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Actual Revenue Compared to Budget

Desired Result: Above Target

Analysis of Performance

At the end of Q3, revenue was over target by $29.9M in the combined governmental and enterprise funds. Governmental fund revenue exceeded its budget by $16.9M. Sales and Use Tax is $9.9M over budget, excluding rebate incentives. This growth represents an increase of $9.5M over the first nine months of 2013. The City budgeted for a 1.3% growth in sales tax for 2014; however, at the end of Q3, growth is at 7.1%. Property taxes also exceed budget by $0.5M; by year end, property taxes are expected to exceed budget by $0.6M. Heavy construction and growth activities are contributing to Capital Impact Fees being $4.6M higher than budgeted and Building Permits $0.9M higher than budget.

Enterprise Fund revenue also exceeded its target by $13.0M, which can all be attributed to Utility Impact Fees driven by construction and growth activities. Included in that total is a special payment from Fort Collins-Loveland Water District per a newly signed agreement. Wastewater is seeing fewer customers using sub-meters than had been projected, resulting in its being $1.0M over forecast. Light and Power operating revenues are lower than budgeted by $2.2M and are less than the same periods last year by $0.8M. The lower revenue in Light & Power is in contrast with an average rate increase of 2% in 2014.

Metric Definition

This metric covers differences from anticipated (budgeted) and actual revenue. Revenue includes taxes, fees, grants, fines, interest earnings, etc. Revenue is separated into Governmental and Enterprise depending on the activity it supports. Governmental revenues are typically taxes, grants and fines used to support police, streets, museum, fire and parks. Examples of Enterprise revenue are fees for energy, water, wastewater and golfing.

Why Is This Important?

Accuracy to budgeted revenue is very important to ensure the City can cover its budgeted expenses while maintaining healthy fund balances. The City strives to do a better job being accurate with our revenue forecasts.

City Organization Impact on Performance

High - The City has direct control over its revenue forecasts. Historical analysis of actual revenue compared to budgeted revenue, along with a good understanding of the economic climate should allow the City to improve the accuracy of its revenue forecasts.

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 revenues.