COUNTY OF ALBEMARLE

 

EXECUTIVE SUMMARY

 

 

AGENDA TITLE:

FY 07 Third Quarter Financial Report

 

 

SUBJECT/PROPOSAL/REQUEST:

Quarterly Financial Report for the Nine Months Ended March 31, 2007

 

 

STAFF CONTACT(S):

Tucker, Foley, Davis, Wiggans, Walters

 

 

LEGAL REVIEW:   Yes

 

 

AGENDA DATE:

May 2, 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 March 31, 2007.  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:

General Fund revenues are estimated to be $2.221 million, 1.1%, less than appropriations, a $4.403 million decrease from the last Financial Report.  Transfers from other funds will exceed appropriations by $0.027 million.  Total revenue, use of other funds, and use of fund balance is estimated to be $2.195 million, 1.1%, less than appropriations.

a)       Real Estate Tax revenues are estimated to be $3.958 million, 3.9%, less than appropriations, a $4.656 million decrease from the last Financial Report.  The decrease is primarily due to the $0.06 reduction in the 2007 tax rate from the budgeted $0.74 per $100 to the adopted $0.68 per $100 tax rate.

b)       Personal Property Tax revenues are estimated to exceed appropriations by $0.393 million, 2.4%, a $0.350 million decrease from the last Financial Report.  The decrease is due to less than anticipated second half tax bills.

c)       Sales Tax revenues are estimated to exceed appropriations by $0.100 million, 0.7%, a $0.150 million increase from the last Financial Report.  The increase reflects the continued strong local economy.

d)       Business License Tax revenues are estimated to exceed appropriations by $0.244 million, 2.7%, no change from the last Financial Report.

e)       Utility Taxes are estimated to be $0.270 million, 3.5%, less than appropriations, a $0.029 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.

f)         Food and Beverage Tax revenues are estimated to exceed appropriations by $0.225 million, 4.4%, a $0.025 million increase over the last Financial Report.  The increase is attributed to the continued growth in convenience food preparation.

g)       Other Local taxes are expected to exceed appropriations by $0.328 million, 3.5%, a $0.019 million decrease from the last Financial Report.  The decrease is due to the reduced real estate tax rate levied on mobile homes and public service property.

h)       Other Local revenues are expected to exceed appropriations by $0.635 million, 12.8%, a $0.095 million increase from the last Financial Report.  The increase is primarily due to unanticipated interest earnings resulting from greater than anticipated yields and larger cash balances.  This source of revenue will decrease as real estate revenues are reduced due to the lowered tax rate.

i)         State revenues are expected to exceed appropriations by $0.128 million, 0.5%, a $0.275 million increase over the last Financial Report.  The increase is due to anticipated additional reimbursements for Social Service expenditures.

j)         Categories which vary less than $0.100 million are not analyzed in this report.

 

    1. Expenditures:

Total Expenditures, including transfers, are within appropriate levels at 73.0 % for the first nine months.

a)       Departmental expenditures are at 67.6% of appropriations.

b)       Revised departmental expenditures are estimated to generate savings of $0.500 million.

c)       Jail operations are projected to exceed appropriations by $0.600 million.  This over-expenditure will be absorbed by the available $1.098 million Board reserve for contingencies.  This will leave a balance of $0.498 million available in the Board reserve for contingencies category as well as $0.102 million in other revenues.

 

    1. Revised Revenues less Revised Expenditure Appropriations:

a)       Revised revenues are projected to be $1.695 million less than expenditures based on the March revenue update adjusted for the adoption of the $0.68 per $100 tax rate as well as an estimated $0.500 million in departmental savings.

b)       Fund Balance available May 02, 2007 is $2.317 million.  This is net the proposed transfer of an estimated $7.225 CIP transfer based on the FY06 surplus and a $0.465 FY06 CSA over-expenditure transfer that was not made last year.  The original proposed CIP transfer of $9.225 million was reduced by $2.000 million during the FY08 Budget process.

c)       Projected End-of-Year Available Funds are projected to be $0.621 million.

 

  1. Attachment B: Budget Comparison Report:

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

1.       Only two revenue categories, Utility Taxes and Other Local Taxes, project decreases from FY06 actual.

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

 

  1. Attachment C: Fund Balance Report:

      The report indicates that the County:

    1. Has an Audited FY06 Fund Balance of $25.079 million as of June 30, 2006,
    2. Appropriated $2.072 million for FY07 projects,
    3. Has a remaining FY06 Fund Balance of $23.007 million at March 31, 2007,
    4. Reserved $13.000 million for cash flow purposes,
    5. Has proposed commitments of $7.690 million, and
    6. Has Unobligated Funds Available of $2.317 million at May 2, 2007.

 

BUDGET IMPACT:

This report is based on audited financial data for FY 06 and nine months of operations for FY 07.  The next report, to be presented to the Board in October, 2007, will contain preliminary year-end information for FY 07.

 

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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