COUNTY OF ALBEMARLE

 

EXECUTIVE SUMMARY

 

 

AGENDA TITLE:

FY09 End-of-Year Preliminary Financial Report

 

SUBJECT/PROPOSAL/REQUEST:

Presentation of the Preliminary Financial Report for the Fiscal Year Ended June 30, 2009

 

STAFF CONTACT(S):

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

 

LEGAL REVIEW:  

 

 

AGENDA DATE:

October 07, 2009

 

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, 2009.  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 $214.475 million; $8.196 million (3.7%) less than revised appropriations (hereinafter “Budget”).  Combined with the use of $1.366 million in transfers from other funds and $1.816 million in fund balance, Revenues, Transfers, and Use of Fund Balance total $217.658 million; $8.309 million (3.7%) less than Budget.

 

Most national indicators suggest the recession is nearing an end, with some analysts suggesting the economy may have already hit bottom.  However, once the recession ends, the recovery is expected to be very slow by historical standards, particularly in the labor market.  Nationally, the August unemployment rate rose to 9.7% from 9.4%.  In Virginia, the unemployment rate fell from 6.9% to 6.5%.  In Albemarle, the unemployment rate fell from 5.4% to 4.9%, which is considered full employment.  Leading indicators, consumer confidence, and manufacturing benchmarks demonstrate improvement.  Inflation and the federal funds target rate remain very low.

 

Following is a brief revenue analysis for the FY09 fiscal year:

·         Real Estate Tax revenues total $113.265 million; $0.851 million (0.8%) more than Budget. The increase is primarily due to the 3.2 cent effective residential equalization increase in the 2009 real estate tax rate which offset the negative 2009 reassessment rate. 

 

·         Personal Property Tax revenues total $20.946 million; $2.054 million (8.9%) less than Budget.  Assessments have significantly dropped due to market conditions; particularly for large vehicles.  Additionally, businesses reduced their capital expenditures in the last half of 2007 and 2008, resulting in decreased business property assessments.

 

·         Delinquent Property Taxes total $1.293 million; $0.437 million (51.1%) more than Budget.  Delinquent fees implemented in FY08 and FY09 improved delinquent tax collections.

 

·         Sales Tax revenues total $11.974 million; $2.066 million (14.7%) less than Budget.  This is an actual decrease of $1.170 million (8.9%) from FY08.  Taxpayers continue to minimize discretionary spending due to economic uncertainty.

 

·         Business License (BPOL) revenues total $9.608 million; $0.988 million (9.3%) less than Budget.  BPOL revenues are dependent upon economic activity.

 

·         Utility Tax revenues total $8.939 million; $0.646 million (6.7%) less than Budget.   The decrease is primarily due to decreased industrial and commercial activity combined with moderate weather and environmental fluctuations.

·         Food and Beverage Tax revenues total $5.447 million; $0.353 million (6.1%) less than Budget.  People appear to be eating more at home and frequenting restaurants less as they minimize flexible spending.

 

·         Other Local Tax revenues total $10.885 million; $1.366 million (11.1%) less than Budget.  Increased delinquent tax collection fees were offset by decreased public service tax, vehicle license fees, and recordation fees due to current economic conditions.

 

·         Other Local Revenues total $4.392 million; $1.918 million (30.4%) less than Budget.  The decrease is primarily due to reduced interest earnings, development fees, agency leases, and other Clerk fees.

 

·         Use of Other Funds total $1.366 million; $0.113 million (7.6%) less than Budget.  The decrease is primarily due to reduced Section 8 Administration and CIP transfers.

 

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

 

b.       Expenditures:

Total expenditures, including transfers, total $215.546 million; a $10.421 million (4.6%) savings from Budget.   Reappropriation requests for FY09 outstanding purchase orders of $0.266 million and uncompleted projects of $0.702 million are in process, which will reduce departmental savings listed below:

 

                           i.      Departmental expenditures total $79.403 million; a 4.9% savings of $4.089 million from Budget: 

·         Administration expenditures total $10.957 million; a 3.3% savings of $0.379 million.

·         Judicial expenditures total $3.630 million; a 6.5% savings of $0.254 million.

·         Public Safety expenditures total $28.254 million; a 4.1% savings of $1.204 million.

·         Public Works expenditures total $4.926 million, a 6.8% savings of $0.360 million.

·         Human Services expenditures total $17.952 million; a 4.8% savings of $0.909 million.

·         Parks, Rec., and Culture expenditures total $6.196 million; a 3.0% savings of $0.191 million.

·         Community Development expenditures total $7.488 million; a 9.6% savings of $0.792 million.

 

                         ii.      Non-Department expenditures consisting of the revenue sharing payment, reserves, and refunds total $13.850 million; a 14.1% savings of $2.282 million from Budget.  The lockbox release to fund local government operations generated $1.614 million.

 

                        iii.      Transfers total $122.293 million; a 3.2% savings of $4.050 million from Budget:

·         Transfers to the School Division total $97.546 million, a 3.6% savings of $3.679 million.

·         Transfers to the Capital and Debt funds total $24.747 million; a 1.5% savings of $0.371 million.

 

c.       Revenues less Expenditures:

This report indicates that FY 2009 will end with $2.112 million of revenues in excess of expenditures:

·         Revenues and transfers are projected to experience an $8.309 million shortfall which should be offset by $10.421 million in expenditure savings.

 

B.      Attachment B: General Fund Budget Comparison Report:

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

 

Revenues:

·         Real Estate Tax and Personal Property Tax show positive growth over FY08. 

·         Sales Tax, Business Licenses, Utility Taxes, Food and Beverage Tax, Other Local Taxes, Other Local Revenue, State Revenues, Federal Revenues, Transfers, and Use of Fund Balance show decreases from FY08.

 

      Expenditures:

·         Administration, Public Works, Human Services, Parks & Culture, Non-Departmental, and Education show increases over FY08.

·         Judicial, Public Safety, Community Development, and Non-School Transfers show decreases from FY08.

 

C.      Attachment C: Fund Balance Report:

The report indicates that the County:

·         Had an Audited FY08 Fund Balance of $20.426 million as of June 30, 2008,

·         Appropriated $1.817 million for FY09 projects,

·         Appropriated $0.146 million for Budgeted FY10 Initiatives,

·         Resulting in a remaining June 30, 2008 Fund Balance of $18.463 million,

·         Estimates Preliminary Revenues in excess of Expenditures of $2.112 million,

·         Resulting in a Preliminary June 30, 2009 Fund Balance of $20.575 million,

·         Has Proposed Reappropriations of $0.968 million, and

·         Has Projected Unobligated Funds of $19.607 million as of October 7, 2009.

 

D.      Budget Impact:

This Financial Report is based on audited FY08 financial data and twelve months of unaudited financial data for FY09.  The Board will be presented with the audited figures for FY 09 in February, 2010.

 

RECOMMENDATIONS:

Staff recommends approval of the Preliminary June 30, 2009 End-of-Year Financial Report.

 

 

 

ATTACHMENTS;

A – General Fund Quarterly Financial Report

B – General Fund Budget Comparison Report

C – General Fund Balance Report

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