Title
Presentation of the FY20 March General Fund Financial Dashboards
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Issue/Request:
Presentation of the FY20 March General Fund Financial Dashboards
Key Issues:
The General Fund year-to-date (YTD) revenues through the month of March total approximately $65.7 million. This amount is greater than the YTD budget amount by approximately $3 million (or 5%). The following is information about the large revenue sources and major variances with revenues:
-Property Taxes: The YTD property tax revenues total approximately $23.17 million, which is greater than the YTD budget estimates by approximately $100,000.
-Sales Tax: The YTD actuals for Local Sales Tax totals approximately $13.56 million. Local Sales Tax is approximately $715,000 (or 5%) less than budgeted estimates and less than FY19 actual amounts through the same time period by approximately $190,000 (or 1%).
-Franchise Taxes: As a category, revenues from franchise taxes are less than budgeted estimates by approximately $160,000 (or 2%). Natural Gas and Electric franchise taxes have revenues greater than budget. The primary cause of the variance is due to Telephone Franchise Tax revenues being less than budgeted estimates by approximately $207,000 (or 14%) and less than FY19 actual amounts through the same time period by approximately $306,000 (or 20%).
-Motor Vehicle Taxes: This revenue category is greater than budgeted estimates by approximately $62,000 (or 2%). All three of the revenues that make up this revenue category (MV Fuel Tax, MV Sales Tax, and MV License/ Transfer fee) have YTD actuals greater than the current year YTD budget estimates and previous year YTD actuals.
-Other Taxes: This revenue category is greater than budgeted estimates by approximately $57,000 (or 25%). The primary cause of the variance is due to actual revenues from the Intangible Tax coming in much higher than FY20 budgeted estimates and prior year actual amounts.
-Fines and Forfeitures: The primary cause of the variance is due to a specific revenue account ("penalty/ interest other") having a significant variance between the YTD budget estimate and the YTD actuals amount.
-Licenses and Permits: This revenue category is approximately $817,000 (or 45%) greater than budgeted estimates. The largest variances in this revenue category where YTD actuals have exceeded YTD budget estimates are in storm sewer inspection fees, grading permits, codes inspection fees, right-of-way permitting, water inspection fees, and street inspection fees. It is important to mention that due to the weather in FY19 (i.e. multiple snow events, cold temperatures, wet Spring, etc.), construction projects were delayed into FY20, which is a part of the cause for the increased YTD revenues in this category.
-Other: This revenue category is less than budgeted estimates because the revenues for Capital Project Reimbursement and Law Reimbursement have not been processed. With that said, it is estimated by City staff that both of these revenue sources will be equal or greater than the budgeted estimates when processed.
-Sale of Property: During FY20, the City sold property in the amount of $3,053,000.
The General Fund YTD expenses and encumbrances through the month of March total approximately $60 million. This amount is greater than the YTD budget amount by approximately $1 million. The following is information about the expense categories and major variances:
-Personnel Services: This expense category accounts for approximately two-thirds of all expenses in the General Fund. The YTD actuals for Personnel Services are greater than budgeted estimates by approximately $640,000 (or 2%).
-Interdepartment Charges: This expense category had expenses and encumbrances greater than the budgeted estimates because funds had been encumbered a month earlier than budgeted.
-EMS Adjustment: This expense category consists of the insurance adjustment and bad debt write-off expense for Ambulance Fees. The revenues for ambulance fees have been greater than budget estimates. Although those revenues have increased, so have the expenses associated with Ambulance Fees.
Proposed City Council Motion:
N/A
Background:
N/A
Other Information/Unique Characteristics:
It is important to note that as a rule of thumb there is a lag in some of the revenues (i.e. sales tax) between the time of a purchase/ tax being applied and the time that the tax is remitted to the City. (The sales tax that is paid/ collected in April is remitted to the City in June.) The Stay-At-Home Executive Order issued by Jackson County, Missouri took effect in mid-March. As a result, a full month of sales tax data will not be available until the FY20 June General Fund Financial Dashboards.
Presenter
Chris Clubine, Management Analyst
Recommendation
Recommendation: This presentation is for informational purposes.
Committee Recommendation
Committee Recommendation: [Enter Committee Recommendation text Here]