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Item 3B - Financial ReportReference Page 3 Page 3 Page 4 Page 4 Page 5 MONTHLY FINANCIAL REPORT September 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 10/14/2020 National GDP: Housing Starts: Housing starts in August 2020 were at a seasonally adjusted rate of 1,416,000, which is 5.1% below the revised previous month figure of 1,492,000 but 2.8% above the same month last year. 2.8% UNEMPLOYMENT RATES 7.9% The Dallas/Fort Worth/Arlington Metropolitan Area unemployment rate for August decreased to 6.3% (preliminary) when compared to 7.5% in July 2020. 6.3% State-wide:6.8% The Texas Unemployment rate for August 2020 (preliminary) decreased to 6.8% from 8.0% in July 2020. This is the fourth consecutive monthly decrease and the lowest rate since March 2020 when the Texas economy was initially impacted by the COVID-19 pandemic. DFW Area: ECONOMIC INDICATORS FINANCIAL ACTIVITY-31.40% 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 2nd quarter of 2020 decreased at a rate of 31.4%. The National Unemployment rate dropped to 7.9% in September from 8.4% in August 2020 due to the COVID-19 crisis threw millions out of work. These improvements in the labor market reflect the continued resumption of economic activity that had been curtailed due to the coronavirus (COVID-19) pandemic and efforts to contain it. National: Texas Unemployment City of Southlake Monthly Financial Report 2 10/14/2020 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$ 2,845,973$ (1,077,572)$ Jul 248,611$ 3,385,401$ (3,136,790)$ Aug 2,207,331$ 3,218,960$ (1,011,629)$ Sep 1,619,786$ 4,612,659$ (2,992,873)$ Tot 45,515,978$ 39,186,107$ 6,329,871$ 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 1,233,673$ 1,344,868$ 1,265,360$ Sep 1,354,327$ $1,227,621 Tot 14,108,065$ 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 is positive as revenues are outpacing expenditures by $6.3M.There are year end expenditures (accruals)that will post over the next couple of weeks as we close the fiscal year financials.At the end of the fiscal year, the excess revenue is transferred to the Strategic Initiative Fund and will assist with funding the approved Capital Improvement Plan and other approved initiatives. FY 2020 was off to a great start,year to date sales tax collections (sales from October 2019 through August 2020)are above the two previous years.FY 2020 collections are 1.93%and 1.52%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 $14,000,000 Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep FY 2020 REVENUE FY 2020 EXPENDITURE 2019 EXPEND. City of Southlake Monthly Financial Report 3 10/14/2020 GENERAL FUND FY 2020 FY 2019 FY 2018 Oct 790,236$ 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 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 28,446$ 46,464$ 137,747$ Tot 25,357,489$ 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 219,751$ 474,884$ 223,441$ Tot 1,959,365$ 2,370,258$ 1,878,976$ PERMIT REVENUE 2020-2018 COMPARISON CHART OUTLOOK: REVENUE ANALYSIS (continued) PROPERTY TAX 3 YEAR TREND CHART OUTLOOK: POSITIVE FY 2020 property tax collections ($25,357,489)are approximately 3.02%lower than 2019 ($26,147,993).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 ($127.3M+)issued for FY 2020 is approximately 42.0%and 15.6%lower when compared to FY 2019 and FY 2018 respectively.However,total permit revenue as of September 30, 2020 is 17.3% less than FY 2019 and 4.3% 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 $700,000 Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep FY 2020 FY 2019 FY 2018 City of Southlake Monthly Financial Report 4 10/14/2020 FY 2020 YTD (SEPTEMBER) FY 2019 YTD (SEPTEMBER) AMENDED FY 2020 BUDGET FY 2020 % SPENT 956,878$ 981,753$ 1,007,457$ 94.98% 439,280$ 423,894$ 482,117$ 91.11% 5,169,486$ 5,648,788$ 5,491,045$ 94.14% 470,348$ 462,850$ 532,764$ 88.28% 17,808,690$ 17,597,622$ 18,453,869$ 96.50% 136,883$ 139,722$ 160,422$ 85.33% 2,208,678$ 2,346,133$ 2,316,682$ 95.34% 759,295$ 790,768$ 857,082$ 88.59% 2,738,900$ 2,094,823$ 2,742,209$ 99.88% 2,120,633$ 2,136,364$ 2,247,870$ 94.34% 4,510,219$ 4,504,358$ 4,821,626$ 93.54% 1,817,419$ 1,315,391$ 1,917,249$ 94.79% 39,136,709$ 38,442,466$ 41,030,392$ 95.38% EXPENDITURE ANALYSIS POSITIVE DPS FIN HR IT DEPARTMENTAL EXPENDITURES SUMMARY (15,386)$ 42,837$ BUDGET VARIANCE 50,579$ 321,559$ 15,731$ (5,861)$ (502,028)$ (694,243)$ As indicated on the chart the 2020 expenditures are slightly higher than 2019 expenditures for the fiscal year with an increase of 1.81%. Overall fund expenditures are below budget. FY 2019/2020 YTD VARIANCE 24,875$ 479,302$ (7,498)$ (211,068)$ 2,839$ 137,455$ SS Totals PW CMO CS COMM ED 1,893,683$ CHART OUTLOOK: 99,830$ 311,407$ 31,473$ 127,237$ PDS (644,077)$ 62,416$ 645,179$ 23,539$ 108,004$ 97,787$ 3,309$ 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 (SEPTEMBER)FY 2019 YTD (SEPTEMBER)AMENDED FY 2020 BUDGET City of Southlake Monthly Financial Report 5 10/14/2020 The Marq Financial Review September 22, 2020 31 142 183 190 2032 2240 2331 2327 2378 2340 2360 2418 2504 2574 2605 2527 2502 2273 2062 1955 1943 0 50 100 150 200 250 300 350 400 1000 1200 1400 1600 1800 2000 2200 2400 2600 2800 Su s p e n s i o n s Me m b e r s h i p s Period CC MEMBERSHIP TRENDS IMPACT OF COVID-19 ON CHAMPIONS CLUB GROSS REVENUE BY MONTH 412 333 224 201 144 122 138 157 206 187 63 0 0 127 70 91 70 86 112 124 203 164 124 122 102 125 120 50 78 25 371 285 198 85 40.0% 45.0% 50.0% 55.0% 60.0% 65.0% 70.0% 75.0% 80.0% 85.0% 90.0% 95.0% 100.0% 0 50 100 150 200 250 300 350 400 450 CC Membership Joins vs. Terminations, and Retention Rate (Month-to-Month) Joins Terminations Retention Rate * Denotes partial month 2021 Budget Revenue Update FY 2020 Amended Budget FY 2021 Adopted Budget % Change Legends Hall $ 236,505 $ 249,213 5.4% Champions Club $1,741,360 $2,059,705 18.3% Sales Tax $5,370,072 $5,254,816 -2.1% Interest Income $ 75,000 $ 68,000 -9.3% Total $7,422,937 $7,631,734 2.8% 53% Cost Recovery 49% Cost Recovery Questions?