CECIL COUNTY GOVERNMENT

Transcription

1 Office of the County Executive Department of Finance Tari Moore Winston L. Robinson, Director County Executive Alfred C. Wein, Jr. Front Desk & Payments Director of Administration Office: County Information Fax: CECIL COUNTY GOVERNMENT Department of Finance 200 Chesapeake Boulevard, Suite 1100, Elkton, MD From: Winston L. Robinson Craig W. Whiteford To: Tari Moore, County Executive Al Wein, Director of Administration Cecil County Council Members Date: May 5, 2015 Re: FY2015 Third Quarter Fiscal Projections The Department of Finance is pleased to present the FY2015 Third Quarter Fiscal Projection. This projection includes by necessity certain broad assumptions in addition to detailed reviews of various areas. The challenging winter weather has impacted both the costs to the County as well as complicated the task of making projections. This Third Quarter Fiscal Projection has analyzed revenues and expenditures to determine if patterns indicate variance from budgeted amounts. Where we have obtained new information or see a change in patterns, we have considered that information in our projection. The schedules have attached notes that indicate significant assumptions. A cautionary note that projections are just that and actual results will vary based on the economy and operational challenges. General Fund Comparison to Budget Overall, the third quarter projection finds the County s General Fund expecting to see a smaller excess of Expenditures over Revenues than originally budgeted; the projection of $2,359,416 vs the revised budget of $4,699,077 is $2,339,661 to the better. Revenue projections reflect the uncertainty of the economy. Real and (mainly) personal property taxes are expected to be $328,078 higher than budget. Income tax estimates are influx as it is the filing season, but these revenues are now projected to be $297,189 better than budget. The projected net of all revenue streams is $364,634 less than budgeted. Projected expenditures as usual are expected to approach but not equal the budget. A total of $2,704,296 less than budget is projected to be expended. The third quarter expenditure patterns have been impacted to a certain degree by the weather although at a lesser rate than The unfavorable budget variance in the States Attorney s Office is due to less employee turnover than projected. County Council expenses are projected to be $147,094 less than budget due to actual professional and legal expenses considerably less than budgeted. Human Resource expenses are projected to be $175,625 less than budget due to ongoing expenses associated with the MUNIS HR upgrades were largely completed during FY14. Emergency Services and Law Enforcement positive variances are due to increased employee turnover versus budget expectations. Z:\2015 Projections\2015 Projection 3rd Quarter \FY Q Projection Commentary docx 1

2 FY2015 Third Quarter Fiscal Projection s Budget May 5, 2015, Page 2 Enterprise Funds The Landfill Fund is projecting $524,893 in lower operating revenues and $124,860 in higher expenditures. If this continued, the fund would be $649,753 to the negative compared to budget. This still produces a deficit of $1,409,086 for FY The Wastewater Fund is projected to have $555,091 more in user fee revenue vs budget but $971,511 less connection fee revenue. Savings in expenses are anticipated approximating $128,227; the bulk of the savings occur in Facilities Maintenance actual exposure running much less than normal. If the sales, expenditure, and connection projections hold up, the result will be $266,895 less than budgeted, with connection fee revenue the lead factor. General Fund Comparison to Prior Year The year-to-year comparison shows a change from a $1,785,097 actual surplus in 2014 caused by a strengthening economy (i.e., income and personal property taxes) to a $2,359,416 projected deficit, which is a change in net position of $4,144,513; however, the projected deficit is $2,339,662 smaller than budgeted. Revenues compared to last year are projected to be up by $5,031,401. The increase versus prior year is largely through increased income tax collections to date as well as the expected increase in the paymentin-lieu of tax receipts for Rock Spring Power Generation, and an increased transfer in from VLT revenues to support approved VLT expenses. Income taxes are expected to advance about $3.1 million versus last year while real estate transfer and recordation taxes are up slightly by $173,864 versus Expenditures are projected to be up by $2,081,026 compared to FY2015. State actions, severe weather, and catch-up costs in public safety and education drive much of these costs. Public Works costs are projected to rise by $745,980 and transfers to the Board of Education will rise by $2,334,288; both areas will be within budget but both include major expenditures that have been transferred to the County from the State (asphalt overlay and teacher pension costs, respectively) while severe weather has added $752,000 of costs in Offsets versus prior year are a reduction in transfers to capital projects by $4.1 million dollars, and a reduction in debt service due to a refunding by $700,000. Enterprise Funds The Solid Waste Enterprise Fund is projected to have a decrease in net position of $1,409,086 versus $2,360,403 for 2015, which is an improvement by $951,317. The scheduled increases in tipping fees over time have performed as intended. The Wastewater Fund is expected to have a decrease in net position of $252,522 versus an increase in net position of $3,106,538 for 2014, a change of $3,359,060. The reasons for the increase in net position for 2014 was the realization of a $693,000 capital grant, connection fees of $1,555,570, and developer contributions of $962,362. Connection fee revenue is lagging behind 2014 by almost $1 million dollars, although building activity should accelerate during the final quarter of Attached Schedules Attached are the following schedules: - FY2015 Third Quarter Projection vs Revised Budget - General Fund - Landfill Fund - Wastewater Fund - FY2015 Third Quarter Projection vs Revised Budget & Prior Year - General Fund - Landfill Fund - Wastewater Fund - FY2015 Third Quarter Projection Significant Assumptions Z:\2015 Projections\2015 Projection 3rd Quarter \FY Q Projection Commentary docx 2

3 General Fund Revenues & Expenditures by Major Department as of Nine Months Through 03/31/15 See Note (a) as to limitations (Unaudited) Page 1 Current Year vs Prior Year Actual Current Year Budget (b) vs Projection FY 2014 FY 2015 (Unfavorable) FY 2015 FY 2015 (Unfavorable) Actual Actual thru Mar Budget Projection thru June thru Mar thru Mar 2015 vs 2014 Fiscal Year thru June Annual Budget Revenues Real Property Tax 92,074, ,386, (687,580.59) 91,652, ,548, (103,832.19) Personal Property Tax 8,699, ,136, (563,516.61) 8,536, ,999, , Payment in Lieu of Tax 2,563, ,063, , ,069, ,063, (6,077.02) Discount (1,067,924.71) (1,073,087.74) (5,163.03) (1,051,396.00) (1,073,089.62) (21,693.62) Interest & Penalties 328, , (20,444.24) 695, , (2,904.00) Income Tax 27,139, ,838, ,699, ,643, ,940, , License & Permits 1,026, ,119, , ,922, ,709, (212,607.87) Federal Grants 385, , (41,032.51) 957, , (41,688.10) State Grants 1,622, ,711, , ,144, ,698, (445,403.94) Other Intergovernmental 388, , , ,228, ,127, (101,037.00) Charges for Services 1,208, ,176, (32,386.35) 2,225, ,180, (45,117.22) Recordation 3,622, ,796, , ,800, ,790, (10,000.00) Investment Earnings 50, , , , , (72,735.35) Contributions & Other 42, , , , , (61,311.93) Transfers 1,225, ,115, , ,115, ,115, Total Revenues 139,308, ,821, ,512, ,600, ,235, (364,633.91) Expenditures COUNTY EXECUTIVE 122, , (1,996.99) 182, , , COUNTY COUNCIL 250, , , , , , ADMINISTRATOR 246, , , , , , HUMAN RESOURCES 824, , , ,244, ,069, , CIRCUIT COURT 1,482, ,654, (171,658.26) 2,375, ,292, , STATE'S ATTORNEY'S OFFICE 1,362, ,506, (143,613.21) 2,158, ,192, (33,800.23) YOUTH PANEL 47, , (7,780.15) 78, , , ORPHAN'S COURT 15, , (5,253.41) 29, , , BOARD OF ELECTIONS 261, , (168,375.63) 792, , , FINANCE & PURCHASING 2,023, ,046, (22,233.02) 2,885, ,774, , LIQUOR BOARD 127, , (14,938.77) 214, , , PLANNING & ZONING 719, , , ,142, , , MAINTENANCE 2,465, ,656, (191,602.53) 4,236, ,038, , INFORMATION SYSTEMS 1,137, ,137, LEGAL SERVICES 110, , , , , , GENERAL GOVERNMENT LAW ENFORCEMENT 14,113, ,559, (445,942.71) 20,827, ,558, , EMERGENCY SERVICES 9,110, ,021, , ,442, ,741, , PERMITS & INSPECTIONS 560, , (66,017.37) 1,036, , , ANIMAL CONTROL 600, , , , PUBLIC WORKS 7,928, ,223, (294,656.83) 12,185, ,877, , PUBLIC HEALTH 2,620, ,677, (57,036.02) 3,549, ,547, , MD SCHOOL BLIND/ADULT DAYCARE 36, , , , , SOCIAL SERVICES 1,455, ,374, , ,225, ,197, , BOARD OF EDUCATION 55,403, ,990, (2,586,928.81) 76,979, ,979, CECIL COLLEGE 7,738, ,759, (20,080.35) 8,640, ,640, NON-PROFIT AGENCIES 190, , , , , PARKS & RECREATION 669, , , , , , LIBRARIES 3,317, ,415, (98,398.00) 4,829, ,769, , AGRICULTURE 374, , (25,971.64) 561, , (42,287.83) ECONOMIC DEVELOPMENT 608, , (42,956.11) 996, , , JUDGEMENT & LOSSES , (898.31) 10, , , GRANTS TO MUNICIPALITIES 664, , (2,901.18) 667, , DEBT SERVICE - PRINCIPAL 8,707, ,270, , ,411, ,411, DEBT SERVICE - INTEREST 3,180, ,470, (290,615.32) 5,660, ,660, OPERATING TRANSFER 2,349, ,337, ,012, ,145, ,146, (834.00) Total Expenditures 130,826, ,405, (1,578,408.49) 180,299, ,594, ,704, Revenues over Expenditures 8,482, ,416, , (4,699,077.21) (2,359,415.61) 2,339, (b) (a) March includes pro-rata estimates and accrual calculations which may be revised after 2015 Yearend Adjustments. (b) For FY 2014 Budget, the difference between revenue over expenditures is equal to the budgeted use of Fund Balance. (c) Budget numbers are presented as full year budget. Z:\2015 Projections\2015 Projection 3rd Quarter \ Financial Report Government Funds 3

4 Page 2 General Fund Revenues & Expenditures by Category as of Nine Months Through 03/31/15 See Note (a) as to limitations (Unaudited) Current Year vs Prior Year Actual Current Year Budget (b) vs Projection FY 2014 FY 2015 (Unfavorable) FY 2015 FY 2015 (Unfavorable) Actual Actual thru Mar Budget Projection thru June thru Mar thru Mar 2015 vs 2014 Fiscal Year thru June Annual Budget Revenues Real Property Tax 92,074, ,386, (687,580.59) 91,652, ,548, (103,832.19) Personal Property Tax 8,699, ,136, (563,516.61) 8,536, ,999, , Payment in lieu of Tax 2,563, ,063, , ,069, ,063, (6,077.02) Discount (1,067,924.71) (1,073,087.74) (5,163.03) (1,051,396.00) (1,073,089.62) (21,693.62) Interest & Penalties 328, , (20,444.24) 695, , (2,904.00) Special Assessments Income Tax 27,139, ,838, ,699, ,643, ,940, , License & Permits 1,026, ,119, , ,922, ,709, (212,607.87) Federal Grants 385, , (41,032.51) 957, , (41,688.10) State Grants 1,622, ,711, , ,144, ,698, (445,403.94) Other Intergovernmental 388, , , ,228, ,127, (101,037.00) Charges for Services 1,208, ,176, (32,386.35) 2,225, ,180, (45,117.22) Recordation 3,622, ,796, , ,800, ,790, (10,000.00) Investment Earnings 50, , , , , (72,735.35) Contributions & Other 42, , , , , (61,311.93) Transfers 1,225, ,115, , ,115, ,115, Total Revenues 139,308, ,821, ,512, ,600, ,235, (364,633.91) Expenditures Salary & Fringe 28,852, ,680, , ,457, ,458, (1,163.44) Professional & Related Services 8,448, ,071, , ,010, ,751, ,258, Supplies & Materials 5,699, ,065, (1,366,533.27) 10,902, ,025, , Utilities 791, , (43,863.58) 1,414, ,361, , Training & Related 233, , (64,684.30) 567, , , Capital Outlay 1,955, ,712, , ,483, ,249, , Debt Service 7, , , , , , Special Purpose 271, , (86,835.51) 482, , , Debt Service - Principal 8,707, ,270, , ,411, ,411, Debt Service - Interest 3,180, ,470, (290,615.32) 5,660, ,660, Transfers & Intergovernment 72,679, ,637, (957,265.60) 95,897, ,780, , Total Expenditures 130,826, ,405, (1,578,408.49) 180,299, ,594, ,704, Revenues over Expenditures 8,482, ,416, , (4,699,077.21) (2,359,415.61) 2,339, (b) (a) March includes pro-rata estimates and accrual calculations which may be revised after 2015 Yearend Adjustments. (b) For FY 2015 Budget, the difference between revenue over expenditures is equal to the budgeted use of Fund Balance. (c) Budget numbers are presented as full year budget. Z:\2015 Projections\2015 Projection 3rd Quarter \ Financial Report Government Funds 4

5 Landfill Fund Revenues & Expenditures by Category as of Nine Months Through 03/31/15 Unaudited Current Year vs Prior Year Actual Current Year Rev Budget vs Projected FY 2014 FY 2015 (Unfavorable) FY 2015 FY 2015 (Unfavorable) Actual Actual thru Mar Rev Budget Projected thru June thru Mar thru Mar 2015 vs 2014 Fiscal Year thru June Annual Budget Revenues Sales & User Fees 4,003, ,093, , ,610, ,130, (479,600.00) Charges for Services 125, , , , , , Discount (5,350.68) (29,906.30) (24,555.62) - (29,906.30) (29,906.30) Interest & Penalties 4, , (1,235.25) 4, , , Federal Grants State Grants 6, , , , , (9,499.59) Contributions & Other 26, , , , , (45,010.36) Total Revenues 4,160, ,360, , ,929, ,404, (524,893.22) Expenditures Salary & Fringe 1,020, ,081, (60,247.98) 1,550, ,535, , Professional & Related Services 832, ,186, (354,134.62) 2,160, ,914, , Supplies & Materials 291, , , , , , Utilities 133, , (9,823.80) 243, , (26,976.84) Training & Related 9, , (325.35) 28, , , Depreciation (b) 2,275, ,332, (57,302.25) 2,685, ,110, (425,000.00) Transfers & Intergovernment 77, , , , , Total Expenditures 4,640, ,107, (466,709.19) 7,221, ,346, (124,859.73) Operating Gain/(Loss) (480,101.33) (746,571.97) (266,470.64) (292,406.00) (942,158.95) (649,752.95) Non-Operating Revenues (Expenses) Interest Expense (236,758.55) (475,369.77) (238,611.22) (491,383.00) (475,369.77) 16, Investment Earnings , , , , Change in Net Position (716,809.30) (1,213,499.38) (496,690.08) (783,789.00) (1,409,086.36) (625,297.36) (c) (a) Budget numbers are presented as full year budget and are not prorated for year to date comparison (b) Depreciation, Depletion & Closure for FY2014 is shown as a percentage of yearend actual and FY2015 as a percentage of budget. (c) The FY 2015 budget includes Fund Balance and capital outlay in the change in net position. Z:\2015 Projections\2015 Projection 3rd Quarter \Copy of Financial Report Enterprise Funds 5

6 Waste Water Fund Revenues & Expenditures by Category as of Nine Months Through 03/31/15 Unaudited Current Year vs Prior Year Actual Current Year Rev Budget vs Projected FY 2014 FY 2015 (Unfavorable) FY 2015 FY 2015 (Unfavorable) Actual Actual thru Mar Rev Budget Projected thru June thru Mar thru Mar 2015 vs 2014 Fiscal Year thru June Annual Budget Revenues Sales & User Fees 2,561, ,818, , ,779, ,285, , Interest & Penalties 22, , , , , Federal Grants Charges for Services 1, (1,107.15) Contributions & Other 124, , (120,086.34) 10, , (5,787.89) Total Revenues 2,709, ,850, , ,789, ,344, , Expenditures Salary & Fringe 836, , (1,199.15) 1,123, ,198, (74,536.36) Professional & Related Services 627, , , ,069, , , Supplies & Materials 340, , , , , , Utilities 314, , , , , , Training & Related 16, , , , , , Depreciation (b) 1,742, ,800, (57,277.50) 2,400, ,400, Transfers & Intergovernment Total Expenditures 3,878, ,834, , ,607, ,479, , Operating Gain/(Loss) (1,168,410.72) (984,622.18) 183, (818,051.00) (134,733.11) 683, Non-Operating Revenues (Expenses) Interest Expense (340,370.85) (551,646.23) (211,275.38) (631,609.00) (551,646.23) 79, Bond Issue Expense (63,780.79) (122,591.36) (58,810.57) (63,781.00) (122,591.36) (58,810.36) Investment Earnings Capital Contributions Connection Fees 1,347, , (791,055.32) 1,527, , (971,510.67) Change in Net Position (225,063.80) (1,102,410.85) (877,347.05) 14, (252,521.78) (266,894.78) (c) (a) Budget numbers are presented as full year budget and are not prorated for year to date comparison (b) Depreciation for FY2014 is shown as a percentage of yearend actual and FY2015 as a percentage of budget. (c) The FY 2015 budget includes Fund Balance and capital outlay in the change in net position. Z:\2015 Projections\2015 Projection 3rd Quarter \Copy of Financial Report Enterprise Funds 6

7 Page 4 INCOME TAX RECEIPTS as of March 31, 2015 (Unaudited) FISCAL YEAR FISCAL YEAR FISCAL YEAR FISCAL YEAR % of Act % of Act % of Act % of Bud Actual Total Actual Total Actual Total Actual Total SEPTEMBER 637, % $ 610, % $ 1,195, % $ 770, % OCTOBER 1,214, % 1,287, % 1,253, % 1,533, % NOVEMBER 11,640, % 11,798, % 12,126, % 13,101, % DECEMBER - 0.0% - 0.0% 74, % 132, % JANUARY 506, % 455, % 386, % 543, % FEBRUARY 10,960, % 12,102, % 11,562, % 12,275, % MARCH 550, % 607, % 540, % 481, % APRIL - 0.0% - 0.0% - 0.0% - 0.0% MAY 9,707, % 9,845, % 9,735, % - 0.0% JUNE 10,305, % 9,180, % 9,114, % - 0.0% JULY 3,210, % 3,249, % 3,243, % - 0.0% AUGUST 1,079, % 1,284, % 1,568, % - 0.0% Year to Date $ 49,813, % $ 50,421, % $ 50,800, % $ 28,838, % Budget $ 44,836,172 $ 48,644,519 $ 52,139,853 $ 53,643,746 Comparative Year to Year Mar 31 $ 25,508,872 $ 26,861,573 $ 27,139,106 $ 28,838,834 FY 2015 YTD Actual Receipts % change current year vs. prior year 6.26% FY 2015 YTD Actual Receipts $ change current year vs. prior year $ 1,699,728 R:\Monthly Report\2015\ Financial Report Government Funds 7

8 Prepared by: Craig Whiteford 5/1/2015 Cecil County, Maryland Fiscal Year 2015 Third Quarter Projections Significant Assumptions General Fund Revenues Major Assumptions Real Property Tax collections tend to exceed budget by ½ to ¾ % due to economic growth and conservative estimates down by less than 1% for FY Personal Property Tax collections, due to inconsistent billing patterns, tend to show a decline using first quarter estimates particularly in the largest segment, Public Utilities. By third quarter, the billing anomalies have been smoothed. Income Taxes still expect 2.8% growth over prior year. Current collections exceed prior year by 6.2%: real wage growth approaches 1.2%. Will continue to monitor. Recordation Tax collections are slightly ahead of prior year through March by 4.78%. General Fund Expenses Major Assumptions Salary and Fringes are projected for 26 pay periods, using 21 periods as the base. Overtime is projected using current trends - Annual overtime expense County-wide is projected at $1.742 million, versus budget of $1.764 million, lower than budget by $22,000; Law Enforcement overtime is expected to exceed budget by $95,000, but this is offset by reductions versus budget in overtime by the Detention Center and Community Corrections, based on current trends. - Detention Center overtime compares favorably versus prior year, but exceeds budget due to our assumption of vacant positions estimated to be at 9, versus 6 actual; positions are expected to be filled during 2 nd and 3 rd quarters, which will have a direct impact on reducing overtime. Operating expenses are projected using different assumptions from current activity results in a favorable projection of $ 640,000 million dollars, or.4% versus budget as follows: - Supplies (20%) - Travel (30%) - Training (20%) - Dues and Publications (15%) - Utilities (3%) - Gas and Oil (18%) 8