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Item 3B1 - Financial ReportCITY OF S0UTHLA1<,..-E 0 MONTHLY FINANCIAL REPORT November 2023 PERFORMANCE AT A GLANCE Year to Date 3 year Trend Reference . General Fund Exp. Vs. Rev. Positive Positive Page 3 Sales Tax Revenue (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 1-4% compared to seasonal trends Negative = Negative Variance of > 4% compared to seasonal trends. City of Southlake Monthly Financial Report 1 12/14/2023 ECONOMIC INDICATORS NATIONAL ECONOMY 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 3rd quarter of 2023 increased at a rate of 5.2%. In $30,000,000 the 2nd quarter of 2023, GDP increased at a rate of 2.1 %. $25,000,000 Housing Starts: 1.2% Housing starts in October 2023 were at a seasonally adjusted rate of 1,372,000, which is 1.2% above the previous month figure of 1,346,000, but 4.2% below $20,000,000 the same month last year. $15,000,000 UNEMPLOYMENT RATES National: 3.7% The National Unemployment rate for November $10,000,000 2023 slightly decreased to 3.7% when compared to 3.9% in October 2023. $5,000,000 State-wide: v/ 4.1 % The Texas Unemployment rate for October 2023 (preliminary) remained unchanged at 4.1 % when compared to September 2023. $- FINANCIAL ACTIVITY DFW Area: V 3.6% 11 2020* 2021* 2022* 2023* 2024* The Dallas/Fort Worth/Arlington Metropolitan Area *October -November ■ Construction permit values unemployment rate for October 2023 (preliminary) decreased to 3.6% when compared to 3.9% in September 2023. ffw City of Southlake Monthly Financial Report 2 12/14/2023 GENERAL FUND OVERALL FUND PERFORMANCE: GENERAL FUND REVENUE VS EXPENDITURES 2021 FY 2024 FY 2024 FY 2024 REVENUE FY 2024 EXPENDITURE f2023 EXPEND. REVENUE EXPENDITURE VARIANCE Oct $ 1,292,818 $ 3,014,402 $ (1,721,584) $6,000,000 Nov $ 2,682,433 $ 4,197,424 $ (1,514,991) Dec $ $ $ $5,000,000 Jan $ $ $ Feb $ $ $ $4,000,000 , Mar $ $ $ Apr $ $ $ $3,000,000 May $ $ $ Jun $ $ $ Jul $ $ $ $2,000,000 Aug $ $ $ Sep $ $1,000,000 Tot $ 3,975,251 $ 7,211,826 $ (3,236,575) CHART OUTLOOK: POSITIVE I 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 expenditures are higher than revenues by $3.2M however the majority of property tax revenue will be collected in late December and January. REVENUE ANALYSIS GENERAL FUND SALES TAX 2024-2022 COMPARISON FY 2024 FY 2023 FY 2022 FY 2024 FY 2023 FY 2022 Oct $ 1,639,596 $ 1,814,981 $ 1,613,415 $3,000,000 Nov $ - $ 1,813,575 $ 1,652,674 Dec $ $ 2,507,299 $ 2,456,532 $2,500,000 Jan $ - $ 1,539,514 $ 1,602,323 Feb $ $ 1,436,621 $ 1,388,859 $2,000,000 Mar $ - $ 1,836,177 $ 1,975,175 / Apr $ $ 1,708,466 $ 1,714,270 $1,500,000 May $ - $ 1,745,742 $ 1,725,777 Jun $ $ 11819,551 $ 1,792,755 $1,000,000 Jul $ - $ 1,620,652 $ 1,607,427 Aug $ 2,618,139 $ 1,659,141 $500,000 Sep $ 1,968,439 $ 1,640,639 Tot $ 1,639,596 $ 22,429,156 $ 20,828,987 $- Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep CHART OUTLOOK: POSITIVE Collections for FY 2024 (October 2023 salea) are 9.7% lower than October 2022 collections and 1.6% above October 2021 collections. However 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 12/14/2023 GENERAL FUND REVENUE ANALYSIS (continued) PROPERTY TAX 3 YEAR TREND FY 2024 FY 2023 FY 2022 ■ FY 2024 ■ FY 2023 FY 2022 Oct $ 577,913 $ 380,169 $ 653,703 $14,000,000 Nov $ 2,012,904 $ 2,011,080 $ 2,017,203 $12,000,000 Dec $ - $ 4,964,620 $ 6,068,454 $10,000,000 Jan $ - $ 12,756,146 $ 11,588,414 $8,000,000 Feb $ $ 6,290,070 $ 5,872,247 Mar $ - $ 560,775 $ 584,684 $6,000,000 Apr $ $ 221,968 $ 554,247 $4,000,000 May $ - $ 158,917 $ 151,717 ' $2,000,000 Jun $ $ 502,789 $ 502,344 $- Jul * $ - $ (1,226,605) $ (1,310,741) $(2,000,000) Oct Nov Dec Jan Feb Mar Apr May Jun u Aug Aug $ $ 69,910 $ 69,630 $(4,000,000) Sep $ $ 41,259 $ 111,205 Tot $ 2,590,817 $ 26,731,098 $ 26,863,107 * Net transfer of TIF revenues to CHART OUTLOOK: POSITIVE TIF fund 2024 YTD property tax collections ($2,590,817) are approximately 8.4% higher than 2023 YTD ($2,391,249) as of November. As indicated on the chart, the majority of the property tax revenue is collected in the first few months of the fiscal year. PERMIT REVENUE 2024-2022 COMPARISON FY 2024 FY 2023 FY 2022 FY 2024 FY 2023 FY 2022 Oct $ 110,053 $ 137,332 $ 214,445 $900,000 Nov $ 284,653 $ 118,803 $ 185,109 Dec $ - $ 88,212 $ 94,663 $800,000 Jan $ - $ 231,884 $ 167,045 $700,000 Feb $ $ 249,097 $ 111,545 Mar $ - $ 98,675 $ 154,046 $600,000 Apr $ $ 77,670 $ 277,691 $500,000 May $ - $ 187,731 $ 788,270 $400,000 Jun $ $ 143,738 $ 133,244 Jul $ - $ 92,872 $ 192,902 $300,000 Aug $ $ 136,528 $ 184,578 $200,000 , Sep $ 719,924 $ 658,833 Tot $ 394,706 $ 1,719,924 $ 2,658,371 $100,000 371 $- Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep CHART OUTLOOK: POSITIVE The value of new construction permits ($18.9M+) issued for FY 2024 YTD is approximately 14.9% higher than FY 2023 and 23.8% lower than FY 2022 permit values. FY 2024 YTD permit revenue is 54.1 % higher and 1.2% lower when compared to FY 2023 and 2022, respectively. The permit revenue year to date is trending above budget therefore the outlook is considered positive. City of Southlake Monthly Financial Report 4 12/14/2023 EXPENDITURE ANALYSIS DEPARTMENTAL EXPENDITURES SUMMARY FY 2024 ACTUAL FY 2023 ACTUAL FY 2024 BUDGET FY 2023/2024 YTD YTD (NOVEMBER) YTD (NOVEMBER) YTD (NOVEMBER) VARIANCE BUDGET VARIANCE FY 2024 % SPENT CMO $ 139,374 $ 130,313 $ 179,845 $ 9,061 $ 40,471 77.50% COMM $ 154,869 $ 108,061 $ 166,237 $ 46,808 $ 11,368 93.16% CS $ 953,969 $ 845,536 $ 1,355,747 $ 108,433 $ 401,778 70.36% C50 $ 73,210 $ 64,830 $ 103,127 $ 8,380 $ 29,917 70.99% DPS $ 2,876,584 $ 2,677,362 $ 3,680,490 $ 199,222 $ 803,906 78.16% ED $ 44,809 $ 55,679 $ 56,327 $ (10,870) $ 11,518 79.55% FIN $ 318,986 $ 291,113 $ 395,375 $ 27,873 $ 76,389 80.68% HR $ 109,859 $ 107,749 $ 154,137 $ 2,110 $ 44,278 71.27% IT $ 506,353 $ 524,774 $ 661,650 $ (18,421) $ 155,297 76.53% PDS $ 306,499 $ 359,105 $ 435,513 $ (52,606) $ 129,014 70.38% PW $ 570,353 $ 605,734 $ 898,238 $ (35,381) $ 327,885 63.50% SS $ 1,156,911 $ 739,535 $ 1,028,623 $ 417,376 $ (128,288) 112.47% Totals $ 7,211,776 $ 6,509,791 $ 9,115,309 $ 701,985 $ 1,903,533 79.12% FY 2024 ACTUAL YTD (NOVEMBER) FY 2023 ACTUAL YTD (NOVEMBER) FY 2024 BUDGET YTD (NOVEMBER) $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 ='z CMO COMM POSITIVE CS CSO DPS ED FIN HR IT PDS PW SS CHART OUTLOOK: As indicated above, 2024 expenditures are are higher than the 2023 expenditures for the same period with an increase of 10.8% primarily due to to approved pay plan adjustments, increase in property insurance and legal settlements. The outlook is positive expenditures are on pace to be within budgeted expenditures for the fiscal year. City of Southlake Monthly Financial Report 5 12/14/2023 EXPERIENCE SOUTHLAKE 11� ZZ 07i's F,; -t I November 28.,2023 The Marq Financial Review MARQ 73.17% 59-90% 122.15% Target ATT 4-43M 6.05M Revenue Expense 1D1112D22 913012a23 cc 78.80% 67-20% 117-26% Target I ATT 3.81 M 4.84M Revenue Expense CEDC FINANCIAL DASHBOARD m uMl/2812023 10:03AM LH 50.77% 33-50% I 151.55% Target ATT 617.02K 1.22M Revenue Expense Net Revenue- Current & Previous Year CCR LHR —Tnlal Rererue LY 400K 47K 97K 65K ! ■ 39K 61K 67K 300K 43K _ 25M _ 250K 200K 365K 374K 318K 293<( 318V( 304K 311K �� 281K 314K 224K 206K `�� f00K The Marq Rentals Revenue (Net) •CC-Rerdal-Revenue LH-Re Ial-!R—ue 60K 50K 40K MK 20K 10K.. .......................... OK Nw= Om 2022 Jai 2023 Feb 2023 Mw2023 Apr 2023 May 2023 Jun 3023 Ju12023 Aug 2U23 Sep 2U23 Oct2023 Nw2023 The Marq Membership Revenue (Net) 250K UK Nw2222 nm2222 Jm2023 Feb2023 Ma2023 Apr2023 May2023 Jun2023 J12023 Aug2U23 Sep2223 Ott= Mw2023 OK Hw2022 3-21322 Jan 2023 Feb 2023 Wr2023 Apr 21323 May2323 Jun 2023 Jul 2023 Aug 2323 Sep 2023 Oct 2323 Nw 2023 CHAMPIONS CLUB MEMBERSHIP TRENDS 4000 900 3530 3580 3413 I \ 3554 3487 3365 800 3500 I I i 3230 _ i 3561 3496 3131 3153 � 3441 700 ., 3371 2989 I/ \� I� oo 3291 3000 , 3162 3197 2827 600 076 Q 2605 2679 Ir/ N / C S I 2506 258 2738 500 i 2500 \ 2458 2662 C � 2527 2502 2513 2521 /444 d CL E 400 to CD 2273 J\ fn 1955 2289 2000 1958 1941 1944 300 2062 2084 1968 1956 1945 2001 200 1500 100 1000 i ■ - 0 M lf) O I- CO O O— N r N MN;T ul CO I-- M O— N— N M�u') CD I- M M O— N— N MqT M CD I- M M O O O O O O O O --- 0 0 0 0 0 0 0 0 --- 0 0 0 0 0 0 0 0 0 --- 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 � � � � N N N N N N N N N N N N M M M M M M M M M M N N N N O O O O 0 0 00 0 00 0 00 0 00 0 00 0 00 0 00 0 00 0 00 0 00 0 00 0 00 0 0 N N N N N N N N N N N N N N N N N N N N N N N N N N N N N N N N N N N N N N N N N N N Period MULTI -YEAR MEMBERSHIPS ANALYSIS BY MEMBERSHIP TYPE 1200 1000 804 800 588 600 424 400 201 157 200 ' , 0 -200 -400 -600 -800 -1000 1 • 6 1 124 -33 -410 -698 JOINS TERMS FY2021 ADULT 588 -410 FAM 424 -334 FAM-NC 804 -698 SENIOR 201 -124 YOUTH 157 -115 TOTALS 2174 -1681 NET 493 � ADULT 931 780 p 761 JOINS TERM FY2022 780 -568 565 -391 931 -761 274 -165 197 -156 2747 -204 706 FAM � FAM-NC 854 909 n 645 313 192 ' 68 30 44 30 16 65-156 -174 -247 57 -698 -873 4000 3000 2000 1000 m m 0 -50-45 -63 -20 -19 -1000 S JOINS 1 TERMS JOINS TERMS FY2023 FY2024 854 -698 68 -50 645 -574 30 -45 909 -873 44 -63 313 -247 30 -19 192 -174 16 -20 2913 -2566 347 -9 SENIOR YOUTH TOTALS NET -2000 -3000 MULTI -YEAR MEMBERSHIP TERMINATIONS BY REASON 1200 1000 800 600 400 200 0 1003 FAILED PAYMENT NOT UTILIZING RELOCATING f MEMBERSHIP TRAVEL � FY2020 355 395 159 � FY2021 744 311 187 � FY2022 801 415 360 � FY2023 1003 519 449 —TOTALS 2903 1640 1155 — % 36.51A 20.6% 14.5% 3500 3000 2500 2000 1500 1000 500 0 0 UNSATISFIED Wl SELECTED OTHER TRANSFER FACILITY OR SERVICE NO REASON I COVID-19 CLOSURE OTHER AMENITIES PROVIDER 158 13 76 539 177 21 58 180 207 51 31 153 0 299 36 34 226 0 841 87 99 513 719 10.6% 1.1 % 1.2% 6.41/o 9.0% 0 FY2024 CC Membership Terminations by Reason and by Month 100 84 80 60 40 20 0 � Oct-23 � Nov-23 � Dec-23 Jan-24 � Feb-24 � Mar-24 � Apr-24 � May-24 Jun-24 �Jul-24 � Aug-24 Sep-24 —Totals % 00DOD0I1011 100000a0000 Failed Payment Not Utilizing Membership 84 53 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 84 53 42.6% 26.9% 0 0 a 0 0 0 0 0 0 0 0 RelocatinVravel 21 0 0 0 0 0 0 0 0 0 0 0 21 10.7% 19 Ia000000006 Transfer 19 0 0 0 0 0 0 0 0 0 0 0 19 9.6% 0 3DDD0 00DOD0 4 000U0aa0 Unsatisfied with Facility or Selected other service Amenities provider 3 _ 4 0 0 0 0 a 0 a 0 0 0 0 0 0 0 0 0 0 0 0 0 a 0 3 4 1.5% 2.0% I3 �0D0000D0000 No Reason 1 Other 13 0 0 0 0 0 0 0 0 0 0 0 13 6.6% EXPERIENCE SOUTHLAKE 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 ■ FISCAL YEAR 2021 FISCAL YEAR 2022 Fiscal Year 2023 EXPERIENCE SOUTHLAI<,.,.,E