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Item # 16.

Work Session and Regular Meeting

Meeting Date:	06/11/2019
Department:	Finance
Pillars:	Gold Standard in Financial Health
Milestones:	Leverage Addison's unique assets to grow and expand placemeaking and events that will set Addison apart and attract talent and businesses Prepare for the impact of new growth and development in Addison

AGENDA CAPTION:

Present and Discuss the Finance Department Quarterly Financial Report of the Town of Addison for the FY 2019 Second Quarter Ended March 31, 2019.

BACKGROUND:

The Town of Addison's financial policies require the publication of a financial report 60 days subsequent to the end of each fiscal quarter. This report covers the financial performance for the second quarter for Fiscal Year 2019 (January 1, 2019 - March 31, 2019). Enclosed in the report is an executive dashboard that provides a high level look at some of the key financial indicators along with more detailed exhibits that demonstrate the current financial position for the various funds. The report includes information for the following funds: General, Hotel, Economic Development, Airport, Utility, and Stormwater funds.

Key highlights for the quarter include:

General Fund fiscal year to date revenue totaled almost $29 million, which is 77 percent of the overall budget amount. Sales tax collections are 57 percent of the fiscal year 2019 budget. Expenditures for the various departments are in line with budget.
Hotel occupancy tax collections are 39 percent of budget for five months of collections or 42 percent of the fiscal year. Performing Arts expenditures are at 98% due to full payment of the Water Tower Theater grant, and Special Events expenses are at 9% due to timing of events.
Operating revenue in the Utility Fund through the second quarter totaled just over $4.5 million or 35.4 percent of the fiscal year 2019 budget. With a one-month lag in the collection of utility revenues, five months (41.7 percent) of the fiscal year has expired. Water revenues are 32 percent of the fiscal year 2019 budget, the result of unusually wet weather. Operating expenses through the second quarter totaled approximately $6 million, or 51 percent of the fiscal year 2019 budget. Wastewater treatment expenses, however, are unusually high due to the timing of payments and increased costs from the Trinity River Authority wastewater treatment.
Operating revenue in the Stormwater Fund through the second quarter totaled a little over $1 million or 48% of the fiscal year 2019 budget. With a one-month lag in the collection of stormwater revenues, five months (42 percent) of the fiscal year has expired. Operating expenses through the second quarter totaled almost $900 thousand or 44 percent of the fiscal year 2019 budget.

The financial condition of the Town remains strong and all reported funds adhere to the 25% fund balance requirement. Also included is the 2nd Quarter Investment Report for Council's review. Investments adhere to the Town's Investment Policy as adopted by Council.

RECOMMENDATION:

Information only, no action required.

Attachments
Presentation - Fiscal Year 2019 2nd Quarterly Financial Report
Fiscal Year 2019 2nd Quarter Financial Report