CITY OF SACO About this presentation FINANCIAL OVERVIEW This - PowerPoint PPT Presentation

CITY OF SACO About this presentation FINANCIAL OVERVIEW This presentation is intended as a tool to assist the City Council, School Department and Presented by: Roger A. Lebreux and Parker Madden management in understanding its financial RUNYON KERSTEEN OUELLETTE operating results. The information contained in INSIDE this publication should be read in conjunction 2. Summary of Audit Results with the audited financial statements and related 3. City General Fund – Fund Balance disclosures and should not be used for any other purpose without the expressed consent of 4. City General Fund – Revenues RUNYON KERSTEEN OUELLETTE . 5. City General Fund – Expenditures 6. School General Fund – Fund Balance Please contact us at 207-773-2986 or 1-800-486- 7. School General Fund – Revenues 1784 8. School General Fund – Expenditures 20 Long Creek Drive, South Portland, ME 04106 9. Unassigned Fund Balance as a Percentage of Budget 10. General Fund – Fund Balance Analysis Last Ten Years 11. Unassigned Fund Balance as a Percentage of Budget Compared to other Cities 12. Property Tax Collection Rates 13. Property Tax Rates 14. General Fund - Expenditure Distribution - 2018 15. General Fund - Expenditure Distribution – 2017 16. Long Term Debt & Capital Leases 17. Debt Per Capita – Last Ten Fiscal Years

CITY OF SACO SUMMARY OF AUDIT RESULTS • Financial Statement Opinion – Unmodified • Awarded a certificate of achievement for excellence in financial reporting for the fiscal year ended June 30, 2017 • Report Required by Government Auditing Standards (GAS) • No Material Weaknesses • No Significant Deficiencies • There was one compliance finding • Other Comments • There were 2 additional other comments • Report Required by the Uniform Guidance • Programs Tested: • Child Nutrition Cluster • Findings: None 2

CITY OF SACO City General Fund – Fund Balance 11,400,000 9,400,000 7,400,000 5,400,000 3,400,000 1,400,000 (600,000) 2018 2017 2016 2015 2014 Unassigned 7,113,072 7,010,696 5,755,852 4,779,487 4,595,094 Assigned 2,444,329 2,363,922 2,208,198 1,752,647 1,850,781 Committed 16,407 87,841 89,733 90,300 86,903 Nonspendable 164,149 143,851 144,165 144,234 165,829 Observations: • Total fund balance increased by $131,647 from 2017 to 2018. This is attributable to favorable revenue and expenditure variances that will be discussed in further detail on further slides. 3

CITY OF SACO City General Fund - Revenues Budget Actual Variance Taxes $45,531,980 $46,508,400 $976,420 Licenses and permits 815,360 1,102,620 287,260 Intergovernmental 2,526,996 2,624,896 97,900 Charges for services 1,052,879 1,181,158 128,279 Interest earnings 30,000 219,137 189,137 Other revenues 170,500 173,376 2,876 Total revenues 50,127,715 51,809,587 1,681,872 Budgeted utilization of surplus 2,317,384 - (2,317,384) Carryover of assigned fund balance 442,961 - (442,961) Transfers in 1,203,659 1,024,487 (179,172) Total revenues and other sources 54,091,719 52,834,074 (1,257,645) Observations: • Tax revenues exceeded budget due to higher than expected auto excise revenues as well as real and personal property tax revenues. • Licenses and permits exceeded budget due to higher than anticipated building permit revenues mostly related to new developments in FY2018. Cable television franchise fees also exceeded budget by $88,422. • Interest earnings exceeded budget due to conservative budgeting and better rates of returns on investments. 4

CITY OF SACO City General Fund - Expenditures Budget Actual Variance General government $3,221,927 $2,846,036 $(375,891) Public safety 7,135,269 6,891,441 (243,828) Public works 5,626,890 5,425,048 (201,842) Culture and recreation 1,684,409 1,616,769 (67,640) County tax 1,283,733 1,293,389 9,656 Unclassified 5,286,584 5,089,474 (197,110) Debt service 2,724,127 2,614,227 (109,900) Capital projects 943,499 702,422 (241,077) Total expenditures 27,906,438 26,478,806 (1,427,632) Transfers to other funds (includes education) 26,185,281 26,223,621 (38,340) Total expenditures and other financing sources 54,091,719 52,702,427 (1,389,292) Observations: • General Government was under budget due savings in technology, city clerks office, and planning and economic development. • Public Safety was under budget due to vacancies in the police department that remained unfilled. • Public Works came in under budget due to vacancies, as well as contracted bids for gas and oil coming in lower than expected. • Unclassified was under budget due to savings in fringe benefits which is tied to position vacancies throughout all departments. • Capital Projects is made up of several long term projects, many of which carry over into 5 future years before completion.

CITY OF SACO School General Fund – Fund Balance 100,000 (100,000) (300,000) (500,000) (700,000) (900,000) (1,100,000) (1,300,000) (1,500,000) (1,700,000) 2018 2017 Unassigned (490,728) (1,603,903) Observations: • Total fund balance increased by $1,113,175 from 2017 to 2018. This is attributed to an additional $1,087,903 that was transferred from the City to help restore the School’s deficit fund balance. 6

CITY OF SACO School General Fund – Revenues Budget Actual Variance Intergovernmental: State subsidy – operating costs $10,780,639 $11,487,706 $707,067 State agency clients 125,000 163,894 38,894 Medical reimbursements 140,000 92,484 (47,516) Other revenues: Tuition fees 231,666 104,154 (127,512) Rentals 12,000 3,153 (8,847) Transportation 277,000 306,616 29,616 Miscellaneous 35,000 41,085 6,085 Transfer from the City General Fund 23,946,957 23,591,957 (355,000) Transfer from the City - 1,087,903 1,087,903 Total revenues and other sources 35,548,262 36,878,952 1,330,690 Observations: • State subsidy exceeded budget due to additional subsidy being received after the budget passed. • Tuition fees were under budget because there were less Dayton students enrolled than anticipated. • Transfer from the City general fund was less than budgeted due to the additional state subsidy that was received. Therefore, less local funds were needed. 7

CITY OF SACO School General Fund – Expenditures Budget Actual Variance Regular instruction $21,748,321 $21,413,748 $334,573 Special education instruction 6,071,542 6,300,865 (229,323) Other instruction 175,173 163,361 11,812 Student and staff support 2,095,088 2,172,632 (77,544) System administration 694,939 760,883 (65,944) School administration 1,046,784 1,124,575 (77,791) Transportation 1,573,415 1,637,105 (63,690) Facilities maintenance 1,815,550 1,825,555 (10,005) Debt service 327,450 327,450 - Transfer to other funds - 7,543 (7,543) Total expenditures and other uses 35,548,262 35,733,717 (185,455) Observations: • Regular instruction was under budget due TA enrollment being less than expected as well as teachers retiring with replacements paid at a lower pay scale. • Special education was over budget due to more positions added which were needed to provide necessary services to meet student demand. 8

CITY OF SACO UNASSIGNED FUND BALANCE AS A PERCENT OF BUDGET 30.00% 25.00% 20.00% 15.00% 10.00% 5.00% 0.00% 2014 2015 2016 2017 2018 City - General Fund 9.88% 10.15% 11.86% 13.58% 13.15% City - All Funds 7.25% 6.02% 9.04% 9.04% 11.63% City & School - General Fund 0.00% 8.15% 11.45% 10.40% 12.24% Observations: • Fund balance provides working capital for the City and enhances its credit worthiness. • RKO recommends a ratio of fund balance to equal approximately one and a half to two months of expenditures which equals 12.5% to 16.67%. 9

CITY OF SACO GENERAL FUND – FUND BALANCE ANALYSIS 2009 - 2018 $12,000 $10,000 $8,000 $6,000 $4,000 $2,000 $- 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 Assigned $2,457 $2,111 $773 $663 $1,622 $1,851 $1,753 $2,208 $2,364 $2,444 Unassigned $2,386 $2,089 $2,491 $3,671 $4,552 $4,595 $4,779 $5,756 $7,011 $7,113 * Amounts presented are rounded to nearest thousand. 10

CITY OF SACO UNASSIGNED FUND BALANCE AS A PERCENTAGE OF BUDGET COMPARISON 16.00% 14.00% 12.00% 10.00% 8.00% 6.00% 4.00% 2.00% 0.00% 2016 2017 2018 Bangor 10.80% 11.54% 12.92% Augusta 10.14% 9.60% 9.74% Biddeford 3.62% 4.50% 3.19% Gorham 12.99% 14.05% 12.32% Saco 9.80% 8.46% 12.24% Observations: • All of these calculations includes the City/Town and the School Department’s unassigned fund balance and their respective budgets. 11

CITY OF SACO PROPERTY TAX COLLECTION RATES 101.00% 100.00% 99.00% 98.00% 97.00% 96.00% 95.00% 94.00% 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 Collected in fiscal year 96.54% 96.13% 96.48% 97.27% 97.78% 97.48% 97.92% 97.66% 97.66% 97.76% Collected in subsequent fiscal years 99.97% 99.96% 99.98% 99.98% 99.98% 99.99% 99.98% 99.98% 99.97% 97.76% Observations: • The collection of current taxes have remained relatively stable over the last ten years. 12