COUNTY OF ALBEMARLE

 

EXECUTIVE SUMMARY

 

 

AGENDA TITLE:

FY07 Second Quarter Financial Report

 

 

SUBJECT/PROPOSAL/REQUEST:

Quarterly Financial Report for the Six Months Ended December 31, 2006

 

 

STAFF CONTACT(S):

Tucker, White, Davis, Wiggans, Walters

 

LEGAL REVIEW:   Yes

 

AGENDA DATE:

February 14, 2007

 

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 Fund Balance as of December 31, 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)

A.      Attachment A: Financial Report:

1.   Revenues:

The Department of Finance estimates that General Fund revenues will exceed appropriations by $2.182 million, 1.1%, an increase of $0.410 million from the December 6, 2006 Financial Report.  Transfers from other funds will exceed appropriations by $0.027 million.  Total revenue, use of other funds, and use of fund balance will exceed appropriations by $2.208 million, 1.1%.

a.   Real Estate tax revenues are estimated to exceed appropriations by $0.698 million, 0.7%, a $0.948 million increase from the last Financial Report.  The overall increase is due to a greater than anticipated 2006 new construction and the finalization of the 2007 reassessment.  The Budget was prepared based on a 22.5%, net of land use, estimated reassessment increase.  The actual increase was 25.3%, an incremental increase of 2.8%.

b.   Personal Property tax revenues are estimated to exceed appropriations by $0.743 million, 4.5%, a $0.300 million decrease from the last Financial Report.  The decrease is due to the lower than anticipated 2006 second half tax bill total.  The overall greater than appropriation increase continues to be the result of frozen state PPTR payments shifting the tax burden from the state to the taxpayer and an increase in vehicle assessments. 

c.   Business License tax revenues are estimated to exceed appropriations by $0.244 million, 2.7%, a $0.001 decrease from the last Financial Report.  The overall increase is due to the continuing strong economy.

d.   Utility tax revenues are estimated to be $0.241 million, 3.1%, less than appropriations, a $0.091 million decrease from the last Financial Report.  The decrease is due to the continued mild weather conditions.  Weather conditions are volatile and can change unexpectedly significantly affecting revenues.

e.   Food and Beverage tax revenues are estimated to exceed appropriations by $0.200 million, 3.9%, a $0.150 million increase from the last Financial Report.  The increase is attributed to the continued growth in convenience food preparation as evident by the increased number of restaurants.

f.    Other Local tax revenues are estimated to exceed appropriations by $0.347 million, 3.7%, a $0.032 million decrease from the last Financial Report.  Vehicle License tax revenues are expected to exceed appropriations by $0.200 million due to the increased number of vehicles as well as the number of vehicles subject to the tax.  Bank Franchise tax revenues are expected to exceed appropriations by $0.150 million due to additional deposits with local branches.

g.   Other Local revenues are estimated to exceed appropriations by $0.540 million, 10.9%, a $0.185 million increase from the last Financial Report.  Interest revenues are expected to exceed appropriation by $0.475 million due to higher yields and larger cash balances.  Law enforcement service fees continue to increase due to additional billable services.

h.   State revenues are estimated to be $0.147 million, 0.6% less than appropriations, a $0.113 million increase from the last Financial Report.  The overall decrease is due to the continued shift from state to federal reimbursement for social service expenditures.  Activity since the last Financial Report has shown a reduction in the rate of change.

i.    Other categories are estimated to vary less than $0.100 million from appropriations.

 

2.   Expenditures:

Total Expenditures, including transfers, are within appropriate levels at 45.1% for the first six months.

a.   Departmental expenditures are at 44.3% of appropriations.

b.   No attempt has been made to estimate expenditures.

 

3.   Revised Revenues less Revised Expenditure Appropriations:

a.   Revised revenues less appropriated expenditures project a $2.208 million increase by the end of the fiscal year based on January revenue updates.

b.   Fund Balance available February 14, 2007 is $0.784 million.  This is net a reduction for an estimated $9.225 million transfer to the CIP fund.  The $0.784 million may be used for other projects at the Board’s discretion and approval.

c.   Projected End-of-Year Available Funds are $2.991 million.  This reflects the audited FY06 fund balance, revised FY07 revenue estimates, supplemental appropriations, and the proposed CIP transfer.

 

B.      Attachment B: Budget Comparison Report:

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

1.   Only two revenue categories, Other Local Taxes and State Revenue, project decreases over last year actual revenues. 

2.   Expenditures in all categories except Non-School Transfers are expected to increase over FY06.

 

C.      Attachment C: Fund Balance Report:

The report indicates that the County:

1.   Has an Audited FY06 Fund Balance of $25.079 million at June 30, 2006,

2.   Appropriated $2.020 million for FY07 projects,

3.   Has a remaining FY06 Fund Balance of $23.059 million at December 31, 2006,

4.   Reserved $13.000 million for cash flow purposes,

5.   Has approved a $0.50 million appropriation after December 31, 2006,

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

7.   Has Unobligated Funds Available of $0.784 million at February 14, 2007.

 

BUDGET IMPACT:

This report is based on audited financial data for FY06 and six months of operations for FY07.  Staff will utilize this data as the basis for the FY08 Budget.

 

It is important to remember that any change in the County’s real estate tax rate will impact both the FY07 and FY08 Budgeted tax revenues.  Staff estimates that each one cent reduction is the real estate tax rate will reduce tax revenues in FY07 by approximately $750,000.

 

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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