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Item 3B2off - CITY OF S0UTHLA1<,.,,,E MONTHLY FINANCIAL REPORT mr- 11 1 December 2022 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 14% compared to seasonal trends Negative = Negative Variance of > 4% compared to seasonal trends. EU- City of Southlake Monthly Financial Report 1 1/17/2023 ECONOMIC INDICATORS NATIONAL ECONOMY National GDP: V 3.2% 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 estimated GDP for the 3rd quarter of 2022 increased at a rate of 3.2%. In the 2nd quarter of $45,000,000 2022, GDP decreased at a rate of 0.6%. $40,000,000 V -0.5% Housing starts in November were at a seasonally adjusted rate of 1,427,000, which is 0.5% below the revised previous month figure of 1,434,000. UNEMPLOYMENT RATES National: 3.5% The National Unemployment rate for December 2022 decreased to 3.5% when compared to 3.6% in November 2022. State-wide: V 4.0% The Texas Unemployment rate for November 2022 (preliminary) remained unchanged at 4.0% from October 2022. DFW Area: 3.3% The Dallas/Fort Worth/Arlington Metropolitan Area unemployment rate for November 2022 (preliminary) decreased slightly to 3.3% when compared to 3.4% in October 2022. $35,000,000 $30,000,000 $25,000,000 $20,000,000 $15,000,000 $10,000,000 $5,000,000 *October -December 2019* FINANCIAL ACTIVITY 2020* 2021* 2022* ■ New Construction permit values 2023* City of Southlake Monthly Financial Report 2 1/17/2023 i GENERAL FUND OVERALL FUND PERFORMANCE: GENERAL FUND REVENUE VS EXPENDITURES 2022 FY 2023 FY 2023 $8,000,000 REVENUE EXPENDITURE VARIANCE FY 2023 REVENUE � FY 2023 EXPENDITURE—rr2022 EXPEND. Oct $ 624,773 $ 2,824,236 $ (2,199,463) $7,000,000 Nov $ 2,518,723 $ 3,685,598 $ (1,166,875) Dec $ 7,198,034 $ 4,318,832 $ 2,879,202 $6,000,000 Jan $ - $ - $ AL Feb $ $ - $ - $5,000,000 Mar $ - $ - $ - $4,000,000 Apr $ $ $ May $ - $ - $ - $3,000,000 Jun $ $ $ Jul $ $ $ $2,000,000 Aug $ $ $ Sep $ $ $ $1,000,000 Tot $ 10,341,530 $ 10,828,666 $ (487,136) $ Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep CHART OUTLOOK: POSITIVE The outlook for the year is positive as overall revenues and expenditures are on target with budget. REVENUE ANALYSIS GENERAL FUND SALES TAX 2023-2021 COMPARISON FY 2023 FY 2022 FY 2021 FY 2023 FY 2022 FY 2021 Oct $ 1,814,981 $ 1,613,415 $ 1,299,576 $3,000,000 Nov $ 1,813,575 $ 1,652,674 $ 1,084,677 Dec $ - Jan $ $ 2,456,532 $ 1,602,323 $ $ 1,926,407 1,256,119 $2,500,000 Feb $ $ 1,388,859 $ 978,395 $2,000,000 Mar $ $ 1,975,175 $ 1,727,925 Apr $ $ 1,714,270 $ 1,470,896 $1,500,000 MEN May $ $ 1,725,777 $ 1,262,973 Jun $ $ 1,792,755 $ 2,586,036 $1,000,000 Jul $ $ 1,607,427 $ 1,449,136 Aug $ $ 1,659,141 $ 1,427,525 $500,000 Sep $ $ 1,640,639 $ 1,687,605 Tot $ 3,628,556 $ 20,828,987 $ 18,157,270 $- Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep CHART OUTLOOK: POSITIVE Year to date sales tax collections are trending above FY 2022 (11.1%) and FY 2021 (52.2%) collections. November sales were 9.7% and 67.2% above November collections for FY 2022 and FY 2021, respectively. 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 1/17/2023 GENERAL FUND REVENUE ANALYSIS (continued) PROPERTY TAX 3 YEAR TREND FY 2023 FY 2022 FY 2021 ■ FY 2023 ■ FY 2022 FY 2021 Oct $ 380,169 $ 653,703 $ 778,578 $14,000,000 Nov $ 2,011,080 $ 2,017,203 $ 1,582,957 $12,000,000 Dec $ 4,964,620 $ 6,068,454 $ 6,036,699 $10,000,000 Jan $ - $ 11,588,414 $ 13,167,125 $8,00o,000 Feb $ $ 5,872,247 $ 4,445,041 Mar $ - $ 584,684 $ 411,151 $6,000,000 Apr $ $ 554,247 $ 259,058 $4,000,000 May $ - $ 151,717 $ 152,945 ' $2,000,000 Jun $ $ 502,344 $ 389,839 $- � Jul * $ - $ (1,310,741) $ (1,365,991) $(2,000,000) Oct Nov Dec Jan Feb Mar Apr May Jun 1T' Aug Aug $ $ 69,630 $ 52,655 $(4,000,000) Sep $ - $ 111,205 $ 190,848 Tot $ 7,355,869 $ 26,863,107 $ 26,100,905 * Net transfer of TIF revenues to TIF CHART OUTLOOK: POSITIVE fund As of December the 2023 YTD property tax collections ($7,355,869) are approximately 15.8% and 12.4% lower than 2022 YTD ($8,739,360) and 2021 YTD ($8,398,234), 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 2023-2021 COMPARISON FY 2023 FY 2022 FY 2021 FY 2023 FY 2022 FY 2021 Oct $ 137,332 $ 214,445 $ 50,043 $900,000 Nov $ 118,803 $ 185,109 $ 69,734 Dec $ 88,212 $ 94,663 $ 102,515 $800,000 Jan $ - $ 167,045 $ 88,737 $700,000 Feb $ $ 111,545 $ 76,270 Mar $ - $ 154,046 $ $600,000 150,142 Apr $ $ 277,691 $ 124,870 $500,000 May $ - $ 788,270 $ 136,364 $400,000 Jun $ $ 133,244 $ 158,786 Jul $ - $ 192,902 $ 170,985 $300,000 Aug $ $ 184,578 $ 217,599 $200,000 Sep $ - $ $ Tot $ 344,347 $ 2,658,371 $ 658,371 568,982 1,568,027 $100,000 027 , $- CHART OUTLOOK: POSITIVE Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep The value of new construction permits ($41.3M+) issued for FY 2023 YTD is approximately 30.4% and 45.0% higher when compared to FY 2022 and FY 2021, respectively. FY 2023 collections are 30.3% lower and 54.9% higher when compared to FY 2022 and 2021, respectively. The permit revenue year to date is trending above budget therefore the outlook is considered positive. City of Southlake Monthly Financial Report 4 1/17/2023 EXPENDITURE ANALYSIS DEPARTMENTAL EXPENDITURES SUMMARY FY 2023 ACTUAL FY 2022 ACTUAL YTD FY 2023 BUDGET FY 2022/2023 YTD YTD (DECEMBER) (DECEMBER) YTD (DECEMBER) VARIANCE BUDGET VARIANCE FY 2021 % SPENT CIVIC) $ 251,576 $ 242,831 $ 297,712 $ (8,745) $ 46,136 84.50% COMM $ 182,810 $ 172,205 $ 184,633 $ (10,605) $ 1,823 99.01% CS $ 1,516,983 $ 1,267,970 $ 1,840,600 $ (249,013) $ 323,617 82.42% CSO $ 123,970 $ 129,188 $ 169,031 $ 5,218 $ 45,061 73.34% CPS $ 4,696,807 $ 4,199,768 $ 5,743,928 $ (497,039) $ 1,047,121 81.77% ED $ 87,952 $ 64,897 $ 97,672 $ (23,055) $ 9,720 90.05% FIN $ 549,806 $ 659,551 $ 817,720 $ 109,745 $ 267,914 67.24% HR $ 210,257 $ 183,037 $ 271,535 $ (27,220) $ 61,278 77.43% IT $ 687,436 $ 757,528 $ 918,653 $ 70,092 $ 231,217 74.83% PDS $ 601,691 $ 503,012 $ 684,485 $ (98,679) $ 82,794 87.90% PW $ 1,070,018 $ 881,398 $ 1,431,310 $ (188,620) $ 361,292 74.76% SS $ 849,360 $ 772,710 $ 874,805 $ (76,650) $ 25,445 97.09% Totals $ 10,828,666 $ 9,834,095 $ 13,332,084 $ (994,571) $ 2,503,418 81.22% FY 2023 ACTUAL YTD (DECEMBER) FY 2022 ACTUAL YTD (DECEMBER) FY 2023 BUDGET YTD (DECEMBER) $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 CIVIC, COMM CS CSO DPS ED FIN HR IT PDS Pw SS CHART OUTLOOK: I POSITIVE As indicated above, 2023 expenditures are above 2022 expenditures for the same period with a increase of 10.1% primarily due to the employee compensation system moving DPS to the 80th percentile. The outlook is positive expenditures are below budgeted expenditures for the fiscal year. City of Southlake Monthly Financial Report 5 1/17/2023