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Accuracy of Cumulative Budgeted Expenses ($ millions)

Desired Result:  Below Target

 
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Analysis of Performance

Citywide expenses through Q2 are just below budget, driving the green result YTD. Utilities remain closely managed and are expected to finish the year on target, supporting a positive overall outlook. Government expenditures, however, are running above budget: 

On the Governmental side, Personnel Costs are the primary driver, due to much lower-than-expected turnover in the first half of the year. Anticipated savings from position vacancies have not materialized, putting added pressure on the budget.

The City’s expense picture is generally positive, with Utilities staying on track, but higher personnel costs on the government side are creating pressure. As this trend is expected to continue, managerial adjustments are necessary to stay within authorized budget limits.



The City's Governmental Funds (non Utilities) is taking a multi-faceted approach to control expenses:

  • In Q2, a soft hiring pause was initiated, allowing vacancies to help offset personnel overages. As of the publication date of the Q2 dashboard, that hiring 'pause' has become a more formal hiring 'freeze' requiring executive approval to fill vacant positions.
  • Departments are being asked to tighten discretionary spending and prioritize essential services.
  • Ongoing monitoring of personnel costs and turnover trends will guide further adjustments.

These proactive steps aim to slow expense growth, protect essential services, and create flexibility to manage budget pressures through year-end.

Metric Definition
This metric covers the accuracy and precision of planned (budgeted) and actual expenditures. Expenditures include operating costs, such as personnel, insurance, consulting and supplies, as well as debt payments and capital equipment purchases. Not included are the costs of large capital projects that occur over several years and have a beginning and end.
Expenditures are separated into Governmental and Enterprise. Governmental expenditures are for those activities that are primarily supported by taxes and grants and to a much lesser degree from fees. Examples are Police, Streets Maintenance, Parks, Museum, Fire, etc. Alternatively, Enterprise expenditures related to activities that are accounted for like a business and are entirely supported by fees charged to users. These include Light and Power, Water, Wastewater, Storm Drainage and Golf.
Why Is This Important?
Accuracy and precision in expense budgeting is very important to ensure the City can provide the full amount of programs and services citizens expect. Over estimating budgeting expenses takes money away from additional programs and services that could be provided to the community. The City strives to do a better job being accurate with our expense forecasts without going over the Council approved budget. The City is not allowed to go over budget according to statutory law.
City Organization Impact on Performance
High – The City has direct control over the amounts it forecasts and how much it actually spends. Historical analysis of actual spending to budgeted spending should allow the City to improve the accuracy of its budgeting.
Benchmark Information
This metric contains no benchmark data because the target for this metric is not influenced by the performance of other cities. External reference points would add no value to the data because the City's goal is always to be as accurate as possible with its own budgeted expenses. The evaluation criteria for this metric was revised so that Green performance is between 96-100% of the target, Yellow performance is between 93-96% of the target and Red performance is below 93% of the target.