Title
Presentation of the FY21 General Fund Mid-Year Projections
Body
Issue/Request:
Presentation of the FY21 General Fund Mid-Year Projections
Key Issues:
Part of the budget process includes a mid-year review and analysis of General Fund revenues and expenses to project year end totals.
The General Fund revenues for Fiscal Year 2021 are projected to total $74,459,420. This projected revenue amount is expected to exceed budgeted estimates by $4,136,486 (or 5.88%). Due to the effects of COVID-19, there were several revenue categories that where estimated to be considerably impacted. Some revenue categories were projected to be below trends and actual performances of prior years. FY21 Budget was projected to be $2,893,944 (or 3.95%) less than the FY20 Budget as a whole. Some of those areas to highlight include:
-Property Tax: As a category, property tax projections were projected to be 2.49% greater than the FY20 Budget. The FY21 projection is $799,549 (or 3.79%) greater than budget estimates based on collections to date.
-Sales Tax: Revenues were projected at 14.65% below the FY20 Budget as a category. However, the projected impact of COVID-19 has not made as significant an impact on Sales Tax revenues as budgeted with a projected increase in revenue of $2,302,291 (or 14.88%) above the budget. Local Sales Tax is the largest of the sales tax revenue category and is projected to be $2,167,955 (or 13.6%) above budget estimates. In comparison to FY20 actuals, FY21 Local Sales Tax is expected to be greater by $489,981 (or 2.78%).
-Franchise Taxes: As a category, franchise taxes are projected to be greater than budgeted estimates by $64,302 (or 0.55%). Telephone Franchise Tax is projected to be $97,677 (or 7.04%) higher than budget estimates but Cable Franchise Tax revenue projections are less than the budget estimates by 60,999 (or -4.83%).
-Motor Vehicle Taxes: Motor vehicle taxes (Motor Vehicle Sales Tax, and Motor Vehicle License/ Transfer Fee) are projected to have year-end actuals greater than the budgeted estimates. As a category, it is projected that revenues from Motor Vehicle Taxes will total $3,649,444, which is greater than budgeted estimates by $240,519 (or 7.06%).
-Other Taxes: This revenue category is projected to total $292,707. The cause of the variance is due to year-to-date (YTD) actual receipts for the Cigarette Tax revenue being greater than the budgeted estimate by approximately $23,297 (or 9.89%).
-Licenses and Permits: YTD actuals for development related license fees and permits (i.e. storm sewer inspection fees, grading permits, codes inspection fees, etc.) have been greater than budgeted estimates. As a revenue category, it is projected that revenues for licenses and permits will be greater than budgeted estimates by approximately $601,375 (or 21.29%).
-Charges for Service: This revenue category is projected to be less than budgeted estimates. The cause of the variance is due to lower revenues related to Ambulance Fees by approximately $466,375 (or -4.89%). It is important to mention that although there is a projected decrease in revenues for Ambulance Fees, the expenses (insurance adjustment and bad debt write-off) related to the lower revenues associated to Ambulance Fees may take additional time before they are realized.
The General Fund expenses for Fiscal Year 2021 are projected to total $75,017,513. This projected expense amount is less than the budgeted estimates by approximately $1,131,320 (or 1.49%). Major variances to mention include:
-Personnel Services: This expense category accounts is expected to account for 69% of all expenses. It consists of all expenses related to personnel including salaries, payroll taxes, health insurance, retirement (LAGERS), and other miscellaneous expenses (tuition reimbursement, boot allowances, etc.). This category is projected to be less than budgeted estimates by approximately $967,071 (or -1.83%).
-Other Services, Supplies and Charges: This expense category is projected to be lower than budget estimates with a total of $11,078,689. The expense category as a whole is expected to be $6,621 (of -0.06%). Expenses such as travel and employee training are projected to be $136,100 below budget and prisoner expenses are another $100,000 below budget. Those expenses are among several other expenses that were projected below budget estimates. However, Receivables Adjustment (below) offset much of the expected lower projections in this category.
-Fuel & Lubricants: This expense category is projected to be less than budgeted estimates by approximately $98,513 (or -0.19%). The primary cause of the variance is the lower actual fuel price per gallon than utilized for budgeting.
-Receivables Adjustment: For the General Fund, the receivables adjustment category is comprised of the insurance adjustment and bad debt write-off for Ambulance Expenses. As it was mentioned above, although it is projected that there will be increased revenues for Ambulance Fees, it is also projected that the receivables adjustment expenses associated with Ambulance Fees will be increased over budgeted estimates. As a category it is projected that the Receivables Adjustment expense will be greater than budget estimates by $560,000 (or 59.5%).
Proposed City Council Motion:
This presentation is for informational purposes. No proposed City Council motion is required.
Background:
N/A
Presenter
Brent Boice, Assistant Director-Business Services, Water Utilities
Recommendation
This presentation is for informational purposes.
Committee Recommendation