Item 3B2 Financial ReportCITY OF
SOUTHLAI<,,.-E
MONTHLY FINANCIAL
REPORT
May 2020
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 6/10/2020
ECONOMIC INDICATORS
National GDP: X -5.00%
GDP is defined as the output of goods and service:
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 1st quarter of 2020 decreased at a rate of
Housing Starts: x -30.2%
Housing starts in April 2020 were at a seasonally
adjusted rate of 891,000, which is 30.2% below the
revised previous month figure of 1,276,000 and
29.7% below the same month last year.
UNEMPLOYMENT RATES
National: x 13.3%
The National Unemployment rate dropped to 13.3%
in May from 14.7% in April 2020 due to the COVID-
19 crisis threw millions out of work. Workers in the
leisure and hospitality industry suffered the highest
unemployment rate of any industry at 39.3% as of
April 2020.
State-wide: x 12.8%
The Texas Unemployment rate for April 2020
increased to 12.8% from 4.7% in March 2020. April
unemployment rate is the state's worst on record.
In a short seven -week period during March and
April, more than 1.8M Texans applied for
unemployment insurance, which is more than in all
of 2019.
DFW Area: x 12.8%
The Dallas/Fort Worth/Arlington Metropolitan Area
unemployment rate for April increased to 12.8%
when compared to 4.6% in March 2020. Following
the 2008 financial crisis, the DFW area
unemployment average was just under 8% in 2009
and 2010.
FINANCIAL ACTIVITY
12.8%
in April 202O
1=4i
1 G3f
& 3t
G4f•
4%
296
096
20D8 2010 2012 2014 2016 2018 2020
Source: Bureau of Labor Statistics
City of Southlake Monthly Financial Report 2 6/10/2020
GENERAL FUND
OVERALL FUND PERFORMANCE:
GENERAL FUND REVENUE VS EXPENDITURES 2020
FY 2020
FY 2020
FY 2020 REVENUE FY 2020 EXPENDITURE 2019 EXPEND.
REVENUE
EXPENDITURE
VARIANCE
Oct $ 1,222,686
$ 2,363,689
$ (1,141,003)
$14,000,000
Nov $ 2,040,190
$ 3,573,571
$ (1,533,381)
Dec $ 11,056,112
$ 2,902,978
$ 8,153,134
$12,000,000
Jan $ 12,177,688
$ 4,005,943
$ 8,171,745
Feb $ 7,400,320
$ 3,154,520
$ 4,245,800
$10,000,000
Mar $ 2,160,861
$ 3,200,484
$ (1,039,623)
Apr $ 1,395,998
$ 2,911,352
$ (1,515,354)
$8000,000
May $ 2,208,199
$ 2,999,692
$ (791,493)
$6,000,000
Jun $ -
$ -
$
Jul $
$
$
$4,000,000
Aug $
$
$
Sep
$
$2,000,000
Tot $ 39,662,054
$ 25,112,229
$ 14,549,825
CHART OUTLOOK:—F
POSITIVE
Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep
The outlook for the year was positive
for the reporting period ending May 31, 2020. However in the current environment with COVID -19, the executive team will closely monitor and adjust financial forecast
accordingly.
REVENUE ANALYSIS
GENERAL FUND SALES TAX 2020-2018 COMPARISON
FY 2020
FY 2019
FY 2018
� FY 2020 � FY 2019 FY 2018
Oct $ 1,278,635
$ 1,253,417
$ 1,214,148
$2,500,000
Nov $ 1,309,584
$ 1,140,440
$ 1,272,500
Dec $ 1,993,686
$ 1,613,337
$ 1,744,684
Jan $ 1,360,873
$ 1,030,047
$ 1,135,430
$2,000,000
$ 1,011,429
$ 1,094,354
$ 1,055,400
Imp
Mar $ 1,162,936
$ 1,321,691
$ 1,251,079
$1,500,000
Apr $ 1,038,287
$ 1,294,023
$ 1,096,365
` 'NNW
May $ -
$ 1,295,321
$ 1,363,921
$1,000,000
Jun $
$ 1,274,338
$ 1,292,089
Jul $ -
$ 1,179,145
$ 1,206,050
Aug
$ 1,344,868
$ 1,265,360
$500,000
Sep
$ 1,354,327
$1,227,621
Tot $ 9,155,429
$ 15,195,307
$ 15,124,646
$-
Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep
CHART OUTLOOK: WARNING
FY 2020 was off to
a great start, year to date sales tax collections (sales from October 2019 through April 2020) are above the two previous years. FY 2020 collections are 4.67% and 4.40% above FY 2019 and 2018,
respectively. The economic
impact from COVID-19
will necessitate an amendment to the sales tax projections. As indicated on the chart, March and April 2020 sales were below both 2019 and 2018 sales for the
same period.
City of Southlake Monthly Financial Report 3 6/10/2020
0
GENERAL FUND
REVENUE ANALYSIS (continued)
PROPERTY TAX 3 YEAR TREND
FY 2020
FY 2019 FY 2018
■ FY 2020 FY 2019 FY 2018
Oct $ 790,236
$ 1,151,812 $ 217,086
$14,000,000
Nov $ 1,426,054
$ 1,552,708 $ 1,832,023
$12,000,000
Dec $ 9,161,119
$ 10,397,278 $ 6,601,683
$10,000,000
Jan $ 10,088,389
$ 9,985,201 $ 12,435,268
$8,000,000
Feb $ 4,237,797
$ 3,385,436 $ 3,744,931
Mar $ 420,930
$ 395,710 $ 196,116
$S,000,000
Apr $ 55,958
$ 156,647 $ 102,531
$4,000,000
May $ 105,567
$ - $ 99,690
$2,000,000
Jun $ -
$ 312,620 $ 426,191
$-� -
Jul * $ -
$ (1,295,201) $ (1,431,282)
$(2,000,000) Oct Nov Dec Jan Feb Mar Apr May Jun u Aug
Aug $ -
$ 59,318 $ -
$(4,000,000)
Sep $
$ 46,464 $ 137,747
Tot $ 26,286,050
$ 26,147,993 $ 24,361,984
* Net transfer of TIF revenues to
CHART OUTLOOK:
POSITIVE
TIF fund
2020 YTD property
tax collections ($26,286,050) are approximately
2.73% lower than 2019 YTD ($27,024,792) as of April. The tax rate reduction from .447 to .41 per $100 is the primary reason for the reduction in
revenue. As indicated
on the chart, the majority of the property tax revenue is collected in the first few months of the fiscal year.
PERMIT REVENUE 2020-2018 COMPARISON
FY 2020
FY 2019 FY 2018
� FY 2020 � FY 2019 FY 2018
Oct $ 134,067
$ 85,534 $ 126,131 $700,000
Nov $ 238,528
$ 75,588 $ 145,755
Dec $ 135,168
$ 160,859 $ 87,701 $600,000
Jan $ 204,931
$ 121,526 $ 126,075
Feb $ 212,195
$ 121,533 $ 199,087 $500,000
Mar $ 126,842
$ 186,152 $ 229,059
Apr $ 188,968
$ 111,970 $ 126,788 $400,000
May $ 128,791
$ 601,621 $ 98,364
Jun $ -
$ 111,503 $ 162,515 $300,000
Jul $
$ 163,760 $ 168,508
Aug $ -
$200,000
$ 155,328 $ 185,552
-
,
Sep
$ 474,884 $ 223,441 $100,000
mom -
Tot $ 1,369,490
$ 2,370,258 $ 1,878,976
Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep
CHART OUTLOOK: POSITIVE
The value of new construction permits ($73.6M+) issued for FY 2020 YTD is approximately 30.2% and 25.6% lower when compared to FY 2019 and FY 2018 respectively. However, total permit revenue as of May 31,
2020 is 6.5% less than FY 2019 and 20.2% higher than FY 2018 revenue.
City of Southlake Monthly Financial Report 4 6/10/2020
EXPENDITURE ANALYSIS
DEPARTMENTAL EXPENDITURES SUMMARY
FY
2020 YTD
FY
2019 YTD
FY 2019/2020 YTD
(MAY)
(MAY)
FY 2020 BUDGET
VARIANCE BUDGET VARIANCE
FY 2020 % SPENT
CIVIC)
$
631,271
$
614,440
$
1,034,611
$
(16,831) $
403,340
61.02%
COMM
$
284,473
$
280,628
$
486,472
$
(3,845) $
201,999
58.48%
CS
$
3,320,534
$
3,524,940
$
6,076,456
$
204,406 $
2,755,922
54.65%
CSO
$
307,607
$
292,603
$
527,181
$
(15,004) $
219,574
58.35%
DPS
$
11,457,648
$
11,209,228
$
18,451,018
$
(248,420) $
6,993,370
62.10%
ED
$
85,539
$
79,197
$
154,872
$
(6,342) $
69,333
55.23%
FIN
$
1,476,440
$
1,572,003
$
2,509,163
$
95,563 $
1,032,723
58.84%
HR
$
496,752
$
489,443
$
866,157
$
(7,309) $
369,405
57.35%
IT
$
1,700,049
$
1,417,275
$
2,858,866
$
(282,774) $
1,158,817
59.47%
PDS
$
1,324,703
$
1,365,810
$
2,293,889
$
41,107 $
969,186
57.75%
PW
$
2,886,615
$
2,850,118
$
4,846,636
$
(36,497) $
1,960,021
59.56%
SS
$
1,140,598
$
908,610
$
1,781,845
$
(231,988) $
641,247
64.01%
Totals
$
25,112,229
$
24,604,295
$
41,887,166
$
(507,934) $
16,774,937
59.95%
FY 2020 YTD (MAY)
FY 2019 YTD (MAY) FY 2020 BUDGET
$20,000,000
$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
CSO
DPS
ED FIN HR
IT PDS Pw SS
CHART OUTLOOK:
POSITIVE
As indicated on the
chart the 2020 expenditures are
higher when comparable to 2019 expenditures for the same period with an increase of 2.06% primarily
due to approved public safety pay plan adjustments and true -
up of IT investments. Overall
fund expenditures
are
trending
below budget.
City of Southlake Monthly Financial Report 5 6/10/2020