TO: Members of the City Council
FROM: Mayor Angela Birney
DEPARTMENT DIRECTOR CONTACT(S):
|
Finance |
Chip Corder |
425-556-2189 |
DEPARTMENT STAFF:
|
Finance |
Kelley Cochran |
Deputy Finance Director |
TITLE:
title
2021 Third Quarter Financial Report & Selected 2021 Financial Forecasts
OVERVIEW STATEMENT:
recommendation
The purpose of this staff report is to review the quarterly financial performance from January 1, 2021 through September 30, 2021. Each month the Redmond City Council’s Finance, Administration and Communications (FAC) Committee reviews the City’s monthly financial report. At the end of each quarter the City Council reviews the highlights from that quarter’s financials. In addition, a 2021 financial forecast is provided for the General Fund, Water/Wastewater M&O Fund, and major CIP revenues (real estate excise tax, impact fees, and business tax).
body
☒ Additional Background Information/Description of Proposal Attached
REQUESTED ACTION:
☒ Receive Information ☐ Provide Direction ☐ Approve
REQUEST RATIONALE:
• Relevant Plans/Policies:
N/A
• Required:
N/A
• Council Request:
N/A
• Other Key Facts:
N/A
OUTCOMES:
As reported at the October 26, 2021 Finance, Administration and Communications Committee of the Whole meeting, the key financial highlights through September 30, 2021 include the following:
General Fund
• Total revenues are 30.3%, or $19.7 million, above target.
• Sales tax is 84.9%, or $15.8 million, above target primarily due to the high level of development activity, which has generated $11.8 million in one-time construction sales tax. Ongoing sales tax is 40.7%, or $6.3 million, above target.
• Utility taxes are 2.8%, or $226,000, above target.
• License & permit fees are 27.9%, or $2.4 million, above target primarily due to the high level of development activity.
• Intergovernmental revenues are 22.5%, or $2.5 million, above target primarily due to the American Rescue Act Plan (ARPA) allocation to the City.
• Total expenditures are 15.6%, or $17.4 million, below target primarily due to position vacancies, the timing of one-time expenditures, and the budget adjustments adopted by ordinance on August 17, 2021 that impact 2022 and beyond (e.g., $5.0 million in ARPA funding won’t be spent until 2022, and most of the Police body-worn camera program funding is reserved for 2023-2025).
Other Funds
• Recreation Activity Fund: Total revenues are 20.9%, or $200,000, above target primarily due to summer camps, field rentals, and donations.
• Water/Wastewater M&O Fund: Total revenues are 11.7%, or $3.2 million, more than total expenditures. Of particular note, commercial water consumption is 11.0% above target, but is still well below the historical average prior to the pandemic.
• Capital Investment Program: Total expenditures are 26.2% of budget at the 37.5% point of the biennium.
Selected 2021 Financial Forecasts
• General Fund
|
|
2021 Budget |
2021 Forecast |
Forecast - Budget |
Note |
|
Revenues |
$98,023,996 |
$116,745,126 |
$18,721,130 |
Surplus revenue |
|
Expenditures |
122,446,311 |
121,242,377 |
(1,203,934) |
Expenditure savings* |
|
|
Estimated 2021 Surplus |
$19,925,064 |
|
* Expenditure savings will be used to fund: 1) the 2022 COLA, which is significantly higher than what was budgeted; and 2) planned work that was budgeted but not started or completed in 2021.
• Water/Wastewater M&O Fund
|
|
2021 Budget |
2021 Forecast |
Forecast - Budget |
Note |
|
Revenues |
$35,968,068 |
$38,748,307 |
$2,780,239 |
Surplus revenue |
|
Expenditures |
36,843,593 |
35,385,095 |
(1,458,498) |
Expenditure savings* |
|
|
Estimated 2021 Surplus |
$4,238,737 |
|
* Expenditure savings will be used to fund: 1) the 2022 COLA, which is significantly higher than what was budgeted; and 2) planned work that was budgeted but not started or completed in 2021.
• Major CIP Revenues
|
|
2021 Budget |
2021 Forecast |
Forecast - Budget |
Note |
|
Real estate excise tax |
$4,100,000 |
$9,355,889 |
$5,255,889 |
Surplus revenue |
|
Impact fees: |
|
|
|
|
|
Park |
1,600,000 |
4,262,948 |
2,662,948 |
Surplus revenue |
|
Transportation |
2,500,000 |
12,080,621 |
9,580,621 |
Surplus revenue |
|
Fire |
145,952 |
297,495 |
151,543 |
Surplus revenue |
|
Business tax |
5,096,576 |
5,634,633 |
538,057 |
Surplus revenue |
|
|
Estimated 2021 Surplus |
$18,189,058 |
|
COMMUNITY/STAKEHOLDER OUTREACH AND INVOLVEMENT:
• Timeline (previous or planned):
N/A
• Outreach Methods and Results:
N/A
• Feedback Summary:
N/A
BUDGET IMPACT:
Total Cost:
N/A
Approved in current biennial budget: ☐ Yes ☐ No ☒ N/A
Budget Offer Number:
N/A
Budget Priority:
N/A
Other budget impacts or additional costs: ☐ Yes ☐ No ☒ N/A
If yes, explain:
N/A
Funding source(s):
N/A
Budget/Funding Constraints:
N/A
☐ Additional budget details attached
COUNCIL REVIEW:
Previous Contact(s)
|
Date |
Meeting |
Requested Action |
|
10/26/2021 |
Committee of the Whole - Finance, Administration, and Communications |
Receive Information |
Proposed Upcoming Contact(s)
|
Date |
Meeting |
Requested Action |
|
11/23/2021 |
Committee of the Whole - Finance, Administration, and Communications |
Receive Information |
Time Constraints:
N/A
ANTICIPATED RESULT IF NOT APPROVED:
N/A
ATTACHMENTS:
Attachment A: 2021 Third Quarter Financial Report Presentation