The City of Lakewood has released its financial report for first quarter 2015.
Overall, the report indicates that Lakewood, despite working under a tight bottom line, continues to operate efficiently and deliver high-quality services to residents.
Some highlights of the report, which is posted online:
- Operating revenues are exceeding expenditures by $1.35 million. However, this operating income temporary as there are timing differences in both revenues and expenditures
- Revenues that are up from 2014 due to timing differences include property tax and police contracts. Fines and forfeitures revenue increase may potentially be due to the amnesty program. Gambling tax and franchise fees are experiencing an overall increase.
- Revenues that are down from 2014 include licenses & permits and utility tax.
- By year-end, revenues are projected to come in on target. Revenues that are showing increases will help offset the anticipated decreases in utility tax revenue.
- On the expenditure side, the primary reason for the increases/decreases compared to YTD 2014 is due to a change in accounting. The internal service functions (risk management and information technology) were previously accounted for under the Administrative Services department but are now being charged directly to user departments. Property Management is also now being accounted for as an internal service fund and charged directly to user department. Contributions to the fleet and equipment fund previously reported as a separate line items is now charged directly to the user department.
- Expenditure budget is very tight and does not have much flexibility. However, the City continues to monitor and be conscientious on spending.
- Expenditure savings and revenue increases above and beyond estimates will be used to replenish the Fleet & Equipment fund. (The City Council approved a transfer of $233,000 from the Fleet and Equipment Fund to the Information Technology Fund to providing resources for much needed technology services/programs).
- Updated projections for the 6-year financial forecast are currently in progress and will be presented to the City Council in the near future. The 6-year financial forecast will be prepared in a manner consistent with the City Council’s adopted financial policies.
To view the complete report: www.cityoflakewood.us/documents/finance/financial_reports/2015Qtr1FinancialReport.pdf.