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Item 3B2 - Financial ReportCITY OF S0UTHLA1<4,,E MONTHLY FINANCIAL REPORT or— 11 1 March 2022 PERFORMANCE AT A GLANCE Year to Date 3 year Trend Reference Vs. Rev. 7..,al7Revenue Positive Positive Page 3 (2 months prior activity) Positive Positive Page 3 Property Tax Revenue Positive Positive Page 4 Permit Revenues Positive Positive Page 4 Departmental Expenditures Summary Positive Positive Page 5 Positive = Positive variance or negative variance <1 % compared to seasonal trends. Warning = Negative variance of 14% compared to seasonal trends Negative = Negative Variance of > 4% compared to seasonal trends. EU- City of Southlake Monthly Financial Report 1 4/14/2022 ECONOMIC INDICATORS NATIONAL ECONOMY FINANCIAL ACTIVITY National GDP: 7.0% 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 5 YEAR TREND OF NEW CONSTRUCTION PERMIT VALUE reported that the "second" estimated GDP for the 4th quarter of 2021 increased at a rate of 7.0%. In the 3rd $90,000,000 quarter of 2021, GDP increased at a rate of 2.3%. $80,000,000 Housing Starts: 6.8% $70,000,000 Housing starts in February were at a seasonally $60,000,000 adjusted rate of 1,769,000, which is 6.8% above the revised previous month figure of 1,657,000. $50,000,000 UNEMPLOYMENT RATES $40,000,000 National: V 3.6% The National Unemployment rate for March 2022 $30,000,000 decreased to 3.6% when compared to 3.8% in February 2022. $20,000,000 $10,000,000 State-wide: 4.7% The Texas Unemployment rate for February 2022 (preliminary) decreased slightly to 4.7% from 4.8% in January 2022. $- 2018* 2019* 2020* 2021* 2022* DFW Area: 4.1% *October- March ■ New Construction permit values The Dallas/Fort Worth/Arlington Metropolitan Area unemployment rate for February 2022 (preliminary) remained unchanged at 4.1% when compared to previous month. City of Southlake Monthly Financial Report 2 4/14/2022 GENERAL FUND OVERALL FUND PERFORMANCE: GENERAL FUND REVENUE VS EXPENDITURES 2022 FY 2022 FY 2022 FY 2022 REVENUE FY 2022 EXPENDITURE—4-2021 EXPEND. REVENUE EXPENDITURE VARIANCE Oct $ 1,158,989 $ 2,430,309 $ (1,271,320) $16,000,000 Nov $ 2,530,286 $ 3,030,028 $ (499,742) $14,000,000 Dec $ 8,051,473 $ 4,395,374 $ 3,656,099 Jan $ 13,878,168 $ 3,110,936 $ 10,767,232 $12,000,000 Feb $ 9,221,772 $ 3,292,649 $ 5,929,123 Mar $ 3,127,353 $ 3,825,648 $ (698,295) $10,000,000 Apr $ $ $ $8,000,000 May $ $ $ Jun $ $ $ $6,000,000 Jul $ - $ - $ - Aug $ $ $ $4,000,000 Sep $ $ $ $2,000,000 Tot $ 37,968,041 $ 20,084,944 $ 17,883,097 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 revenues are higher than expenditures by approximately $17.9M. The significant variance is due to the significant portion of property tax revenue collected (over 90%) of the budgeted property tax revenue which is the largest revenue sources for the general fund. REVENUE ANALYSIS GENERAL FUND SALES TAX 2022-2020 COMPARISON FY 2022 FY 2021 FY 2020 FY 2022 FY 2021 ---FY 2020 Oct $ 1,613,415 $ 1,299,576 $ 1,278,635 $3,000,000 Nov $ 1,652,674 $ 1,084,677 $ 1,309,584 Dec $ 2,456,532 $ 1,926,407 $ 1,993,686 $2,500,000 Jan $ 1,602,323 $ 1,256,119 $ 1,360,873 Feb $ 1,388,859 $ 978,395 $ 1,011,429 $2,000,000 ' Mar $ - $ 1,727,925 $ 1,162,936 Apr $ $ 1,470,896 $ 1,038,287 $1,500,000 May $ - $ 1,262,973 $ 1,153,263 Jun $ $ 2,586,036 $ 1,375,636 $1,000,000 Jul $ - $ 1,449,136 $ 1,190,064 Aug $ $ 1,427,525 $ 1,233,673 $500,000 Sep $ $ 1,687,605 $ 1,416,226 Tot $ 8,713,803 $ 18,157,270 $ 15,524,291 $- Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep CHART OUTLOOK: POSITIVE Year to date sales tax collections are trending above FY 2021 (33.1 %) and FY 2020 (25.3%) collections. The most recent collection for February sales were 42.0% and 27.2% above February collections for FY 2021 and FY 2020, respectively. November collections included an audit adjustment which represented 12% of collections for the month. Year to date collections are above budget for the year therefore the outlook is considered positive. Staff will continue to closely monitor collections. City of Southlake Monthly Financial Report 3 4/14/2022 GENERAL FUND REVENUE ANALYSIS (continued) PROPERTY TAX 3 YEAR TREND FY 2022 FY 2021 FY 2020 ■ FY 2022 ■ FY 2021 FY 2020 Oct $ 653,703 $ 778,578 $ 790,236 $14,000,000 Nov $ 2,017,203 $ 1,582,957 $ 1,426,054 $12,000,000 Dec $ 6,068,454 $ 6,036,699 $ 9,161,119 $10,000,000 Jan $ 11,588,414 $ 13,167,125 $ 10,088,389 $8,000,000 Feb $ 5,872,247 $ 4,445,041 $ 4,237,797 $6,000,000 Mar $ 584,684 $ 411,151 $ 420,930 Apr $ - $ 259,058 $ 55,958 $4,000,000 May $ - $ 152,945 $ 105,567 $2,000,000 .■ Jun $ $ 389,839 $ 448,670 $- Jul * $ - $ (1,365,991) $ (1,457,677) $(2,000,000) Oct Nov Dec Jan Feb Mar Apr May Jun Aug Aug $ $ 52,655 $ 52,000 $(4,000,000) Sep $ $ 190,848 $ 28,446 Tot $ 26,784,705 $ 26,100,905 $ 25,357,489 * Net transfer of TIF revenues to TIF CHART OUTLOOK: POSITIVE fund 2022 YTD property tax collections ($26,784,705) are higher than 2021 YTD ($26,421,551) and 2020 YTD ($26,124,525).as of March. As indicated on the chart, the majority of the property tax revenue is collected in the first few months of the fiscal year. YTD collections are trending slightly below budget. PERMIT REVENUE 2022-2020 COMPARISON FY 2022 FY 2021 FY 2020 FY 2022 FY 2021 FY 2020 Oct $ 214,445 $ 50,043 $ 134,067 $300,000 Nov $ 185,109 $ 69,734 $ 238,528 Dec $ 94,663 $ 102,515 $ 135,168 $250,000 Jan $ 167,045 $ 88,737 $ 204,931 Feb $ 111,545 $ 76,270 $ 212,195 Mar $ 154,046 $ 150,142 $ 126,842 $200,000 Apr $ - $ 124,870 $ 188,968 May $ - $ 136,364 $ 128,791 $150,000 Jun $ $ 158,786 $ 148,103 Jul $ - $ 170,985 $ 152,920 $100,000 Aug $ $ 217,599 $ 69,101 Sep $ $ 221,982 $ 246,547 $50,000 Tot $ 926,853 $ 1,568,027 $ 1,986,161 Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep CHART OUTLOOK: POSITIVE The value of new construction permits ($60.7M+) issued for FY 2022 YTD is approximately 27.2% and 12.5% higher when compared to FY 2021 and FY 2020, respectively. FY 2022 collections are 72.5% higher and 11.9% lower when compared to FY 2021 and 2020, respectively. The permit revenue year to date is trending above budget therefore the outlook is considered positive. City of Southlake Monthly Financial Report 4 4/14/2022 EXPENDITURE ANALYSIS DEPARTMENTAL EXPENDITURES SUMMARY FY 2022 ACTUAL FY 2021 ACTUAL YTD FY 2022 BUDGET FY 2021/2022 YTD YTD (MARCH) (MARCH) YTD (MARCH) VARIANCE BUDGET VARIANCE FY 2022 % SPENT CIVIC) $ 506,860 $ 388,652 $ 519,533 $ (118,208) $ 12,673 97.56% COMM $ 261,546 $ 259,992 $ 309,727 $ (1,554) $ 48,181 84.44% CS $ 2,616,903 $ 2,319,509 $ 3,367,748 $ (297,394) $ 750,845 77.70% CSO $ 256,058 $ 251,882 $ 310,884 $ (4,176) $ 54,826 82.36% DPS $ 8,941,212 $ 8,219,009 $ 9,707,039 $ (722,203) $ 765,827 92.11% ED $ 154,238 $ 77,870 $ 133,852 $ (76,368) $ (20,386) 115.23% FIN $ 1,266,309 $ 1,235,967 $ 1,385,781 $ (30,342) $ 119,472 91.38% HR $ 368,979 $ 398,357 $ 446,542 $ 29,378 $ 77,563 82.63% IT $ 1,671,786 $ 1,473,082 $ 2,041,948 $ (198,704) $ 370,162 81.87% PDS $ 1,013,036 $ 1,026,282 $ 1,197,984 $ 13,246 $ 184,948 84.56% PW $ 2,018,939 $ 1,885,165 $ 2,437,873 $ (133,774) $ 418,934 82.82% SS $ 1,009,078 $ 1,044,902 $ 1,257,157 $ 35,824 $ 248,079 80.27% Totals $ 20,084,944 $ 18,580,669 $ 23,116,068 $ (1,504,275) $ 3,031,124 86.89% FY 2022 ACTUAL YTD (MARCH) FY 2021 ACTUAL YTD (MARCH) FY 2022 BUDGET YTD (MARCH) $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 il• .. $ CMO COMM CS CSO DPS ED FIN HR IT PDS PW SS CHART OUTLOOK: I POSITIVE As indicated above, 2022 expenditures are above 2021 expenditures for the same period with a increase of 8.1 % primarily due to DPS expenditures eligible for CARES/grant funding and reduction in programing cost in FY 2021.The outlook is positive expenditures are below budgeted expenditures for the fiscal year. City of Southlake Monthly Financial Report 5 4/14/2022 EXPERIENCE � SOUTHLAKE The Marq Financial Review MARQ 87.59% 65.12% 134.50% Target ATT 1.49M 1.70M Revenue Expense CEDC FINANCIAL DASHBOARD as 4f3=02210.31 AM 1011 C1021 9!�[[If22022 Fcc LH 1 97.52% 50.15% 71.01% 137.33% 44.06% 113.82% Target + ATT Target AFT 1.31 M 750.25K 178.54K 207.97K Revenue Expense I ! Revenue ` EM— 1 Net Revenue: Current & Previous Year LGR LHR --Total Revenge LY MW MW 250E � E - - 41K 150E 235K 22&G 100E 1881( 202K 211K 220K 2p9K 223K 21 OK 775K 147H 50K OK The Marq Rentals Revenue (Net) •CGR-W-Revenue LHaRenfaLRe— 50K 4n( 39K 29K 10K 9K Mar 2021 Apr2921 May2921 Jun2021 Ad 2021 Aug 2021 Sep 2021 OctM1 Nov 2021 0-2021 Jan 2022 Feb 20M Mar 2022 20aK 180K I" 1 401( The Marq Membership Revenue (Net) Mar 2021 Apr 2021 May 2021 J-2021 Jul 2021 Avg 2021 Sep 2021 CkA 2021 Nor 2021 0-2021 Jan 2022 Feb 2022 Mar 2022 WrZ&l Apr2021 May2021 Jm2U21 Ju12P21 Aug ZW1 Sr+y2121 WZ021 Nov2021 OM2021 Jan2022 Feb20e2 Ma= CHAMPIONS CLUB MEMBERSHIP TRENDS 2800 2662 2679 400 2600 00-0 000 2605 2506 2513 2444 /� 2585 I I 2521 /� 24532458 l/ 350 2574 /2504 252725 /� 4 // 240Yrendline 0 000 21 300 2200 _ 22378 3312327 240 23402360 22 4 203 200120 250 N Q 2000 1968 /� 19581956194119451944 / p N 2062 — � / ���/ y 1955 200 E 1800 CL m 150 � N 1600 100 1400 1200 50 1000 0 m (D f— 00 m O N N co 'IT u') (0 I- 00 0') O N r N C' ) - M CO I� 00 M O r N N O O N N CD O O O N N N N N N N N N N N N N N N N N N N N O O O O O N N N N N O O O O O CD O CD CD O N N N N N O O O O O O O N N N N N N N O O N N O O O N N N O O O O O O N N N N N N N N N N N N Period 450 412 400 350 333 300 1 I 250 200 150 100 50 0 CC Membership Joins vs. Terminations, and Retention Rate (Month -to -Month) through 2/28/2022 371 306 304 1 285 250 248 231 224 222 224 01203 206 198 197 201 187 190 18 164 157 157155 153 6 1706 681E 4 14138 A24 2Y 5 0 127 128 1213 4 13 02 1a1 1103 3 0 0 6 J20109 9 8887 6 78 7 63 0 25 0 0' O O P 00 M O r N r N M le LO CO I- 00 M O r N r N M 14 LO CC I- CO M O r N r N O O O O O r r r O 0 0 0 0 0 0 0 0 r r r O 0 0 0 0 0 0 0 0 r r r 0 0 M r M r M r M r M r CA r M r M r O N O N O N O N O N O N O N O N O O O N N N O N r r N N r N r N r N r r N N r N r N r N r N r N N N N N O N Cl N O N O N O N O N O N O N O N O N O N O N O N O N O N O N O O O N N N O N O O N N O N O N O N O O N N O N O N O N O N O N O N O N 100.0% - 95.0% 90.0% - 85.0% Joins i Terminations 80.0% Retention Rate 75.0% 70.0% 65.0% i a 60.0% 55.0% 50.0% 45.0% 40.0% CC MEMBERSHIP JOINS VS TERMINATIONS BY MONTH & TYPE .Adult , Farn Fam-IC . SR -Youth 400 300 200 100 Me bb lii Suspended 0 0 -100 -2011 -300 -400 Impar[oFCrnid- 28 18 19 13 $ 2@ 41': Pik. 44 57 - I 25� 42 m 'm 23.1 26 13 IV 1S 1+-20 -38 -49 _39 -26 -7 -11 -58 _ _g _4 _9 -7 - _7 15 $ _ 13 2 t -11 14 -500 m w w oa oa a a a a a .a ad .a ad pe pe pe pe pe w d a a ,8 m m m m C w oa w w w a a a d � ` ` F F ' Apr-20 May-20 Jun-20 Jul-20 Aug-20 Sep-20 Oct-20 Nov-21D Dec-20 Jan-21 Feb-21 Mar-21 Apr-21 May-21 Jun-21 Jul-21 Aug21 Sep-21 Oct21 Nov-21 Dec-21 Jan-22 Feb-22 �J COVID-19 act-21 6 =Nov-21 1 =aec-21 1 MJam22 4 FeM 9 —% 2.3% FY2022 CC MemhTship Terminations by Reason and by Month 69 ]2 55 M 65 W Utiizirrg Mefthip 43 27 29 Failed Payment 89 85 72 Rdnc6 fTravel 18 12 12 Transfer 19 18 17 Selected other service provider Q 4 1 N 9 7 8 28 35 21.5% 85 55 43A 38 14 12.E 16 14 11.2% 2 2 1.2% 19 19 7.4% 50.0% 40.0% 30.0% 20.0% EXPERIENCE SOUTHLAKE k Three Year Revenue Comparison by Month $1,000,000 $900,000 $800,000 $700,000 $600,000 $500,000 $400,000 $300,000 $200,000 $100,000 $0 v << FISCAL YEAR 2020 ■ FISCAL YEAR 2021 ■ FISCAL YEAR 2022 EXPERIENCE SOUTHLAI<,.,.,E