COUNTY OF ALBEMARLE

 

EXECUTIVE SUMMARY

 

 

AGENDA TITLE:

FY08 End-of-Year Preliminary Financial Report

 

SUBJECT/PROPOSAL/REQUEST:

Presentation of the Preliminary Financial Report for the Fiscal Year Ended June 30, 2008

 

STAFF CONTACT(S):

Messrs Tucker, Foley, Davis, Wiggans, Walters, and Ms. Vinzant

 

LEGAL REVIEW:   Yes

 

 

AGENDA DATE:

November 05, 2008

 

ACTION:                INFORMATION:   

 

CONSENT AGENDA:

  ACTION:      X      INFORMATION:    

 

ATTACHMENTS:   Yes

 

REVIEWED BY:

 

 

BACKGROUND:

The attached Preliminary Financial Report provides information on the County’s General Fund operations and Fund Balance as of June 30, 2008.  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: General Fund Financial Report:

a.       Revenues:

      Revenues, excluding Transfers and Fund Balance Appropriations, are estimated to total $212.321 million; $5.199 million (2.4%) less than revised appropriations (hereinafter “Budget”).  This is a $1.590 million decrease from the previous estimate submitted with the March 31, 2008 Financial Report.  Combined with the use of $1.769 million in transfers from other funds and $2.803 million in fund balance, Revenues, Transfers, and Use of Fund Balance total $216.893 million; $5.195 million (2.3%) less than Budget. 

 

Following is a brief revenue analysis for the fiscal year:

·         Real Estate Tax revenues total $108.364 million; $1.401 million (1.3%) less than Budget.  The Budget was prepared based on a 5% 2008 reassessment rate and tax rate of $0.68 per $100.  The actual 2008 reassessment rate was 0.14% and tax rate $0.71 per $100.  New construction also decreased from budget estimates.

 

·         Personal Property Tax revenues total $19.973 million; $1.192 million (5.6%) less than Budget.  The reduction is due to a shift from high cost, fuel inefficient to lower cost, fuel efficient vehicles, average used vehicle sale prices falling faster than prior year comparable vehicle sales, and actual decreases in new vehicle unit sales from prior years. 

 

·         Delinquent Property Tax revenues are estimated to be $0.725 million; $0.263 million (26.6%) less than Budget.  The decrease is being experienced both in real estate and personal property tax collections.  New delinquent fees are being implemented which should encourage timely payment of future tax bills.

 

·         Sales Tax revenues total $13.144 million; $1.456 million (10.0%) less than Budget.  Actual collections are slightly less than FY07.  The Commonwealth as a whole has also experienced lower than anticipated collections attributed to current economic conditions.  Housing-related and grocery store sales were flat to negative.  Taxable sales from department stores and restaurants were flat compared to FY07.  Increased internet sales typically do not generate sales tax revenues.

 

·         Business License revenues total $10.393 million; $0.648 million (6.7%) more than Budget.  Even with the weak economy, significant construction has taken place at the University. Additionally, business license revenues are based on prior year operations when the economy was stronger.

 

·         Food & Beverage Tax revenues total $6.059 million; $0.484 million (8.7%) more than Budget.  The increase is due to the continued shift from home to convenience food preparation.

 

·         Other Local Tax revenues total $10.867 million; $0.497 million (4.4%) less than Budget.  The shortfall is primarily due to decreased vehicle license tax collections, recordation tax collections, and seller fees resulting from the vehicle and real estate markets slowdown.

·         Other Local Revenues total $5.397 million; $0.392 million (6.8%) less than Budget.  The decrease is primarily due to reduced interest earnings, development fees, and Clerk fees resulting from the real estate market slowdown.

 

·         Federal Revenues total $4.300 million; $1.194 million (21.7%) less than Budget.  The Budget shortfall is due to less than anticipated public assistance reimbursements.

 

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

 

b.       Expenditures:

Total expenditures, including transfers, total $213.435 million; an $8.652 million (3.9%) savings from Budget.  A $1.187 million uncompleted project carryover reappropriation request is in process.  Uncompleted purchase orders of $0.218 million have been reapproved.

 

                           i.      Departmental expenditures total $78.060 million; a $5.195 million savings from Budget. 

·         Administration expenditures total $10.455 million; a 6.5% savings of $0.731 million.

·         Judicial expenditures total $3.674 million; a 3.4% savings of $0.130 million.

·         Public Safety expenditures total $28.376 million; a 2.1% savings of $0.604 million.

·         Public Works expenditures total $4.496 million, a 19.3% savings of $1.072 million.

·         Human Services expenditures total $17.283 million; a 6.9% savings of $1.287 million.

·         Parks, Rec., and Culture expenditures total $6.027 million; a 1.8% savings of $0.109 million.

·         Community Development expenditures total $7.750 million; a 14.0% savings of $1.261 million.

 

                         ii.      Non-Department expenditures consisting of the revenue sharing payment, reserves, and refunds

 total $13.343 million; a $1.148 million savings from Budget.

 

                        iii.      Transfers total $122.032 million; a $2.310 million savings from Budget.

·         Transfers to the School Division total $96.372 million, a 2.1% savings of $2.061 million.  This is approximately $970,000 less than the school transfer specified in the Third Quarter Financial Report, which was based on estimated revenues for the year at that time.  As noted previously in this report, actual revenues for the year were $1.590 million less than the third quarter estimate.  Therefore, the school transfer is reduced accordingly.

·         Transfers to the Capital and Debt funds total $25.660 million; a 1.0% savings of $0.249 million.

 

c.       Revenues less Expenditures:

The report indicates that the fiscal year will end with revenues in excess of expenditures by $3.458 million:

·         Revenues and transfers experienced a $5.195 million shortfall which was offset by $8.652 million in expenditure savings.

 

B.      Attachment B: General Fund Budget Comparison Report:

The chart report tracks changes in revenues and expenditures over time.

·         Revenues in all categories except Sales Tax, Other Local Revenue, Federal Revenue, Transfers from Other Funds, and Use of Fund Balance increased over last year.

·         Expenditures in all categories except Capital and Debt transfers increased over last year.

 

C.      Attachment C: Fund Balance Report:

The report indicates that the County:

·         Has an Audited FY07 Fund Balance of $19.997 million as of June 30, 2007,

·         Appropriated $2.803 million for FY08 projects,

·         Has a remaining FY07 Fund Balance of $17.194 million as of June 30, 2008,

·         Estimates Preliminary Revenues in Excess of Expenditures of $3.458 million,

·         Resulting in an estimated June 30, 2008 Fund Balance of $20.652 million,

·         Subsequently approved $0.629 million for FY09 projects,

·         Has Proposed Commitments of $1.187 million, and

·         Has Projected Unobligated Funds of $18.836 million as of November 5, 2008.

 

 

RECOMMENDATIONS:

Staff recommends approval of the Preliminary June 30, 2008 End-of-Year Financial Report.

 

ATTACHMENTS;

A – General Fund Preliminary General Fund Financial Report

B – General Fund Preliminary General Fund Budget Comparison Report

C – General Fund Preliminary General Fund Balance Report

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