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Item 3B2 - Monthly Financial ReportCITY OF S0UTHLA1<,..-E 0 MONTHLY FINANCIAL REPORT January 2024 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 2/14/2024 ECONOMIC INDICATORS NATIONAL ECONOMY DP is defined as the output of goods and services oduced by labor and property located in the United ates, The Bureau of Labor and Economic Analysis ported that the "advance" estimated GDP for the h quarter of 2023 increased at a rate of 3.3%. In 7$9010001000 e 3rd quarter of 2023, GDP increased at a rate of $80,000,000 Housing Starts: 4.30% $70,000,000 Housing starts in December 2023 were at a seasonally adjusted rate of 1,460,000, which is 4.3% $60,000,000 below the previous month figure of 1,525,000, but 7.6% above the same month last year. $50,000,000 UNEMPLOYMENT RATES National: V 3 7% $40,000,000 The National Unemployment rate for January 2024 $30,000,000 remained unchanged at 3.7% when compared to December 2023. $20,000,000 State-wide: v/ 4.0% The Texas Unemployment rate for December 2023 (preliminary) decreased slightly to 4.0% from 4.1 % when compared to November 2023. DFW Area: V 3.3% The Dallas/Fort Worth/Arlington Metropolitan Area unemployment rate for December 2023 (preliminary) remained unchanged at 3.3% when compared to November 2023. $10,000,000 FINANCIAL ACTIVITY 2020* 2021* 2022* 2023* 2024* *October -January ■ Construction permit values City of Southlake Monthly Financial Report 2 2/14/2024 OVERALL FUND PERFORMANCE: GENERAL FUND REVENUE VS EXPENDITURES 2024 FY 2024 FY 2024 FY 2024 REVENUE FY 2024 EXPENDITURE 2023 EXPEND. REVENUE EXPENDITURE VARIANCE Oct $ 87-5 46 $ 3,014,402 $ (2,139,356) $14,000,000 Nov $ 2,775,185 $ 4,319,159 $ (1,543,974) Dec $ 10,357,022 $ 5,289,496 $ 5,067,526 $12,000,000 Jan $ 12,951,009 $ 4,234,303 $ 8,716,706 Feb $ $ $ $10,000,000 Mar $ $ $ $8,000,000 Apr $ $ $ May $ $ $ $6,000,000 Jun $ - $ - $ - Jul $ - $ - $ $4,000,000 Aug $ $ $ Sep $ $2,000,000 Tot $ 26,958,262 $ 16,857,360 $ 10,100,902 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 expenditures are higher than revenues by $10.1M. The significant variance is due to the significant portion of property tax revenue collected (approximately 75%) of the budgeted property tax revenue sources for the general fund. 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 $ 1,701,432 $ 1,813,575 $ 1,652,674 Dec $ 2,383,801 $ 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 $ 5,724,829 $ 22,429,156 $ 20,828,987 $- Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep CHART OUTLOOK: POSITIVE Year to date collections are trending below FY 2023 (6.7%) and slightly higher than FY 2022 (0.04%) collections. December sales are below December 2022 (4.9%) and December 2021 (3.0%) 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 2/14/2024 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 $ 8,236,314 $ 4,964,620 $ 6,068,454 $10,000,000 Jan $ 10,376,818 $ 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 $ 21,203,949 $ 26,731,098 $ 26,863,107 * Net transfer of TIF revenues to CHART OUTLOOK: POSITIVE TIF fund As of January, the 2024 YTD property tax collections ($21,203,949) are approximately 5.4% and 4.3% higher than 2023 YTD ($20,112,015) and 2022 YTD ($20,327,774), 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. 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 $ 69,759 $ 88,212 $ 94,663 $800,000 Jan $ 90,986 $ 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 Tot $ 555,451 $ 157,382 $ 154,833 $ 1,719,924 $ 2,658,371 $100,000 CHART OUTLOOK: POSITIVE Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep The value of new construction permits ($78.1M+) issued for FY 2024 YTD is approximately 16.7% and 108.0% higher when compared to FY 2023 and FY 2022, respectively. FY 2024 YTD permit revenue is 3.6% higher and 16.0% 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 2/14/2024 EXPENDITURE ANALYSIS DEPARTMENTAL EXPENDITURES SUMMARY FY 2024 ACTUAL FY 2023 ACTUAL FY 2024 BUDGET FY 2023/2024 YTD YTD (JANUARY) YTD (JANUARY) YTD (JANUARY) VARIANCE BUDGET VARIANCE FY 2024 %SPENT CMO $ 359,175 $ 335,558 $ 413,957 $ 23,617 $ 54,782 86.77% COMM $ 278,858 $ 224,537 $ 332,406 $ 54,321 $ 53,548 83.89% CS $ 2,283,509 $ 2,008,976 $ 2,837,709 $ 274,533 $ 554,200 80.47% C5O $ 188,770 $ 183,446 $ 253,034 $ 5,324 $ 64,264 74.60% DPS $ 7,334,857 $ 6,349,854 $ 9,440,708 $ 985,003 $ 2,105,851 77.69% ED $ 120,289 $ 113,254 $ 129,526 $ 7,035 $ 9,237 92.87% FIN $ 882,558 $ 747,507 $ 1,083,200 $ 135,051 $ 200,642 81.48% HR $ 309,329 $ 283,571 $ 366,530 $ 25,758 $ 57,201 84.39% IT $ 964,947 $ 865,971 $ 1,476,358 $ 98,976 $ 511,411 65.36% PDS $ 784,269 $ 785,960 $ 961,852 $ (1,691) $ 177,583 81.54% PW $ 1,982,723 $ 1,504,361 $ 2,194,263 $ 478,362 $ 211,540 90.36% SS $ 1,368,075 $ 903,166 $ 1,273,552 $ 464,909 $ (94,523) 107.42% Totals $ 16,857,359 $ 14,306,161 $ 20,763,095 $ 2,551,198 $ 3,905,736 81.19% FY 2024 ACTUAL YTD (JANUARY) FY 2023 ACTUAL YTD (JANUARY) FY 2024 BUDGET YTD (JANUARY) $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 $-�I- CIAO COMM CS CSO DPS ED FIN HR IT PDS PW SS CHART OUTLOOK: POSITIVE As indicated above, 2024 expenditures are are higher than the 2023 expenditures for the same period with an increase of 17.8% 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 2/14/2024