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Item 3B2 Financial ReportReference Page 3 Page 3 Page 4 Page 4 Page 5 MONTHLY FINANCIAL REPORT August 2020 = Negative Variance of > 4% compared to seasonal trends. Positive Negative Departmental Expenditures Summary Positive = Negative variance of 1-4% compared to seasonal trends = Positive variance or negative variance <1% compared to seasonal trends. PERFORMANCE AT A GLANCE Year to Date 3 year Trend GENERAL FUND PositiveGeneral Fund Exp. Vs. Rev. Sales Tax Revenue (2 months prior activity) Property Tax Revenue Positive Positive Positive Positive Positive PERFORMANCE INDICATORS Positive Warning Permit Revenues Positive Positive City of Southlake Monthly Financial Report 1 9/10/2020 National GDP: Housing Starts: Housing starts in July 2020 were at a seasonally adjusted rate of 1,496,000, which is 22.6% above the revised previous month figure of 1,220,000 and 23.4% above the same month last year. 22.6% UNEMPLOYMENT RATES 8.4% The Dallas/Fort Worth/Arlington Metropolitan Area unemployment rate for July decreased to 7.5% (preliminary) when compared to 8.4% in June 2020. Following the 2008 financial crisis, the DFW area unemployment average was just under 8% in 2009 and 2010. 7.5% State-wide:8.0% The Texas Unemployment rate for July 2020 (preliminary) decreased to 8.0% from 8.6% in June 2020. April unemployment rate was the state's worst on record at 13.5%. In a short seven-week period during March and April, more than 1.8M Texans applied for unemployment insurance, which is more than in all of 2019. DFW Area: ECONOMIC INDICATORS FINANCIAL ACTIVITY-31.70% 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 "second" estimated GDP for the 2nd quarter of 2020 decreased at a rate of 31.7%. The National Unemployment rate dropped to 8.4% in August from 10.2% in July 2020 due to the COVID-19 crisis threw millions out of work. National: National GDP City of Southlake Monthly Financial Report 2 9/10/2020 GENERAL FUND FY 2020 REVENUE FY 2020 EXPENDITURE VARIANCE Oct 1,222,686$ 2,363,689$ (1,141,003)$ Nov 2,040,190$ 3,573,571$ (1,533,381)$ 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 2,160,861$ 3,200,484$ (1,039,623)$ Apr 1,395,998$ 2,911,352$ (1,515,354)$ May 2,217,994$ 3,010,577$ (792,583)$ Jun 1,768,401$ 3,001,062$ (1,232,661)$ Jul 248,611$ 3,379,293$ (3,130,682)$ Aug 2,190,357$ 3,198,651$ (1,008,294)$ Sep -$ Tot 43,879,218$ 34,702,120$ 9,177,098$ 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 1,162,936$ 1,321,691$ 1,251,079$ Apr 1,038,287$ 1,294,023$ 1,096,365$ May 1,153,263$ 1,295,321$ 1,363,921$ Jun 1,375,636$ 1,274,338$ 1,292,089$ Jul 1,190,064$ 1,179,145$ 1,206,050$ Aug 1,344,868$ 1,265,360$ Sep 1,354,327$ $1,227,621 Tot 12,874,392$ 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: CHART OUTLOOK: POSITIVE The outlook for the year was positive for the reporting period ending August 31,2020.However in the current environment with COVID -19,the executive team will continue to 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 July 2020)are above the two previous years.FY 2020 collections are 3.03%and 1.92%above FY 2019 and 2018, respectively. Staff will continue to monitor collections closely. $- $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 $14,000,000 Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep FY 2020 REVENUE FY 2020 EXPENDITURE 2019 EXPEND. City of Southlake Monthly Financial Report 3 9/10/2020 GENERAL FUND FY 2020 FY 2019 FY 2018 Oct 790,236$ 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 55,958$ 156,647$ 102,531$ May 105,567$ -$ 99,690$ Jun 448,670$ 312,620$ 426,191$ Jul *(1,457,677)$ (1,295,201)$ (1,431,282)$ Aug 52,000$ 59,318$ -$ Sep -$ 46,464$ 137,747$ Tot 25,329,043$ 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 188,968$ 111,970$ 126,788$ May 128,791$ 601,621$ 98,364$ Jun 148,103$ 111,503$ 162,515$ Jul 152,920$ 163,760$ 168,508$ Aug 69,101$ 155,328$ 185,552$ Sep 474,884$ 223,441$ Tot 1,739,614$ 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 ($25,329,043)are approximately 2.96%lower than 2019 YTD ($26,101,529)as of August.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 ($116.6M+)issued for FY 2020 YTD is approximately 28.8%and 28.7%lower when compared to FY 2019 and FY 2018 respectively.However,total permit revenue as of August 31, 2020 is 8.2% less than FY 2019 and 5.0% higher than FY 2018 revenue. $(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 $700,000 Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep FY 2020 FY 2019 FY 2018 City of Southlake Monthly Financial Report 4 9/10/2020 FY 2020 YTD (AUGUST) FY 2019 YTD (AUGUST)FY 2020 BUDGET FY 2020 % SPENT 877,761$ 882,517$ 1,034,611$ 84.84% 386,160$ 384,589$ 486,472$ 79.38% 4,621,832$ 5,141,718$ 6,076,456$ 76.06% 419,053$ 414,918$ 527,181$ 79.49% 15,983,761$ 16,038,422$ 18,451,018$ 86.63% 117,547$ 118,945$ 154,872$ 75.90% 1,976,986$ 2,121,455$ 2,509,163$ 78.79% 675,000$ 706,799$ 866,157$ 77.93% 2,291,282$ 2,028,843$ 2,858,866$ 80.15% 1,885,879$ 1,919,112$ 2,293,889$ 82.21% 3,844,573$ 3,907,341$ 4,846,636$ 79.32% 1,470,540$ 1,083,537$ 1,781,845$ 82.53% 34,550,374$ 34,748,196$ 41,887,166$ 82.48% EXPENDITURE ANALYSIS POSITIVE DPS FIN HR IT DEPARTMENTAL EXPENDITURES SUMMARY (1,571)$ 100,312$ BUDGET VARIANCE 156,850$ 1,454,624$ 33,233$ 62,768$ (387,003)$ 197,822$ As indicated on the chart the 2020 expenditures are slightly lower than 2019 expenditures for the same period with an decrease of 0.57%. Overall fund expenditures are trending below budget. FY 2019/2020 YTD VARIANCE 4,756$ 519,886$ (4,135)$ 54,661$ 1,398$ 144,469$ SS Totals PW CMO CS COMM ED 7,336,792$ CHART OUTLOOK: 311,305$ 1,002,063$ 31,799$ 408,010$ PDS (262,439)$ 108,128$ 2,467,257$ 37,325$ 532,177$ 191,157$ 567,584$ 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 (AUGUST)FY 2019 YTD (AUGUST)FY 2020 BUDGET City of Southlake Monthly Financial Report 5 9/10/2020