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Accuracy of Cumulative Budgeted Expenses ($ millions)

Desired Result:  Below Target

 
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Analysis of Performance

Governmental:
$9.0 million favorable variance YTD.  $9.5 million timing variance in Sustainability Services for the purchase of the Albertson's and hotel property expected to close in late Q2 or early Q3. $2.1 million over budget with Poudre Fire Authority resulting from timing of sales/use tax and property tax collections running ahead of budget and distributions to PFA now based on actuals as part of updated IGA. Overall favorable variance of $3.3M in IES is primarily tied to $3.1 million in YTD Medical/Dental claims savings. Police Services is $1.2 million over budget due to full staffing levels and higher O/T.

Utilities:
$2.9 million under budget YTD, plus approximately $900k was incorrectly charged to L&P for PILOTs in March and will be corrected in April.



Monitoring staffing levels, personnel costs and associated vacancy factors. 2Q QSARS will address potential 5% reductions to 2025/2026 expenditures.

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.