Memorandum

DATE TO

July 29, 201 1 The Honorable Mayor and Members of the City Council
Financial Forecast Report

CITY OF DALLAS

SuBJEcT

For your information, attached is the financial forecast for FY 2010-11, based on information through May. General Fund revenues are projected to be $391 ,000 below budget and expenditures are projected to be $1,300,000 below budget. The General Fund is below budget as a result of delays in hiring offset by higher than anticipated prices for fuel. This expense will be monitored closely and may require future adjustments to the forecast as we proceed further into the fiscal year. We wiN continue to closely monitor revenues and expenditures and keep you informed.

f//

V
Mary K. Suhm City Manager Attachment
C:

AC. Gonzales, First Assistant City Manager Ryan S. Evans, Assistant City Manager Jill A. Jordan, P.E., Assistant City Manager Forest Turner, Assistant City Manager Joey Zapata, Interim Assistant City Manager Jeanne Chipperfield, Chief Financial Officer

Dallas

Together, we do it better!

DRAFT
GENERAL FUND COMPARISON OF 2010-11 REVENUES AND EXPENDITURES AS OF MAY 31, 2011 (000s)
7/29/2011 4:55 PM

ITEM

BUDGET

YEAR TO DATE

YEAR-END FORECAST

BUDGET VS FORECAST VARIANCE

Revenues Expenditures Sub Total Use of one time resources

$1,001,318 $1,008,873 ($7,555) $7,555

$756,249 $646,202 $110,047

$1,000,927 $1,007,573 ($6,646) $7,555

($391) ($1,300) $909

Net Excess/(Deficiency) of Revenues Over Expenditures and Transfers to Reserves

($0)

$909

7/29/2011 4:55 PM

FINANCIAL FORECAST REPORT FY 2010-11 AS OF MAY 31, 2011

GENERAL FUND Revenues Total General Fund revenues are estimated to be $391,000 below budget. o Oncor Electric revenues are projected to be $3,584,000 above budget primarily due to an increase in consumption as a result of abnormal fall and winter weather. AT&T Telephone revenues are projected to be $1,651,000 below budget due to customers switching to other providers and also switching to wireless service. The general decline in the economy also results in a reduction in business phone lines. Other franchise revenues are projected to be $2,197,000 above budget due to higher than budgeted revenue from growth in fiber optic and AT&T U-verse franchise fees. Interest revenues are projected to be $1,498,000 below budget due to lower than budgeted interest rates. Parking Fines are projected to be $342,000 below budget due to reduced citations. Red Light Camera revenues are projected to be $943,000 below budget due to decreased citations and delays in adding and relocating cameras. Public Library revenues are projected to be $67,000 below budget due to reduced collection of fines. Park revenues are projected to be $1,107,000 above budget due to revenue received from classes held at various recreation centers. Private Disposal revenues are projected to be $5,848,000 below budget primarily due to the delayed improvement to the general economy, and to the construction industry in particular, which constitutes the greatest portion of the revenue from commercial customers. The trend in commercial businesses to divert or recycle wastes has also decreased the waste stream accepted at the city landfill. Emergency Ambulance revenues are projected to be $3,700,000 below budget due to delays associated with the conversion to the new billing and collection agency. Security Alarm revenues are projected to be $495,000 below budget primarily due to less than anticipated fees for false calls. Vital Statistics revenues are projected to be $296,000 below budget due to a decrease in the number of requests for birth and death certificates. Other Charges for Services are projected to be $2,677,000 below budget primarily due to decrease in reinspection fees as a result of improved compliance in multi-family, restaurant, and non-owner occupied properties. Interfund Revenue is projected to be $2,889,000 below budget due to decreased transfers from other City funds. Miscellaneous revenues are projected to be $1,904,000 above budget primarily due to a reimbursement from Atmos Energy for rate case expenses previously incurred by the City and paper and cardboard recycling.

o o o

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Expenditures Total General Fund expenditures are estimated to be $1,300,000 below budget. o Independent Audit is projected to be $300,000 above budget due to increased audit fees, resulting from additional audit work required for the American Recovery and Reinvestment Act (ARRA) grants for FY10 and FY11. 2

FINANCIAL FORECAST REPORT FY 2010-11 AS OF MAY 31, 2011

Judiciary is projected to be $154,000 below budget primarily due to delays in hiring and a delay in the implementation of the Night Court. Sustainable Development and Construction is projected to be $110,000 below budget primarily due to delays in hiring. Trinity Watershed Management is projected to be $98,000 above budget due to legal expenses related to the Trinity River Corridor Project.

PROPRIETARY o Sustainable Development/Construction revenues are projected to be $1,763,000 above budget due to an increase in construction activity. Equipment Services revenues and expenses are projected to be $3,807,000 and 3,749,000, respectively, above budget primarily due to higher than budgeted fuel prices and increased body shop costs which are charged back to the customer department. Express Business Center revenues are projected to be $399,000 above budget primarily due to an increase in the sale value of vehicles sold at auto pound and scrap metal sales.

GENERAL FUND FORECAST OF FY 2010-11 REVENUES AS OF May 31, 2011 (000s)

REVENUES YEAR TO DATE YEAR-END FORECAST BUDGET VS FORECAST VARIANCE

BUDGET TAXES Ad Valorem Tax Sales Tax FRANCHISE REVENUES Oncor Electric AT&T Atmos Energy Time Warner Cable Other TOTAL TAXES & FRANCHISE REVENUES LICENSES AND PERMITS INTEREST EARNED INTERGOVERNMENTAL FINES AND FORFEITURES Municipal Court Vehicle Towing & Storage Parking Fines Red Light Camera Fines Public Library TOTAL FINES CHARGES FOR SERVICE Sanitation Service Parks Private Disposal Fees Emergency Ambulance Security Alarm Street Lighting Vital Statistics Other TOTAL CHARGES INTERFUND REVENUE MISCELLANEOUS TOTAL REVENUE USE OF ONE-TIME RESOURCES TOTAL RESOURCES

$435,785 $204,810

$434,144 $106,316

$439,983 $212,114

$4,199 $7,304

$46,641 $19,668 $11,355 $6,000 $13,486 $737,745 $9,893 $2,413 $6,312

$38,767 $9,087 $7,770 $3,390 $8,191 $607,666 $6,443 $670 $4,893

$50,225 $18,017 $11,775 $5,995 $15,683 $753,792 $9,427 $915 $6,599

$3,584 ($1,651) $420 ($5) $2,197 $16,047 ($466) ($1,498) $287

$16,560 $7,774 $5,988 $8,344 $670 $39,337

$10,243 $4,856 $2,642 $0 $359 $18,101

$15,918 $7,602 $5,647 $7,401 $603 $37,171

($642) ($172) ($342) ($943) ($67) ($2,166)

$59,883 $7,488 $23,396 $19,274 $4,650 $1,493 $1,853 $19,344 $137,381 $54,238 $14,000 $1,001,318 $7,555 $1,008,873

$40,637 $5,085 $10,625 $8,123 $2,857 $493 $1,042 $14,169 $83,031 $24,779 $10,666 $756,249 $0 $756,249

$60,182 $8,595 $17,548 $15,574 $4,155 $1,493 $1,557 $16,667 $125,770 $51,350 $15,904 $1,000,927 $7,555 $1,008,482

$298 $1,107 ($5,848) ($3,700) ($495) $0 ($296) ($2,677) ($11,611) ($2,889) $1,904 ($391) $0 ($391)

GENERAL FUND GENERAL FUND FORECAST OF FY 2010-11 EXPENDITURES FORECAST OF FY 2010-11 EXPENDITURES AS OF MAY 31, 2011 AS OF JANUARY 31, 2011 (000s) (000s)
BUDGET VS EXPENDITURES DEPARTMENT Building Services Business Dev/Procurement Svcs City Attorney's Office City Auditor's Office City Controller's Office City Manager's Office City Secretary's Office Civil Service Code Compliance Court Services Elections Fire Housing / Community Services Human Resources Independent Audit Judiciary Library Management Services Mayor and Council Non-Departmental Office of Cultural Affairs Office of Economic Development Office of Financial Services Park and Recreation Police Public Works and Transportation Sanitation Services Street Lighting Street Services Sustainable Dev/Construction Trinity Watershed Management OTHER Appraisal Districts Dallas County Tax Collection Jail Contract - Lew Sterrett RESERVES AND TRANSFERS Salary and Benefit Reserve Contingency Reserve Liability/Claims Fund EXPENDITURES BUDGET $20,888 $2,088 $9,944 $2,107 $3,558 $1,531 $1,592 $1,022 $26,846 $10,999 $2,668 $195,822 $7,450 $3,064 $772 $2,964 $19,591 $2,524 $3,618 $31,916 $12,530 $505 $1,539 $63,700 $403,070 $11,875 $72,773 $17,338 $49,002 $915 $151 YEAR TO DATE $14,696 $1,295 $6,375 $1,328 $2,327 $1,216 $1,061 $681 $16,531 $6,630 $1,089 $132,131 $5,951 $2,232 $0 $2,256 $13,248 $2,444 $2,185 $22,070 $8,956 $433 $848 $44,429 $255,788 $11,857 $41,041 $11,852 $25,114 $904 $55 YEAR-END FORECAST $20,813 $2,067 $9,794 $2,100 $3,465 $1,496 $1,586 $1,031 $26,783 $10,515 $2,668 $195,996 $7,427 $3,041 $1,072 $2,810 $19,477 $2,449 $3,594 $31,319 $12,478 $498 $1,482 $63,700 $401,884 $12,386 $74,028 $17,161 $48,952 $805 $249 FORECAST VARIANCE ($75) ($21) ($150) ($7) ($93) ($35) ($6) $9 ($62) ($485) $0 $174 ($23) ($23) $300 ($154) ($114) ($75) ($25) ($597) ($51) ($7) ($56) $0 ($1,186) $511 $1,255 ($177) ($50) ($110) $98

$3,258 $576 $8,116

$3,216 $552 $5,411

$3,216 $552 $8,116

($42) ($24) $0

$2,348 $3,646 $6,569 $1,008,873

$0 $0 $0 $646,202

$2,348 $3,646 $6,569 $1,007,573

$0 $0 $0 ($1,300)

PROPRIETARY FUNDS FORECAST OF FY 2010-11 REVENUES AND EXPENDITURES AS OF MAY 31, 2011 (000s)

REVENUES AND EXPENDITURES DEPARTMENT BUDGET YEAR TO DATE YEAR-END FORECAST

BUDGET VS FORECAST VARIANCE

Aviation Revenues Expenses Net Excess of Revenues Over Expenses/Transfer Convention Center Revenues Expenses Net Excess of Revenues Over Expenses/Transfer Municipal Radio Fund Revenues Expenses Net Excess of Revenues Over Expenses/Transfer Sustainable Dev/ Construction Revenues Expenses Net Excess of Revenues Over Expenses/Transfer Water Utilities Revenues Expenses Net Excess of Revenues Over Expenses/Transfer Communication & Information Svcs Revenues Expenses Net Excess of Revenues Over Expenses/Transfer

$47,007 $47,007 $0

$30,802 $20,034 $10,768

$45,801 $45,801 $0

($1,206) ($1,206) $0

$58,636 $58,636 $0

$36,455 $38,837 ($2,383)

$60,223 $60,393 ($170)

$1,588 $1,757 ($170)

$2,717 $2,717 $0

$1,401 $1,600 ($199)

$2,787 $2,628 $158

$70 ($89) $158

$17,298 $16,791 $507

$15,451 $9,681 $5,770

$19,060 $16,531 $2,529

$1,763 ($260) $2,022

$531,240 $531,240 $0

$304,855 $248,798 $56,057

$512,177 $512,177 $0

($19,064) ($19,064) $0

$48,019 $48,155 ($136)

$28,870 $25,559 $3,311

$48,123 $47,521 $602

$104 ($633) $737

PROPRIETARY FUNDS FORECAST OF FY 2010-11 REVENUES AND EXPENDITURES AS OF MAY 31, 2011 (000s)

REVENUES AND EXPENDITURES DEPARTMENT BUDGET YEAR TO DATE YEAR-END FORECAST

BUDGET VS FORECAST VARIANCE

Equipment Services Revenues Expenses Net Excess of Revenues Over Expenses/Transfer Express Business Center Revenues Expenses Net Excess of Revenues Over Expenses/Transfer

$44,933 $44,933 $0

$26,322 $27,443 ($1,122)

$48,741 $48,682 $58

$3,807 $3,749 $58

$3,901 $4,049 ($148)

$2,770 $2,596 $174

$4,301 $4,185 $115

$399 $136 $264

OTHER FUNDS FORECAST OF FY 2010-11 REVENUES AND EXPENDITURES AS OF MAY 31, 2011 (000s)

REVENUES AND EXPENDITURES DEPARTMENT Employee Benefits Risk Management BUDGET $512 $1,268 YEAR TO DATE $252 $756 YEAR-END FORECAST $512 $1,290

BUDGET VS FORECAST VARIANCE $0 $22

9-1-1 System Operations Revenues Expenses Net Excess of Revenues Over Expenses/Transfer

$13,457 $13,912 ($454)

$9,265 $7,649 $1,616

$13,753 $13,575 $178

$295 ($336) $632

Storm Water Drainage Revenues Expenses Net Excess of Revenues Over Expenses/Transfer

$48,234 $50,119 ($1,885)

$33,535 $22,590 $10,944

$49,195 $49,832 ($637)

$961 ($287) $1,248

DEBT SERVICE FUND FORECAST OF 2010-11 REVENUES AND EXPENDITURES AS OF MAY 31, 2011 (000s)

DEBT SERVICE Beginning Balance Revenues Expenses

BUDGET $3,632 $259,660 $260,685

EXPENDITURES AND REVENUES YEAR TO DATE $0 $212,604 $187,800

YEAR-END FORECAST $3,741 $253,059 $253,882

BUDGET VS FORECAST VARIANCE $109 ($6,601) ($6,803)

Ending Balance

$2,607

$24,804

$2,918

$311

CONTINGENCY RESERVE STATUS

Beginning Balance October 1, 2010 Elections - Increase elections services contract with Dallas County (May 25, 2011, CR# 11-1390) Balance as of May 31, 2011

$5,013,005 ($1,576,119) $3,436,886

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LIABILITY/CLAIMS FUND

Beginning Balance October 1, 2010 Paid October 2010 Paid November 2010 Paid December 2010 Paid January 2011 Paid February 2011 Paid March 2011 Paid April 2011 Paid May 2011 Balance as of May 31, 2011

$8,574,065 ($28,115) ($93,596) ($1,117,421) ($60,324) ($570,568) ($463,426) ($388,720) ($303,641) $5,548,253

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