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Item 3B2 - Monthly Financial ReportCITY OF S0UTHLA1<,..-E 0 MONTHLY FINANCIAL REPORT March 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 4/11/2024 ECONOMIC INDICATORS NATIONAL ECONOMY FINANCIAL ACTIVITY National GDP: h3. GDP is defined as thee output of goodsds 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 5 YEAR TREND OF • • quarter of 2023 increased at a rate of 3.4%. In the $100,000,000 3rd quarter of 2023, GDP increased at a rate of 4.9%. $90,000,000 $80,000,000 Housing Starts: 20.2% Housing starts in February 2024 were at a seasonally adjusted rate of 1,072,000, which is $70,000,000 — 20.2% above the previous month revised figure of $60,000,000 1,012,000. $50,000,000 El UNEMPLOYMENT RATES $40,000,000 National: 3.8% The National Unemployment rate for March 2024 slightly decreased to 3.8% when compared to 3.9% $30,000,000 in February 2024. $20,000,000 State-wide: 3.9% The Texas Unemployment rate for February 2024 $10,000,000 (preliminary) remained unchanged at 3.9% from January 2024. $- 2020* 2021* 2022* 2023* 2024* DFW Area: 4.2% The Dallas/Fort Worth/Arlington Metropolitan Area *October- March Construction permit values unemployment rate for February 2024 (preliminary) increased to 4.2% when compared to 3.9% in January 2024. City of Southlake Monthly Financial Report 2 4/11/2024 GENERAL FUND 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 $ 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 $ 2,930,224 $ 3,921,190 $ (990,966) $8 000,000 Apr $ $ $ May $ $ $ $6,000,000 Jun $ $ $ Jul $ - $ $ - $4,000,000 Aug $ $ $ Sep $ $2,000,000 Tot $ 39,355,127 $ 24,908,265 $ 14,446,862 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 $14.4M. 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 $ - $ 1,836,177 $ 1,975,175 Apr $ $ 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 VVI I Jul $ - $ 1,620,652 $ 1,607,427 iflA I Aug $ 2,618,139 $ 1,659,141 $500,000 Sep $ 1,968,439 $ 1,640,639 Tot $ 8,826,918 $ 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 (3.1 %) and slightly higher than FY 2022 (1.3%) collections. February sales are above February 2023 (1.56%) and February 2022 (4.4%) 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 4/11/2024 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 $ 5,623,897 $ 6,290,070 $ 5,872,247 Mar $ 532,180 $ 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 $ 27,360,026 $ 26,731,098 $ 26,863,107 * Net transfer of TIF revenues to CHART OUTLOOK: POSITIVE TIF fund As of March, the 2024 YTD property tax collections ($27,360,026) are approximately 1.5% and 2.2% higher than 2023 YTD ($26,962,860) and 2022 YTD ($26,784,705), 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 $ 93,595 $ 249,097 $ 111,545 Mar $ 226,182 $ 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 $ 875,228 $ 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 ($90.9M+) issued for FY 2024 YTD is approximately 15.3% and 49.6% higher when compared to FY 2023 and FY 2022, respectively. FY 2024 YTD permit revenue is approximately 5.3% and 5.6% 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 4/11/2024 EXPENDITURE ANALYSIS DEPARTMENTAL EXPENDITURES SUMMARY FY 2024 ACTUAL FY 2023 ACTUAL FY 2024 BUDGET FY 2023/2024 YTD YTD (MARCH) YTD (MARCH) YTD (MARCH) VARIANCE BUDGET VARIANCE FY 2024 % SPENT CIAO $ 587,465 $ 505,110 $ 608,193 $ 82,355 $ 20,728 96.59% COMM $ 373,750 $ 314,979 $ 445,583 $ 58,771 $ 71,833 83.88% CS $ 3,452,067 $ 2,915,827 $ 3,402,318 $ 536,240 $ (49,749) 101.46% C5O $ 277,284 $ 280,280 $ 356,489 $ (2,996) $ 79,205 77.78% DPS $ 10,859,803 $ 9,358,608 $ 12,514,045 $ 11501,195 $ 1,654,242 86.78% ED $ 174,176 $ 164,455 $ 198,452 $ 9,721 $ 24,276 87.77% FIN $ 1,593,234 $ 1,295,426 $ 1,777,863 $ 297,808 $ 184,629 89.62% HR $ 468,696 $ 445,600 $ 533,560 $ 23,096 $ 64,864 87.84% IT $ 1,696,026 $ 1,397,357 $ 2,457,135 $ 298,669 $ 761,109 69.02% PDS $ 1,183,410 $ 1,125,288 $ 1,370,924 $ 58,122 $ 187,514 86.32% PW $ 2,713,947 $ 2,292,597 $ 3,093,630 $ 421,350 $ 379,683 87.73% SS $ 1,528,407 $ 1,170,084 $ 1,708,533 $ 358,323 $ 180,126 89,46% Totals $ 24,908,265 $ 21,265,611 $ 28,466,725 $ 3,642,654 $ 3,558,460 87.50% FY 2024 ACTUAL YTD (MARCH) FY 2023 ACTUAL YTD (MARCH) FY 2024 BUDGET YTD (MARCH) $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 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 17.1% 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 4/11/2024 EXPERIENCE SOUTHLAKE March 26, 2024 The Marq Financial Review MARQ 70.01 % 66.00% 106.08% Target ATT 1D1112023 9/30/2024 cc 78.59% 73.00% 107.65% Target ATT CEDC FINANCIAL DASHBOARD m nr3J261202411-36 AM LH 36.64% 38.00% 9641% Target ATT 2-17M 3-10M 1.94M 2-47M 232.14K 633.64K Revenue Expense Revenue Expense Revenue Expense Net Revenue: Current & Previous Year CCR LHR —Total Revenue LY 400K 47K 971C 3B3K 389V( 37W 3M 31K 81K e7K emc sac 54+ 53K a3 e.1c 22K 300K 327K '�� 278K 200K 305K 374K 318K 304K 311K 322K 314K 324K 318K 318K 325K 318K 335K 100K The Marq Rentals Revenue (Net) •CCa2enlal-Revenue LH-Rental-Revenue WKK sm 40K 30K WK �— 10K _ OK Mer2023 Apr 2023 M y2023 J-2023 JW 21123 A g2023 Sep 2023 Oct 2023 Nw 2023 0-21123 Jai 2024 Feb 21124 M-2024 The Marq Membership Revenue (Met) 25W 200K 150K 100K 50K OK MUr2023 Apr2023 1by2023 Jm2023 JJ2023 Aug2023 Sep2023 OU2023 Nov2023 Dm2023 Jm2024 Feh2024 Mkr2024 OK Wr2023 Apr 2023 Mey2W3 Jan 2023 .W120M Aug 2023 Sep 2023 Clti 2W3 Nov 2023 D-2023 Jen 2024 Feh 2024 Ur 2324 CHAMPIONS CLUB MEMBERSHIP TRENDS 4,000 3,500 3,000 N 2444 N CD 2,500 E 25C 5; 1 2,000 1,500 3635 3617 3530 3561 3580 3554 3545 - I ' 3496 3486 3230 3291_3487 3371 3413 3441 I� 3 �65 � '� �/ Trendline 3197 3162 /989 3076 �3131 3153 7 900 800 700 600 N C 500 .0 N c a� 400 7 N 300 200 100 1,000 a m a 1 0 CO f-- w O N N M It LO (D ti O m O N N M "t lf) O O m O r N r N N N N N N N N N N N N N M M M M M M M M M M M M 4 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 O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O 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 2 400 200 01157 0 0 -200 1 12{ -400 1 -33 - -600 410 -800 -698 -1000 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 931 909 780 854 n , iL4 13 192 1 1 L 1 6 24174 39 -568 57 -761 -698 -873 JOINS TERMS JOINS TERMS FY2022 FY2023 780 -568 854 -698 565 -391 645 -574 931 -761 909 -873 274 -165 313 -247 197 -156 192 -174 2747 -2041 2913 -2566 706 347 FAM � FAM-NC SENIOR YOUTH TOTALS 396 2�296 138 173 1 t ■ -8478 22 -297 -324 JOINS TERMS FY2024 396 -297 229 -225 296 -324 138 -84 73 -78 1132 -1008 124 NET 4000 3000 2000 1000 0 -1000 -2000 -3000 FY2024 CC Membership Terminations by Reason and by Month 140 120 100 80 60 40 20 0 iiiiiiiiiiiiiiOct-23 Nov-23 Dec-23 Jan-24 Feb-24 Mar-24 Apr-24 May-24 iiiiiiiiiiiiiiJun-24 �Jul-24 Aug-24 Sep-24 Totals % 121 Failed Payment 84 90 85 103 121 0 0 0 0 0 0 0 483 47.9°A loapmReason Given: too 5255 WIDOODODC 38 29 211918 1917211721 Oa0000a W 0 0 C 0 D 0 Q 5g000a00 Not Utilizing Membership RelocatingrTravel Transfer Unsatisfied with Facility or Amenities 53 21 19 3 44 19 17 0 36 16 21 2 52 38 17 1 56 29 21 5 0 0 0 0 U D 00 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 241 125 95 11 23.9% 12.41A 9.4% 1.1 % 1310 8 7 9 4aoa2000aoao aoa000 Selected other service No Reason IOther provider 4 13 0 10 0 8 0 7 2 9 0 0 0 0 0 0 0 0 0 0 0 0 0 0 6 47 0.6% 4.7% EXPERIENCE SOUTHLAKE Three Year Revenue Comparison by Month ,'I --� P, z% �o��t OG ,ate �OJ� OeG� r � � Z����� ■ Fiscal Year 2022 Fiscal Year 2023 Fiscal Year 2024 EXPERIENCE SOUTHLAI<,.,.,E