Actual Revenue Compared to Budget
- Analysis of Performance
- Metric Definition
- Why Is This Important?
- City Organization Impact on Performance
- Benchmark Information
Analysis of Performance
At the end of 2013, revenue was over target by $23.4M in the combined governmental and enterprise funds. Governmental fund revenue exceeded it budget by $8.8M. Of the $8.8M, sales and use tax is $5.7M over budget, excluding rebate incentives. The City budgeted for a 2.7% growth in sales tax but realized 4.4%. Due to increased construction and development activities, related revenues exceeded budget by $4.1M. Examples of these revenues are building permits and capital impact fees. Enterprise fund revenue also exceeded its target by $14.6M. Utility impact fees were up $9.8M due to higher economic construction activities. Lastly, Light and Power revenues increased $4.8M due to a fee increase as well as an increase in kilowatt consumption.
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.
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.