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Item 3B2 - Financial ReportCITY OF SOUTHLAKE MONTHLY FINANCIAL REPORT August2024 PERFORMANCE AT A GLANCE Year to Date 13 year Trend Reference EL 1 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 9/11/2024 ECONOMIC INDICATORS NATIONAL ECONOMY National GDP: d 3.0% FINANCIAL ACTIVITY 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 5 YEAR TREND OF • • 2nd quarter of 2024 increased at a rate of 3.0%. In $180,000,000 the 1 st quarter of 2024, GDP increased at a rate of 1.4%. $160,000,000 Housina Starts: - 14.10% Single-family housing starts in July 2024 were at a seasonally adjusted rate of 851,000, which is 14.1% below the revised previous month figure of 991,000. UNEMPLOYMENT RATES National: d 4.2% The National Unemployment rate for August 2024 slightly decreased to 4.2% when compared to 4.3% in July 2024. State-wide: d 4.1% The Texas Unemployment rate for July 2024 (preliminary) slightly increased to 4.1 % when compared to 4.0% in June 2024. DFWArea: 11�1 4.1% The Dallas/Fort Worth/Arlington Metropolitan Area unemployment rate for July 2024 (preliminary) decreased to 4.1 % when compared to 4.3% in June 2024. $140,000,000 $120,000,000 $100,000,000 -P $80,000,000 $60,000,000 $40,000,000 $20,000,000 2020* -October - August a 2021* 2022* Construction permit values 2023* 2024* City of Southlake Monthly Financial Report 2 9/11/2024 OVERALL FUND PERFORMANCE: 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 Feb $ 9,417,330 $ 4,129,715 $ 5,287,615 $10,000,000 Mar $ 2,984,935 $ 3,928,073 $ (943,138) $8 000,000 Apr $ 2,359,208 $ 3,892,992 $ (1,533,784) May $ 3,716,867 $ 4,954,116 $ (1,237,249) $6,000,000 Jun $ 2,947,587 $ 3,593,289 $ (645,702) Jul $ 1,282,975 $ 3,647,666 $ (2,364,691) $4,000,000 Aug $ 3,022,227 $ 3,819,317 $ (797,090) Sep $ - $2,000,000 Tot $ 52,738,702 $ 44,822,528 $ 7,916,174 CHART OUTLOOK: I POSITIVE � FY 2024 REVENUE � FY 2024 EXPENDITURE 2023 EXPEND. Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug The outlook for the year is positive as overall revenues and expenditures are on target with budget. The expenditures are higher than revenues by $7.9M. REVENUE ANALYSIS Sep 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 $ 1,660,932 $ 1,745,742 $ 1,725,777 Jun $ 1,777,233 $ 1,819,551 $ 1,792,755 $1,000,000 Jul $ 1,653,109 $ 1,620,652 $ 1,607,427 Aug $ 2,618,139 $ 1,659,141 $500,000 - Sep $ 1,968,439 $ 1,640,639 Tot $ 17,527,214 $ 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 (1.8%) and FY 2022 (0.01%) collections. July sales are higher than July 2023 (2.0%) and July 2022 (2.8%) 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 9/11/2024 REVENUE ANALYSIS (continued) GENERAL FUND 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 $ 5,623,897 $ 6,290,070 $ 5,872,247 Mar $ 532,180 $ 560,775 $ 584,684 $6,000,000 - Apr $ 257,466 $ 221,968 $ 554,247 $4,000,000 May $ 198,604 $ 158,917 $ 151,717 $2,000,000 - Jun $ 516,677 $ 502,789 $ 502,344 $- Jul * $ (1,139,094) $ (1,226,605) $ (1,310,741) $(2,000,000) - Oct Nov Dec Jan Feb Mar Apr May Jun Aug Aug $ 88,418 $ 69,910 $ 69,630 $(4,000,000) Sep $ - $ 41,259 $ 111,205 Tot $ 27,282,097 $ 26,731,098 $ 26,863,107 * Net transfer of TIF revenues to CHART OUTLOOK: POSITIVE TIF fund As of August, the 2024 YTD property tax collections ($27,282,097) are approximately 2.2% and 2.0% higher than 2023 YTD ($26,731,098) and 2022 YTD ($26,863,107), 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 the adopted budget and the appropriate budget adjustment will be reflected in the amended budget for approval. PERMIT REVENUE 2024-2022 COMPARISON 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 $ 93,595 $ 249,097 $ 111,545 Mar $ 226,182 $ 98,675 $ 154,046 $600,000 Apr $ 121,572 $ 77,670 $ 277,691 $500,000 May $ 198,453 $ 187,731 $ 788,270 $400,000 Jun $ 159,935 $ 143,738 $ 133,244 Jul $ 135,053 $ 92,872 $ 192,902 $300,000 Aug $ 100,564 $ 136,528 $ 184,578 $200,000 , Sep $ 157,382 $ 154,833 Tot $ 1,590,805 $ 1,719,924 $ 2,658,371 $100,000 $- A&A" CHART OUTLOOK: I POSITIVE I Oct Nov Dec Jan � FY 2024 � FY 2023 FY 2022 Feb Mar Apr May Jun Jul Aug Sep The value of new construction permits ($154.7M+) issued for FY 2024 YTD is approximately 18.1% higher than FY 2023 and 8.9% lower than FY 2022 permit values. FY 2024 YTD permit revenue is 1.8% higher and 36.5% 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 9/11/2024 EXPENDITURE ANALYSIS DEPARTMENTAL EXPENDITURES SUMMARY FY 2024 ACTUAL FY 2023 ACTUAL FY 2024 BUDGET FY 2023/2024 YTD YTD (AUGUST) YTD (AUGUST) YTD (AUGUST) VARIANCE BUDGET VARIANCE FY 2024 % SPENT CMO $ 1,079,183 $ 975,024 $ 1,112,942 $ 104,159 $ 33,759 96.97% COMM $ 644,129 $ 558,874 $ 734,725 $ 85,255 $ 90,596 87.67% CS $ 6,384,315 $ 5,966,528 $ 7,212,600 $ 417,787 $ 828,285 88.52% CSO $ 537,631 $ 518,938 $ 621,349 $ 18,693 $ 83,718 86.53% DPS $ 20,090,145 $ 19,250,783 $ 22,339,180 $ 839,362 $ 2,249,035 89.93% ED $ 373,992 $ 292,214 $ 352,313 $ 81,778 $ (21,679) 106.15% FIN $ 2,724,911 $ 2,490,143 $ 3,005,222 $ 234,768 $ 280,311 90.67% HR $ 792,435 $ 849,830 $ 989,736 $ (57,395) $ 197,301 80.07% IT $ 2,953,383 $ 2,835,448 $ 3,499,956 $ 117,935 $ 546,573 84.38% PDS $ 2,185,647 $ 2,167,204 $ 2,500,904 $ 18,443 $ 315,257 87.39% PW $ 4,845,178 $ 4,606,083 $ 5,470,007 $ 239,095 $ 624,829 88.58% SS $ 2,211,579 $ 1,654,466 $ 2,712,693 $ 557,113 $ 501,114 81.53% Totals $ 44,822,528 $ 42,165,535 $ 50,551,627 $ 2,656,993 $ 5,729,099 88.67% FY 2024 ACTUAL YTD (AUGUST) FY 2023 ACTUAL YTD (AUGUST) FY 2024 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 $- 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 6.3% primarily due to to approved pay plan adjustments, increase in property insurance and legal settlements. The outlook is positive however the budget will require amendment to cover the cost of the legal settlements and increase in property insurance. City of Southlake Monthly Financial Report 5 9/11/2024