COUNTY OF ALBEMARLE

 

EXECUTIVE SUMMARY

 

 

AGENDA TITLE:

FY06 Second Quarter Financial Report

 

SUBJECT/PROPOSAL/REQUEST:

Presentation of the Year-to-Date (YTD) Quarterly Financial Report for the Six Months Ended December 31, 2005

 

 

STAFF CONTACT(S):

Messrs. Tucker, Wiggans, Walters, Davis; Ms. White

 

LEGAL REVIEW:   Yes

 

 

AGENDA DATE:

February 1, 2006

 

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, 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.  The Certified Public Accountant independent audit for FY05 has been completed.

 

The format of the Quarterly Financial Report has been slightly changed.  A new column has been added to attachments A and B displaying the current revised budget and appropriations.  Variances and percentages compare the YTD results and revised estimates to the current revised budget and appropriations.  Revenue estimates have been updated based on January 6, 2006 projections.

 

 

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 current appropriations by $5.335 million, 3.1%.  Total revenues and transfers will exceed current appropriations by $5.109 million, 2.9%, after offset by reduced transfers from other funds of $0.225 million.

·         Real Estate tax revenues are estimated to exceed current appropriations by $0.772 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 current appropriations by $0.567 million, 4.0%.   The increase is attributed to the 2004 and early 2005 dealer incentives, as well as the continued strong regional economy.  There continues to be 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 will be available after the vehicles are assessed for the first half 2006 tax bills.

·         Sales tax revenues are estimated to exceed current appropriations by $0.650 million, 5.2%.  The improvement is due to the continued strong regional economy and additional businesses operating in new commercial facilities.

·         Business License revenues are estimated to exceed current appropriations by $0.580 million, 7.1%.  As with Sales tax, the improvement is due to the strong regional economy.

·         Meals tax revenues are estimated to exceed current appropriations by $0.300 million, 6.5%.  The increase is attributed to the continued growth in convenience food preparation.

·         Other Local Tax revenues are estimated to exceed current appropriations by $1.277 million, 15.3%.  Significant estimated increases are: Public Service tax revenues of $0.281 million, 17.4%, and Clerk of the Court fees of $1.111 million, 63.6%.  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.

·         Other Local Revenues are estimated to exceed current appropriations by $0.285 million, 6.4%, primarily due to additional investment earnings and non-real estate related Clerk fees.

·         State revenues are estimated to exceed current appropriations by $0.854 million, 3.8%. Significant estimated increases are Personal Property Tax Relief (PPTR) $0.641 million, 4.4%, and Public Assistance $0.333 million, 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.  This trend has continued since the last Quarterly Financial Report.

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

·         Transfer revenues are estimated to be $0.225 million, -11.0%, less than current appropriations.  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, 45.4%, for the first six months of the fiscal year.

·         Departmental expenditures are at 45.1% of current appropriations.

·         The available general fund Contingency Reserve totals $0.300 million.

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

3.       Revised Revenues less Revised Expenditure Appropriations:

·         Revised revenues less expenditures show a projected $5.109 million increase by the end of the current fiscal year (June 30, 2006) based on January revenue estimates.

·         Fund Balance available February 1, 2006 is $3.213 million.  Financial policies allocate $2.474 million to the CIP reserve fund.  The remaining $0.739 million may be used for other projects at the Board’s discretion and approval.

·         Projected End-of-Year Available funds are $5.848 million, which reflects the revised FY06 revenue estimates and the FY05 carryover 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 and use of fund balance show positive growth over last year.

·         Expenditures in all categories except non-school transfers increased over last year.

 

C.      Attachment C: General Fund Balance Report:

The report indicates that the County:

·         Has an Audited FY05 Fund Balance of $19.615 million at 06/30/05,

·         Appropriated $3.364 million for FY06 projects,

·         Has a remaining FY05 Fund Balance of $16.251 million at 12/31/05,

·         Reserved $13.000 million for cash flow purposes,

·         Subsequently approved $0.038 million for FY06 projects,

·         Has a $2.474 million CIP transfer commitment, and

·         Has Unobligated Funds Available of $0.739 million.

 

BUDGET IMPACT:

This report is based on audited financial results for FY05 and six months of financial data for FY06.  The FY06 Second Quarter Financial Report contains the auditor’s adjustments.  Staff will utilize this data as the basis for the FY07 Budget.

 

 

RECOMMENDATIONS:

Staff recommends acceptance of the FY06 Second Quarter Financial Report.

 

 

ATTACHMENTS

A – General Fund Quarterly Financial Report

B – General Fund Budget Comparison Report

C – Fund Balance Report

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