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Accuracy of Budgeted Expenses

Desired Result: Above Target

Analysis of Performance


At the end of Q3, Governmental spending was $11.8M under budget. Salaries and Benefits are under budget by $2.2M due to vacancies in various departments. Purchased Professional and Technical Services are under budget by $1.7M due predominantly to the timing of contract spending. Department spending excluding the above categories include: Police Services are under budget by $0.7M due to the timing of vehicle and equipment in Patrol and Investigations. Operation Services budgets contingencies for major maintenance and is net under budget by $0.7M. Parks is under budget to-date by $0.8M due to mostly to the timing of repair and maintenance services and capital improvements. FC Moves is under budget by 0.4M in infrastructure outlay. Natural Areas for land purchases in December and is currently over budget by $2.0M due to timing of land purchase, offset by underspending in property services and other services of $2.2M. Urban Renewal is under budget by $0.7M, primarily due to timing for debt service. Another $1.8M is pending for equipment to be obtained via capital leasing. All other expenses are net better by $2.6M.

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 expennse 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.