Title
Presentation of the FY19 March General Fund Financial Dashboards.
Body
Issue/Request:
Presentation of the FY19 March General Fund Financial Dashboards.
Key Issues:
The General Fund year-to-date (YTD) revenue amounts through the month of March total $59,884,562. This total is less than budgeted amounts by $353,842 (or less than 1%). Information about the major revenue sources and/ or variances to highlight include:
- Property Taxes: Revenues from property taxes have exceeded budgeted estimates by approximately $229,640 (or 1%).
- Sales Tax: The local sales tax revenue continues to show a growth trend, with actual gross amounts being $223,715 (or 2%) above budgeted estimates. In comparison to the same period through FY18, current year actual gross amounts are greater by $616,257 (or 5%).
- Franchise Tax: In total, revenue from franchise tax is $93,727 (or 1%) below budgeted estimates. With the exception of Cable TV, the franchise tax categories are at or exceeding budgeted estimates. It is important to point out that Natural Gas franchise tax revenue has exceeded budgeted estimates by $183,192 (or 12%). This is primarily due to the severe weather and cold temperatures that the city experienced during the winter months. Cable TV franchise tax is $361,483 (or 27%) below budgeted estimates. Cable TV franchise tax revenue is received by the City on a quarterly basis. A revenue receipt was budgeted for March; however, that receipt was not received until April (in the amount of $328,074). Taking that information into consideration, the franchise tax category as a whole would be exceeding budgeted estimates.
- Other Taxes: This revenue category is $41,380 (or 15%) below budgeted estimates. A majority of the “other taxes” category is the cigarette tax.
- Licenses and Permits: There are several different revenues that make up this category and a majority of them are related to the licenses and permits for development (i.e. inspection fees, right-of-way permitting, etc.). The severe weather, cold temperatures, and snow that the city experienced during the winter months had a negative impact on development. This revenue category is $251,640 (or 13%) below budgeted estimates.
- Intergovernmental: This revenue category is made up of grants and contributions from our partners in other government jurisdictions. YTD revenues are $145,547 (or 17%) below budgeted estimates.
- Charges for Service: The are several revenues in this category and it primarily consists of revenues received for services provided by the City (i.e. ambulance fees, EMS/ dispatch contracts, police department special details, etc.). The charges for services category has exceeded budgeted estimates by $220,071 (or 3%). One of the specific revenues that has exceeded budgeted estimates is Special Detail, which is a revenue for Police officers working assignments outside of their regular schedule. (It is important to mention that there is a corresponding expense for Special Detail in personnel services.)
- Investment Earnings: This revenue category is significantly exceeding budgeted estimates by $349,597 (or 388%). In looking into this category more in-depth, the interest on investments has exceeded budgeted estimates by $107,629 and the mark-to-market adjustment exceeded budgeted estimates by $241,968.
- Other: This revenue category is primarily made up of refunds and reimbursements for General Fund departments. In total, revenue from this category is $755,146 (or 82%) below budgeted estimates. The primary reason for this large variance is that the Capital Project Reimbursement has not yet been processed, which for the first half of the fiscal year was approximately $686,046.
- Transfers In: This revenue category consists of transfers from other City funds into the General Fund and is $201,129 (or 25%) below budgeted estimates. The cause of the variance is due to the difference in how it is budgeted versus when it is/ will be received. When it was budgeted, the full amount of fiscal year revenue for transfers in was placed in one month at the beginning of the fiscal year; however, the transfers in to the General Fund are made on a monthly basis. When the end of the fiscal year is completed, all the budgeted and actual amounts for transfers in will equal each other.
The General Fund YTD expense and encumbrance amounts through the month of March total $54,358,447. This total is less than budgeted amounts by $1,685,070 (or 3%).
The major variance to mention for the expenses is the Transfers Out category. This expense category has exceeded budgeted amounts by $334,320 (or 29%). It is important to point out that the cause of this variance to how it was budgeted and when the transfers actually occurred. The transfers out were budgeted to occur each month; however, the transfers out actually occurred in one month at the beginning of the fiscal year. When the end of the fiscal year is completed, the budgeted and actual amounts for the transfers out expense category will equal each other and there will be no variance.
Proposed City Council Motion:
N/A
Background:
N/A
Presenter
Chris Clubine, Management Analyst