41.8% 46.4%
Media Center
Personnel 510,517 510,517 213,959
Operating 72,745 72,745 33,444
Total 583,262 583,262 247,403 42.4% 46.7%
Clerk's Office
Personnel 1,056,330 1,056,330 527,189
Operating 429,195 429,195 176,726
Total 1,485,525 1,485,525 703,915 47.4% 46.9%
Neighborhood &Citizen Engagement
Personnel 741,190 741,190 348,116
Operating 491,009 591,009 182,089
Total 1,232,199 1,332,199 530,205 39.8% 47.7%
Economic Development&Planning
Personnel 3,423,250 3,423,250 1,543,274
Operating 2,670,490 2,670,490 1,409,362
Total 6,093,740 6,093,740 2,952,637 48.5% 46.7%
Finance/Operations
Personnel 1,517,661 1,517,661 694,032
Operating 489,861 489,861 224,743
Total 2,007,522 2,007,522 918,775 45.8% 47.0%
FY 2022 FY 2022 FY 2022 Dec. 31 Dec. 31
Appropriations Adopted Amended Dec. 31 Percent Target
Budget Budget Actuals YTD Exp.
Assessing
Personnel 1,706,240 1,706,240 684,261
Operating 260,914 260,914 105,975
Total 1,967,154 1,967,154 790,236 40.2% 46.6%
Treasury
Personnel 1,869,301 1,869,301 792,780
Operating 515,512 515,512 296,803
Total 2,384,813 2,384,813 1,089,583 45.7% 47.0%
Human Resources
Personnel 1,440,235 1,440,235 599,812
Operating 1,132,446 1,132,446 368,157
Total 2,572,681 2,572,681 967,968 37.6% 47.8%
Attorney's Office
Personnel 2,183,939 2,183,939 953,848
Operating 266,522 266,522 122,312
Total 2,450,461 2,450,461 1,076,160 43.9% 46.4%
Police
Personnel 42,171,580 42,171,580 19,435,385
Operating 7,739,631 7,833,245 3,456,817
Total 49,911,211 50,004,825 22,892,201 45.8% 48.0%
Fi re
Personnel 33,208,919 33,208,919 16,094,643
Operating 5,602,560 5,602,560 2,315,767
Total 38,811,479 38,811,479 18,410,410 47.4% 48.0%
Public Service
Personnel 3,280,326 3,280,326 1,275,796
Operating 9,397,661 9,397,661 2,815,094
Total 12,677,987 12,677,987 4,090,889 32.3% 48.9%
Human Relations&Community Service
Personnel 1,747,915 1,747,915 745,000
Operating 186,179 186,179 77,046
Total 1,934,094 1,934,094 822,046 42.5% 46.4%
Parks& Recreation
Personnel 5,967,152 5,967,152 2,347,774
Operating 3,050,240 3,050,240 1,134,911
Total 9,017,392 9,017,392 3,482,685 38.6% 47.3%
Human Services
Operating 1,800,000 1,800,000 666,649
Total 1,800,000 1,800,000 666,649 37.0% 46.3%
City Supported Agencies/MRJEA
Operating 467,500 767,500 43,050
Total 467,500 767,500 43,050 5.6% 20.5%
Non-Departmental
Contingency 300,000 - -
Vacancy Factor (1,400,000) (1,400,000) -
Library Lease 135,000 135,000 61,005
Debt Service 990,020 990,020 30,585
Net Transfers 6,677,000 6,677,000 6,677,000
Total 6,702,020 6,402,020 6,768,590 105.7% 99.3%
Total Expenditures 151,191,350 151,384,964 70,265,439 46.4% 49.7%
General Fund balance 14,131,852 14,131,852
Change (18,175,000) (18,355,000)
Federal Stimulus Reimbursement 18,875,000 18,875,000
Ending Fund Balance 14,831,852 14,651,852
December 31, 2021 Governmental Summary
Fiscal Year July 1, 2021 -June 30, 2022
FY 2022 FY 2022 FY 2022 Dec. 31 3 Year
General Fund Appropriations Adopted Amended Dec. 31 Percent Dec. 31
Budget Budget Actuals YTD Avg.
Beginning General Fund Balance 5,336,531 5,336,531 2,328,400
Beginning Budget Stab. Fund Balance 8,795,321 8,795,321 7,792,610
Total General Fund Reserves 14,131,852 14,131,852 10,121,010
Revenues(detail on previous page) 133,116,350 133,129,964 89,284,548 67.1% 60.2%
General Government
Attorney's Office 1,574,249 1,574,249 648,409
City Clerk 1,092,782 1,092,782 511,045
Council 503,484 503,484 209,341
District Court 3,854,419 3,854,419 1,528,080
Circuit Court Building Rental 285,000 285,000 2,185
Internal Audit 118,127 118,127 55,108
Finance 1,378,542 1,378,542 611,050
City Assessor 1,232,797 1,232,797 431,662
Treasury/Income Tax 1,455,037 1,455,037 634,392
Human Resources 1,905,173 1,905,173 641,316
Mayor's Office 1,036,093 1,036,093 417,490
Office of Community Media 411,642 411,642 163,192
Library Building Rental 135,000 135,000 61,005
Vacancy Factor (1,400,000) (1,400,000) -
Total General Government 13,582,345 13,582,345 5,914,276 43.5% 46.6%
Public Safety
Police Department 26,309,472 26,403,086 11,899,806
Fire Department 20,321,076 20,321,076 9,826,352
Total Public Safety 46,630,548 46,724,162 21,726,158 46.5% 48.4%
Community Development
Economic Development&Planning 4,333,971 4,333,971 2,098,879
Neighborhood&Citizen Engagement 898,595 998,595 368,198
Human Relations&Community Services 1,206,874 1,206,874 468,262
Human Service Agency Support 1,800,000 1,800,000 666,649
City Supported Agencies/MRJEA 467,500 767,500 43,050
Total Community Development 8,706,940 9,106,940 3,645,038 40.0% 44.7%
Public Service
Public Service Department 9,926,178 9,926,178 2,929,703 29.5% 49.2%
Recreation &Culture
Parks&Recreation Department 6,431,628 6,431,628 2,268,853 35.3% 47.7%
Internal Services
Retirement/Fixed Benefits 46,412,238 46,412,238 21,872,034
Information Technology Expense 6,063,608 6,063,608 3,032,376
Fleet Expense 4,642,582 4,642,582 1,755,284
Engineering 828,263 828,263 414,132
Total Internal Services 57,946,691 57,946,691 27,073,826 46.7% 47.3%
Non-Departmental Expenditures
Contingency 300,000 - -
Operating Subsidies to Other Funds 1,255,000 1,255,000 1,255,000
Capital Improvements 5,522,000 5,522,000 5,522,000
Debt Service&Penalties 990,020 990,020 30,585
Expenditures 151,291,350 151,484,964 70,365,439
Net Impact on Fund Balance (18,175,000) (18,355,000)
Federal Stimulus Reimbursement 18,875,000 18,875,000
Ending General Fund Reserves 14,831,852 14,651,852