COUNTY OF ALBEMARLE

 

EXECUTIVE SUMMARY

 

 

AGENDA TITLE:

FY06 First Quarter Financial Report

 

SUBJECT/PROPOSAL/REQUEST:

Presentation of the Year-to-Date (YTD) Quarterly Financial Report for the Three Months Ended September 30, 2005

 

STAFF CONTACT(S):

Messrs. Tucker, Davis, Wiggans, Walters

Ms. White

 

LEGAL REVIEW:   Yes

 

AGENDA DATE:

November 2, 2005

 

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 Preliminary Fund Balance as of September 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:

The Department of Finance estimates that the current fiscal year General Fund revenues will exceed appropriated revenues by $4.166 million, 2.4%.  Combined with an additional $1.005 million use of fund balance and reduced transfers from other funds of $0.222 million, this results in a total revenue, transfer, and use of fund balance increase of $4.949 million, 2.8%, over appropriations of $176.600 million.

·         Real Estate tax revenues are estimated to exceed appropriated revenues by $0.748 million, 0.9%.  Approximately $0.125 million is due to the 2005 supplemental billing for parcels formerly under land use which were subsequently determined to be ineligible.  The balance of the increase is primarily due to new construction added to the tax roll.

·         Personal Property tax revenues are estimated to exceed appropriated revenues by $0.495 million, 3.5%.   The increase is attributed to the 2004 and early 2005 dealer incentives, as well as the continued strong regional economy.  There is some concern that 2006 assessments may decrease as a result of the high gas prices impacting SUV and other high value low mileage vehicles.  Reliable data should be available for the January revenue update.

·         Sales tax revenues are estimated to exceed appropriated revenues by $0.150 million, 1.2%.  The improvement is due to the continued strong regional economy.  Continued high gas and transportation costs may impact discretionary spending thus reducing sales tax receipts.  More reliable data on the impact of high energy costs should be available by the January revenue update.

·         Business License revenues are estimated to exceed appropriated revenues by $0.395 million, 4.8%.  As with Sales tax, the improvement is due to the strong economy and additional businesses operating in new commercial facilities.

·         Meals tax revenues are estimated to exceed appropriated revenues by $0.200 million, 4.3%.  The increase is attributed to the continued growth in convenience food preparation.

·         Other Local Tax revenues are estimated to exceed appropriated revenues by $0.974 million, 11.7%.  Significant estimated increases are: Public Service tax revenues ($0.290 million or

·         17.9%) and Clerk of the Court fees ($0.720 million or 40.56%).  Both the Public Service tax and Clerk of the Court fee revenue increases result from the 2005 real estate reassessment and the active real estate market.

·         State revenues are estimated to exceed appropriated revenues by $1.065 million, 4.8%. Significant estimated increases are Personal Property Tax Relief (PPTR) ($0.782 million or 5.33%) and Public Assistance ($0.333 million or 18.2%).  The PPTR increase is due to the strong economy and dealer incentives discussed with Personal Property tax.  Public Assistance reimbursements appear to be shifting from federal to state sources.  The January revenue update should confirm this trend if it continues.

·         Use of Fund Balance is detailed in the Preliminary Fund Balance Report.

·         Transfer revenues are estimated to be $0.222 million, -10.8%, less than appropriated revenues.  The reduction is based on FY05 operations.  Reliable FY06 data will not be available until the last quarter.

·         Categories with variances less than $0.100 million have not been detailed.

2.       Expenditures:

Total expenditures, including transfers, are within appropriate levels, 23.3%, for the first quarter of the fiscal year.

·         Departmental expenditures are at 24.0% of the appropriated budget.

·         No attempt has been made to revise estimated first quarter expenditures except for supplemental appropriations.

3.       Revised Revenues less Revised Expenditure Appropriations:

·         Revised revenues less expenditures show a projected $3.937 million increase by the end of the current fiscal year (June 30, 2006) based on October revenue estimates.

·         Preliminary Fund Balance available November 2, 2005 is $3.288 million.  Financial policies allocate $2.474 million to the CIP reserve fund.  The remaining $0.814 million may be used for other projects at the Board’s discretion and approval.  These are preliminary estimates that will be finalized when the fiscal year audit is completed.

·         Preliminary Projected End-of-Year Available funds are $4.752 million, which reflects the revised FY06 revenue estimates and the FY05 fund balance, which has been reduced by supplemental appropriations, as well as the proposed CIP transfer.

 

 

B.      Attachment B: General Fund Budget Comparison Report:

The bar-chart report tracks 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 non-school transfers increased over last year.

 

 

C.      Attachment C: Preliminary General Fund Balance Report:

The report indicates that the County:

·         Has an unaudited FY05 Fund Balance of $19.653 million at 06/30/05,

·         Appropriated $2.600 million for FY06 projects,

·         Has an unaudited FY05 Fund Balance of $17.053 million at 09/30/05,

·         Reserved $13.000 million for cash flow purposes,

·         Subsequently approved $0.764 million for FY06 projects,

·         Has a preliminary $2.474 million CIP transfer commitment, and

·         Has Preliminary Unobligated Funds Available of $0.814 million.

 

BUDGET IMPACT:

This report is based on preliminary (pre-audited) figures for FY05 and three months of financial data for FY06.  The financial information contained in the FY06 Second Quarter Financial Report, to be presented to the Board in February 2006, will include audited figures for FY05 and six months of financial data.  Staff will utilize these figures as the basis for the FY07 Budget.

 

RECOMMENDATIONS:

Staff recommends acceptance of the FY06 First Quarter Financial Report

 

ATTACHMENTS

A – General Fund Quarterly Financial Report

B – General Fund Budget Comparison Report

C – Preliminary Fund Balance Report

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