COUNTY OF ALBEMARLE

 

EXECUTIVE SUMMARY

 

 

AGENDA TITLE:

FY07 First Quarter Financial Report

 

 

SUBJECT/PROPOSAL/REQUEST:

Quarterly Financial Report for the Three Months Ended September 30, 2006

 

 

STAFF CONTACT(S):

Tucker, White, Davis, Wiggans, Walters

 

 

LEGAL REVIEW:   Yes

 

 

AGENDA DATE:

December 6, 2006

 

ACTION:                              INFORMATION: 

 

CONSENT AGENDA:

  ACTION:                           INFORMATION:    X

 

 

ATTACHMENTS:   Yes

 

 

REVIEWED BY:

 

 

 

BACKGROUND:

The attached Quarterly Financial Report provides information on the County’s General Fund operations and Preliminary Fund Balance as of September 30, 2006.  The Financial Report includes a bar chart that compares current fiscal year revenue and expenditure data with data from the previous fiscal year.

 

STRATEGIC PLAN:

Goal 5: Fund the County’s future needs.

 

DISCUSSION:

($ in Millions)

  1. Attachment A: Financial Report:
    1. Revenues:

The Department of Finance estimates that General Fund revenues will exceed appropriated revenues by $1.772 million, 0.9%.  Combined with additional transfers of $0.027 million, this results in a total revenue, transfer, and use of fund balance increase of $1.799 million, 0.9%, over appropriations of $201.528 million.  Revenues will be revised in January after second half 2006 tax bills are processed, the 2007 reassessment is completed, and current market conditions become more apparent.

a)       Real Estate tax revenues are estimated to be $0.250 million, 0.2%, less than appropriations.  The decrease is attributed to reduced new construction resulting from an anticipated market slowdown.

b)       Personal Property tax revenues are estimated to exceed appropriations by $1.043 million, 6.3%.  The increase is due to frozen state PPTR payments resulting in a shift of the tax burden from the state to the taxpayer, as well as the residual fleet value increase from previous dealer incentives.  The 2006 PPTR allocation percent was set at 66%.  It is currently anticipated that the actual relief percent will be approximately 63% after adjustments.  The 2007 PPTR allocation percent is now projected to be in the 57% to 58% range.

c)       Delinquent Property tax revenues are estimated to be $0.201 million, 20.4%, less than appropriations.  It was anticipated that more delinquent taxpayers would pay their outstanding tax prior to September 1, 2006 when the state’s PPTR liability shifted to individuals.

d)       Sales tax revenues are estimated to exceed appropriations by $0.279 million, 2.0%.  The budget was prepared expecting that the economy would begin to cool down.  The slow down is beginning to materialize but not at the anticipated rate.

e)       Other Local tax revenues are estimated to exceed appropriations by $0.379 million, 4.0%.  Utility taxes are expected to be $0.150 million less than appropriations due to mild weather conditions.  This is volatile and can change unexpectedly.  BPOL revenues are expected to exceed appropriations by $0.245 million due to the better than expected late 2005 and early 2006 economy.  Vehicle License tax revenues are expected to exceed the appropriation by $0.125 million due to the increased number of vehicles.  Bank Franchise tax revenues are expected to exceed appropriations by $0.150 million due to additional deposits in local branches.

f)         Other Local revenues are estimated to exceed appropriations by $0.355 million, 7.2%.  Interest revenues are expected to exceed appropriation by $0.250 million due to higher yields and larger cash balances.  Law enforcement service fees continue to increase due to additional billable services.

g)       State revenues are estimated to be $0.260 million, 1.1%, less than appropriations due to decreased PPTR receipts from the state, as well as the continued shift from state to federal reimbursements for social service expenditures.

h)       Federal revenues are estimated to exceed appropriations by $0.282 million, 5.6%, due to the continued shift from state to federal reimbursements for social service expenditures.

 

    1. Expenditures:

      Total Expenditures, including transfers, are within appropriate levels, 22.6%, for the first quarter.

a)       Departmental revenues are at 22.2% of appropriations.

b)       No attempt has been made to estimate expenditures except for supplemental appropriations.

 

    1. Revised Revenues less Revised Expenditure Appropriations:

a)       Revised revenues less appropriate expenditures show a projected $1.799 million increase by the end of the fiscal year based on October revenue estimates.

b)       Preliminary Fund Balance available December 6, 2006 is $0.912 million.  This is after a reduction for an estimated $9.225 million transfer to the CIP fund.  The $0.912 million may be used for other projects at the Board’s discretion and approval.  These are preliminary estimates that will be finalized after the completion of the fiscal year audit.

c)       Preliminary Projected End-of-Year Available Funds are $2.710 million.  This reflects the preliminary FY06 fund balance, revised FY07 revenue estimates, supplemental appropriations, and the proposed CIP transfer.

 

  1. Attachment B: Budget Comparison Report:

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

1.       Revenues in all categories except Business Licenses and Other Local Taxes show positive growth.

2.       Expenditures in all categories are expected to increase over FY06.

 

  1. Attachment C: Fund Balance Report:

      The report indicates that the County:

1.       Has an unaudited FY06 Fund Balance of $25.157 million at June 30, 2006,

2.       Appropriated $2.020 million for FY07 projects,

3.       Has a remaining FY06 Fund Balance of $23.137 million at September 30, 2006,

4.       Reserved $13.000 million for cash flow purposes,

5.       Has a preliminary $9.225 million CIP transfer commitment, and

6.       Has Preliminary Unobligated Funds Available of $0.912 million at December 6, 2006.

 

BUDGET IMPACT:

This report is based on preliminary (pre-audited) operations for FY06 and three months of financial data for FY07.  The financial information contained in the FY07 Second Quarter Financial Report, to be presented to the Board in February 2007, will include audited figures for FY06 and six months of financial data.  Staff will utilize these figures as the basis for the FY07 Budget.

 

RECOMMENDATIONS:

This report has been prepared for your information.  No action is required.

 

ATTACHMENTS

A – General Fund Quarterly Financial Report

B – General Fund Budget Comparison Report

C – General Fund Balance Report

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