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Item 3B2 - Financial ReportCITY OF S0UTHLA1<4,,E MONTHLY FINANCIAL REPORT or— 11 1 August2022 PERFORMANCE AT A GLANCE Year to Date 3 year Trend Reference 7G...,.'.FundVs. Rev. 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. City of Southlake Monthly Financial Report 1 9/16/2022 ECONOMIC INDICATORS NATIONAL ECONOMY FINANCIAL ACTIVITY National GDP: y -0.60% 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 2nd quarter of 2022 decreased at a rate of 0.6%. In the 1st $180,000,000 quarter of 2022, GDPdecreased at a rate of 1.6%. $160,000,000 Housing Starts: 9.60% $140,000,000 Housing starts in July were at a seasonally adjusted rate of 1,446,000, which is 9.6% below the revised $120,000,000 previous month figure of 1,559,000 and is 8.1% below July 2021. $100,000,000 UNEMPLOYMENT RATES National: V 3.7% $80,000,000 The National Unemployment rate for August 2022 $60,000,000 increased slightly to 3.7% when compared to 3.5% in July 2022. $40,000,000 State-wide: 4.0% The Texas Unemployment rate for July 2022 $20,000,000 (preliminary) decreased slightly to 4.0% from 4.1 % in June 2022. $- 2018* 2019* 2020* 2021* 2022* DFW Area: 3.8% *October - August New Construction permit values The Dallas/Fort Worth/Arlington Metropolitan Area unemployment rate for July 2022 (preliminary) remained unchanged at 3.8% when compared to June 2022. City of Southlake Monthly Financial Report 2 9/16/2022 1 0 GENERAL FUND OVERALL FUND PERFORMANCE: GENERAL FUND REVENUE VS EXPENDITURES 2022 FY 2022 FY 2022 FY 2022 REVENUE FY 2022 EXPENDITURE ---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 $12,000,000 Jan $ 13,878,168 $ 3,110,936 $ 10,767232 Feb $ 9,221,772 $ 3,292,649 $ 5,929:123 $10,000,000 Mar $ 3,062,209 $ 3,845,975 $ (783,766) $8,000,000 Apr $ 2,609,891 $ 3,280,619 $ (670,728) $6,000,000 May $ 4,154,042 $ 3,546,371 $ 607671 Jun $ 2,668,193 $ 3,787,807 $ (1,119:614) $4,000,000 Jul * $ 1,742,831 $ (3,796,321) $ 5,539,152 $2,000,000 Aug $ 2,532,533 $ 3,380,768 $ (848,235) $- Oct Nov Dec Jan Feb Mar Apr May Jun J Aug Sep Sep $ - $ - $ $(2,000,000) Tot $ 51,610,387 $ 30,304,515 $ 21,305,872 $(4,000,000) CHART OUTLOOK: POSITIVE 1 $(6,000,000) The outlook for the year is positive as overall revenues are exceeding budget projections and expenditures are on target to be below budget. The revenues are higher than expenditures by approximately $21.3M. The significant variance is due to ARPA funding received and applied to Public Safety expenditures during the month of July. 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 $ 1,714,270 $ 1,470,896 $ 1,038,936 Apr $ 1,714,270 $ 1,470,896 $ 287 1,038,287 $1,500,000 May $ 1,725,777 $ 1,262,973 $ 1,153,263 , Jun * $ 1,792,755 $ 2,586,036 $ 1,375,636 $1,000,000 Jul $ 1,607,427 $ 1,449,136 $ 1,190,064 Aug $ - $ 1,427,525 $ 1,233,673 $500,000 Sep $ - $ 1,687,605 $ 1,416,226 Tot $ 17,529,207 $ 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 (16.5%) and FY 2020 (36.1%) collections.June sales were 31% below June 2021 collections and 30% above June collections for June 2020. June 2021 collections included an audit adjustment which represented 38% 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 9/16/2022 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 $ 554,247 $ 259,058 $ 55,958 $4,000,000 May $ 151,717 $ 152,945 $ 105,567 $2,000,000 .■ Jun $ 502,344 $ 389,839 $ 448,670 $- Jul * $ (1,310,741) $ (1,365,991) $ (1,457,677) $(2,000,000) Oct Nov Dec Jan Feb Mar Apr May Jun Aug Aug $ 69,630 $ 52,655 $ 52,000 $(4,000,000) Sep $ - $ 190,848 $ 28,446 Tot $ 26,751,902 $ 26,100,905 $ 25,357,489 * Net transfer of TIF revenues to TIF CHART OUTLOOK: POSITIVE fund 2022 YTD property tax collections ($26,751,902) are higher than 2021 YTD ($25,910,057) and 2020 YTD ($25,329,043) as of August. 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 above 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 $900,000 Nov $ 185,109 $ 69,734 $ 238,528 Dec $ 94,663 $ 102,515 $ 135,168 $800,000 Jan $ 167,045 $ 88,737 $ 204,931 $700,000 Feb $ 111,545 $ 76,270 $ 212,195 Mar $ 154,046 $ 150,142 $ 126,842 $600,000 Apr $ 277,691 $ 124,870 $ 188,968 $500,000 May $ 788,270 $ 136,364 $ 128,791 $400,000 Jun $ 133,244 $ 158,786 $ 148,103 Jul $ 192,902 $ 170,985 $ 152,920 $300,000 - Aug Sep $ 184,578 $ $ 217,599 $ $ $ 69,101 $200,000 Tot $ 2,503,538 568,027 $ 1,568,027 $ 986,547 1,986,161 $100,000 161 ■ ' $- Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep CHART OUTLOOK: POSITIVE The value of new construction permits ($169.8M+) issued for FY 2022 YTD is approximately 43.1% and 44.9% higher when compared to FY 2021 and FY 2020, respectively. FY 2022 collections are 86.0% and 43.9% higher 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 9/16/2022 EXPENDITURE ANALYSIS DEPARTMENTAL EXPENDITURES SUMMARY FY 2022 ACTUAL FY 2021 ACTUAL YTD FY 2022 BUDGET FY 2021/2022 YTD YTD (AUGUST) (AUGUST) YTD (AUGUST) VARIANCE BUDGET VARIANCE FY 2022 % SPENT CIVIC) $ 955,308 $ 797,416 $ 957,587 $ (157,892) $ 2,279 99.76% COMM $ 455,574 $ 421,433 $ 515,330 $ (34,141) $ 59,756 88.40% CS $ 5,286,763 $ 4,675,837 $ 5,851,154 $ (610,926) $ 564,391 90.35% CSO $ 507,377 $ 471,347 $ 539,709 $ (36,030) $ 32,332 94.01% DPS $ 9,706,324 $ 16,061,346 $ 17,614,480 $ 6,355,022 $ 7,908,156 55.10% ED $ 265,439 $ 135,818 $ 234,129 $ (129,621) $ (31,310) 113.37% FIN $ 2,210,138 $ 2,100,641 $ 2,342,929 $ (109,497) $ 132,791 94.33% HR $ 755,635 $ 707,078 $ 823,164 $ (48,557) $ 67,529 91.80% IT $ 2,689,388 $ 2,481,768 $ 2,987,653 $ (207,620) $ 298,265 90.02% PDS $ 2,010,209 $ 1,956,330 $ 2,167,669 $ (53,879) $ 157,460 92.74% PW $ 4,058,859 $ 3,876,346 $ 4,567,092 $ (182,513) $ 508,233 88.87% SS $ 1,403,049 $ 1,634,366 $ 1,925,827 $ 231,317 $ 522,778 72.85% Totals $ 30,304,063 $ 35,319,726 $ 40,526,723 $ 5,015,663 $ 10,222,660 74.78% FY 2022 ACTUAL YTD (AUGUST) FY 2021 ACTUAL YTD (AUGUST) FY 2022 BUDGET YTD (AUGUST) $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 $- CMO COMM I POSITIVE CS CSO DPS ED FIN HR IT PDS PW SS CHART OUTLOOK: As indicated above, 2022 expenditures are below 2021 expenditures for the same period with a significant decrease of 14.2% due to DPS expenditures eligible for ARPA (American Rescue Plan Act). It is important to note ARPA funding is a one-time funding source. The outlook is positive expenditures are below budgeted expenditures for the fiscal year. City of Southlake Monthly Financial Report 5 9/16/2022