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Item 3B2 Financial ReportCity of Southlake Monthly Financial Report 1 1/15/2020 CITY of SOUTH LAI<..,E..... MONTHLY FINANCIAL REPORT November 2019 PERFORMANCE AT A GLANCE Year to Date 3 year Trend Reference General Fund Exp. Vs. Rev. Positive Positive Page 3 Sales Tax Revenue (2 months prior activity) Positive Warning Page 3 Property Tax Revenue Positive Positive Page 4 Permit Revenues Positive Negative Page 4 Departmental Expenditures Summary Positive Positive Page 5 Positive = Positive variance or negative variance <1 % compared to seasonal trends. Warning = Negative variance of 1-4% compared to seasonal trends Negative = Negative Variance of > 4% compared to seasonal trends. City of Southlake Monthly Financial Report 1 1/15/2020 ECONOMIC INDICATORS NATIONAL ECONOMY FINANCIAL ACTIVITY National GDP: 2.10% GDP is defined as the output of goods and services produced by labor and property located in the United States, The Bureau of Labor and Economic Analysis reported that the "third" 5 YEAR TREND OF • • estimated GDP for the 3rd quarter of 2019 $5,000,000 increased at a rate of 2.1 %. In the 2nd quarter of 2019, GDP increased at a rate of 2.0%. $4,500,000 $4,000,000 Housing Starts: 3.2% Housing starts in November 2019 were at a seasonally adjusted rate of 1,365,000, which is $3,500,000 3.2% above the previous month figure of 1,323,000, and 13.6% below the same month last $3,000,000 year. $2,500,000 UNEMPLOYMENT RATES National: 3.5% $2,000,000 The National Unemployment rate for November 2019 decreased to 3.5% when compared to 3.6% $1,500,000 in October 2019. $1,000,000 State-wide: 3.4% The Texas Unemployment rate for November 2019 $500,000 remained unchanged from October 2019 at 3.4%. S- DFW Area: 3.0% 2016* 2017* 2018* 2019* 2020* The Dallas/Fort Worth/Arlington Metropolitan Area *October -November ■ Construction permit values unemployment rate for November decreased to 3.0% (preliminary) when compared to 3.1% in October 2019. City of Southlake Monthly Financial Report 2 1/15/2020 City of Southlake Monthly Financial Report 3 1/15/2020 GENERAL FUND OVERALL FUND PERFORMANCE: GENERAL FUND REVENUE VS EXPENDITURES 2020 FY 2020 FY 2020 FY 2020 REVENUE FY 2020 EXPENDITURE 2019 EXPEND. REVENUE EXPENDITURE VARIANCE Oct $ 1,228,305 $ 2,363,689 (1,135,384) $5,000,000 Nov $ 2,047,172 $ 3,573,571 :' (1,526,399) $4,500,000 Dec $ - $ - $- $4,000,000 Jan $ _ $ _ $ _ Feb $ - $ - $ _ $3,500,000 Mar $ - $ - $ - $3,000,000 04 Apr $ - $ - $- May $ _ $ _ $ - $2,500,000 Jun $ - $ - $ - $2,000,000 Jul $ - $ - $ - $1,500,000 Au$ Aug g $ - $ - $ - _ $1,000,000Sep — Tot $ 3,275,477 $ 5,937,260 $ (2,661,783) $500,000 — $- CHART OUTLOOK: POSITIVE Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep The outlook for the year is positive as overall revenues and expenditures are on target with budget. The expenditures are higher than revenues by $2.6M however the majority of property tax revenue will be collected in late December and January. REVENUE ANALYSIS GENERAL FUND SALES TAX 2020-2018 COMPARISON FY 2020 FY 2019 FY 2018 FY 2020 FY 2019 FY 2018 Oct $ 1,278,635 $ 1,253,417 $ 1,214,148 $2,000,000 Nov $ 1,309,584 $ 1,140,440 $ 1,272,500 Dec $ - $ 1,613,337 $ 1,744,684 $1,800,000 Jan $ - $ 1,030,047 $ 1,135,430 $1,600,000 Feb $ - $ 1,094,354 $ 1,055,400 $1,400,000 Mar $ - $ 1,321,691 $ 1,251,079 $1,200,000 Apr $ - $ 1,294,023 $ 1,096,365 $1,000,000 May $ - $ 1,295,321 $ 1,363,921 $800,000 Jun $ - $ 1,274,338 $ 1,292,089 Jul $ - $ 1,179,145 $ 1,206,050 $600,000 Aug $ 1,344,868 $ 1,265,360 $400,000 Sep $ 1,354,327 $1,227,621 $200,000 Tot $ 2,588,218 $ 15,195,307 $ 15,124,646 $_ Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep CHART OUTLOOK: Warning FY 2020 is off to a great start, year to date sales tax collections are trending above the 2 previous years. FY 2020 collections are 8.12% and 4.08% above FY 2019 and 2018, respectively. Staff will continue to closely monitor collections. City of Southlake Monthly Financial Report 3 1/15/2020 City of Southlake Monthly Financial Report 4 1/15/2020 GENERAL FUND REVENUE ANALYSIS (continued) PROPERTY TAX 3 YEAR TREND FY 2020 FY 2019 FY 2018 ■ FY 2020 FY 2019 FY 2018 Oct $ 790,236 $ 1,151,812 $ 217,086 $14,000,000 Nov $ 1,426,054 $ 1,552,708 $ 1,832,023 $12,000,000 Dec $ - $ 10,397,278 $ 6,601,683 $10,000,000 Jan $ - $ 9,985,201 $ 12,435,268 $8,000,000 Feb $ - $ 3,385,436 $ 3,744,931 Mar $ - $ 395,710 $ 196,116 $6,000,000 Apr $ - $ 156,647 $ 102,531 $4,000,000 May $ - $ - $ 99,690 $2,000,000 Jun $ - $ 312,620 $ 426,191 $- Jul " $ - $ (1,295,201) $ (1,431,282) $(2,000,000) Oct Nov Dec Jan Feb Mar Apr May Jun Jul * Aug Aug $ - $ 59,318 $ - $(4,000,000) Sep $ - $ 46,464 $ 137,747 Tot $ 2,216,290 $ 26,147,993 $ 24,361,984 * Net transfer of TIF revenues to CHART OUTLOOK: POSITIVE TIF fund 2020 YTD property tax collections ($2,216,290) are approximately 18.1 % lower than 2019 YTD ($2,704,520) as of November. As indicated on the chart, the majority of the property tax revenue is collected in the first few months of the fiscal year. PERMIT REVENUE 2018-2016 COMPARISON FY 2020 FY 2019 FY 2018 FY 2020 FY 2019 FY 2018 Oct $ 134,067 $ 85,534 $ 126,131 $700,000 Nov $ 238,528 $ 75,588 $ 145,755 Dec $ - $ 160,859 $ 87,701 $600,000 Jan $ - $ 121,526 $ 126,075 Feb $ - $ 121,533 $ 199,087 $500,000 Mar $ - $ 186,152 $ 229,059 Apr $ - $ 111,970 $ 126,788 $400,000 May $ - $ 601,621 $ 98,364 Jun $ - $ 111,503 $ 162,515 $300,000 Jul $ - $ 163,760 $ 168,508 Aug $ - $ 155,328 $ 185,552 $200,000 Sep $ 474,884 $ 223,441 $100,000 - Ti Tot $ 372,595 $ 2,370,258 $ 1,878,976 11 $- CHART OUTLOOK: Negative Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep The value of new construction permits ($2.4M+) issued for FY 2020 YTD is approximately 11.6% and 45.14% lower when compared to FY 2019 and FY 2018 respectively. City of Southlake Monthly Financial Report 4 1/15/2020 EXPENDITURE ANALYSIS CMO COMM CS CSO DPS ED FIN HR IT PDS PW SS Totals $18,000,000 $16,000,000 $14,000,000 $12,000,000 $10,000,000 $8,000,000 $6,000,000 $4,000,000 $2,000,000 CHART OUTLOOK FY 2020 YTD (NOVEMBER) $ 190,348 $ 98,238 $ 780,014 $ 66,923 $ 2,620,034 $ 14,049 $ 422,178 $ 92,393 $ 391,031 $ 281,997 $ 433,586 $ 546,469 $ 5,937,260 FY 2019 YTD (NOVEMBER) $ 129,354 $ 85,276 $ 737,888 $ 62,008 $ 2,384,384 $ 20,223 $ 456,236 $ 90,808 $ 289,158 $ 310,538 $ 535,341 $ 543,174 $ 5,644,388 FY 2020 BUDGET $ 1,034,611 $ 486,472 $ 6,076,456 $ 527,181 $ 18,451,018 $ 154,872 $ 2,509,163 $ 866,157 $ 2,858,866 $ 2,293,889 $ 4,846,636 $ 1,781,845 $ 41,887,166 DEPARTMENTAL EXPENDITURES SUMMARY FY 2019/2020 YTD VARIANCE BUDGET VARIANCE FY 2018 % SPENT $ (60,994) $ 844,263 18.40% $ (12,962) $ 388,234 20.19% $ (42,126) $ 5,296,442 12.84% $ (4,915) $ 460,258 12.69% $ (235,650) $ 15,830,984 14.20% $ 6,174 $ 140,823 9.07% $ 34,058 $ 2,086,985 16.83% $ (1,585) $ 773,764 10.67% $ (101,873) $ 2,467,835 13.68% $ 28,541 $ 2,011,892 12.29% $ 101,755 $ 4,413,050 8.95% $ (3,295) $ 1,235,376 30.67% $ (292,872) $ 35,949,906 14.17% � FY 2020 YTD (NOVEMBER) FY 2019 YTD (NOVEMBER) FY 2020 BUDGET CMO COMM CS CSO DPS ED FIN HR POSITIVE IT PDS PW SS As indicated on the chart the 2020 expenditures are comparable to 2019 expenditures for the same period with an increase of 5.19% primarily due to approved pay plan adjustments and true -up of IT investments. The outlook is positive expenditures are on pace to be below budgeted expenditures for the fiscal year. City of Southlake Monthly Financial Report 5 1/15/2020