COUNTY OF ALBEMARLE

 

                                                                    EXECUTIVE SUMMARY

 

 

 

AGENDA TITLE:

Quarterly Financial Report

 

 

SUBJECT/PROPOSAL/REQUEST

Presentation of the Year to Date Quarterly Financial Report for the Six Months Ended December 31st.

 

 

STAFF CONTACT(S):

Messrs. Tucker, Breeden, Walters; Ms. White

 

AGENDA DATE:                       ITEM NUMBER:

February 4, 2004

 

ACTION:      X                            INFORMATION:    

 

CONSENT AGENDA:         

 ACTION:                                  INFORMATION:  

 

ATTACHMENTS:      Yes 

 

REVIEWED BY:

 

 

BACKGROUND:

The attached Quarterly Financial Report provides information on the county’s general fund and fund balance as of December 31, 2003.  Also included is a bar chart that compares current year revenue and expenditure data with data from   the previous year.

 

DISCUSSION:

($ in millions)

A.         Attachment A: General Fund Quarterly Financial Report:

1.                   Revenues: 

The Department of Finance estimates that current year General Fund revenues, not counting other fund transfers or fund balance appropriations, will exceed the July 1, 2003 appropriated budget by

$3.478 million, 2.44%.  This is an increase of $0.280 million from the September 30, 2003 Quarterly Financial Report.

 

·                     Real Estate Tax revenues are estimated to exceed budgeted revenues by $1.678 million.  The increase is primarily due to the final 18.7% January 1, 2003 reassessment rate and additional new construction, both of which substantially exceeded the preliminary rates used for budget preparation.

 

·                     Personal Property Tax revenues, exclusive of PPTR, are estimated to exceed budget by $0.342 million due to new vehicle sales, stabilizing used vehicle values, and a slight increase in business equipment purchases.

 

·                     Sales Tax revenues are estimated to exceed budget by $0.450 million due to the moderate economic recovery that appears to be taking hold.

 

·                     Utility Tax revenues are estimated to exceed budget by $0.201 million due to a greater than anticipated increase in cellular receipts offset by a slight decrease in power company receipts.  Landline telephone receipts should be relatively stable.

 

·                     million , Other Local Revenues are million potentialestimated to exceed budget by $0.572 primarily due to the active real estate market resulting in greater than anticipated recordation and seller tax receipts offset by reduced interest income

·                     State revenues, inclusive of PPTR, and Federal revenues are estimated to exceed budget by $0.657 primarily due to greater than anticipated PPTR and Social Services reimbursements..

 

·                     Use of Fund Balance is estimated to exceed budget by $2.459 million due to additional appropriations as detailed in the Fund Balance Report, attachment C.

 

·                     Use of Other Funds is estimated to be $0.134 less than budget due to anticipated reduced E911 transfers.

 

2.                   Expenditures:

Total expenditures, including transfers, are within appropriate levels (47.3%) for the first six months of the fiscal year. 

           

·                   Departmental expenditures are at 48.8% of current budget

 

·                   No attempt has been made to revise expenditure estimates based on the first six months of the fiscal year except for supplemental appropriations.

 

3.         Revised Revenues less Revised Expenditures (yellow boxes in right hand corner):

 

·                   Revised revenues less expenditures show a projected $3.331 million savings by the end of this current fiscal year (June 30, 2004) based on the January revised revenue estimates and supplemental appropriations. This is a net $0.277 million increase since the September Quarterly Financial Report.

 

Available Fund Balance is $0.184 million, which reflects the revised FY04 revenue estimates plus the FY03 carryover reduced by approved supplemental appropriations.   million  to the Capital Improvement Program year-end carry-over , which includes $0.184 million in , plus the net projected revenues of $3.331 million.

 

B.         Attachment B:  Annual Budget Comparison Report as of December 31, 2003

This bar-chart-based report tracks changes in revenue and expenditure changes over time:

 

1.            Revenues:

·         Revenues from real estate property taxes are anticipated to increase over both last year and the  July 1, 2003 Appropriated Budget.

 

·         The local share of personal property taxes is anticipated to increase over both last year and the current year budget. This reflects only the 30% share with the other 70% shown as part of the PPRT revenues in the state revenue category.

 

·         Revenues from sales taxes, utility taxes, meal taxes and other local taxes and revenues are also anticipated to increase over both last year and the current year budget.

 

·         State revenues show an increase over both last year and the current year budget.

 

·         Federal revenues remain fairly level compared to last year and the current year budget.

 

2.                   Expenditures:

This report shows minor increases in FY03/04 over FY02/03 in all functional areas.  Transfers to the School Division show an increase over last year.

 

C.         Attachment C: Fund Balance Report

            This report indicates that the County:

 

1.       Has an audited FY03 balance of $16.773 million;

 

2.       Appropriated $3.588 million from the fund balance for budgeted FY04 projects and supplemental items, which reduce the fund balance as of December 31st to $13.184 million.  All approved appropriations are listed on Attachment C. 

 

3.       Has committed to maintain a minimum fund balance of $13 million for cash liquidity purposes. The $13 million remains within the County’s financial policy of maintaining a fund balance “equal to or no less than 8% of the County’s General Fund plus School Fund.”

 

4.        Remaining fund balance is $0.184 million. 

 

 

D.         Fiscal Impact Discussion

1.       Current Year Revenue Estimates are based on January 15th Department of Finance revised estimates, which look at FY03 actual revenue collections, as well as any trends from current year collections.  Economic related revenues, i.e. sales, meals, transient, continue to show improvement and both real estate and personal property tax collections should exceed budget.

$3.515 million in either the opFY2005..0

 

RECOMMENDATION:

Staff recommends acceptance of the Second Quarter Financial Report for FY03/04.

 

View Attachment A

View Attachment B

View Attachment C

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