COUNTY OF ALBEMARLE

 

EXECUTIVE SUMMARY

 

 

AGENDA TITLE:

FY06 Third Quarter Financial Report

 

SUBJECT/PROPOSAL/REQUEST:

Presentation of the Year-to-Date (YTD) Quarterly Financial Report for the Nine Months Ended March 31, 2006

 

 

STAFF CONTACT(S):

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

 

LEGAL REVIEW:   Yes

 

 

AGENDA DATE:

May 3, 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 March 31, 2006.  The Financial Report includes a bar-chart report that compares current fiscal year revenue and expenditure data with data from the previous fiscal year.  Revenue estimates have been updated based on YTD actual receipts.

 

STRATEGIC PLAN:

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

 

DISCUSSION:

($ in Millions)

  1. 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 $7.136 million, 4.1%.  This is a $1.801 million increase from the FY06 Second Quarter Financial Report; details follow with individual category summaries.  Transfers and the use of  fund balance will exceed current appropriations by $2.347 million due to the CIP fund balance appropriation approved in April.

·         Real Estate Tax revenues will exceed current appropriations by $0.964 million, 1.1%, a $0.192 million increase from the prior financial report.  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 and a slight improvement to the collection rate.

·         Personal Property Tax revenues will exceed current appropriations by $0.787 million, 5.6%, a $0.220 million increase from the prior financial report.  The increase is attributed to the 2005 dealer incentives, as well as the continued strong regional economy.  These factors have resulted in a larger vehicle assessment tax base than originally anticipated.

·         Sales Tax revenues will exceed current appropriations by $0.750 million, 6.0%, a $0.100 million increase from the prior financial report.  The improvement is due to the continued strong regional economy with additional businesses operating in new commercial facilities.

·         Business License Tax revenues will exceed current appropriations by $0.777 million, 9.5%, a $0.197 million increase from the prior financial report.  Business license revenues are directly correlated with sales tax revenues.  As with sales tax, the improvement is due to the strong regional economy.

·         Meals Tax revenues will exceed current appropriations by $0.350 million, 7.6%, a $0.050 million increase from the prior financial report.  The increase is attributed to the continued growth in convenience food preparation as evidenced by the increased number of business establishments.

·         Other Local Tax revenues will exceed current appropriations by $1.873 million, 22.5%, a $0.596 million increase from the prior financial report.  Increases for Public Service Tax, Bank Franchise Tax, and Clerk-Related Taxes are partially offset by decreased Vehicle License Tax.

·         Other Local Revenues will exceed current appropriations by $0.535 million, 11.9%,  a $0.250 million increase from the prior financial report.  Development Fees, Interest Earnings, and Fees of the Clerk continue to be primarily responsible for the increase.

·         State Revenues will exceed current appropriations by $1.387 million, 6.2%, a $0.533 million increase from the prior financial report.  The increase is due to increased PPTR revenues.  The method, amount and timing of the state payments are now fixed.  The budget was originally prepared based on estimates and assumptions which have now changed.

·         Federal Revenues are estimated to be $0.226 million, 5.2% less than current appropriations.  This is a $0.225 million decrease from the prior financial report resulting from less than appropriated public assistance payments.

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

·         Use of Other Funds revenues are estimated to be $0.225 million, 10.8% less than the appropriation due to more realistic projection based on FY05 operations for programs, such as E-911,  section 8 revenues and fire dispatch.  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, 73.5%, for the first nine months of the fiscal year.

·         Departmental expenditures are at 67.3% of current appropriations.

·         Projected departmental expenditures have not been revised at this time.

·         The projected expenditure for the Transfer to the Capital Fund has been revised to reflect the April 5th appropriation of $2.572 million in FY05 fund balance revenues to the CIP reserve for a total appropriation to the FY06 Capital Improvement Program of approximately $24.6 million.

3)       Revised Revenues less Revised Expenditure Appropriations:

·         Revised revenues less expenditures show a projected $6.910 million increase by the end of the current fiscal year. 

·         Fund balance available May 3, 2006 is $0.563 million, which is available for other projects at the Board’s discretion and approval.

·         Projected End-of-Year Available Funds are projected to be $7.473 million. 

 

  1. 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 Other Funds and Fund Balance show positive growth over last year.

·         Expenditures in all categories except Non-School Transfers should increase over last year.

 

  1. 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 $3.430 million for FY06 projects,

·         Has a remaining FY05 Fund Balance of $16.185 million at 03/31/06,

·         Reserved $13.000 million for cash flow purposes,

·         Subsequently approved $2.572 million for FY06 projects and transfers,

·         Has proposed commitments of $0.051 million, and

·         Has Unobligated Funds Available of $0.563 million.

 

BUDGET IMPACT:

This report is based on audited financial results for FY05 and nine months of financial data for FY06.  More information will be available after the first half 2006 tax bills are processed subsequent to the preparation of this report. Any  changes in the revenue estimates will be reflected in the June 30th end-of-the-year financial report.

 

Based on the Board’s approved policy, 100% of the end of the year revenues and 60% of the expenditure savings will be transferred to the CIP reserve after FY06 revenues and expenditures are finalized. Out of the Projected End-of-the-Year Available Funds of $7.473 million, the Board approved the use of $0.538 million for FY07 one-time expenditures during budget work sessions.

 

RECOMMENDATIONS:

Staff recommends acceptance of the FY06 Third Quarter Financial Report

 

ATTACHMENTS

A – General Fund Quarterly Financial Report

B – General Fund Budget Comparison Report

C – Fund Balance Report

Return to regular agenda