FINANCIAL REPORT. Report o verv. ~ ~~W - August General Fund Governmental Capital Fund. Water Fund Sewer Fund

Transcription

1 ~,.;!\.city~~---.'. _. T1i~~rl)~on -.,-' ''"---,--~ ~-- Report o verv. ~ ~~W - FINANCIAL REPORT ~:-----~ ;-;;:.-. '. August 2018 General Fund Governmental Capital Fund Water Fund Sewer Fund Thornton Development Authority Other City Funds 1

2 GENERAL GOVERNMENT Genera I Fund (pages 3-4) -7 Sales and Use Tax, Property Tax, Charges For Services, Franchise Fees, Licenses and Permits Expenditures (Operating) -7 Police, Fire and Emergency Medical Response, Parks and Recreation, Streets, Traffic, Drainage, Development Services, Administration Government a I Capita I Fund (pages 3--4) -7 Sales and Use Tax, Intergovernmental, Grants Expenditures (Capital) -7 Contractual Obligations (Debt/Incentives), Maintenance Capital, Expansion Capital Spec i a I Revenue Funds (page 5) -7 Sales and Use Tax, Adams County Open Space Tax, Adams County Road and Bridge Tax, Lottery Proceeds, Grants Expenditures (Capital) -7 Parks, Recreation, and Open Space Projects, Transportation Projects 2

3 GENERAL GOVERNMENT General Fund and Governmental Capital Fund- Revenue Summary Description 2017 YTD 2018 YTD Difference Taxes Sales, Use, Assessments Property Franchise other Building Charges for Services Fjnes and Forfeitures Intergovernmental Governmental Grants Interest, Transfer In, Misc. Total 40,686,371 10,702,565 3,498,704 1,486,895 12,431,415 6,992,295 1,149,963 6,879,698 1,767, ,122 92,829,557 42,813,776 12,935,698 3,720,066 1,562,774 12,228,138 7,559,094 1,395,822 8,469,836 2,080,406 7,476, ,242,325 2,127,405 2,233, ,362 75,879 (203,277) 566, ,859 1,590, , ,593 7,412,768 Revenue Highlights: Property taxes are up 2.2M year to date (YTD) was a reassessment year and most residential properties increased substantially in value over the prior two-year period. Property taxes remitted in 2018 reflect these reassessment values, therefore this increase YTD was expected. Building revenues (Building and Construction Use Tax, Contractor Licenses and Building Permit Fees) are down 203K YTD as expected. Revenue in 2017 benefitted from a large permit fee related to the Amazon warehouse. The City issued 632 single-family permits YTD vs. 636 for the same period in 2017, a 0.6% decrease. Commercial development activity is up YTD. The City issued new commercial building permits for the Crossroads Station, the RTD N Line parking structure near 104th Avenue and Colorado Boulevard, a T-Mobile retail store near 84th Avenue and Huron Street, a Starbucks on Thornton Parkway in the Highpointe shopping area, Quebec Plaza at 128th Avenue & Quebec Street, and a new retail store in the Grove Shopping area. Bottom Line: Although total revenue in the combined General and Governmental Capital Funds is up 8% YTD, it is expected to level off over the next few months and finish slightly above the original forecast of 2.7%. 3

4 GENERAL GOVERNMENT Department 2017 YTD 2018 YTD 2018 Budget Police Department 23,646,676 26,718,924 40,341,086 Community Services 12,744,340 15,629,810 24,369,509 Fire Department 11,187,430 13,244,241 18,919,994 Infrastructure 8,208,051 7,913,526 13,961,875 City Development 5,217,202 5,796,602 9,276,620 Management Services 4,276,254 4,121,026 6,470,118 General Fund Non-Departmental 3,117,580 3,688,481 6,285,195 City Manager's Office 2,366,885 2,329,479 3,623,092 Finance 1,435,089 1,714,596 2,723,840 Legal 1,030,375 1,357,455 2,268,150 Economic Development 650, ,870 1,068,147 slative Total Expenditures 74,413,058 83,854, ,178,138 Governmental Capital Fund - Expenditure Summary Description 2017 YTD 2018 YTD 2018 Budget Contractual Obligations Capital Maintenance Projects Capital Expansion Public Safety Projects Community Facilities Plan Projects Total Expenditures 862,900 1,770, ,122 3,450, ,669 1,819, ,036 3,187, ,786 6,373,247 7,226,557 5,156,188 8,030,000 6,029,677 6,954,000 33,396,422 32,318,820 Capital Carryover 5,682,425 15,584,442 Expenditure Performance: YTD spending is on track with the 2018 Budget. Utilities represent more than 7M in Parks irrigation water accounts for nearly 3.5M of these costs. Dry weather in the first half of the year means staff will be monitoring these costs closely through the remaining irrigation season. The City's average blended (gasoline and diesel) fuel price through August is 2.20/gallon, an increase over the 2.00/gallon assumed in budget preparations. Staff will closely monitor these costs as the year continues. The Fire Department is currently projecting over-budget for This is largely due to overtime. Staff will closely monitor these costs as the year continues. An August Budget Amendment authorized additional funding in the Governmental Capital Fund for grants received by the Fire Department, including 85,000 for automatic loading stretchers for all ambulances, and 200,000 to install exhaust removal systems in Fire Stations. 4

5 GENERAL GOVERNMENT Special Revenue Funds - Revenue Summary Fund 2017YTD 2018 YTD Difference Adams County Road and Bridge Fund 1,462,720 1,925,775 Adams County Open Space Fund 567, ,356 Parks Fund 1,367,056 1,425,243 Open Space Fund 1,411,403 1,491,248 Parks and Open Space Fund 1,409,509 1,478,402 Conservation Trust Fund 617, ,300 Cash In Lieu Fund 9,695 20,985 Tota I 6,845,370 7,635,309 Special Revenue Funds - Expenditure Summary 463,055 45,809 58,187 79,845 68,893 62,860 11, ,939 Fund 2017 YTD 2018 YTD 2018 Budget Adams County Road and Bridge Fund Adams County Open Space Fund Parks Fund Open Space Fund Parks and Open Space Fund Conservation Trust Fund Cash In Lieu Fund Total Expenditures 753, ,164 1,355, , ,645 1,021, ,370,285 1,023,726 76,820 1,873, ,368 1,904,429 1,180,330 44,955 6,657,600 3,592,188 1,807,151 2,211,611 2,670,319 46,771,960 1,992,053 86,230 59,131,512 Capital Carryover 5,575,793 4,572,622 28,548,503 Revenue Performance: YTD revenues in the Special Revenue Funds are trending as expected. Expenditure Performance: The 2018 Special Revenue Funds budget includes the construction of the Trail Winds Recreation Center, land acquisition for a new park in southwest Thornton, and nearly 2M dedicated to the construction of trails and pedestrian connections throughout the community. Capital Carryover in the Special Revenue Funds includes projects such as the Riverdale Ball Fields, Trail Winds Recreation Center, and Thorncreek Golf Course improvements, among others. A Budget Amendment in June appropriated 1,550,657 in the Adams County Open Space Fund for improvements to the Big Dry Creek Open Space for channel restoration, bank stabilization, revegetation, and removal of invasive species. This will be funded through grants from the Northeast Greenway Corridor Foundation Fund, Great Outdoors Colorado, and Adams County Open Space, and maintenance funding from the Urban Drainage and Flood Control District. 5

6 -,...:,- w~~~'~,to" ~.- _,~ciy ~~ -... O.vervi~w.of Fu. n.~,~~.. ENTERPRISE August 2018 Water Fund (pages 7-8) -7 Rate Revenue, Tap Fees, Bulk Water Sales, Northern Leases Expenditures (Operating and Capital) -7 Building, operating, and maintaining the Water Utility Sew e r F u n d (page 9) -7 Rate Revenue, Tap Fees, Federal Heights Revenue Expenditures {Operating and Capital) -7 Building, operating, and maintaining the Sewer Utility Environment a I Services Fund (page 10) -7 Solid Waste Revenue, Recycling Revenue Expenditures {Operating and Capital) -7 Trash and recycling services 6

7 ENTERPRISE Water Fund - Revenue Summary Description 2017YTD 2018 YTD Difference Water Rate Revenue 24,025,021 25,606,592 1,581,571 Bulk Water Sales 2,869,259 2,790,902 (78,357) Northern Leases 1,567,358 1,635,035 67,677 Tap Fees & Contributed 13,671,589 21,850,156 8,178,567 Oil and Gas 767,450 2,162,186 1,394,736 Grant Revenue 2,295 2,295 Interest and Other 2,620,972 3,373, ,776 Total 45,521,649 57,420,914 11,899,265 Revenye Highlighl :z: Although there was no rate increase in 2018, revenue is up 6.6% YTD. Rate revenue above reflects customer usage through mid-august. Consumption was up 7.5% through this same period resulting in the revenue increase. Tap fees are up 8.2M YTD. This increase was expected given the pace of commercial development activity around the City throughout 2017 and residential development over the past six to nine months. 7

8 ENTERPRISE Water Fund- Expenditure Summary Description 2017 YTD 2018 YTD 2018 Budget Utility Billing 1,137,366 1,176,795 1,959,118 Utilities Operations 2,543,252 2,565,459 4,146,223 Thornton Water Project Team 438, ,881 1,082,334 Water Resources 3,014,309 3,258,714 4,771,610 Farm Management 744, ,781 1,113,176 Water Quality 313, ,497 1,271,469 Water Treatment 3,869,121 4,411,083 6,787,507 Real Estate Management 116, , ,541 Water Legal 109, , ,302 Water Operating General Expenses 3,918,689 4,209,316 7,846,861 Water Operating 16,205,982 18,211,434 29,355,141 Water Capital 21,437,025 19,987,482 87,904,967 Total Expenditures 37,643,007 38,198, ,260,108 ExPenditure Performance: Capital Carryover l,9l7,250 4,593,953 92,023,289 YTD spending in the Water Fund is on track with the 2018 Budget. YTD production and consumption are up 6.31% and 6.3%, respectively, compared to As they have a large impact on water treatment costs for supplies, chemicals, and electricity, these will continue to be monitored. The 2018 Water Capital Budget includes funding for the construction of a pump station at the Cooley East Reservoir, optimization of the treatment process at the Wes Brown Water Treatment Plant, and ongoing capital maintenance and repair projects. Spending on large capital improvement projects will ramp up in the coming months as the weather changes. Capital Carryover in the Water Fund includes projects such as the construction of the new Thornton Water Treatment Plant, the Thornton Water Project, and the West Cooley Reservoir flood repairs project, among others. 8

9 ENTERPRISE Sewer Fund - Revenue Summary Description 2017YTD 2018 YTD Difference Sewer Rate Revenue 8,352,908 8,422,354 69,446 Tap Fees & Contributed Revenue 1,113,467 2,044, ,882 Federal Heights Revenue 566, ,201 25,399 Interest and Other 279, ,738 (48,834) Total 10,312,749 11,289, ,893 Sewer Fund- Expenditure Summary Description 2017 YTD 2018 YTD 2018 Budget Utilities Operations 1,179,319 1,116,222 2,141,302 Metro Wastewater Reclamation 4,152,480 4,661,961 9,323,922 Sewer Operating General Expenses 1,091,482 1,093,982 1,542,482 Sewer Operating 6,423,281 6,872,165 13,007,706 Sewer Capital 633, ,012 15,376,483 Total Expenditures 7,056,724 7,649,177 28,384,189 Revenue Highlights: Capital Carryover 4,576, ,322 3,056,407 Sewer rates increased 1.0% effective with January service billed in February. Metro Wastewater, the entity that treats Thornton's sewage flows, increased their rates in 2018, and it was necessary to pass on this rate increase in order to cover the cost of Sewer Fund operations. Tap fees are up 931K YTD, an increase that was expected given the pace of development activity throughout Expenditure Performance: YTD spending in the Sewer Fund is on track with the 2018 Budget. Wastewater generated in the City is transported to the Metro Wastewater Reclamation District (MWRD) for treatment and disposal. Costs to MWRD represent 33% of all of the Sewer Fund operating expenditures in The 2018 Sewer Capital Budget advances two large sewer expansion projects, the construction of the Big Dry Creek Interceptor, and design of the State Highway 7 Force Main. 9

10 ENTERPRISE Environmental Services Fund - Revenue Summary Description 2017 YTD 2018 YTD Difference Solid Waste Revenue 2,983,337 3,077,885 94,548 Special Pickups 135, ,751 18,025 Recycling Revenue 59,646 5,885 (53,761) Interest and Other 68,663 99,869 31,206 Total 3,247,372 3,337,390 90,018 Environmental Services Fund - Expenditure Summary Description 2017 YTD 2018 YTD 2018 Budget Environmental Services 2,510,989 2,667,326 5,240,468 Environmental Services General Expenses 492, , ,896 Total Expenditures 3,003,276 3,167,686 6,033,364 Revenue Highlights: Capital Carryover 24, , ,003 The City paid an average tip fee of per ton in August. The recycling market is unpredictable, and from one month to the next the Environmental Services Fund may receive a recycling rebate or may be required to pay a tip fee. Staff will monitor and continue to report market changes each month. Expenditure Performance: YTD spending in the Environmental Services Fund is on track with the 2018 Budget. However, changes in the recycling market have required the City to pay tip fees which were not budgeted. This will be monitored moving forward. Fleet maintenance and acquisition costs represent a large portion of the Environmental Services Fund budget. Two trash collection trucks that were originally budgeted in 2017 were pushed to 2018 with the approval of the first Budget Amendment. One of the trucks caught fire in early October and required replacement, and the other truck suffered continued operational issues. Both trucks are now in service. Capital Carryover in the Environmental Services Fund includes the design and construction of the new Fleet Shop which had its grand opening on June

11 TH August 2018 T D A - Thornton De v e I o p men t Authority (page 12) -7 Sales and Use Tax, Property Tax Expenditures (Capital) -7 Three active urban renewal plan areas including: TDA North (Larkridge), TDA 144th (The Grove), and TDA South 0 the r City Funds (page 13) -7 TASHCO (Thornton Arts, Sciences, and Humanities) Registration and Ticket Fees, Grants, E-911 Authority Tax, 136th General Improvement District (GID) Property Tax, and Debt Service sales tax transfer from Parks and Open Space funds Expenditures (Operating and Transfers) -7 TASHCO programming, E-911 Authority and 136th GID transfer to General Fund, Debt Service periodic debt payments Intern a I Service Funds (page 14) -7 Charges for Services, Transfers Expenditures (Operating and Debt Service) -7 Risk Management, Information Technology, Reprographics, Maintenance Services, and Consolidated Service Center (CSC) 11

12 TDA - Revenue Summary Fund 2017 YTD 2018 YTD Difference TDA-South 390, ,762 59,367 TDA-North 8,878,798 8,991, ,996 TDA-144th 2,337,994 2,515, ,185 Total TDA 11,607,187 11,956, ,548 TDA - Expenditure Summary Fund 2017 YTD 2018 YTD 2018 Budget TDA-South 150, , ,000 TDA-North 3,420,481 7,021,364 12,268,363 TDA-144th 2,183,583 2,208,690 4,380,634 Total Expenditures 5,754,064 9,409,402 16,954,997 Capita/Carryover 3,697,406 1,383,345 8,350,366 Revenu@ Highlight~: Although the closure of Toys "R" Us in 2018 was not anticipated, several other stores in this shopping area are doing well and TDA North may finish the year near the original forecast. Retail sales tax in TDA 144th (the Grove) is expected to finish the year short of the original forecast. The Hilton Garden Inn has experienced a delay and is not expected to open until the first quarter of Exoenditure Performance: YTD spending in the TDA Funds is on track with the 2018 Budget. Near term revenue performance is not impacting expenditure plans at this time, however, this will continue to be monitored. 12

13 Other City Funds - Revenue Summary Description 2017YTD 2018 YTD Difference TASHCO 136th Avenue GID E-911 Authority Debt Service 50,388 41,366 5,356 10, , ,451 1,802,471 1, Total 2,476,964 2,502,956 Other City Funds - Expenditure Summary (9,022) 5,258 30,702 (946) 25,992 Fund 2017 YTD 2018 YTD 2018 Budget TASHCO 136th Avenue GID E-911 Authority Debt Service Fund 55,910 7, ,000 1,800,800 Total Expenditures 2,563,710 72,040 5, ,000 1, ,426, ,901 5,500 1,100,000 1,800,200 3,027,601 Revenue Highlights: for the Thornton Arts, Sciences, and Humanities Council (TASHCO) consist of ticket sales, Scientific and Cultural Facilities District (SCFD) grant funds, and an annual transfer from the General Fund. The 136th GID Fund receives property tax from a few properties located within the improvement area near the 1-25 interchange. The E-911 Authority receives monthly surcharges assessed to telephone customers in Thornton. The surcharges help offset the cost the City incurs to provide 911 service. The Debt Service Fund is used to accumulate resources for semi-annual bond payments. Transfers from the Parks and Open Space Funds occur prior to the bond payments. Expenditure Performance; YTD spending in the Other City Funds is on track with the 2018 Budget. 13

14 Internal Service Funds - Revenue Summary Fund 2017 YTD 2018 YTD Difference Risk Management 4,098,183 4,814,091 Information Technology 5,200,788 5,670,826 Reprographics 498, ,049 Consolidated Service Center 251, ,693 Maintenance Services 3,817,839 5,085,995 Total 13,867,245 16,393,654 Fund Internal Service Funds - Expenditure Summary 2017 YTD 2018 YTD 715, ,038 1,184 71,123 1,268,156 2,526, Budget Risk Management Information Technology Reprographics Consolidated Service Center Maintenance Services Total Expenditures 5,010,358 4,253, , ,186 2,457,244 12,399,709 5,780,852 5,019, , ,610 2,897,816 14,423,766 6,351,131 7,812, , ,769 6,748,837 22,062,126 Revenue Highlights: for the Internal Service Funds are based on budgeted amounts to be charged to/transferred from various City Funds. Transfers into the Internal Service Funds occur quarterly. Expenditure Performance: YTD spending in the Internal Service Funds is on track with the 2018 Budget. The City's average blended (gasoline and diesel) fuel price through August is 2.20/gallon, an increase over the 2.00/gallon assumed in budget preparations. Staff will closely monitor these costs as the year continues. The Internal Service Funds provide support to the City's other operations. 14