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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 60% 50% 40% 30% 20% 10% 0% ���aoeyc�e e 5 y " ` e \ 4-4},L, aa�\o ` Lo e O � e ,4 J fi ` C� �e � eZ e� e teS ■DEC EST YTD ■DEC ACT YTD 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