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Item 3B2 - Financial ReportReference Page 3 Page 3 Page 4 Page 4 Page 5 MONTHLY FINANCIAL REPORT February 2023 = 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 3/13/2023 National GDP: Housing Starts: Housing starts in January were at a seasonally adjusted rate of 1,309,000, which is 4.5% below the revised previous month figure of 1,371,000. 4.50% UNEMPLOYMENT RATES 3.6% The Dallas/Fort Worth/Arlington Metropolitan Area unemployment rate for December 2022 (preliminary) decreased slightly to 3.2% when compared to 3.3% in November 2022. 3.2% State-wide:3.9% The Texas Unemployment rate for January 2023 (preliminary) remained unchanged at 3.9% from December 2022. DFW Area: ECONOMIC INDICATORS NATIONAL ECONOMY FINANCIAL ACTIVITY2.7% 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 4th quarter of 2022 increased at a rate of 2.7%. In the 3rd quarter of 2022, GDP increased at a rate of 3.2%. The National Unemployment rate for February 2023 slightly increased to 3.6% when compared to 3.4% in January 2023. National: 5 YEAR TREND OF NEW CONSTRUCTION PERMIT VALUES $- $10,000,000 $20,000,000 $30,000,000 $40,000,000 $50,000,000 $60,000,000 $70,000,000 $80,000,000 2019*2020*2021*2022*2023* New Construction permit values*October -February City of Southlake Monthly Financial Report 2 3/13/2023 GENERAL FUND FY 2023 REVENUE FY 2023 EXPENDITURE VARIANCE Oct 604,909$ 2,824,236$ (2,219,327)$ Nov 2,466,143$ 3,685,749$ (1,219,606)$ Dec 7,240,751$ 4,390,002$ 2,850,749$ Jan 15,429,638$ 3,411,804$ 12,017,834$ Feb 10,323,717$ 3,235,727$ 7,087,990$ Mar -$ -$ -$ Apr -$ -$ -$ May -$ -$ -$ Jun -$ -$ -$ Jul -$ -$ -$ Aug -$ -$ -$ Sep -$ -$ -$ Tot 36,065,158$ 17,547,518$ 18,517,640$ POSITIVE FY 2023 FY 2022 FY 2021 Oct 1,814,981$ 1,613,415$ 1,299,576$ Nov 1,813,575$ 1,652,674$ 1,084,677$ Dec 2,507,299$ 2,456,532$ 1,926,407$ Jan 1,539,514$ 1,602,323$ 1,256,119$ Feb -$ 1,388,859$ 978,395$ Mar -$ 1,975,175$ 1,727,925$ Apr -$ 1,714,270$ 1,470,896$ May -$ 1,725,777$ 1,262,973$ Jun -$ 1,792,755$ 2,586,036$ Jul -$ 1,607,427$ 1,449,136$ Aug -$ 1,659,141$ 1,427,525$ Sep -$ 1,640,639$ 1,687,605$ Tot 7,675,369$ 20,828,987$ 18,157,270$ GENERAL FUND REVENUE VS EXPENDITURES 2022 OVERALL FUND PERFORMANCE: REVENUE ANALYSIS GENERAL FUND SALES TAX 2023-2021 COMPARISON CHART OUTLOOK: CHART OUTLOOK: 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 $18.5M.The significant variance is due to the significant portion of property tax revenue collected (approximately 93%) of the budgeted property tax revenue which is the largest revenue sources for the general fund. Year to date sales tax collections are trending above FY 2022 (4.8%)and FY 2021 (37.9%)collections.However,due to an audit adjustment the January collections were 3.92%lower than January collections for FY 2022. Year to date collections are above budget for the year therefore the outlook is considered positive. Staff will continue to closely monitor collections. POSITIVE $- $500,000 $1,000,000 $1,500,000 $2,000,000 $2,500,000 $3,000,000 FY 2023 FY 2022 FY 2021 $- $2,000,000 $4,000,000 $6,000,000 $8,000,000 $10,000,000 $12,000,000 $14,000,000 $16,000,000 $18,000,000 Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep FY 2023 REVENUE FY 2023 EXPENDITURE 2022 EXPEND. City of Southlake Monthly Financial Report 3 3/13/2023 GENERAL FUND FY 2023 FY 2022 FY 2021 Oct 380,169$ 653,703$ 778,578$ Nov 2,011,080$ 2,017,203$ 1,582,957$ Dec 4,964,620$ 6,068,454$ 6,036,699$ Jan 12,756,146$ 11,588,414$ 13,167,125$ Feb 6,290,070$ 5,872,247$ 4,445,041$ Mar -$ 584,684$ 411,151$ Apr -$ 554,247$ 259,058$ May -$ 151,717$ 152,945$ Jun -$ 502,344$ 389,839$ Jul *-$ (1,310,741)$ (1,365,991)$ Aug -$ 69,630$ 52,655$ Sep -$ 111,205$ 190,848$ Tot 26,402,085$ 26,863,107$ 26,100,905$ POSITIVE FY 2023 FY 2022 FY 2021 Oct 137,332$ 214,445$ 50,043$ Nov 118,803$ 185,109$ 69,734$ Dec 88,212$ 94,663$ 102,515$ Jan 231,884$ 167,045$ 88,737$ Feb 249,097$ 111,545$ 76,270$ Mar -$ 154,046$ 150,142$ Apr -$ 277,691$ 124,870$ May -$ 788,270$ 136,364$ Jun -$ 133,244$ 158,786$ Jul -$ 192,902$ 170,985$ Aug -$ 184,578$ 217,599$ Sep -$ 154,833$ 221,982$ Tot 825,328$ 2,658,371$ 1,568,027$ PERMIT REVENUE 2023-2021 COMPARISON CHART OUTLOOK: REVENUE ANALYSIS (continued) PROPERTY TAX 3 YEAR TREND CHART OUTLOOK: As of February the 2023 YTD property tax collections ($26,402,085)are approximately 0.8%and 1.5%higher than 2022 YTD ($26,200,021)and 2021 YTD ($26,010,400),respectively.As indicated on the chart,the majority of the property tax revenue is collected in the second quarter of the fiscal year. YTD collections are trending below budget. * Net transfer of TIF revenues to TIF fund The value of new construction permits ($75.7M+)issued for FY 2023 YTD is approximately 37.3%and 82.0%higher when compared to FY 2022 and FY 2021,respectively.FY 2023 YTD permit revenue is 6.8%and 113.1% higher when compared to FY 2022 and 2021, respectively. The permit revenue year to date is trending above budget therefore the outlook is considered positive. POSITIVE $(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 2023 FY 2022 FY 2021 $- $100,000 $200,000 $300,000 $400,000 $500,000 $600,000 $700,000 $800,000 $900,000 Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep FY 2023 FY 2022 FY 2021 City of Southlake Monthly Financial Report 4 3/13/2023 FY 2023 ACTUAL YTD (FEBRUARY) FY 2022 ACTUAL YTD (FEBRUARY) FY 2023 BUDGET YTD (FEBRUARY)FY 2023 % SPENT 421,021$ 422,757$ 467,504$ 90.06% 270,585$ 234,762$ 326,494$ 82.88% 2,503,649$ 2,189,409$ 2,967,291$ 84.37% 226,736$ 214,492$ 284,124$ 79.80% 7,776,194$ 7,165,923$ 9,394,248$ 82.78% 141,113$ 121,244$ 151,819$ 92.95% 937,401$ 1,021,147$ 1,425,913$ 65.74% 353,445$ 303,840$ 423,681$ 83.42% 1,037,949$ 1,229,340$ 1,626,342$ 63.82% 956,175$ 851,566$ 1,101,955$ 86.77% 1,898,831$ 1,600,601$ 2,256,484$ 84.15% 1,024,210$ 904,215$ 1,587,084$ 64.53% 17,547,309$ 16,259,296$ 22,012,939$ 79.71% EXPENDITURE ANALYSIS POSITIVE (191,391)$ 57,388$ 1,618,054$ 10,706$ 488,512$ 70,236$ 588,393$ CSO DPS ED FIN HR IT DEPARTMENTAL EXPENDITURES SUMMARY 35,823$ 55,909$ COMM BUDGET VARIANCE 46,483$ 463,642$ 104,609$ 298,230$ 119,995$ 1,288,013$ As indicated above,2023 expenditures are above 2022 expenditures for the same period with a increase of 7.92%primarily due to the employee compensation system moving DPS to the 80th percentile.The outlook is positive expenditures are below budgeted expenditures for the fiscal year. FY 2022/2023 YTD VARIANCE (1,736)$ 314,240$ 12,244$ 610,271$ 19,869$ (83,746)$ SS Totals PW CMO CS 4,465,630$ CHART OUTLOOK: 562,874$ 357,653$ 49,605$ 145,780$ PDS $- $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 CMO COMM CS CSO DPS ED FIN HR IT PDS PW SS FY 2023 ACTUAL YTD (FEBRUARY)FY 2022 ACTUAL YTD (FEBRUARY)FY 2023 BUDGET YTD (FEBRUARY) City of Southlake Monthly Financial Report 5 3/13/2023