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Item 3B2 Financial ReportCITY OF SOUTHLAKE MONTHLY FINANCIAL REPORT 11 1 May 2024 PERFORMANCE AT A GLANCE Year to Date 1 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 I = Positive variance or negative variance <1 % compared to seasonal trends. Warning I = Negative variance of 1-4% compared to seasonal trends Negative I = Negative Variance of > 4% compared to seasonal trends. City of Southlake Monthly Financial Report 1 6/12/2024 ECONOMIC INDICATORS NATIONAL ECONOMY National GDP: 1.3% 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 2nd quarter of 2024 increased at a rate of 1.3%. In the 4th quarter of 2023, GDP increased at a rate of FINANCIAL ACTIVITY $140,000,000 $120,000,000 Housino Starts: 0.4% Single-family housing starts in April 2024 were at a $100,000,000 seasonally adjusted rate of 1,031,000, which is 0.4% below the previous month revised figure of 1,035,000. tQ , UNEMPLOYMENT RATES National: 1/ 4.0% $60,000,000 The National Unemployment rate for May 2024 slightly increased to 4.0% when compared to 3.9% in $40,000,000 April 2024. State-wide: V 4.0% The Texas Unemployment rate for April 2024 (preliminary) slightly increased to 4.0% from 3.9% in March 2024. DFW Area: 3.4% The Dallas/Fort Worth/Arlington Metropolitan Area unemployment rate for April 2024 (preliminary) decreased to 3.4% when compared to 3.9% in March 2024. $20,000,000 S 2020* 2021* 2022* *October- May Construction permit values 2023* 2024* City of Southlake Monthly Financial Report 2 6/12/2024 OVERALL FUND PERFORMANCE: rx cUcw rr mLw REVENUE EXPENDITURE VARIANCE Oct $ 855,780 $ 3,014,402 $ (2,158,622) $14,000,000 Nov $ 2,752,442 $ 4,319,159 $ (1,566,717) Dec $ 10,340,523 $ 5,289,496 $ 5,051,027 $12,000,000 Jan $ 13,058,828 $ 4,234,303 $ 8,824,525 $10,000,000 Feb $ 9,417,330 $ 4,129,715 $ 5,287,615 Mar $ 2,984,935 $ 3,928,073 $ (943,138) $8 000,000 Apr $ 2,359,208 $ 3,892,992 $ (1,533,784) May $ 3,597,249 $ 4,846,445 $ (1,249,196) $6,000,000 Jun $ $ $ Jul $ - $ $ - $4,000,000 Aug $ $ $ Sep $ $2,000,000 Tot $ 45,366,295 $ 33,654,585 $ 11,711,710 CHART OUTLOOK: I POSITIVE � FY 2024 REVENUE � FY 2024 EXPENDITURE 2023 EXPEND. 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 $11.7M. The significant variance is due to the significant portion of property tax revenue collected (approximately 95%) 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 $ 1,643,095 $ 1,539,514 $ 1,602,323 Feb $ 1,458,994 $ 1,436,621 $ 1,388,859 $2,000,000 Mar $ 1,859,641 $ 1,836,177 $ 1,975,175 - Apr $ 1,749,381 $ 1,708,466 $ 1,714,270 $1,500,000 May $ - $ 1,745,742 $ 1,725,777 Jun $ $ 1,819,551 $ 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 $ 12,435,940 $ 22,429,156 $ 20,828,987 $- — Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep CHART OUTLOOK: I POSITIVE Year to date collections are trending slightly below FY 2023 (1.7%) and slightly above FY 2022 (0.3%) collections. April sales are above April 2023 (2.4%) and April 2022 (1.8%) 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 6/12/2024 REVENUE ANALYSIS (continued) FY 2024 FY 2023 FY 2022 Oct $ 577,913 $ 380,169 $ 653,703 Nov $ 2,012,904 $ 2,011,080 $ 2,017,203 Dec $ 8,236,314 $ 4,964,620 $ 6,068,454 Jan $ 10,376,818 $ 12,756,146 $ 11,588,414 Feb $ 5,623,897 $ 6,290,070 $ 5,872,247 Mar $ 532,180 $ 560,775 $ 584,684 Apr $ 257,466 $ 221,968 $ 554,247 May $ 198,604 $ 158,917 $ 151,717 Jun $ - $ 502,789 $ 502,344 Jul * $ - $ (1,226,605) $ (1,310,741) Aug $ $ 69,910 $ 69,630 Sep $ $ 41,259 $ 111,205 Tot $ 27,816,096 $ 26,731,098 $ 26,863,107 * Net transfer of TIF revenues to CHART OUTLOOK: POSITIVE TIF fund GENERAL FUND PROPERTY TAX 3 YEAR TREND ■ FY 2024 ■ FY 2023 FY 2022 $14,000,000 - $12,000,000 - $10,000,000 - $8,000,000 - $6,000,000 - $4,000,000 - $2,000,000 $- $(2,000,000) - Oct Nov Dec Jan Feb Mar Apr May $(4,000,000) - Jun P"R Aug As of May, the 2024 YTD property tax collections ($27,816,096) are approximately 1.73% and 1.18% higher than 2023 YTD ($27,343,745) and 2022 YTD ($27,490,669), 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. FY 2024 Oct $ 110,053 $ Nov $ 284,653 $ Dec $ 69,759 $ Jan $ 90,986 $ Feb $ 93,595 $ Mar $ 226,182 $ Apr $ 121,572 $ May $ 198,453 $ Jun $ - $ Jul $ $ Aug $ $ Sep $ Tot $ 1,195,253 $ CHART OUTLOOK: FY 2023 137,332 $ 118,803 $ 88,212 $ 231,884 $ 249,097 $ 98,675 $ 77,670 $ 187,731 $ 143,738 $ 92,872 $ 136,528 $ 157,382 $ 1,719,924 $ POSITIVE FY 2022 214,445 185,109 94,663 167,045 111,545 154,046 277,691 788,270 133,244 192,902 184,578 154,833 2,658,371 $900,000 $800,000 $700,000 $600,000 $500,000 $400,000 $300,000 $200,000 $100,000 PERMIT REVENUE 2024-2022 COMPARISON � FY 2024 � FY 2023 FY 2022 Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep The value of new construction permits ($123.OM+) issued for FY 2024 YTD is approximately 22.0% higher than FY 2023 and 3.6% less than FY 2022 permit values. FY 2024 YTD permit revenue is 0.5% higher and 40.0% 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 6/12/2024 EXPENDITURE ANALYSIS FY 2024 ACTUAL FY 2023 ACTUAL FY 2024 BUDGET YTD (MAY) YTD (MAY) YTD (MAY) CIAO $ 785,438 $ 679,882 $ 824,340 $ COMM $ 493,161 $ 405,433 $ 567,878 $ CS $ 4,601,014 $ 4,004,046 $ 5,323,030 $ CSO $ 395,087 $ 371,954 $ 465,426 $ DPS $ 14,918,816 $ 12,536,503 $ 16,452,323 $ ED $ 263,703 $ 206,847 $ 268,116 $ FIN $ 2,170,406 $ 11815,155 $ 2,303,753 $ HR $ 626,653 $ 598,817 $ 734,161 $ IT $ 2,186,610 $ 2,132,339 $ 2,899,976 $ PDS $ 1,660,222 $ 1,509,938 $ 1,858,777 $ PW $ 3,734,504 $ 3,317,839 $ 4,088,580 $ SS $ 1,818,971 $ 1,358,846 $ 2,017,984 $ Totals $ 33,654,585 $ 28,937,599 $ 37,804,344 $ $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 CS CHART OUTLOOK: I POSITIVE DEPARTMENTAL EXPENDITURES SUMMARY FY 2023/2024 YTD VARIANCE BUDGET VARIANCE 105,556 $ 38,902 87,728 $ 74,717 596,968 $ 722,016 23,133 $ 70,339 2,382,313 $ 1,533,507 56,856 $ 4,413 355,251 $ 133,347 27,836 $ 107,508 54,271 $ 713,366 150,284 $ 198,555 416,665 $ 354,076 460,125 $ 199,013 4,716,986 $ 4,149,759 � FY 2024 ACTUAL YTD (MAY) � FY 2023 ACTUAL YTD (MAY) CSO DPS ED FIN FY 2024 % SPENT 95.28% 86.84% 86.44% 84.89% 90.68% 98.35% 94.21% 85.36% 75.40% 89.32% 91.34% 90.14% 89.02% FY 2024 BUDGET YTD (MAY) HR IT PDS PW SS As indicated above, 2024 expenditures are are higher than the 2023 expenditures for the same period with an increase of 16.5% 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 6/12/2024