City Council Agenda and Packet 2006 06 27 SP

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PACKET PAGE TWO SUBJECT: 2006 REVENUE AND EXPENSE FORECAST ORIGINA TING DEPARTMENT: FINANCE Conservation Trust - Land Acquisition: The revenue in this fund is expected to be short ($57,750) due to sales tax shortages explained above. Also, staff is expecting some shortages in commercial use tax collections. The expenditures in this fund will come in over ($3.0 million) short of budget. This is due to the fact that the city budgeted over $3.0 million for land acquisitions in 2006, however; there are no plans currently in place to spend that appropriation. Capital Projects: The Capital Projects Fund will have shortages in revenue due to sales tax. However, this is offset by two projects that are budgeted in 2006 but have been placed on hold: '" City Shops $370,000 '" Playground Equipment $60,000 This reduces capital expenditures in 2006 to $5,521,805. The major expenditures in this fund were: '" Streets $1,200,000 '" Dillon Rd. $2,335,000 '" Swimming Pool Slide and Tower Replacements $260,000 '" Swimming Pool Resurfacing/Replastering $150,000 '" Software $286,138 It is expected that the Capital Projects Fund will end the year with a fund balance of over $2.4 million. Library Capital Construction Fund: This fund shows a negative fund balance in the budget for 2006, however; this was due to end of the year encumbrances that rolled over from 2005. Budget appropriations made in 2006 were for estimated costs in 2006. In reality, the actual expenditures for the library in 2006 are estimated to be $4,065,941. Basically, the City over appropriated funds for the library construction in 2006. The library is estimated to come in under project budget by approximately $500,000. The City forecast shows a savings of $190,279, however; there is a construction contingency included in this that is not expected to be 100% utilized by the end of the project. Water & Wastewater Fund: Staff expects the water and sewer charges to come in over budget by $772,000. All major capital projects are expected to be completed. Major projects budgeted in this fund were: '" Windy Gap Firming Project $310,000 '" South Plant Generator $450,610 The City is not anticipating the entire collection of $750,000 tap fees in 2006. This was based on estimated additional new housing starts equal to 34 that may not occur until 2007. Debt coverage is adequate for the year 2006 at 1.44 as compared to the required debt coverage of 1.15. Staff is willing to answer questions on any of the non-maj or funds not addressed in this memo but include in the packet. PACKET