HomeMy WebLinkAboutGeneral Fund Status October-2020-Qrt-Budget-Rpt_vF General Fund Status Report — FY 2021 1st Quarter
Please see accompanying summary detail (pages 4-8)
General Fund Summary
The City budgeted to end FY 2020 with $6,894,241 in combined general fund reserves. For FY 2021 the
City budgeted $132,289,569 in total revenues including transfers and $136,975,977 in total expenditures
for an estimated ending fund balance of$2,207,833.
The annual financial audit is in progress and final numbers for FY 2020 will be available for the December
report.
The City's fund balance policy recommends a fund balance between 12% and 15% of expenditures, a
target threshold spanning$16.4M to $20.5M.The administration continues to explore options to restore
fund balance.
City of Lansing 2020/2021 General Fund Budget
Information Technology $136.9 M
4 Capital/Fund Transfers Debt Service
r 2% 1%
Recreation&Culture
5%
Retirement/Fixed
Community Costs
Development 30%
5%
Public Works
8%
General
Government
9%
Fire Department Police Department
16% 20%
(continued)
Revenue Summary
General Fund revenues collected through the first quarter of Fiscal Year 2021 (July—September) are on
track with expectations for the amended budget.
• Property Taxes are 34.5% 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, 23.7%of the general fund budget, are slightly under expectations for the
beginning of the fiscal year, which may change as withholdings and other adjustments are
recorded.The Finance and Treasury departments are carefully monitoring incoming revenues and
reduced the original income tax projection by 20%for the adopted budget.
• 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 18.9% of the general fund budget that is
stable.
• State Revenues are as expected for the first quarter with the first revenue sharing payment due
in October.The Finance Department reduced the original state revenue projection by 15%for the
adopted budget. After our fiscal year had ended, the State of Michigan eliminated the statutory
portion of the August revenue sharing payment and has replaced that money with grant dollars
from the CARES Act. State revenues make up 12%of the general fund budget.
• Charges for Services are slightly above expectations 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.
• Fines and Forfeitures are below previous years to date.This is largely due to restrictions that have
impacted the operation of courts and collections. This category makes up 1.4% of general fund
revenues.
• Licenses and Permits are ahead compared to previous years. Some of this variance is due to the
timing of medical marijuana licenses, which are relatively new.
• Interest and Rents are less than a percent of the City's budget. Collections are currently below
previous year collections. Some variance is due to the timing of interest revenue postings.
• Other Revenues are above previous year collections for this time. This category makes up only
0.3%of General Fund revenues.
(continued)
Expenditure Summary
Departmental expenditures are below first quarter targets taking into account the timing of payroll and
major contracts with the exception of human services payments being slightly ahead of schedule.
Sep. 30 YTD Expenditure Actuals vs Estimate
35%
30% —
25
20
15%
10%
5%
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Conclusion
The Administration continues to monitor expenditures and seek out necessary savings to maintain vital
services to residents and visitors to the City of Lansing.The impact of COVID-19 on last year's budget was
mitigated in part through one-time revenue sources and additional vacancy savings while changing hiring
software as well as through taking advantage of the Work Share program. Significant challenges remain
in navigating the current public health emergency and addressing the more than$720 million in unfunded
retirement liabilities owed by the City in order to resolve the structural deficit.
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.
September 30, 2020 Revenue Summary
Fiscal Year July 1, 2020 -June 30, 2021
FY 2021 FY 2021 FY 2021 Sep. 30 3 Year
General Fund Revenues Adopted Amended Sep. 31 Percent Sep. 30
Budget Budget Actuals YTD Ava.
Property Taxes
Non-Dedicated 33,894,000 33,894,000 34,767,399
Dedicated - Police 3,521,250 3,521,250 3,521,250
Dedicated - Fire 3,521,250 3,521,250 3,521,250
Dedicated - Roads 2,347,500 2,347,500 2,347,500
Dedicated - Parks 2,347,500 2,347,500 2,347,500
Total 45,631,500 45,631,500 46,504,899 101.9% 102.6%
Income Taxes
City Income Tax 31,380,800 31,380,800 3,386,010
Total 31,380,800 31,380,800 3,386,010 10.8% 11.6%
Return on Equity
Board of Water and Light 25,000,000 25,000,000 -
Total 25,000,000 25,000,000 - 0.0% 0.0%
State Revenues
Revenue Sharing 13,626,861 13,626,861 -
Fire Reimbursement Grants 2,581,972 2,581,972 -
Personal Property Tax Reimbursement 849,931 849,931 -
Liquor License Fee 68,003 68,003 70,733
Total 17,126,766 17,126,766 70,733 0.4% 0.3%
Charges for Services
Public Safety 4,028,400 4,028,400 584,737
Reimbursements 2,398,773 2,398,773 744,809
Code Compliance 1,911,000 1,911,000 370,437
Recreation Fees 195,980 195,980 55,977
Appeals&Petitions 70,650 70,650 17,580
Work for Others 35,400 35,400 83,339
Central Stores 1,500 1,500 1,350
Subscriptions and Information 1,000 1,000 370
Total 8,642,703 8,642,703 1,858,599 21.5% 19.1%
Fines and Forfeitures
Fines and Forfeitures 1,803,100 1,803,100 262,999
Total 1,803,100 1,803,100 262,999 14.6% 20.9%
Licenses&Permits
Cable Franchise Fees 1,000,000 1,000,000 -
Marihuana Licenses 600,000 600,000 95,000
Business Licenses 90,800 90,800 19,750
Non-Business Licenses 49,700 49,700 15,515
Building Licenses&Permits 21,200 21,200 3,850
Total 1,761,700 1,761,700 134,115 7.6% 6.8%
Interest& Rents
Interest Income 140,000 140,000 12,544
Total 140,000 140,000 12,544 9.0% 47.9%
Other Revenues
Miscellaneous 152,000 252,000 61,524
Sale of Fixed Assets 105,000 105,000 -
Donations&Contributions 65,000 65,000 18,818
Montgomery Drain Code 31,000 31,000 -
Total 353,000 453,000 80,342 17.7% 8.5%
Total General Fund
Operating Revenue 131,839,569 131,939,569 52,310,240 39.6% 36.5%
Transfers from Other Funds 350,000 350,000 350,000
Total 132,189,569 132,289,569 52,660,240 39.8% 36.3%
September 30, 2020 Expenditure Summary
Fiscal Year July 1, 2020 -June 30, 2021
FY 2021 FY 2021 FY 2021 Sep. 30 3 Year
General Fund Appropriations Adopted Amended Sep. 31 Percent Sep. 30
Budget Budget Actuals YTD Target
Beginning General Fund Balance - - 2,475,252
Beginning Budget Stab. Fund Balance 6,894,241 6,894,241 7,792,610
Total General Fund Reserves 6,894,241 6,894,241 10,267,863
Revenues(detail on previous page) 132,189,569 132,289,569 52,660,240 39.8% 36.3%
Departmental Expenditures:
Council 668,682 668,682 133,850 20.0% 23.1%
Internal Audit 170,601 170,601 16,508 9.7% 22.4%
Mayor's Office 1,230,864 1,230,864 235,957 19.2% 22.6%
Office of Community Media 540,669 540,669 95,488 17.7% 22.5%
District Court 6,154,125 6,154,125 1,248,153 20.3% 22.6%
Circuit Court Building Rental 275,655 275,655 1,186 0.4% 0.5%
City Clerk's Office 1,502,908 1,502,908 360,788 24.0% 28.7%
Neighborhood &Citizen Engagement 1,053,914 1,053,914 164,020 15.6% 23.0%
Economic Development&Planning 4,778,684 4,878,684 1,050,616 21.5% 23.1%
Finance Department 2,106,317 2,106,317 360,348 17.1% 22.9%
City Assessor 1,737,056 1,737,056 307,347 17.7% 22.5%
Treasury/Income Tax 2,260,256 2,260,256 390,381 17.3% 22.7%
Human Resources Department 2,260,520 2,260,520 490,536 21.7% 23.2%
City Attorney's Office 2,265,661 2,265,661 443,000 19.6% 22.5%
Police Department 46,493,846 46,493,846 9,493,882 20.4% 21.2%
Fire Department 36,704,247 36,704,247 7,570,870 20.6% 21.3%
Public Service 11,843,878 11,843,878 1,783,004 15.1% 24.2%
Human Relations&Community Services 1,725,334 1,725,334 336,284 19.5% 22.4%
Parks&Recreation Department 8,094,706 8,094,706 1,319,617 16.3% 22.7%
Human Service Agency Support 1,560,400 1,560,400 443,179 28.4% 25.0%
Non-Departmental Expenditures:
Library Building Rental 150,000 150,000 50,702 33.8% 25.0%
Operating Subsidies to Other Funds 862,450 862,450 831,450 96.4% 97.3%
City Supported Agencies 102,500 102,500 30,625 29.9% 85.4%
Capital Improvements 2,429,705 2,429,705 2,429,705 100.0% 100.0%
Debt Service &Penalties 1,303,000 (97,000) - 0.0% 0.0%
Vacancy Factor (1,400,000) (1,400,000) -
Expenditures 136,875,977 136,975,977 29,587,496 21.6% 23.9%
Net Impact on Fund Balance (4,686,408) (4,686,408)
Ending General Fund Reserves 2,207,833 2,207,833
September 30, 2020 Budget Appropriation Summary
Fiscal Year July 1, 2020 -June 30, 2021
FY 2021 FY 2021 FY 2021 Sep. 30 3 Year
Estimated Revenues Adopted Amended Sep. 31 Percent Sep. 30
Budget Budget Actuals YTD Avq.
Property Taxes 45,631,500 45,631,500 46,504,899
Income Taxes 31,380,800 31,380,800 3,386,010
Return on Equity 25,000,000 25,000,000 -
State Revenues 17,126,766 17,126,766 70,733
Charges for Services 8,642,703 8,642,703 1,858,599
Fines&Forfeitures 1,803,100 1,803,100 262,999
Licenses&Permits 1,761,700 1,761,700 134,115
Interest& Rent 140,000 140,000 12,544
Other Revenue 353,000 453,000 80,342
Total Revenues 131,839,569 131,939,569 52,310,240 39.6% 36.5%
FY 2021 FY 2021 FY 2021 Sep. 30 Sep. 30
Appropriations Adopted Amended Sep. 31 Percent Target
Budget Budget Actuals YTD EXp.
Council
Personnel 454,438 454,438 97,871
Operating 214,244 214,244 35,979
Total 668,682 668,682 133,850 20.0% 23.1%
Internal Audit
Personnel 159,234 159,234 14,074
Operating 11,367 11,367 2,434
Total 170,601 170,601 16,508 9.7% 22.4%
Courts
Personnel 5,007,290 5,007,290 1,061,509
Operating 1,422,490 1,422,490 187,830
Total 6,429,780 6,429,780 1,249,339 19.4% 21.7%
Mayor's Office
Personnel 1,030,996 1,030,996 208,682
Operating 199,868 199,868 27,275
Total 1,230,864 1,230,864 235,957 19.2% 22.6%
Media Center
Personnel 472,760 472,760 81,301
Operating 67,909 67,909 14,187
Total 540,669 540,669 95,488 17.7% 22.5%
Clerk's Office
Personnel 1,064,290 1,064,290 255,300
Operating 438,618 438,618 105,488
Total 1,502,908 1,502,908 360,788 24.0% 28.7%
Neighborhood &Citizen Engagement
Personnel 726,750 726,750 136,683
Operating 327,164 327,164 27,337
Total 1,053,914 1,053,914 164,020 15.6% 23.0%
Economic Development&Planning
Personnel 3,148,894 3,148,894 653,363
Operating 1,629,790 1,729,790 397,254
Total 4,778,684 4,878,684 1,050,616 21.5% 23.1%
Finance/Operations
Personnel 1,619,825 1,619,825 310,438
Operating 486,492 486,492 49,910
Total 2,106,317 2,106,317 360,348 17.1% 22.9%
FY 2021 FY 2021 FY 2021 Sep. 30 Sep. 30
Appropriations Adopted Amended Sep. 31 Percent Target
Budget Budget Actuals YTD Exp.
Assessing
Personnel 1,512,158 1,512,158 268,376
Operating 224,898 224,898 38,971
Total 1,737,056 1,737,056 307,347 17.7% 22.5%
Treasury
Personnel 1,808,858 1,808,858 310,361
Operating 451,398 451,398 80,019
Total 2,260,256 2,260,256 390,381 17.3% 22.7%
Human Resources
Personnel 1,372,671 1,372,671 273,775
Operating 887,849 887,849 216,761
Total 2,260,520 2,260,520 490,536 21.7% 23.2%
Attorney's Office
Personnel 2,035,289 2,035,289 399,420
Operating 230,372 230,372 43,580
Total 2,265,661 2,265,661 443,000 19.6% 22.5%
Police
Personnel 39,027,047 39,027,047 8,133,582
Operating 7,466,799 7,466,799 1,360,299
Total 46,493,846 46,493,846 9,493,882 20.4% 21.2%
Fi re
Personnel 31,566,076 31,566,076 6,548,700
Operating 5,138,171 5,138,171 1,022,170
Total 36,704,247 36,704,247 7,570,870 20.6% 21.3%
Public Service
Personnel 2,937,224 2,937,224 507,132
Operating 8,906,654 8,906,654 1,275,872
Total 11,843,878 11,843,878 1,783,004 15.1% 24.2%
Human Relations&Community Service
Personnel 1,536,239 1,536,239 301,791
Operating 189,095 189,095 34,493
Total 1,725,334 1,725,334 336,284 19.5% 22.4%
Parks&Recreation
Personnel 4,981,182 4,981,182 834,016
Operating 3,113,524 3,113,524 485,601
Total 8,094,706 8,094,706 1,319,617 16.3% 22.7%
Human Services
Operating 1,560,400 1,560,400 443,179
Total 1,560,400 1,560,400 443,179 28.4% 25.0%
City Supported Agencies
Operating 102,500 102,500 30,625
Total 102,500 102,500 30,625 29.9% 85.4%
Non-Departmental
Vacancy Factor (1,400,000) (1,400,000) -
Library Lease 150,000 150,000 50,702
Debt Service 1,303,000 1,303,000 -
Net Transfers 2,942,155 2,942,155 2,911,155
Penalties&Claims - - -
Total 2,995,155 2,995,155 2,961,857 98.9% 98.7%
Total Expenditures 136,525,977 136,625,977 29,237,496 21.4% 23.7%
General Fund balance 6,894,241 6,894,241
Change (4,686,408) (4,686,408)
Ending Fund Balance 2,207,833 2,207,833
September 30, 2020 Governmental Summary
Fiscal Year July 1, 2020-June 30, 2021
FY 2021 FY 2021 FY 2021 Sep. 30 3 Year
Estimated Revenues Adopted Amended SepT31 Percent Sep. 30
Budget Budget Actuals YTD Avq.
Property Taxes 45,631,500 45,631,500 46,504,899
Income Taxes 31,380,800 31,380,800 3,386,010
Return on Equity 25,000,000 25,000,000 -
State Revenues 17,126,766 17,126,766 70,733
Charges for Services 8,642,703 8,642,703 1,858,599
Fines&Forfeitures 1,803,100 1,803,100 262,999
Licenses&Permits 1,761,700 1,761,700 134,115
Interest&Rent 140,000 140,000 12,544
Other Revenue 353,000 453,000 80,342
Total Revenues 131,839,569 131,939,569 52,310,240 39.6% 36.5%
Expenditures
General Government
Attorney's Office 1,446,924 1,446,924 264,969
City Clerk 1,153,547 1,153,547 283,535
Council 501,445 501,445 94,918
Courts 4,113,247 4,113,247 705,974
Internal Audit 102,236 102,236 805
Finance 3,943,860 3,943,860 581,329
Library Rental 150,000 150,000 50,702
Human Resources 1,673,792 1,673,792 363,162
Mayor's Office 848,515 848,515 156,837
Office of Community Media 382,823 382,823 59,733
Budgetary Savings-Vacancy Factor (1,400,000) (1,400,000) -
Total General Government 12,916,390 12,916,390 2,561,965 19.8% 25.4%
Public Safety
Police Department 27,249,594 27,249,594 5,457,477
Fire Department 22,065,461 22,065,461 4,587,353
Total Public Safety 49,315,055 49,315,055 10,044,830 20.4% 21.6%
Public Works 10,687,130 10,687,130 1,536,934 14.4% 24.3%
Recreation&Culture 6,406,712 6,406,712 963,984 15.0% 22.7%
Community Development
Economic Development&Planning 3,320,381 3,420,381 732,280
Neighborhood &Community Engagement 717,591 717,591 90,418
Human Relations/Community Service 1,069,748 1,069,748 194,954
Human Services/Community Support 1,662,900 1,662,900 473,804
Total Community Development 6,770,620 6,870,620 1,491,457 21.7% 24.5%
Internal Services
Retirement/Fixed Costs 40,805,259 40,805,259 8,382,257
Information Technology 5,379,656 5,379,656 1,344,915
Total Internal Services 46,184,915 46,184,915 9,727,172 21.1% 21.3%
Debt Service
Principal 1,245,000 1,245,000 -
Interest 58,000 58,000 -
Total Debt Service 1,303,000 1,303,000 -
Total Expenditures 133,583,822 133,683,822 26,326,341
Revenues Over(Under) Expenditures (1,744,253) (1,744,253) 25,983,898
Other Financing Sources(Uses)
Transfers In 350,000 350,000 350,000
Transfers Out (3,292,155) (3,292,155) (3,261,155)
Total Other Financing Sources(Uses) (2,942,155) (2,942,155) (2,911,155)
Net Change in Fund Balance (4,686,408) (4,686,408)
Fund Balance, Beginning of Year 6,894,241 6,894,241
Fund Balance, End of year 2,207,833 2,207,833