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Item 2B1 Financial ReportReference Page 3 Page 3 Page 4 Page 4 Page 5 MONTHLY FINANCIAL REPORT March 2020 = Negative Variance of > 4% compared to seasonal trends. Positive Negative PERFORMANCE AT A GLANCE Year to Date 3 year Trend Positive PERFORMANCE INDICATORS Positive Warning Permit Revenues Positive Positive Departmental Expenditures Summary Positive = Negative variance of 1-4% compared to seasonal trends = Positive variance or negative variance <1% compared to seasonal trends. GENERAL FUND PositiveGeneral Fund Exp. Vs. Rev. Sales Tax Revenue (2 months prior activity) Property Tax Revenue Positive Positive Positive Positive City of Southlake Monthly Financial Report 1 4/14/2020 National GDP: Housing Starts: Housing starts in February 2020 were at a seasonally adjusted rate of 1,599,000, which is 1.5% below the revised previous month figure of 1,624,000, but 39.2% above the same month last year. -1.5% UNEMPLOYMENT RATES 4.4% The Dallas/Fort Worth/Arlington Metropolitan Area unemployment rate for January decreased to 3.2% when compared to 3.3% in January 2020. COVID- 19 will impact the DFW unemployment rate for March and April 2020. 3.2% State-wide:3.5% The Texas Unemployment rate for February 2020 remained unchanged at 3.5% from January 2020. Based on recent unemployment claims, the Texas unemployment rate will be higher than 3.5% for March 2020. DFW Area: ECONOMIC INDICATORS NATIONAL ECONOMY FINANCIAL ACTIVITY2.10% 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" estimated GDP for the 4th quarter of 2019 increased at a rate of 2.1%. The growth rate is the same as in the "second" estimate released in February. The National Unemployment rate of 4.4% for March 2020 experienced an increase when compared to February 2020 rate of 3.5%. Due to the impact of COVID-19, March 2020 unemployment rate is the highest since August 2017 and well above market expectations of 3.8%. National: NEW CONSTRUCTION PERMIT VALUES $- $20,000,000 $40,000,000 $60,000,000 $80,000,000 $100,000,000 $120,000,000 $140,000,000 $160,000,000 2016*2017*2018*2019*2020* Construction permit values*October-February City of Southlake Monthly Financial Report 2 4/14/2020 FY 2020 REVENUE FY 2020 EXPENDITURE VARIANCE Oct 1,222,686$ 2,363,689$ (1,141,003)$ Nov 2,040,190$ 1,533,381$ 506,809$ Dec 11,056,112$ 2,902,978$ 8,153,134$ Jan 12,177,688$ 4,005,943$ 8,171,745$ Feb 7,400,320$ 3,154,520$ 4,245,800$ Mar 2,082,521$ 3,187,863$ (1,105,342)$ Apr -$ -$ -$ May -$ -$ -$ Jun -$ -$ -$ Jul -$ -$ -$ Aug -$ -$ -$ Sep -$ Tot 35,979,517$ 17,148,374$ 18,831,143$ POSITIVE FY 2020 FY 2019 FY 2018 Oct 1,278,635$ 1,253,417$ 1,214,148$ Nov 1,309,584$ 1,140,440$ 1,272,500$ Dec 1,993,686$ 1,613,337$ 1,744,684$ Jan 1,360,873$ 1,030,047$ 1,135,430$ Feb 1,011,429$ 1,094,354$ 1,055,400$ Mar -$ 1,321,691$ 1,251,079$ Apr -$ 1,294,023$ 1,096,365$ May -$ 1,295,321$ 1,363,921$ Jun -$ 1,274,338$ 1,292,089$ Jul -$ 1,179,145$ 1,206,050$ Aug 1,344,868$ 1,265,360$ Sep 1,354,327$ $1,227,621 Tot 6,954,206$ 15,195,307$ 15,124,646$ GENERAL FUND REVENUE VS EXPENDITURES 2020 OVERALL FUND PERFORMANCE: REVENUE ANALYSIS GENERAL FUND SALES TAX 2020-2018 COMPARISON CHART OUTLOOK: GENERAL FUND CHART OUTLOOK: POSITIVE The outlook for the year was positive for the reporting period ending March 31,2020.However in the current environment with COVID -19,the executive team will closely monitor and adjust financial forecast accordingly. FY 2020 was off to a great start,year to date sales tax collections (sales from October 2019 through February 2020)are above the two previous years.FY 2020 collections are 13.42%and 8.28%above FY 2019 and 2018,respectively.The economic impact from COVID-19 will necessitate an amendment to the sales tax projections.The city will not receive collections from the sales that occurred in March and April until May and June. $- $500,000 $1,000,000 $1,500,000 $2,000,000 $2,500,000 FY 2020 FY 2019 FY 2018 $- $2,000,000 $4,000,000 $6,000,000 $8,000,000 $10,000,000 $12,000,000 $14,000,000 Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep FY 2020 REVENUE FY 2020 EXPENDITURE 2019 EXPEND. City of Southlake Monthly Financial Report 3 4/14/2020 GENERAL FUND FY 2020 FY 2019 FY 2018 Oct 790,236$ 1,151,812$ 217,086$ Nov 1,426,054$ 1,552,708$ 1,832,023$ Dec 9,161,119$ 10,397,278$ 6,601,683$ Jan 10,088,389$ 9,985,201$ 12,435,268$ Feb 4,237,797$ 3,385,436$ 3,744,931$ Mar 420,930$ 395,710$ 196,116$ Apr -$ 156,647$ 102,531$ May -$ -$ 99,690$ Jun -$ 312,620$ 426,191$ Jul *-$ (1,295,201)$ (1,431,282)$ Aug -$ 59,318$ -$ Sep -$ 46,464$ 137,747$ Tot 26,124,525$ 26,147,993$ 24,361,984$ POSITIVE FY 2020 FY 2019 FY 2018 Oct 134,067$ 85,534$ 126,131$ Nov 238,528$ 75,588$ 145,755$ Dec 135,168$ 160,859$ 87,701$ Jan 204,931$ 121,526$ 126,075$ Feb 212,195$ 121,533$ 199,087$ Mar 126,842$ 186,152$ 229,059$ Apr -$ 111,970$ 126,788$ May -$ 601,621$ 98,364$ Jun -$ 111,503$ 162,515$ Jul -$ 163,760$ 168,508$ Aug -$ 155,328$ 185,552$ Sep 474,884$ 223,441$ Tot 1,051,731$ 2,370,258$ 1,878,976$ PERMIT REVENUE 2020-2018 COMPARISON CHART OUTLOOK: REVENUE ANALYSIS (continued) PROPERTY TAX 3 YEAR TREND CHART OUTLOOK: POSITIVE 2020 YTD property tax collections ($26,124,525)are approximately 4.1%lower than 2019 YTD ($27,236,356)as of March.The tax rate reduction from .447 to .41 per $100 is the primary reason for the reduction in revenue. As indicated on the chart, the majority of the property tax revenue is collected in the first few months of the fiscal year. * Net transfer of TIF revenues to TIF fund The value of new construction permits ($53.9M+) issued for FY 2020 YTD is approximately 1.05% and 30.9% higher when compared to FY 2019 and FY 2018 respectively. $(4,000,000) $(2,000,000) $- $2,000,000 $4,000,000 $6,000,000 $8,000,000 $10,000,000 $12,000,000 $14,000,000 Oct Nov Dec Jan Feb Mar Apr May Jun Jul *Aug FY 2020 FY 2019 FY 2018 $- $100,000 $200,000 $300,000 $400,000 $500,000 $600,000 $700,000 Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep FY 2020 FY 2019 FY 2018 City of Southlake Monthly Financial Report 4 4/14/2020 FY 2020 YTD (MARCH) FY 2019 YTD (MARCH)FY 2020 BUDGET FY 2020 % SPENT 719,000$ 461,443$ 1,034,611$ 69.49% 230,052$ 223,448$ 486,472$ 47.29% 2,619,620$ 2,649,658$ 6,076,456$ 43.11% 237,932$ 223,264$ 527,181$ 45.13% 8,677,311$ 8,377,859$ 18,451,018$ 47.03% 70,163$ 61,030$ 154,872$ 45.30% 1,158,744$ 1,247,041$ 2,509,163$ 46.18% 360,230$ 353,783$ 866,157$ 41.59% 1,254,910$ 1,164,378$ 2,858,866$ 43.90% 994,521$ 1,042,452$ 2,293,889$ 43.36% 2,103,825$ 2,033,700$ 4,846,636$ 43.41% 762,254$ 772,935$ 1,781,845$ 42.78% 19,188,562$ 18,610,991$ 41,887,166$ 45.81% EXPENDITURE ANALYSIS POSITIVE DPS ED FIN HR IT DEPARTMENTAL EXPENDITURES SUMMARY (6,604)$ 256,420$ BUDGET VARIANCE 315,611$ 3,456,836$ 47,931$ (70,125)$ 10,681$ (577,571)$ As indicated on the chart the 2020 expenditures are higher when comparable to 2019 expenditures for the same period with an increase of 3.10%primarily due to approved public safety 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. FY 2019/2020 YTD VARIANCE (257,557)$ 30,038$ (14,668)$ (299,452)$ (9,133)$ 88,297$ SS Totals PW CMO CS COMM 22,698,604$ CHART OUTLOOK: 1,019,591$ 2,742,811$ (6,447)$ 1,299,368$ PDS (90,532)$ 289,249$ 9,773,707$ 84,709$ 1,350,419$ 505,927$ 1,603,956$ CSO $- $2,000,000 $4,000,000 $6,000,000 $8,000,000 $10,000,000 $12,000,000 $14,000,000 $16,000,000 $18,000,000 $20,000,000 CMO COMM CS CSO DPS ED FIN HR IT PDS PW SS FY 2020 YTD (MARCH)FY 2019 YTD (MARCH)FY 2020 BUDGET City of Southlake Monthly Financial Report 5 4/14/2020