COUNTY OF ALBEMARLE

 

EXECUTIVE SUMMARY

 

 

AGENDA TITLE:

FY05 Third Quarter Financial Report

 

SUBJECT/PROPOSAL/REQUEST:

Presentation of the Year-To-Date Quarterly Financial Report for the Nine Months Ending March 31, 2005

 

STAFF CONTACT(S):

Tucker, Davis, Wiggans, Breeden, Walters, Ms. White

 

 

LEGAL REVIEW:   Yes

 

AGENDA DATE:

May 4, 2005

 

ACTION:                                INFORMATION:     X

 

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 March 31, 2005.  The financial report includes a bar-chart report that compares current fiscal year revenue and expenditure data with data from the previous fiscal year.

 

 

STRATEGIC PLAN:

4.2 Fund County Services in a fair, efficient manner and provide needed county public facilities and infrastructure

 

 

DISCUSSION:

($ In Millions)

A.                  Attachment A: General Fund Quarterly Financial Report:

 

1.       Revenues:

The Department of Finance estimates that the current fiscal year General Fund revenues will exceed original appropriations by $2.405 million, 1.5%.  This is an approximate $1.139 million reduction from the FY05 Second Quarter Financial Report.  The reduction is due to the real estate tax rate decrease from $0.76 to $0.74 per $100.00.  Other revenue estimates have not been changed at this time.  Combined with the use of $3.728 million in fund balance, the total projected revenues, transfers, and fund balance for the year are anticipated to be $165.981 million or $6.133 million (3.8%) over the original budget of $159.848.

 

·         Real Estate Tax revenues, excluding $0.427 million of reclassified delinquent tax collections, are estimated to exceed original appropriations by $0.708 million, 0.9%.  This is a $1.566 million reduction from previous estimates due to the $1.139 million potential real estate tax rate reduction and the reclassification of delinquent tax collections.  A better estimate will be available after the 2005 first half tax bills are prepared.

·         Personal Property Tax revenues, excluding $0.161 million of reclassified delinquent tax collections as well as Personal Property Tax Relief (PPTR) payments, are estimated to be $0.277 million, 2.0%, less than original appropriations.  Other than the reclassification of delinquent tax, there has been no change in forecast.  A better estimate will be available after the 2005 first half tax bills are prepared.

·         Delinquent Property Tax revenues are estimated at $0.616 million.  This is a $0.096 decrease from original appropriations.  The decrease is due to a timing difference of delinquent tax revenues budgeted for FY05 but realized in FY04.  Delinquent tax collections have not been displayed in the attachment B bar graph due to the relative small amounts.

·         Sales and Use Tax revenues are estimated to exceed original appropriations by $0.275 million, 2.4%.  This revenue estimate has not changed.  However, there are indications that final revenues will be greater.  The improvement is due to the economic recovery underway.  However, the recovery is still somewhat fragile with significant monthly swings.

·         Business License revenues are estimated to exceed original appropriations by $0.468 million, 6.3%.  This revenue estimate has not changed.  However, there are indications that final revenues will be slightly greater.  The improvement is due to the economic recovery underway.  However, the recovery is still somewhat fragile with significant monthly swings.

·         Utility Tax revenues are estimated to exceed original appropriations by $0.522 million, 7.7%.  This revenue estimate has not changed.  Anticipated cellular and power company receipts continue to offset by the decrease in landline receipts.  Cellular increases have begun to stabilize as the market matures.

·         Meals Tax revenues are estimated to exceed original appropriations by $0.260 million, 6.3%.  This revenue estimate has not changed.  However, there are indications that final revenues will be slightly greater.  The increase is attributed to the continued shift from home to convenience food preparation.

·         Other Local Tax revenues are estimated to exceed original appropriations by $0.186 million, 2.3%.  This is a $0.686 improvement from the last report primarily due to the reclassification of delinquent property tax revenues.  A better estimate will be available after the 2005 first half tax bills are prepared.

·         Other Local Revenues are estimated to be $0.074 million, 1.7%, less than original appropriations.  This revenue estimate has not changed.  The variance is primarily due to decreased court revenues.

·         State revenues, including PPTR payments, are estimated to exceed original appropriations by $0.013 million, 0.1%.  This estimate has not changed although there are indications that final revenues will exceed this amount.  The improvement is primarily due to increased PPTR payments, rental vehicle receipts, and social service expenditure reimbursements.

·         Federal revenues are estimated to exceed original appropriations by $0.421 million, 10.3%.  This estimate has not changed although there are indications that final revenues will be less due to decreased grant collections.  The reduction may be offset by additional social service expenditure reimbursements.

·         Fund Balance appropriations are detailed on Attachment C.

 

2.       Expenditures:

Total expenditures, including transfers, are within suitable levels at 74.2% of the original appropriated budget.

·         Departmental expenditures are at 66.2% of original appropriations.

·         The contingency reserve has been reduced to $0.152 million.

·         No attempt has been made to revise expenditure estimates for the third quarter except for supplemental appropriations.

 

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

·         Revised revenues less expenditures show a projected $2.351 million savings by the end of this fiscal year (June 30, 2005) based on the February revenue update adjusted for the real estate tax rate reduction.

·         June 30, 2004 Fund Balance available May 4, 2005 is $0.373 million, after the $3.000 million FY04 surplus transfer to the CIP.

·         Projected End-of-Year Available Funds are $2.724 million, which reflects the updated FY05 revenue estimates and the FY04 carryover reduced by supplemental appropriations approved for FY05. Of this projected $2.724 million, the Board during FY06 budget worksessions authorized the expenditure of $1.595 million of these Available Funds to be spent in FY2006.  This will leave an Available Funds balance of $1.129 million.

 

B.                  Attachment B:  General Fund Budget Comparison Report:

The bar-chart report tracts changes in revenue and expenditure changes over time.

1.       Revenues:

·         Revenues from real estate tax, sales tax, business license fees, utility tax, meals tax, state receipts, and federal receipts are anticipated to increase over last year and current year appropriated.

·         Revenues from personal property tax and other local revenues are anticipated to be slightly less than the current appropriated budget.

·         Use of fund balance is anticipated to exceed the original appropriated budget and transfers are anticipated to equal the appropriated budget.

 

2.       Expenditures:

·         This report displays minor increases for FY05 over FY04 in most functional areas.

 

 

C.                  Attachment C:  Fund Balance Report:

This report indicates that the County:

·         Has an audited FY04 Fund Balance of $20.101 million;

·         Appropriated $6.728 million from the fund balance for budgeted FY05 projects and the FY04 surplus transfer to CIP which reduces the fund balance to $13.373 million as of  May 4, 2005;

·         Has committed to maintain a minimum fund balance of $13.000 million for cash liquidity purposes.  The $13.000 million remains within the County’s financial policy of maintaining a fund balance equal to or no less than 8.0% of the County’s General Fund plus School Fund; and

·         Has a remaining fund balance of $0.373 million as of May 4, 2005.

 

 

D.                  Fiscal Impact Discussion:

Revenues reported are based on actual collections realized for the nine months ended March 31, 2005.  The revenue estimate is based on the FY05 Second Quarter Financial Report projection adjusted for the real estate tax rate decrease from $0.76 to $0.74 per $100.00.There are indications that revenues will exceed current projections.  More information will be available after the first half 2005 tax bills are processed subsequent to the preparation of this report.

 

 

RECOMMENDATIONS:

Staff recommends acceptance of the FY05 Third Quarter Financial Report.

 

 

ATTACHMENTS

A – General Fund Quarterly Financial Report

B – General Fund Budget Comparison Report

C – Fund Balance Report

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