COUNTY OF ALBEMARLE

 

EXECUTIVE SUMMARY

 

 

AGENDA TITLE:

FY08 First Quarter Financial Report

 

 

SUBJECT/PROPOSAL/REQUEST:

Quarterly Financial Report for the Three Months Ended September 30, 2007

 

 

STAFF CONTACT(S):

Tucker, Foley, Davis, Wiggans, Walters

 

 

LEGAL REVIEW:   Yes

 

AGENDA DATE:

November 7, 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 Preliminary Fund Balance as of September 30, 2007.  The Financial Report includes a bar chart that compares fiscal year revenue and expenditure data with the prior fiscal year.

 

 

STRATEGIC PLAN:

Goal 5: Fund the County’s future needs

 

 

DISCUSSION:

($ in Millions)

  1. Attachment A – General Fund Quarterly Financial Report:
    1. Revenues:

The Department of Finance estimates that General Fund revenues, transfers, and use of fund balance will be $3.680 million (1.7%) less than appropriations of $219.240 million.  Revenues will be revised in January after the second half 2007 tax bills are due, the 2008 reassessment is completed, current market conditions become more apparent, and the Governor’s 2008-2010 Biennial Budget is presented to the General Assembly.

                                                   i.      Real Estate tax revenues are estimated to be $1.153 million (1.1%) less than appropriations.  The Budget was prepared based on an estimated 5.0% 2008 reassessment rate.  The 2008 reassessment rate is now estimated at 1.0%.

                                                 ii.      Personal Property tax revenues are estimated to be $0.748 million (3.5%) less than appropriations.  The decline is attributed to a reduction in the number of new vehicles purchased as well as a significant shift from high value pickups and SUV’s to lower valued fuel efficient vehicles.  The percentage increase in the assessed value of year-to-date personal property tax bills is increasing at about 50% of original estimates.  The December Financial Report, to be presented in February, will give additional tax collection information.

                                                iii.      Sales tax revenues are estimated to be $0.798 million (5.5%) less than appropriations.  Sales tax receipts are down throughout the Commonwealth.  The August State Revenue Forecast estimates that local receipts will only increase at a 2.8% rate over last year.

                                                iv.      Business License revenues are estimated to exceed appropriations by $0.464 million (4.8%).  Business licenses are based on prior year gross receipts.  Due to the one year lag in recognition, the County is now realizing an increase in license fees from when market conditions were stronger.

                                                  v.      Utility tax revenues are estimated to be $0.410 million (4.4%) less than appropriations.  The 2006 State Communications Sales and Use Tax act mandated that telecommunication tax collections be transferred from localities to the state.  The tax is allocated based on each locality’s proportionate share of FY06 actual receipts.  Distributions were supposed to be revenue neutral.  Revenue neutrality has not been realized. 

                                                vi.      Other Local tax revenues are estimated to exceed appropriations by $0.377 million (3.3%).  The increase is primarily attributed to increase public services tax receipts.

                                               vii.      Federal revenues are estimated to be $1.359 million less than appropriations.  The decrease is primarily due to reimbursements for reduced DSS expenditures combined with a lower reimbursement rate.

                                             viii.      Categories with variances of less than $0.100 million have not been analyzed for this report. 

    1. Expenditures:

Total expenditures, including transfers, are within appropriate levels, 23.2%, for the first quarter.

                                                   i.      Departmental expenditures are at 22.3% of appropriations.

                                                 ii.      Expenditures are estimated at 9/30/07 appropriations.

 

    1. Revised Revenues less Expenditure Appropriations:

                                                   i.      Revised revenues are projected to be $3.680 million less than appropriated expenditures by the end of the fiscal year based on October revenue estimates.

                                                 ii.      Preliminary Fund Balance available November 07, 2007 is $1.178 million.  This is after a reduction for an estimated $1.690 million transfer to the CIP fund.  These are preliminary estimates that will be finalized after the completion of the fiscal year audit.

                                                iii.      There are no Projected End-of-Year Available Funds.  Revenue enhancement and expenditure reduction strategies are in the process of development.  More information on these strategies will be available with the December Financial Report.

 

  1. Attachment B – General Fund Budget Comparison Report:

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

a.       Revenues in all categories except Federal, Transfers, and Use of Fund Balance show positive growth from FY07.

b.       Expenditures in all categories except Non-School Transfers are expected to increase over FY07.

 

  1. Attachment C – General Fund Balance Report:

The report indicates that the County:

a.       Has an unaudited Preliminary FY07 Fund Balance of $18.238 million at June 30, 2007,

b.       Appropriated $2.370 million for FY08 projects,

c.       Has remaining FY07 Fund Balance of $15.868 million at September 30, 2007,

d.       Reserved $13.000 million for cash flow purposes,

e.       Has a Preliminary $1.690 million CIP transfer commitment, and

f.         Has Preliminary Unobligated Funds Available of $1.178 million at November 07, 2007.

 

 

BUDGET IMPACT:

This report is based on preliminary (pre-audited) operations for FY07 and three months of financial data for FY08.  The financial information contained in the FY08 Second Quarter Financial Report, to be presented to the Board in February 2008, will include audited figures for the FY07 and six months of FY08 financial data.  Staff will utilize these figures as the basis for the FY09 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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