COUNTY OF ALBEMARLE

 

EXECUTIVE SUMMARY

 

 

AGENDA TITLE:

FY05 End-of-Year Preliminary Financial Report

 

SUBJECT/PROPOSAL/REQUEST:

Presentation of the Preliminary End of Year Financial Report for the Fiscal Year Ended June 30, 2005

 

STAFF CONTACT(S):

Messrs. Tucker, Davis, Wiggans, Breeden, Walters,

Ms. White

 

LEGAL REVIEW:   Yes

 

AGENDA DATE:

October 5, 2005

 

ACTION:   X                          INFORMATION: 

 

CONSENT AGENDA:

  ACTION:                             INFORMATION:   

 

ATTACHMENTS:     Yes

 

 

REVIEWED BY:

 

 

 

BACKGROUND:

The attached End-of-Year Preliminary Financial Report provides information of the County’s General Fund and Fund Balance as of June 30, 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:

Revenues, excluding Transfers and Fund Balance, totaled $162.060 million, exceeding revised appropriations by $4.325 million, 2.7%.  This exceeds the previous estimate submitted with the March 31, 2005 financial report by $1.976 million.  Combined with the use of $2.025 million in transfers from other funds and $6.956 million in fund balance, Revenues, Transfers, and Use of Fund Balance  totaled $171.041million, exceeding revised appropriations by $4.181 million, 2.5%.  Following is a brief revenue analysis for the full fiscal year:

 

·         Real Estate Tax revenues totaled $76.797 million, exceeding revised appropriations by $1.651 million, 2.2%.  Second half tax year 2004 revenues exceeded budget by $0.276 million primarily due to rollback activity.  First half tax year 2005 revenues exceeded budget by $1.375 million due to prior year rollback activity resulting in additional taxable acreage, as well as the unanticipated reassessment increase.  The budget had been prepared based on an estimated 2005 reassessment increase of 16.0%.  The final reassessment rate was 27.2%, 23.3% after adjustment for increased land use values.

·         Personal Property Tax revenues, excluding PPTR, totaled $13.590 million, exceeding revised appropriations by $0.104 million, 0.8%.  The increase is attributed to continued dealer incentives as well as the economic recovery.

·         Delinquent Property Tax revenues, excluding PPTR, totaled $0.682 million, a $0.030 million, 4.2%, reduction from revised appropriations.  Delinquent tax collections have not been displayed in the attachment B bar graph due to the relative small amounts.

·         Sales and Use Tax revenues totaled $12.060 million, exceeding revised appropriations by $0.560 million, 4.9%.  The improvement is due to the economic recovery underway.  However, the recovery is somewhat fragile due to the impact of the war in Iraq, increased gas and oil prices, and the long-range impact of hurricanes Katrina and Rita.

·         Business License revenues totaled $8.026 million, exceeding revised appropriations by $0.630 million, 8.5%.  As with sales and use tax, the improvement is due to the economic recovery underway but is still somewhat fragile.

·         Utility Tax revenues totaled $7.289 million, exceeding revised appropriations by $0.252 million, 3.6%.  Cellular and power company receipts continue to be somewhat offset by the decrease in landline receipts.  Cellular increases have begun to stabilize as the market matures.

·         Meals Tax revenues totaled $4.555 million, exceeding revised appropriations by $0.405 million, 9.8%.  The increase is attributed to the continued shift from home to convenience food preparation.

·         Other Local Tax revenues totaled $8.801 million, exceeding revised appropriations by $0.412 million, 4.9%.  Due to real estate activity, Clerk fees exceeded revised appropriations by $1.124 million.  However, this increase was offset by reduced public service taxes of $0.596 million, machinery & tools taxes of $0.044 million, and decal fees of $0.093 million.

·         Other Local Revenues totaled $4.413 million, a $0.048 million, 1.1%, reduction from revised appropriations.

·         State revenues, including PPTR payments, totaled $21.855 million, exceeding revised appropriations by $0.472 million, 2.2%.  The improvement is primarily due to increased PPTR payments, state recordation tax receipts, and social service expenditure reimbursements offset by reduced law enforcement and fire safety reimbursements.

·         Federal revenues totaled $3.994 million, a $0.082 million, 2.0%, reduction from revised appropriations.  The reduction is primarily due to reduced federal law enforcement grant receipts.

·         Use of Other Funds totaled $2.025 million, a $0.144 million, 6.7%, reduction from revised appropriations.  The reduction is primarily due to reduced housing and fire rescue reimbursements.

·         Fund Balance appropriations of $6.956 million are detailed on Attachment C.

 

2.       Expenditures:

Expenditures, including transfers, totaled $164.534 million, a $2.326 million, 1.4%, reduction from revised appropriations.

·         Departmental, excluding education, expenditures were 96.4% of revised appropriations and accounted for savings of $2.155 million, 3.6%.

·         Non-departmental expenditures were 97.9% of revised appropriations and accounted for savings of $0.171 million, 2.1%.

·         Since the March 31, 2005 financial report, net additional appropriations of $3.228 million were approved by the Board for a total FY05 revised appropriated budget of $166.860 million.  The $3.228 million was allocated:        

1.       $0.048 million to Administration for the Dual Primary Election,

2.       $0.180 million to Human Development for Bright Stars and CSA funding, and

3.       $3.000 million of FY04 surplus to the CIP.

 

3.       Revised Revenues less Revised Expenditure Appropriations:

·         This report indicates that there will be a preliminary total of $6.507 million in unexpended revenues, transfers, and use of fund balance at the end of this fiscal year.  This is a $4.156 million increase since the March 31, 2005 financial report.  The $6.507 million is comprised of:

1.       Revenues and transfers exceeding revised appropriations by $4.181 million and

2.       Expenditure savings of $2.326 million.

·         Preliminary Fund Balance available 07/01/05 after cash flow is $6.653 million.

·         Preliminary Unobligated Funds Available as of 10/05/05 is $3.288 million.  The Unobligated Funds Available are derived by reducing the Preliminary Fund Balance by:

1.       FY06 approved Budgeted initiatives of $1.595 million,

2.       FY06 approved Access Albemarle funding of $0.986 million,

3.       FY06 approved program funding of $0.020 million, and

4.       Requested FY05 reappropriations of $0.764 million.

 

 

B.                  Attachment B:  General Fund Budget Comparison Report:

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

·         Revenues in all categories except transfers from other funds show positive growth over last year.

·         Expenditures in all categories except Public Works increased over last year.

 

 

C.                  Attachment C:  Fund Balance Report:

This report indicates that the County:

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

·         Appropriated $6.956 million from the fund balance for budgeted FY05 projects and the FY04 surplus transfer to CIP which reduced the fund balance to $13.146 million,

·         Added an additional $6.507 million in preliminary FY05 revenues over expenditures for a Preliminary 06/30/05 Fund Balance of $19.653 million,

·         Reserved $13.000 million for cash flow purposes,

·         Approved $2.600 million for FY06 appropriations,

·         Anticipates proposed commitments in FY06 for:

1.       Reappropriation of FY05 outstanding purchased orders of $0.159 million,

2.       Reappropriation use of FY05 carryover funds of $0.066 million,

3.       Reappropriation of FY05 projects of $0.495 million, and

4.       Funding of Fire Inspection position of $0.044 million.

·         If proposed commitments are approved, the Board would have an Unobligated Fund Balance of $3.288 million which could be available for future needs or held as a reserve.

 

 

D.                  Discussion of FY05 Uncommitted Balance:

The Board’s approved policy allocates 100% of unbudgeted revenues and 60% of departmental expenditure savings (after all current year committed amounts from fund balance are appropriated) to the CIP Reserve Fund for future capital needs, capital repairs and maintenance items, and/or debt service.  The policy further states that the remaining 40% of expenditure savings may be used for other projects at the Board’s discretion and approval.  The policy was developed to establish guidelines for the use of end-of-year revenues and expenditure savings.

 

The amount to transfer to the CIP Reserve Fund is determined as follows (amounts in millions):

 

Surplus Revenues                                              $4.181

Less: FY 06 Appropriations Approved                  ($2.600)

          Requested Fire Inspector Position             ($0.044)

          Requested New Initiatives                         ($0.066)

 

Remaining Revenues                                                                  $1.471

 

Expenditure Savings                                           $2.326

Less:  Requested Reappropriations                     ($0.654)

 

Remaining Expenditure Savings                                                  $1.672

 

The amount to be transferred to the CIP Reserve Fund is $1.471 million (100% of Revenue Surplus) plus $1.003 million (60% of Expenditure Savings) for a total of $2.474 million.  This is a preliminary estimate that will be finalized when the fiscal year audit is completed.  At that time, staff will submit an appropriation request authorizing the transfer to the CIP Reserve Fund.

 

 

RECOMMENDATION:

Staff recommends acceptance of the Preliminary June 30, 2005 End-of-Year Financial Report.

 

 

ATTACHMENTS:

A – General Fund Preliminary End-of-Year Financial Report

B – General Fund Preliminary Budget Comparison Report

C – General Fund Preliminary Fund Balance Report
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