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Home My Public Portal AboutLTC 076-2015 FY 2014-15 Second Quarter-Mid-Year Report;tea, 'AL HA OUR F L O R I D AS II P A R A D I S E OFFICE OF THE VILLAGE MANAGER NO. 076-2015 LETTER TO COUNCIL TO: Mayor Martin Packer and Members of the Village Council FROM: Jorge M. Gonzalez, Village Manager DATE: April 24, 2015 SUBJECT: FY 2014-15 Second Quarter/Mid-Year Report BACKGROUND The FY 2014-15 Second Quarter Financial Report as referenced in Attachment A, is to provide the Village Council with the status of the budget to actual revenue and expenses at the end of the second quarter of the of the fiscal year. FY 2013-14 was a year of transition for Bal Harbour Village, as reported in February 2015, the General Fund ended the year with $1.9 million in revenue over expense. The FY 2014-15 Budget was developed in consultation with the Village Management Team, the Budget Committee, Chaired by now Councilmember Salver, as well as with the Mayor and Council. Together we worked to identify Village needs for the coming year, and a better allocation of Village resources toward the priorities established by Council. FY 2014-15 Mid -Year Budgetary Highlights The mid -year report, reconciles the actual results for the Village's first six months of the fiscal year, October 01, 2014 through March 31, 2015. So far, budget activity for the first six months of the fiscal year are performing as anticipated. There does not appear to be anything that would be cause for concern or require budget amendment at this time. Generally, overall revenue is running ahead of budget and overall expense is running below authorized levels at this time. The following budgetary highlights occurred during the first two Quarters of FY 2014-15. As of March 31, the end of the second quarter, General Fund Revenue exceed expense by $5,528,300. This is not unusual at this time, as typically the Village receives most of its revenue early in the year while expenses tend to occur more evenly throughout the year. GENERAL FUND REVENUE The Village's General Fund operating revenue collection is $10,876,600 or 78% of budget as of March 31sI, this is due in large part to the collection of 90% of Ad Valorem Revenue collections by the end of the second quarter. Ad Valorem Revenue comprises 63% of General Fund operating revenue budget. While Ad Valorem Revenue is received early in the year, revenue sources which are disbursed through the State and Florida Power and Light (FPL), lag by one to Page 2 of 3 two months as they are collected in arears. These revenues include Utility Service Taxes, Franchise Fees, Communications Service and Sales Taxes, at $871,300 these revenues are at approximately 40% of budget amounts, as of March 31 SI Permits & License revenue traditionally consists of Local Business Taxes, Building, Planning & Zoning, and Burglar Alarm Permits. Local Business Taxes are remitted to the Village at the beginning of the fiscal year, as of March 31 s' collections have exceeded the budget at $643,400 or 118%. This reflects the continuation of last fiscal year's improved collection efforts and the implementation of a rate increase for this year. Building Permit revenue is at 39% of budget at $255,200, however this is not cause for concern as the volume is seasonal and is largely driven by large projects. Also, worth noting, the Village is transitioning from non-functioning parking pay stations to improved technology which will improve future parking meter collections, however for these quarters collections are not evident. GENERAL FUND EXPENDITURES General Fund operating expense for all departments are $5,636,300 or 40% of budgeted expense as of March 31 It. The following expenditure activities are worth noting: • The General Government activity, is at 19% of budget at $417,900. This department reflects payouts and health insurance for retirees, and excess benefit plan payments to retirees which at the close of the second quarter are higher than anticipated at budget development at 112% of budget at $168,200. These expenses are anticipated to grow by another $70,000 through the remainder of the fiscal year, and more if there are unanticipated separations of staff. Historically these expenses were booked against liability accounts, therefore no expenses for this activity were reflected prior to FY 2013- 14. In addition, this is where we budgeted our operating contingency of 2.5% of budget, to date only $4,600 has been charged to this account. • Building Department expense is 63% of budget at $449,200, largely due to unbudgeted Bal Harbour Shops Cost Recovery expenses of $136,400, which are captured within the department. The cost recovery agreement between Bal Harbour Shops and the Village will fully reconciled the expense. • Parks and Recreation is 64% of budget at $185,000, largely due to the use of overtime, and increased hours for part-time employees to meet operational needs. • The Police Department is 46% of budget at $2,828,200 however at half the year, overtime is 110% of budget at $220,000 due to vacancies resulting from retirement, and the time it takes to fill current year enhancement positions. Two new police officers are scheduled to begin work on May 04, 2015. RESORT TAX FUND As of March 31, revenue exceed expense by $657,600, for the Resort Tax Fund. Resort Tax Revenue as of the second quarter, is 44% of budget at $1,758,600, with two new restaurants expected to open during the third quarter. Page 3 of 3 Resort Tax expenses are comprised of Tourism and Beautification activities, combined the expenses are 27% of budget at $1,100,900. Tourism expense at $537,900 is 23% of budget. During FY 2013-14 the Village undertook a comprehensive Branding exercise, the advertising plan and corresponding expenditures are on hold pending the outcome of this effort and the anticipated launch of our new advertising campaign, pending approval by the Village Council. Beautification expenses are 34% of budget at $563,000 as of the close of the second quarter, but are anticipated to accelerate as we enter the growing season during second and third quarters of the fiscal year. UTILITY FUND Water and wastewater utility operating revenue are $1,851,600 or 46% of budget as of the second quarter. Operating expenses for the Utility Fund are 24% of budget at $1,013,600, largely due to delayed invoicing from our wholesale service providers. Contracts to commence the design of phases one and two of the multi -year, multi -million dollar capital project to replace the Village water and wastewater infrastructure were awarded during the second quarter and capital project expenses will advance during the remainder of the fiscal year. As of March 31, 2015, revenue exceed expense by $1,030,900, for the Water and Wastewater Utility Fund. LANDSCAPE AND SECURITY FUND Revenue for the Landscape and Security Assessment Fund is $580,300 or 94% of budget. Expenses for the fund are $410,400 or 34% of budget as of the close of the second quarter, however expenses are anticipated to accelerate as we enter the growing season of the second and third quarter of the fiscal year. As of March 31s', revenue exceed expense by $383,900, for the Landscape and Security Fund. CONCLUSION This report provides the status of budget to actual revenues and expenses as of the first six months of the fiscal year. At the end of the second quarter of the FY 2014-15 the Village is well positioned financially, revenues are consistent with projections and we currently anticipate remaining within budget for the fiscal year. Revenues and expenses will continue to be monitored to ensure that we close the fiscal year in a positive position with overall revenues exceeding overall expenses. As we move through the third quarter of the first full fiscal year with existing staff, projection development will occur that will guide us into budget development for FY 2015- 16. Attachment A: FY 2014.15 Second Quarter Report FY2014 FY 2015 FY2011 FY2012 Adopted Amended FY 2015 Actual Budget less Percentage of Actual Actual FY2013 Actual Budget FY 2014 Actual Budget March 31,2015 Actual Budget GENERALFUND REVENUE AdValorem Taxes 5,819,371 5,801,487 6,797,002 6,679,900 6,705,250 7,842,987 7,073,837 769,150 90% Utility Service Tax 689,149 771,344 817,850 796,611 890,629 759,448 358,310 401,138 47% Franchise Fee 639,255 693,645 684,688 680.600 890,629 683,862 233,136 450,726 34% Intergovernmental Revenue 740,350 673,372 682,122 706,241 814,524 727,024 279,934 447.090 39% Permits & Licenses 754,037 934,976 1,004,409 1,021,671 1,610,080 1,204,517 782,648 421,869 65% Fines & Forfeitures 844,948 469,511 541,563 280,600 830,810 481,147 231,082 250,065 48% Miscellaneous 507,943 388,771 373,897 429,901 611,204 517,797 279,608 238,189 54% Solid Waste Assessments 0 640,775 643,124 634,762 629,838 627,936 560,080 67,856 89% FY 2014 Carryfonvard 1,078,000 1,078,000 0 100% Subtotal Operating Revenue 9,995,053 10,373,880 11,544,654 11,230,286 12,982,964 13,922,720 10,876,637 3,046,083 781A TIVE Salades & Benefits 21,504 4Q830 48,360 39,803 49,250 60,081 17,164 42,917 29% Other Operating 106,489 67,967 68,480 100,600 21,520 100,600 22,918 77,682 23% Operating Capital 0 0% TOTAL 127,993 108,797 116,840 140,403 70,770 160,681 40,082 120,600 25% ADMINSTRATION e Salaries & Benefits 510,920 568,197 951,859 828,506 812,942 887,556 440,853 446,704 50% Other Operating 89,225 89,388 104,292 137,000 69,290 100,785 40,525 60,260 40% Operating Capital 0 0% TOTAL 600,145 657,586 1,056,151 965,506 882,232 988,341 481,378 506,964 49% FINANCE Salaries & Benefits 202,468 223,457 267,600 525,801 349,905 448,715 254,831 193,885 57% Other Operating 169,464 161,806 195,893 176,011 163,345 145,325 55,685 89,640 38% Operating Capital 0 0% TOTAL 371,932 385,263 463,493 701,812 513,249 594,040 310,516 283,524 52% GENERAL GOVERNMENT Payouts/Retiree Hlth/UnempVCOB 0 0 0 0 87,947 150,514 196,156 -45,643 130% Other Operating 661,972 958,349 727,047 887,001 647,101 998,773 221,787 776,986 22% Operating Capital 0 0 0 0 0 1,050,000 0 1,050,000 0% TOTAL 778,756 1,074,783 801,442 957,344 811,049 2,208,487 417,943 1,790 ENFORCEMENT -LAN Salaries & Benefits 4,714,068 4,604,416 4,329,208 4,270,310 4,625,376 4,938,409 2,508,738 2,429,671 51% Other Operating 807,912 849,995 996,119 850,500 921,001 1,168,902 319,495 849,407 27% Operating Capital 0 0% TOTAL 5,521,980 5,454,412 5,324,327 5,120,810 5,546,377 6,107,311 2,828,233 3,279,078 46% BUILDING Salaries & Benefits 168,400 143,399 152,845 182,169 164,166 144,925 63,515 81,410 Other Operating 211,150 211,068 454,418 383,050 716,892 570,700 385,682 185,018 1635/ Operating Capital 0 TOTAL 379,550 354,467 607,263 565,219 881,058 715,625 449,197 266,428 Attachment A: FY 2014.15 Second Quarter Report FY2014 FY 2015 FY2011 FY2012 Adopted Amended FY 2015 Actual Budget less Percentage of Actual Actual FY2013 Actual Budget FY OO14 Actual Budget March 31,2015 Actual Budget PARKS AND PUBLIC SPACES DEPARTMENT (General Fund Only) PUBLIC WORKS Salaries & Benefits 205,910 164,134 393,049 446,456 450,575 389,125 219,703 169,422 56% Other Operating 284,605 232,216 1,039,758 946,150 1,158,877 1,393,339 459,894 933,445 33% Operating Capital 5,110 26,586 6,055 460,000 0 0% TOTAL 495,625 422,937 1,438,861 1,852,606 1,609,452 1,782,464 679,597 1,102,867 30% PARKS $ RECREATION Salaries & Benefits 271,461 282,302 248,286 226,487 282,200 179,221 145,691 33,531 81% Other Operating 85,259 93,295 83,456 109,100 107,460 108,970 39,912 69,058 37% Operating Capital 0 D% TOTAL 356,720 375,597 331,742 335,587 389,660 288,191 185,603 102,589 64% INFORMATION TECHNOLOGY Salaries & Benefits 0 0 0 0 0 0 0 0 0% Other Operating 0 0 0 0 0 204,000 53,691 150,309 26% Operating Capital 0 0 0 0 0 443,400 19,261 424,139 0% TOTAL 'Prior FY actuals reflected in Departmental Line items above appals$153,Wolyr 647,400 72,953 574,447 11% LEGAL SUPPORT SERVICES(General Fund only), ,,. Salaries & Benefits 0 0 0 0 0 0 0 0 0% Other Operating 275,707 276,469 416,266 591,000 381,619 430,179 170,801 259,378 40% Operating Capital 0 0% TOTAL 275,707 276,469 416,256 591,000 381,619 430,179 170,801 259,378 40% GENERAL FUND TOTAL 8,908,407 9,110,311 10,556,375 11,230,285 11,085,466 13,922,719 5,636,302 8,286,417 40%< Total Full Time Positions GF Operating Revenue total 9,995,053 10,373,880 11,544,654 11,230,286 12,982,964 _ - 20 10,876,637 ,__, Revenue less Expense ' °� ;-" 1,897,498 • 5,240,335 LEGAL SUPPORT SERVICES (all funds ' 'y Salaries & Benefits 0 0 0 0 0 0 0 0 0% Other Operating 443,119 465,394 636,612 686,000 446,836 480,000 202,373 277,627 42% Operating Capital 0 0% TOTAL 443,119 465,394 636,612 685,000 446,836 480,000 202,373 277,627 42°k Attachment A: FY 2014-15 Second Quarter Report FY2014 FY 2015 FY2011 FY2012 Adopted Amended FY 2015 Actual less Bu:Actual Percentage of Actual Actual FY2013 Actual Budget FY 2014 Actual Budget March 31,2015 Budget RESORT TAX FUND REVENUE Operating Revenue 2,164,312 2.769,633 3,259,931 3,547,131 3.558,593 3,547,130 1,758,627 1,788,503 50% FY2014 Carryforward 470,000 470,000 0% Capital & Operating Revenue 2,164,312 2,769,633 3,259,931 3,547,131 3,558,593 4,017,130 1,758,627 2,258,503 44% Salaries & Benefits 206,078 216,858 237,321 257,428 251,548 253,861 107,552 146,309 42% Other Operating 1,722,307 1,880,395 1,769,561 2,056,617 1,362,560 1,780,520 430,389 1,350,131 24% Operating Capital 0 0 0 0 0 325,000 0 325,000 0% TOTAL 1,928,385 2,097,253 2,006,882 2,314,045 1,614,108 2,359,381 537,941 1,821,440 23% ....... ...r,..- BEAUTIFICATION/ GREENSPACE /OTHER RESORT TAX ELIGIBLE _,.... Salaries & Benefits 232,668 246,011 254,923 279,079 311,304 181,193 130,111 58% Other Operating 869,305 809,888 978,163 1,033,577 1,211,445 381,807 829,638 32% Operating Capital 0 0 0 0 0 135,000 0 135,000 0% TOTAL 1,101,973 1,055,899 1,233,086 1,312,656 1,657,749 563,001 1,094,749 34% RESORT TAX FUND TOTAL 1,928,385 3,199,226 3,062,782 3,547,131 2,926,764 4,017,130 1,100,941 2,916,189 27% Revenue less Expense 235,927 -429,593 197,149 0 631,829 0 657,686 Attachment A: FY 2014.15 Second Quarter Report FY2014 FY 2015 FY2011 FY2012 Adopted Amended FY 2015 Actual Budget less Percentage of Actual Actual FY2013 Actual Budget FY 2014 Actual Budget March 31,2015 Actual Budget WATER & WASTEWATER UTILITY FUND REVENUE Operating Revenue 3,504,805 3,706,110 3,371,644 3,620,750 3,552,719 3,985,500 1,851,596 2,133,904 46% Debt Proceeds (Capital) 0 0 259,480 1,675,000 1,675,000 380,000 0 380,000 0% Inergovernmenlal Revenue (Capita 0 0 0 0 0 7,100,000 475,000 6,625,000 7% Capital & Operating Revenue 3,504,805 3,706,110 3,631,124 5,295,750 5,227,719 11,465,500 2,326,5% 9,138,904 20% WATER & WASTEWATER UTIL + .,•-':. ,,.-,•_, Salaries & Benefits 131,140 125,467 107,103 106,943 104,975 180,809 100,813 79,996 56% Other Operating 1,839,853 3,061,328 2,458,394 3,479,357 3,097,877 3,792,902 812,061 2,980,841 21% Capital Projects 0 0 0 1,680,000 939,451 4,870,000 118,023 4,751,977 2% UTILITY FUND TOTAL -'1,970,993 "''J,,186,796 2,565,497 --� 5,266, 0�- 4,142,303 �8,843,711 1,030,897-� 7,812,81 . Attachment A: FY 2014-15 Second Quarter Report FY2011 Actual FY2012 Actual FY2013 Actual FY2014 Adopted Budget FY 2014 Actual FY 2015 Amended Budget FY 2015 Actual March 31,2015 Budget less Actual Percentage of Budget LANDSCAPE & SECURITY ASSESSMENT FUND REVENUE Operating Revenue 539,140 Fund Balance Capital & Operating Revenue 539,140 803,379 803,379 964,248 964,248 638,926 638,926 665,668 665,668 433,143 185,000 618,143 395,350 185,000 580,350 37,793 0 37,793 91% 100% 94% LANDSCAPE & SECURITY ASSESSMENT AREA EXPENSE Salaries 8 Benefits 0 Other Operating 268,295 0 573,638 0 425,534 0 638,927 7,761 471,387 28,370 589,773 11,285 196,416 17,086 393,357 40% 33% L& S ASSESSMENT TOTAL 268,295 573,638 TOTAL PARKS AND PUBLIC SPACES DEPARTMENT 425,534 638,927 11,640,451 479,148 194,281 28,370 383,935