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Accuracy of Budgeted Expenses

Desired Result: Above Target

Analysis of Performance

At the end of Q3, Governmental spending was $9.8M under budget. Natural Areas budgets contingencies for land purchases and currently has $2.3M available. Fleet Services and Building Services budgets contingencies for major maintenance and currently have savings of $1.4M and $1.1M respectively. The following areas have underspending due to delays in projects and equipment purchases: $1.7M in Engineering, $0.9 in Cultural Services, $0.9M in Parks and $0.7M in Community Development and Neighborhood Services.



The $10.4M of under spending in the Enterprise Fund shows up in several utility funds. Conventional power purchases are under budget by $4.4M. The kWh purchased is 2.1% less than same periods last year. The Water Fund is under budget by $2.8M, which is primarily driven by $1.8M in Water Production savings. Of the $1.8M savings, High Park Fire soil stabilization represents $0.9M and chemicals make up $0.4M. Customer Service & Administration are under budget by $1.6M as a result of several projects being delayed. Vacancy savings across all utilities have resulted in savings of $1.4M.

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.