Accuracy of Cumulative Budgeted Expenses ($ millions)

Desired Result:  Above Target

 
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Analysis of Performance


Governmental:

Community Services: $1.3M in personnel costs due to timing of hourly hires, vacancies, and frozen positions; $651K in Purchased Property Services – timing of payments and contracts; $646K in Purchased Prof & Tech – timing of invoices and artist payments throughout Community Services.

PDT: $1.7M in Streets/traffic maintenance work due to weather delays; $1.3M in personnel due to frozen/vacant positions ($1.3M in personnel offset by $425k hiring freeze for net of $875k); $581k in fuel and vehicle maintenance due to running reduced routes in Transfort and fewer repairs in other areas. $208k due to difference in original estimate of reimbursement for development vs. actual in engineering; $183k in Transportation Services due to reduced demand for dial-a-ride and dial-a-taxi services; $177k in building and land maintenance due to timing; $120k due to timing of payment to Greeley for Poudre Express route. The remaining underspend is a combination of small items under $100k each;Over $882k in de-icing materials and third party snow removal services.

 IES: HR Benefits $1.8M in YTD Medical and Dental claims, $1.1M in encumbrances of Ops Services in-progress projects, and planned capital projects, $453 in YTD vehicle repair/maintenance/parts/supplies savings, $419 in Stop Loss premium savings from lasered claimants, $417 under CPIO for Ft. Collins Visitor’s Bureau annual Lodging Tax disbursement (will be year-long), $236 in fuel underspend. 

Sustainability: $1,236k timing variance for the URA Mall commitments.  Estimated to be up to $500k under budget by year-end due to a reduction in the property tax last year for a property in the Mall URA.  June & July payments on temporary hold while URA staff evaluates our legal authority to retain a portion of the property tax increment to cover any future negative balance with the County due to a property owner disputing their valuation.  Currently, just behind calendarized payment schedule.  $620k variance for the Small Business Relief Fund administered through an agreement with the City and the County.   We intentionally overestimated the allocation to ensure we would not have to go back later to change the appropriation. Any un-used appropriation will be released through Clean Up in October unless any changes from the State Legislature changing the program to let us use the balance differently.

Utilities:

Light & Power - System Additions & Replacements $1,166 (Utility Supplies are under budget $475, these supplies are for new construction and system capacity upgrades; construction activity may pickup as there are some recent large projects, Motor Vehicles under budget by $357, waiting on delivery of 2 vehicles but budget has come through for 3 total, Consulting also under budget by $314, this is reserved for costs related to the OASIS project.)  Energy Services $971 (Energy Services Program $714; Consulting $467, Rebates & Incentives $121, mostly due to the timing of payments to vendors/partners and the pace of participation in programs.  Community Renewables is under budget $154 mostly due to Conservation Incentives and the timing of solar installations.  Demand Response is under budget by $104 mostly for Consulting Services due to the timing of vendor payments.)

Purchase Power - Purchase Power-Tariff 1 $1,794 (weather and actual demand (COVID event changes) for the year are key factors on the spend in Tariff 1 from PRPA). 

CS&A - IT $371 (Software Maint $180, Personnel $116, Hardware Maint $64, Consulting Services $33 and Computer Software $21 , partially offset by Other Prof & Tech Services ($83) (staff augmentation due to vacancies and project support)); Executive Director $298 (budget distribution timing vs actuals for various project and consulting needs); Support Services $185 (Repair & Maint Svcs $84, Utility Services $32, Donations & Sponsorships $25 (Related to a one-time PAF gift made appropriated to CS&A), and Security Services $22); Minor Capital $85 (Locates truck purchases pending but still planned, $76).

Water - Engineering $297 (Consulting Services $238 (primarily due to the timing of the Large Valve Maint. work vs original spend assumption) and Personnel $34);  Minor Capital $291 (Construction Contracts $135 (WTF: utilized as needed), Other Capital Outlay $79 ($20 encumbered for water filter material), Building Maint. Services $37 (WTF: utilized as needed)); Water Treatment $282 (Construction Services $67 (Cameron Peak Fire (CPF) budget distribution to actual spend), Chemical Supplies $59, Other Prof. & Technical $42 (Watershed Mgmt.$24 (Urban lakes water quality encum. o/s $18), CPF $14 (spent in different objects from budget)), Land/Bldg. Maint Supplies $33, Testing Services $26 (Big Thompson Watershed Forum transition));  Other Payments & Transfers $212 (Consulting Services $210 (all encumbered for OASIS, year-end spend TBD).




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.