Subject: Fiscal Year Interim Financial Report (Cash Basis) through April 30, 2018

Transcription

1 OFFICE OF THE CITY MANAGER (757) (757) FAX MUNICIPAL CENTER BUILDING 1, ROOM COURTHOUSE DRIVE VIRGINIA BEACH, VA May 18, 2018 The Honorable Louis R. Jones, Mayor Members of City Council Subject: Fiscal Year Interim Financial Report (Cash Basis) through April 30, 2018 Dear Mayor and Council Members: Attached for your review is the Financial Report for the City and School Board for the ten months ended April 30, As indicated in the attached report from Mrs. Patricia Phillips, Director of Finance, General Fund Revenues are $664.9 million through April 30, This amount represents 58.8% of budget. Year-to-date revenues are ahead of FY17 by $39.4 million, or 6.3%. Several revenue sources are expected to exceed budget, such as real estate taxes, personal property taxes, business licenses and hotel taxes; other revenue items, such as sales taxes and restaurant meal taxes, are expected to exceed prior year collections, but may be less than budget. As a whole, total revenues are projected to come in slightly over budget and expenditures are expected to be less than budget. The General Fund fund balance is projected to be within the City Council policy level of 8 12%. The General Fund portion of Real Estate Taxes is $281.4 million, which is $26.8 million, or 10.5% greater than the prior year. This increase is due to the following: a 3.1% increase in assessed values, a 1.25 cent increase in the tax rate, and the elimination of the 3.8 cent allocation to the Multimodal Fund (4.14 cent total), which is now being recorded directly in the General Fund. Personal Property Taxes are $26.7 million, which is $3.0 million, or 12.6% greater than the prior year. Revenues to date are from supplemental, public service, and pro-rated billings as well as delinquent collections. The main Personal Property Tax billings, levied in late April with a due date of June 5 th, are $95.5 million, a $4.7 million increase from the prior year. General Sales Taxes are $47.5 million, which is $651,371 or 1.4% ahead of actual collections through April of FY17. Business License revenues are $46.6 million, which is $1.2 million or 2.5% greater than the prior year. Hotel Room Taxes are $30.1 million city wide, greater than the prior year by $2.7 million, or 9.7% (includes additional $1/room night effective January 1, 2017). Restaurant Meal Taxes are $54.8 million city wide, greater than the prior year by $962,357 or 1.8%.

2 The Honorable Mayor Louis R. Jones and Members of City Council April 2018 Interim Financial Report May 18, 2018 Page 2 General Fund Expenditures are $981.0 million, 82.0% of the FY18 budget, and consistent with the prior two years. As of April, expenditures include $300.3 million for personnel, $162.6 million for other operating costs, $43.5 million for debt service, $375.0 million was transferred to schools, $66.4 million was transferred to capital project funds, and $33.2 million was transferred to other funds. The School Operating revenues are tracking satisfactorily compared to the budget, with $656.2 million collected-to-date. Expenditures of $653.3 million are comparable with prior years. As requested by City Council, Mrs. Phillips will be briefing you on the status of the current year s revenues and expenditures on May 22, Respectfully, David L. Hansen City Manager DLH/PAP Attachment cc: Thomas M. Leahy III, Deputy City Manager David A. Bradley, Director of Budget and Management Services Patricia A. Phillips, Director of Finance

3 5/18/2018 FY18 Interim Financial Statements General Fund 10 months overview As of April 30, 2018 FY18 General Fund Revenue & Expenditures Through April 30, 2018 Budget YTD Variance Revenues Local $ $ $ (391.1) State (70.0) Federal (4.1) Total Revenues $ 1,130.1 $ $ (465.2) 58.8% Expenditures City Operations $ $ $ City Capital Projects Cash Funding Trsf to Schools Trsf to School Reserve Fund Total Expenditures $ 1,197.0 $ $ Less Amounts from Fund Balance $ % Adjusted Expenditures $ 1,130.1 $ amount in Millions 1

4 5/18/2018 FY18 General Fund Revenue Through April 30, 2018 BUDGETED REVENUES YTD = $1,130.1M ACTUAL REVENUES YTD = $664.9M Other Revenues $ % Commonwealth $ % Other Taxes $ % Federal Government $ % Unrealized $ % Personal Property Taxes $ % Real Estate Taxes $ % Transfers $ % $ amounts in millions Real Estate Revenues GF Portion Only April 30, $500 $423.1 $441.0 $428.2 $443.7 $466.4 $482.0 BUDGET $ % $400 80% Revenues $ Million $300 $ % 53.1% 53.2% 52.8% 52.8% 53.9% $224.8 $234.6 $227.3 $236.2 $246.1 $254.6 $ % 40% % of Total Collections $100 20% $0 $0.89 ( ) $0.96 ( ) $0.93 ( ) $0.93 ( ) $0.99 ( ) $0.99 ( ) $ ( ) FY 2012 FY 2013 FY 2014 FY 2015 FY 2016 FY 2017 FY % Annual Collections YTD % of Total 2

5 5/18/2018 $100 $80 Personal Property Taxes (excludes PPTRA) April 30, $73.7 $74.7 $78.7 $90.9 $95.9 BUDGET $100.1 $ % 80% Revenues $ Million $60 $ % 25.6% 24.1% 22.7% 23.7% 26.1% 60% 40% % of Total Collections $20 $22.9 $18.6 $20.2 $21.9 $21.8 $23.8 $ % $0 $3.70 $3.70 $3.70 $3.70 $4.00 $4.00 $4.00 FY 2012 FY 2013 FY 2014 FY 2015 FY 2016 FY 2017 FY % Annual Collections YTD % of Total $60 $50 General Sales Tax April 30, Up 1.4% From PY $61.1 $62.6 $58.2 $55.0 $56.4 $ % 75.2% 74.8% 75.1% 74.9% State 5% BUDGET $ % City 1% 100% 80% Revenues $ Million $40 $30 $20 $40.0 $41.2 $42.4 $43.5 $45.9 $46.9 $ % 40% % of Total Collections 20% $10 $0 FY 2012 FY 2013 FY 2014 FY 2015 FY 2016 FY 2017 FY % Actual YTD % of Total 3

6 5/18/2018 Business License Tax April 30, Revenues $ Million $50 $40 $30 $20 $41.1 Up 2.5% From PY $40.1 $44.2 $44.0 $44.6 $45.3 $42.6 $43.2 $43.2 $43.2 BUDGET $47.0 $46.8 $ % 98.0% 96.8% 95.5% 96.7% $ % 150% 100% 50% % of Total Collections $10 $0 FY 2012 FY 2013 FY 2014 FY 2015 FY 2016 FY 2017 FY % Annual Collections YTD % of Total Total Hotel Room Taxes April 30, Revenues $ Million $35 $30 $25 $20 $15 $10 $5 $26.1 Up 9.7% From PY $ % 85.1% $27.2 $27.4 $23.5 $23.3 $ % $24.2 $32.8 $ % 83.6% $26.0 Hotel Room Taxes 8% Allocation General Fund 2% TIP 5% + $1 per night TAP 1% + $1 per night Sandbridge 6.5% + $1 per night CBD TIF $500k annually $27.4 BUDGET $ % $ % 80% 60% 40% 20% % of Total Collections $0 FY 2012 FY 2013 FY 2014 FY 2015 FY 2016 FY 2017 FY % Annual Collections YTD % of Total 4

7 5/18/2018 Total Restaurant Meal Taxes April 30, Revenues $ Million $70 $60 $50 $40 $30 $20 $10 Up 1.8% From PY $55.1 $ % $40.5 $41.9 BUDGET $63.4 $65.2 $68.8 $60.0 $ % 82.1% 82.5% 82.6% 79.7% $52.3 $53.9 $54.8 $49.2 $46.8 Meal Taxes 5.5% Allocation General Fund 3.5% TIP 1.06% TAP 0.5% Open Space 0.44% 100% 80% 60% 40% 20% % of Total Collections $0 FY 2012 FY 2013 FY 2014 FY 2015 FY 2016 FY 2017 FY 2018 Actual YTD % of Total 0% Hotel/ Meal Tax Allocation Through April 30, 2018 GF 2% TIP 5% TAP 1% Hotel Tax : TIP 5.0 % (excluding Sandbridge) $ 12.9 General Fund 2 % 6.2 TAP 1.0 % 3.2 TAP $1 Flat Rate (excluding Sandbridge) 1.9 TIP $1 Flat Rate 2.0 Sandbridge SSD 5% plus $1 Flat Rate additional 1.5% Central Business District TIF 0.3 Total Hotel Tax Revenue 8.0 % $ 30.1 OS 0.44% TAP 0.5% $ amount in millions GF 3.5% TIP 1.06% Meal Tax : General Fund 3.5 % $ 35.0 TIP 1.06 % 10.5 TAP 0.50 % 5.0 Open Space 0.44 % 4.4 Total Restaurant Meal Tax Revenue 5.5 % $

8 5/18/2018 Comparison of FY18 and FY17 GF Revenues April 30, 2018 FY 2018 YTD FY 2017 YTD VARIANCES Budget Actual % Actual % Actual % * Real Estate Taxes $ $ % $ % $ % Personal Property Taxes Commonwealth - PPTRA General Sales Tax Utility Taxes Telecommunications Taxes (0.2) (1.5) Business Licenses * Hotel Taxes * Restaurant Taxes * Cigarette Taxes (0.4) (4.4) Human Services Charges Other Charge for Services Other Local Revenues Commonwealth - Maintenance of Roads Commonwealth - Human Services Reimb * Commonwealth - Other State Revenues * Federal Revenues * Transfers from Other Funds (0.5) (5.0) $ 1,130.1 $ % $ % % $ % * GF portion only Notes: FY18 % is based on Budget, while FY17 is based on Actual. Green = Projected to exceed budget Red = Projected to be under budget but exceed prior year amount $ amount in millions FY18 General Fund Expenditures Through April 30, 2018 BUDGETED EXPENDITURES YTD = $1,197.0M ACTUAL EXPENDITURES YTD = $981.0M Capital Projects $ % Debt Service $ % Other Funds $ % Unencumbered $ % Operating $ % Personnel $ % School Support $ % $ amounts in millions 6

9 5/18/2018 FY18 YTD General Fund Revenues and Expenditures Comparison 100% 80% Percent of Total Expenditures 60% 40% 100.0% ACTUAL REVENUES YTD = $664.9M 93.0% 100.0% 85.0% ACTUAL EXPENDITURES YTD= $981.0M 77.4% 82.0% 80.5% 70.3% 74.9% 62.2% 68.0% 52.9% 60.7% 56.5% 57.5% 58.0% 50.7% 54.6% 45.0% 50.6% 46.3% 43.0% 48.3% 36.4% 42.1% 41.5% 44.3% 33.6% 27.9% 35.2% 32.2% 20.1% 27.0% 20% 12.3% 19.7% 13.8% 12.2% 8.6% 12.9% 1.4% 4.1% 8.2% 0% 1.8% 4.0% Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun % of FY18 Exp Budget Exp Trend % of FY18 Rev Budget Rev Trend Projected FY18 Fund Balance Unassigned GF Fund Balance FY18 Projected $115M $110M Projected 9.74% 9 11% 8 9% Below 8% 11 12% Above 12% 7

10 5/18/2018 Next Steps May Interim June 26, 2018 Unaudited FY18 Financial October 2018 Audited FY18 Financials December

11 FY18 INTERIM FINANCIAL REPORT Report Presented by: Patricia A. Phillips, Director Financial Status Report for the period of July 1, 2017 through April 30, 2018.

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13 CITY OF VIRGINIA BEACH, VIRGINIA CITY COUNCIL Louis R. Jones, Mayor... Bayside District James L. Wood, Vice Mayor... Lynnhaven District John E. Uhrin... Beach District Robert M. Dyer... Centerville District Jessica P. Abbott... Kempsville District Barbara M. Henley... Princess Anne District Shannon D. S. Kane... Rose Hall District John D. Moss... At-Large Rosemary Wilson... At-Large Benjamin Davenport... At-Large CONSTITUTIONAL OFFICERS John T. Atkinson... City Treasurer Colin Stolle... Commonwealth s Attorney Philip J. Kellam... Commissioner of the Revenue Kenneth Stolle... Sheriff Tina E. Sinnen... Clerk of Circuit Court APPOINTED OFFICERS David L. Hansen... City Manager Mark D. Stiles.City Attorney Amanda F. Barnes... City Clerk Ronald D. Agnor... Real Estate Assessor Lyndon S. Remias City Auditor CITY LEADERS Thomas M. Leahy III... Deputy City Manager Kenneth L. Chandler... Deputy City Manager Steven R. Cover... Deputy City Manager Ronald H. Williams, Jr.... Deputy City Manager SCHOOL BOARD COMPONENT UNIT Beverly M. Anderson, Chairman... At-Large Daniel D. Dan Edwards, Vice Chairman... District 2 Kempsville Trenance B. Riggs... District 1 Centerville Joel A. McDonald... District 3 Rose Hall Carolyn D. Weems District 4 Bayside Carolyn T. Rye... District 5 Lynnhaven Sharon R. Felton... District 6 Beach Kimberly A. Melnyk... District 7 Princess Anne Dorothy M. Dottie Holtz.. At-Large Ashley K. McLeod... At-Large Victoria Manning... At-Large i

14 Table of Contents Transmittal Letter... 1 Section A Summary Financial Statements for Major Funds: General Fund: Summary of Revenues and Expenditures Compared to Budget... 1 Comparison of Revenues... 2 Comparison of Charges for Services... 3 Comparison of Other Local Taxes... 4 Comparison of Revenues from the Commonwealth... 5 Statement of Expenditures and Encumbrances Compared to Budget... 6 School Operating Special Revenue Fund... 8 Water and Sewer Utility Enterprise Fund... 9 Storm Water Utility Enterprise Fund Waste Management Enterprise Fund Sheriff s Department Special Revenue Fund Tourism Investment Program Special Revenue Fund Tourism Advertising Program Special Revenue Fund Multimodal Special Revenue Fund Footnotes Section B Capital Projects Fund Expenditures by Project... 1 Section C Grants Fund Statement of Active Grants... 1 Section D Cash Summary Schedule of Treasurer s Cash and Investments... 1 Section E Personal Services Expenditures Compared to Budget... 1 Interim Financial Statements ii

15 DEPARTMENT OF FINANCE (757) FAX (757) May 18, 2018 MUNICIPAL CENTER BUILDING COURTHOUSE DRIVE VIRGINIA BEACH, VA Mr. David L. Hansen City Manager Municipal Center City of Virginia Beach Virginia Beach, Virginia Subject: Fiscal Year Interim Financial Report (Cash Basis) through April 30, 2018 Dear Mr. Hansen: I am pleased to present the Financial Report for the ten months ended April 30, Below is a summary of the City s major funds performance in comparison to budget as well as to prior years: Summary of Revenues and Expenditures - Major Funds For the Ten Months Ended April 30, 2018 $ in millions Percent of Total* Budget Actual YTD FY 2018 FY 2017 FY 2016 General Fund Revenues $1,130.1 $ % 57.0% 57.4% Expenses 1, School Operating Revenues Expenses Revenues Water and Sewer Expenses Storm Water Revenues Expenses * FY 2016 and FY 2017 are based on Actual, while FY 2018 is based on Budget. Note: Differences between Budgeted Revenues and Expenditures are encumbrances carried forward from prior year and other items funded from fund balance.

16 Mr. David L. Hansen April 2018 Interim Financial Report May 18, 2018 Page 2 GENERAL FUND: GENERAL FUND REVENUES As of April 30, 2018 General Fund revenues of $664.9 million are $39.4 million more than FY17 and $59.4 million greater than FY16. The main areas of this increase are Real Estate Taxes ($26.8 million), Personal Property Taxes ($3.0 million), and Charges for Services ($2.3 million). Local Revenues o Real Estate Tax revenues are $281.4 million year-to-date (53.9% of budget), an increase of $26.8 million from FY17. This increase is due to: a 3.1% increase in assessed values; a 1.25 cent increase in the tax rate; and the elimination of the 3.8 cent allocation to the Multimodal Fund (4.14 cent total, which includes the Agriculture Reserve Program), which is now being recorded directly in the General Fund. Revenues to date include $14.3 million in Real Estate Tax Relief for the Elderly and Disabled Veterans, which is recorded both as revenue and as an appropriation. An additional $1.5 million in tax relief has been requested and additional Council appropriations will be requested in June. o The Personal Property Tax was levied in April 2018 in the amount of $95.5 million, $4.7 million more than the prior year, with a due date of June 5th. Collections-to-date of $26.7 million (26.1% of the $102.5 million budget), represent current year supplemental, public service and pro-rated billings and prior year delinquents, and are more than FY17 by $3.0 million. o General Sales Taxes are $47.5 million. This represents an increase from the prior year of $651,371 or 1.4%. o Business Licenses are $46.6 million, an increase from the prior year of $1.2 million or 2.5%. o Hotel Room Taxes of $6.2 million represents the General Fund (2% of total 8%) share only, which is greater than the prior year by $244,733. City wide, Hotel Room Tax revenue is $30.1 million or 9.7% more than the prior year due to the $1 increase in the flat rate effective January 1, o Restaurant Meal Taxes revenue of $34.9 million represents the General Fund share only, which is greater than the prior year by $606,850. City wide, Restaurant Meal Tax revenue is $54.8 million, which is $962,357 or 1.8% more than the prior year. State Revenues State revenues received-to-date of $86.9 million equal 55.4% of budget and are $1.8 million more than the prior year due to an increase in the revenue received for maintenance of roads and Human Services reimbursements. This includes the State s portion of personal property taxes (Personal Property Tax Relief Act - PPTRA) which totals $53.4 million, and is paid in three installments. The first installment of $6.5 million was received in November, and the next two installments of $42.5 million and $4.4 million for FY18, are scheduled to be received in July and August 2018, and will be accrued back to June 30, Federal Revenues Federal revenues are $17.6 million and are higher than the prior year by $1.7 million.

17 Mr. David L. Hansen April 2018 Interim Financial Report May 18, 2018 Page 3 Total revenues are summarized in the following table: Comparison of FY18 and FY17 General Fund Revenues As of April 30, 2018 (in millions) FY 2018 YTD FY 2017 YTD VARIANCES Budget Actual % Actual % Actual % * Real Estate Taxes $ $ % $ % $ % Personal Property Taxes Commonwealth - PPTRA General Sales Tax Utility Taxes Telecommunications Taxes (0.2) (1.5) Business Licenses * Hotel Taxes * Restaurant Taxes * Cigarette Taxes (0.4) (4.4) Human Services Charges Other Charge for Services Other Local Revenues Commonwealth - Maintenance of Roads Commonwealth - Human Services Reimb * Commonwealth - Other State Revenues * Federal Revenues * Transfers from Other Funds (0.5) (5.0) $ 1,130.1 $ % $ % % $ % * GF portion only Notes: FY18 % is based on Budget, while FY17 is based on Actual. Green = Projected to exceed budget Red = Projected to be under budget but exceed prior year amount GENERAL FUND EXPENDITURES General Fund expenditures are $981.0 million, or 82.0% of budget, compared to 84.9% for FY17 and 85.8% for FY Personnel expenses, which represent 32.9% of the total General Fund budget are $300.3 million, which are $10.9 million or 3.7% more than the prior year. Total expenditures are summarized in the following table: Comparison of FY18 and FY17 General Fund Expenditures As of April 30, 2018 (in millions) FY 2018 YTD FY 2017 YTD VARIANCES Budget Actual Variance Actual Actual % Salaries $ $ $ 69.3 $ $ % Fringe Benefits Operating Expenses Capital Outlay Leases Debt Service Transfers to Schools Transfers to Schools Reserve Fund (1.3) (17.3) Transfers to Capital Projects Transfers to Sheriff Department Transfers to Storm Water Capital Projects Transfers to Waste Management (3.6) (43.3) Transfers to Other Areas (5.6) (41.4) Reserve for Contingencies $ 1,197.0 $ $ $ $ %

18 Mr. David L. Hansen April 2018 Interim Financial Report May 18, 2018 Page 4 SCHOOL OPERATING FUND: Schools are continuing to manage within their resources. Total revenues of $656.2 million are on an acceptable trend as of April 30, Expenditures of $653.3 million are comparable with prior years. Please note that the School s portion of debt service is directly accounted for in the School Operating Fund. WATER AND SEWER UTILITY ENTERPRISE FUND: Through April 30, 2018 revenues are $102.7 million and on a favorable trend. Revenues are 81.6% of budget, compared to 74.5% in FY17. Expenditures are $121.9 million and slightly higher than FY17 due to cost for rolling stock vehicle replacement taking place in the current year. In FY18 and FY17 Water & Sewer fully cash funded their capital projects transferring $35.8 million and $35.2 million, respectively. STORM WATER UTILITY ENTERPRISE FUND: Through April 30, 2018 revenues are $34.0 million and on a favorable trend. Revenues are 81.0% of budget, compared to 74.3% in FY17. Expenditures are $35.4 million, 79.3% of budget. One cent of the Real Estate Tax revenue previously dedicated to the Multimodal Fund is now being transferred to the Storm Water Capital Projects Fund to support additional storm water CIP projects ($5.4 million). CAPITAL PROJECT FUND: Current year capital project expenditures total $178.1 million through April 30, 2018, which includes $29.7 million for Schools. Please see Section B for a detailed listing by project type. OTHER FUNDS: The following fund statements are also included in Section A: Waste Management Enterprise Fund (p. 11), Sheriff s Department Special Revenue Fund (p. 12), Tourism Investment Program Special Revenue Fund (p. 13), and Tourism Advertising Program Special Revenue Fund (p. 14). Should you or City Council have questions concerning this report, I shall be available for comment. Respectfully submitted, Patricia A. Phillips Finance Director PAP/DLB

19 CITY OF VIRGINIA BEACH SUMMARY OF ALL FUNDS FISCAL YEAR 2018 TOTAL REVENUES THROUGH APRIL 30, 2018 Description Fund Number Available Fund Balance at 7/1/17 Adjusted Budget YTD Actual Revenue (Unrealized) Realized General Fund 002 $ 118,396,300 $ 1,130,101,938 $ 664,935,601 $ (465,166,337) School Board GREEN RUN COLLEGIATE CHARTER SCH 104 $ - $ 3,763,447 $ 3,763,447 $ - SCHOOL EQUIPMENT REPLACEMENT SPECIAL REVENUE FUND ,844 8,844 SCHOOL INSTRUCTIONAL TECHNOLOGY , ,084 SCHOOL VENDING OPERATIONS , ,423 (70,127) SCHOOL FLEXIBLE BENEFITS FORFEITURE FUND ,233 3,233 SCHOOL COMMUNICATIONS TOWERS/TECHNOLOGY SPECIAL REVENUE FUND , ,939 (34,061) SCHOOLS GRANT FUND - TITLE IV ,315 13,315 - SCHOOL CAFETERIA FUND ,582,456 21,971,200 (8,611,256) SCHOOL OPERATING FUND ,696, ,215,413 (153,480,879) SCHOOL GRANTS FUND ,856,748 24,003,514 (34,853,234) SCHOOL TEXTBOOK FUND 117-4,516,596 3,768,434 (748,162) SCHOOL ATHLETIC SPECIAL REVENUE FUND 119-5,661,920 5,098,589 (563,331) $ - $ 913,793,324 $ 715,549,435 $ (198,243,889) Special Revenue Funds SCHOOL RESERVE 098 $ - $ 8,803,897 $ 6,288,498 $ (2,515,399) LAW LIBRARY , , ,225 (66,840) COMMONWEALTH ATTORNEY FED/STATE SEIZED ASSETS ,133 55,133 SHERIFF FED/STATE SEIZED ASSETS ,521 2,521 FORFEITED ASSET SHARING PROGRAM , ,894 WORKFORCE REVOLVING PROGRAM STATE RENTAL ASSISTANCE PRGM , ,774 (50,748) FEDERAL SECTION 8 PROGRAM ,220,540 17,488,229 (3,732,311) SHERIFF'S DEPARTMENT 149 1,603,528 47,806,334 38,316,186 (9,490,148) PARKS AND RECREATION ,145,941 41,829,825 27,569,686 (14,260,139) TOURISM INVESTMENT PROGRAM ,494,679 39,505,915 32,517,137 (6,988,778) SANDBRIDGE SPECIAL SERVICE DISTRICT 157-4,572,166 4,121,183 (450,983) AGRICULTURE RESERVE PROGRAM ,559,388 4,910,368 2,655,769 (2,254,599) TOURISM ADVERTISING PROGRAM ,075 12,241,150 10,124,541 (2,116,609) PROFFER IMPACT SPECIAL REVENUE FUND ,750 11,750 SANDBRIDGE TAX INCREMENT FINANCING 166 5,298,845 10,254,943 5,188,496 (5,066,447) CENTRAL BUSINESS SOUTH TAX INCREMENT FINANCING 169 1,688,330 7,609,950 3,820,951 (3,788,999) OPEN SPACE ,517 5,492,612 4,376,391 (1,116,221) TOWN CENTER SPECIAL SERVICE DISTRICT 174-2,491,481 1,478,630 (1,012,851) COMMUNITY DEVELOPMENT - FY18* 180-1,831,458 1,722,005 (109,453) COMM DEV LOAN AND GRANT - FY18* , ,896 (468,671) FEDERAL HOUSING ASSIST - FY18* 182-1,568, ,651 (1,013,210) GRANTS CONSOLIDATED - FY18* 183-9,522,051 5,075,257 (4,446,794) WETLAND MITIGATION FUND OLD DONATION CREEK AREA DREDGING ,821 38,180 (32,641) BAYVILLE CREEK DREDGING SSD ,254 48,596 (23,658) SHADOWLAWN SSD FUND ,207 13,532 (12,675) CHESOPEIAN COLONY DREDGING SSD ,035 67,855 (136,180) HARBOUR POINT AREA DREDGING SSD ,606 9,622 (7,984) GILLS COVE AREA DREDGING SSD ,601 8,229 (5,372) HURDS COVE DREDGING SSD ,172 98,681 (123,491) $ 50,128,624 $ 222,165,401 $ 163,664,523 $ (58,500,878) Enterprise Funds WATER AND SEWER 241 $ 129,279,701 $ 125,926,109 $ 102,716,613 $ (23,209,496) PARKING ENTERPRISE 253 3,583,706 5,001,954 4,058,350 (943,604) WASTE MANAGEMENT 254 2,540,616 40,511,307 32,885,892 (7,625,415) STORM WATER ,848,074 41,951,617 33,964,568 (7,987,049) $ 164,252,097 $ 213,390,987 $ 173,625,423 $ (39,765,564) Debt Service Fund - Issuance of Refunding Bonds 302 $ - $ - $ 85,127,692 $ 85,127,692 Trust and Gift Funds $ - $ 805,235 $ 266,846 $ (538,389) * Reflects current year activities only. 5

20 CITY OF VIRGINIA BEACH SUMMARY OF ALL FUNDS FISCAL YEAR 2018 TOTAL APPROPRIATIONS THROUGH APRIL 30, 2018 Description Fund Number Available Fund Balance at 7/1/17 Adjusted Budget YTD Actual Expenditures/ Encumbrances Unobligated (Obligated) General Fund 002 $ 118,396,300 $ 1,197,022,304 $ 980,974,795 $ 216,047,509 School Board GREEN RUN COLLEGIATE CHARTER SCHOOL 104 $ - $ 3,763,447 $ 2,641,135 $ 1,122,312 SCHOOL EQUIPMENT REPLACEMENT SPECIAL REVENUE FUND , ,193 SCHOOL INSTRUCTIONAL TECHNOLOGY ,579-79,579 SCHOOL VENDING OPERATIONS , ,257 94,445 SCHOOL COMMUNICATIONS TOWERS/TECHNOLOGY SPECIAL REVENUE FUND , , ,236 SCHOOLS GRANT FUND - TITLE IV ,315 13,315 - SCHOOL CAFETERIA FUND ,679,250 20,931,355 10,747,895 SCHOOL OPERATING FUND ,127, ,343, ,784,174 SCHOOL GRANTS FUND ,856,748 35,807,141 23,049,607 SCHOOL TEXTBOOK FUND 117-5,179,602 3,740,996 1,438,606 SCHOOL ATHLETIC SPECIAL REVENUE FUND 119-5,668,779 4,401,355 1,267,424 $ - $ 924,618,379 $ 721,163,908 $ 203,454,471 Special Revenue Funds SCHOOL RESERVE 098 $ - $ 17,607,794 $ 7,336,581 $ 10,271,213 LAW LIBRARY , , ,798 61,847 COMMONWEALTH ATTORNEY FED/STATE SEIZED ASSETS , ,971 84,255 FORFEITED ASSET SHARING PROGRAM , , ,204 STATE RENTAL ASSISTANCE PROGRAM , , ,091 FEDERAL SECTION 8 PROGRAM ,236,627 17,629,090 3,607,537 SHERIFF'S DEPARTMENT ,602,446 40,753,208 7,849,238 PARKS AND RECREATION 151 1,603,528 43,837,406 32,363,769 11,473,637 TOURISM INVESTMENT PROGRAM ,145,941 39,551,427 30,145,495 9,405,932 SANDBRIDGE SPECIAL SERVICE DISTRICT ,494,679 5,208,075 4,812, ,361 AGRICULTURE RESERVE PROGRAM 161-4,910,368 1,328,993 3,581,375 TOURISM ADVERTISING PROGRAM ,559,388 13,687,682 9,909,647 3,778,035 PROFFER IMPACT , SANDBRIDGE TAX INCREMENT FINANCING** 166 5,298,845 10,254,943 2,114,620 8,140,323 CENTRAL BUSINESS SOUTH TAX INCREMENT FINANCING 169 1,688,330 7,964,195 7,897,421 66,774 OPEN SPACE ,517 5,497,477 3,813,007 1,684,470 TOWN CENTER SPECIAL SERVICE DISTRICT 174-2,530,997 2,157, ,551 COMMUNITY DEVELOPMENT - FY18* 180-1,862,319 1,389, ,039 COMM DEV LOAN AND GRANT - FY18* , , ,755 FEDERAL HOUSING ASSIST - FY18* 182-1,568, , ,509 GRANTS CONSOLIDATED - FY18* 183-9,522,051 7,689,797 1,832,254 OLD DONATION CREEK AREA DREDGING SSD ,821 56,617 14,204 BAYVILLE CREEK AREA DREDGING SSD ,254 60,437 11,817 SHADOWLAWN AREA DREDGING SSD ,207 20,757 5,450 CHESOPEIAN COLONY AREA DREDGING SSD , ,102 35,820 HARBOUR POINT AREA DREDGING SSD ,892 14,910 2,982 GILLS COVE AREA DREDGING SSD ,774 20,645 4,129 HURDS COVE DREDGING SSD , ,833 56,339 $ 50,128,624 $ 238,104,560 $ 172,496,419 $ 65,608,140 Enterprise Funds WATER AND SEWER 241 $ 129,279,701 $ 157,089,446 $ 121,949,171 $ 35,140,275 PARKING ENTERPRISE 253 3,583,706 5,945,435 4,637,984 1,307,451 WASTE MANAGEMENT 254 2,540,616 41,006,555 32,598,083 8,408,472 STORM WATER ,848,074 44,665,500 35,401,670 9,263,830 $ 164,252,097 $ 248,706,937 $ 194,586,908 $ 54,120,028 Agricultural Reserve Program Debt Fund 302 $ - $ - $ - $ - Trust and Gift Funds $ - $ 1,006, $ 347,426 $ 658,707 * Reflects current year activities only. 6

21 SECTION A SUMMARY FINANCIAL STATEMENTS FOR MAJOR FUNDS

22

23 CITY OF VIRGINIA BEACH, VIRGINIA GENERAL FUND SUMMARY OF REVENUES AND EXPENDITURES COMPARED TO BUDGET THROUGH APRIL 30, 2018 (In Millions) FY 2018 Year-To-Date FY 2017 Annual Percent Percent Budget Actual Unrealized Realized Realized Revenues by Source: (Section A, Page 2) From Local Sources: Real Estate Taxes $ $ $ % 52.8% Personal Property Taxes % 23.7% Other Local Taxes % 64.0% Charges for Services (Section A, Page 3) % 72.5% Other Local Revenues (Section A, Page 4) % 71.0% From the Commonwealth (Section A, Page 5) % 54.2% From the Federal Government % 71.9% Transfers for Operational Support % 31.6% Total Revenues $ 1,130.1 $ $ % 57.0% FY 2018 Year-To-Date FY 2017 Annual Unencum- Percent Percent Budget Actual bered Obligated Obligated Expenditures/Encumbrances: (Section A, Page 6-7) Departmental Totals $ $ $ % 82.7% Debt Service % 86.8% Transfers to School Division % 86.7% Transfers to School Reserve Fund % 76.2% Transfers to General Government Capital Projects % 100.0% Transfers to Sheriff % 83.3% Transfers to Storm Water Capital Projects % 100.0% Transfers to Waste Management % 83.3% Transfers to Other Funds % 87.7% Reserve for Contingencies Total Expenditures/Encumbrances $ 1,197.0 $ $ % 84.9% Less Amounts Appropriated From Fund Balance Encumbrances & Approved Carryovers at 6/30/ Funding for Various Capital Projects 23.4 Waste Management Fund Support 5.7 Ft Story Fire Station 0.9 Human Services Program Funding 0.2 School Reversion and True Up 20.2 School CIP/Operations 4.0 Risk Management Fund 1.0 Total Appropriations From Fund Balance $ 66.9 Adjusted Expenditures/Encumbrances $ 1,

24 CITY OF VIRGINIA BEACH, VIRGINIA GENERAL FUND COMPARISON OF REVENUES THROUGH APRIL 30 OF FISCAL YEARS 2018, 2017 AND 2016 Revenues: Local Revenue Percent Actual Actual Actual of Fiscal Annual Through Through As Percent (b) Budget Year Budget Jun 30 Apr 30 of Total (a) Trend Real Estate Taxes (RE) 46.2 % 2018 $ 521,861,044 $ - $ 281,408, % F Includes Tax Relief for the ,990, ,031, ,578, Elderly and Disabled Veterans (c) ,993, ,391, ,136, Personal Property Taxes (PP) ,520,511-26,746, F (See Section A, Page 4 for ,566, ,075,205 23,761, State PPTRA portion of revenue) ,789,652 95,930,681 21,769, General Sales Taxes ,135,023-47,544, A ,160,061 62,614,614 46,892, ,780,905 61,099,407 45,879, Utility Taxes ,757,106-19,609, A ,472,704 25,341,725 18,341, ,579,267 25,501,456 19,424, Telecommunications Taxes ,861,320-16,242, A ,702,425 24,651,428 16,489, ,371,223 25,272,621 16,886, Business Licenses ,786,036-46,633, F ,389,703 47,009,924 45,477, ,842,468 45,301,911 43,249, Hotel Room Taxes ,215,382-6,221, (d) F ,714,871 6,976,988 5,976, (d) ,328,444 6,648,138 5,726, (d) Restaurant Meal Taxes ,841,222-34,919, (d) A ,342,843 41,547,888 34,313, (d) ,725,640 40,409,609 33,324, (d) Total Charges for Services ,511,946-34,871, F See Section A, Page 3 for details ,305,365 44,885,348 32,539, ,439,110 44,741,212 32,975, Total Other Local Revenues ,442,151-36,035, F See Section A, Page 4 for details ,472,389 49,762,748 35,336, ,988,205 46,285,881 31,993, From the Commonwealth ,798,393-86,898, F See Section A, Page 5 for details ,699, ,066,062 85,106, ,206, ,197,342 82,787, From the Federal Government ,706,624-17,560, F ,776,298 22,105,930 15,897, ,642,222 20,326,517 15,150, Transfers ,665,180-10,243, A ,338,137 34,165,045 10,787, ,874,864 23,360,347 10,236, TOTAL - REVENUES $ 1,130,101,938 $ - $ 664,935, F ,085,931,789 1,098,234, ,497, ,053,561,707 1,055,466, ,541, (a) FY 2016 and FY 2017 are based on Actual, while FY 2018 is based on Budget. (b) Compares YTD to prior year percent (F = Favorable. U = Unfavorable. A = Acceptable). (c) FY 2018 is $14.3 million, FY2017 is $13.8 million and FY2016 is $13.1 million (d) Reflects the GF portion only, per GASB 54. 2

25 CITY OF VIRGINIA BEACH, VIRGINIA GENERAL FUND COMPARISON OF CHARGES FOR SERVICES THROUGH APRIL 30 OF FISCAL YEARS 2018, 2017 AND 2016 Actual Actual Actual Fiscal Annual Through Through As Percent (b) Year Budget Jun 30 Apr 30 of Total (a) Trend Convention Center 2018 $ 1,027,710 $ - $ 694, % A ,856 1,135, , ,131 1,126, , DMV , , F Specialized license plates & , ,946 92, STOP Reimbursements , ,001 95, DVP Street Lights , , A , ,348 77, , , , Human Services ,526,102-20,412, F (includes Medicaid and other ,521,109 25,728,472 18,310, client billings) ,309,240 25,884,393 19,654, Libraries , , U , , , , , , Museums/Virginia Aquarium ,967,997-8,052, F ,903,236 10,827,407 7,859, ,004,733 10,206,980 6,801, City Treasurer Charges ,080, , F ,092,000 1,112, , ,935 1,020, , Police -False Fire Alarms Fees , , A , , , , , , Sale of Salvage Materials , , U , , , , , , Other Charges for Services ,836,337-3,246, A ,811,930 4,368,314 3,368, ,610,768 4,622,946 3,310, TOTAL - CHARGES 2018 $ 46,511,946 $ - $ 34,871, F FOR SERVICES ,305,365 44,885,348 32,539, To Section A, Page ,439,110 44,741,212 32,975, (a) (b) FY 2016 and FY 2017 are based on Actual, while FY 2018 is based on Budget. Compares YTD to prior year percent (F = Favorable. U = Unfavorable. A = Acceptable). 3

26 CITY OF VIRGINIA BEACH, VIRGINIA GENERAL FUND COMPARISON OF OTHER LOCAL REVENUES THROUGH APRIL 30 OF FISCAL YEARS 2018, 2017 AND 2016 Actual Actual Actual Fiscal Annual Through Through As Percent (b) Year Budget Jun 30 Apr 30 of Total (a) Trend Cigarette Taxes 2018 $ 11,113,112 $ - $ 8,610, % U ,063,425 11,112,530 9,006, ,642,478 9,486,582 7,460, Use of Money ,317,984-2,215, F ,494 2,374,622 1,442, ,607 1,171, , Use of Property ,844,474-3,592, A ,892,991 5,555,916 3,669, ,758,393 5,165,863 3,431, Automobile Licenses ,807,765-7,992, F ,336,210 9,324,996 6,865, ,534,845 9,062,965 6,608, Fines and Forfeitures ,800,656-3,852, U ,538,394 4,978,226 4,205, ,966,800 5,973,180 4,463, City Tax on Deeds ,617,589-5,452, U ,820,299 7,755,788 5,623, ,878,623 7,222,757 5,186, Permits, Privilege Fees and ,535,829-4,251, U Licenses ,577,542 5,457,130 4,445, ,144,605 5,103,138 4,254, Bank Net Capital Taxes and ,404,742-69, A City Tax on Wills ,679,034 3,203,540 77, ,428,854 3,099,682 71, TOTAL - OTHER 2018 $ 50,442,151 $ - $ 36,035, F LOCAL REVENUE ,472,389 49,762,748 35,336, To Section A, Page ,988,205 46,285,881 31,993, (a) (b) FY 2016 and FY 2017 are based on Actual, while FY 2018 is based on Budget. Compares YTD to prior year percent (F = Favorable. U = Unfavorable. A = Acceptable). 4

27 CITY OF VIRGINIA BEACH, VIRGINIA GENERAL FUND COMPARISON OF STATE REVENUES THROUGH APRIL 30 OF FISCAL YEARS 2018, 2017 AND 2016 Actual Actual Actual Fiscal Annual Through Through As Percent (b) Year Budget Jun 30 Apr 30 of Total (a) Trend Reimbursements: Commonwealth's Attorney 2018 $ 2,613,174 $ - $ 2,070, % A ,639,470 2,642,510 1,973, ,679,405 2,615,629 1,954, State Aid Law Enforcement ,282,311-8,466, A ,282,311 11,288,396 8,466, ,936,280 10,936,280 8,202, Other Constitutional Officers ,344,815-2,505, A and Appointed Officials ,333,542 3,344,498 2,439, ,337,326 3,596,148 2,416, Maintenance of Roads ,874,094-36,414, A ,901,216 48,869,372 35,926, ,943,901 47,947,209 35,211, Recordation Fee ,993,535-1,940, U ,955,361 1,993,729 1,993, ,013,700 1,993,536 1,993, Public Assistance Grants ,000,614-10,119, F ,052,594 14,075,960 9,712, ,530,256 13,579,163 9,461, Mental Health/MR/SA ,167,973-14,843, F ,232,269 17,509,245 14,783, ,442,251 16,269,310 13,876, Personal Property Tax Relief Act ,412,868-6,526, A ,412,868 53,412,868 6,526, ,412,868 53,412,868 6,526, Other ,109,009-4,012, F ,889,781 3,929,484 3,284, ,910,191 3,847,199 3,143, TOTAL - FROM THE 2018 $ 156,798,393 $ - $ 86,898, F COMMONWEALTH ,699, ,066,062 85,106, To Section A, Page ,206, ,197,342 82,787, (a) (b) FY 2016 and FY 2017 are based on Actual, while FY 2018 is based on Budget. Compares YTD to prior year percent (F = Favorable. U = Unfavorable. A = Acceptable.) 5

28 CITY OF VIRGINIA BEACH, VIRGINIA GENERAL FUND SUMMARY OF EXPENDITURES COMPARED TO BUDGET THROUGH APRIL 30, 2018 Expenditures/ Annual Encumbrances Unencumbered Appropriation Units Budget To Date Balance FY 2018 FY 2017 FY 2016 Percent Percent Percent Expended/ Expended/ Expended/ Encumbered * Encumbered * Encumbered * AGRICULTURE $ 851,132 $ 632,479 $ 218, % 77.8% 79.4% AUDIT SERVICES 866, , , % 80.3% 80.4% BENEFITS ADMINISTRATION 735, , % 100.0% 100.0% BOARD OF EQUALIZATION 3,004 1,317 1, % 100.0% 100.0% BUDGET & MANAGEMENT SERVICES 1,455,982 1,116, , % 83.9% 85.4% CIRCUIT COURT 1,115, , , % 80.5% 82.4% CITY ATTORNEY 4,494,410 3,427,159 1,067, % 78.6% 81.3% CITY CLERK 738, , , % 77.9% 79.4% CITY MANAGER 2,137,435 1,732, , % 79.6% 83.3% CITY REAL ESTATE ASSESSOR 3,316,333 2,620, , % 81.3% 83.8% CITY TREASURER 6,165,534 4,771,510 1,394, % 82.6% 83.0% CLERK OF THE CIRCUIT COURT 3,486,845 2,811, , % 78.4% 77.2% COMMISSIONER OF THE REVENUE 4,718,136 3,833, , % 81.8% 82.5% COMMONWEALTH'S ATTORNEY 8,570,238 6,635,774 1,934, % 80.3% 82.8% COMMUNICATIONS OFFICE 1,712,433 1,321, , % 80.2% 76.7% COMMUNITY ORGANIZATION GRANTS-ON-GOING 501, ,774 96, % 76.3% 74.6% COMPUTER REPLACEMENT PROGRAM 2,961,897 1,555,162 1,406, % 37.6% 89.1% CONVENTION AND VISITOR DEVELOPMENT 10,487,682 7,691,476 2,796, % 77.5% 83.3% CULTURAL AFFAIRS 4,304,082 3,904, , % 88.3% 92.5% ECONOMIC DEVELOPMENT 4,542,931 2,950,476 1,592, % 65.0% 84.5% EMERGENCY COMMUNICATIONS AND CITIZEN SERVICES 11,148,663 7,480,618 3,668, % 81.0% 83.5% EMERGENCY MANAGEMENT 490, , , % 79.6% - EMERGENCY MEDICAL SERVICES 11,955,067 9,955,629 1,999, % 84.7% 88.3% EMPLOYEE SPECIAL BENEFITS 7,928,800 6,194,027 1,734, % 94.7% 82.8% FINANCE 5,681,833 4,519,796 1,162, % 81.0% 85.0% FIRE 54,283,565 45,514,575 8,768, % 82.8% 84.5% GENERAL DISTRICT COURT 466, , , % 79.0% 89.9% GENERAL REGISTRAR 1,828,553 1,554, , % 80.8% 83.0% HEALTH 3,463,843 3,142, , % 89.4% 95.3% HOUSING AND NEIGHBORHOOD PRESERVATION 3,985,710 2,137,917 1,847, % 80.8% 78.2% HUMAN RESOURCES 4,888,746 3,724,098 1,164, % 79.1% 82.3% HUMAN SERVICES 118,146,291 88,526,299 29,619, % 80.5% 82.6% INDEPENDENT FINANCIAL SERVICES 245, , % 99.0% 100.0% INFORMATION TECHNOLOGY 27,380,210 22,330,636 5,049, % 85.5% 86.7% JUVENILE AND DOMESTIC RELATIONS DISTRICT COURT 194, ,157 66, % 70.6% 80.1% JUVENILE PROBATION 1,508,417 1,050, , % 75.5% 91.3% LEASES 1,762,659 1,620, , % 100.0% 88.5% LIBRARY 18,515,561 14,688,111 3,827, % 82.9% 83.3% MAGISTRATES 70,483 5,066 65, % 17.4% 9.3% MUNICIPAL COUNCIL 557, ,011 69, % 85.6% 85.6% MUSEUMS AND CULTURAL ARTS 13,024,841 8,758,471 4,266, % 79.8% 75.5% OFFICE OF VOLUNTEER RESOURCES 214, ,571 48, % 78.3% 79.9% 6

29 CITY OF VIRGINIA BEACH, VIRGINIA GENERAL FUND SUMMARY OF EXPENDITURES COMPARED TO BUDGET THROUGH APRIL 30, 2018 Expenditures/ Annual Encumbrances Unencumbered Appropriation Units Budget To Date Balance FY 2018 FY 2017 FY 2016 Percent Percent Percent Expended/ Expended/ Expended/ Encumbered * Encumbered * Encumbered * PARKS AND RECREATION LANDSCAPE SERVICES $ 15,208,260 $ 12,682,286 $ 2,525, % 86.0% 85.9% PLANNING AND COMMUNITY DEVELOPMENT 19,790,701 16,428,571 3,362, % 78.9% 84.2% POLICE 103,098,066 81,654,833 21,443, % 82.5% 84.3% PUBLIC WORKS 72,400,277 58,328,121 14,072, % 83.8% 85.2% REGIONAL PARTICIPATION 2,352,074 2,276,853 75, % 88.2% 100.0% TAX RELIEF FOR THE ELDERLY 15,278,199 14,349, , % 93.9% 95.4% VEHICLE REPLACEMENTS 6,022,541 6,017,371 5, % 99.4% 99.3% TOTAL DEPARTMENTAL EXPENDITURES $ 585,059,091 $ 462,949,749 $ 122,109, % 82.7% 84.7% DEBT SERVICE $ 53,067,145 $ 43,532,145 $ 9,535, % 86.8% 85.8% TRANSFERS TO OTHER FUNDS: SCHOOL OPERATING FUNDS $ 438,574,330 $ 364,233,968 $ 74,340, % 86.7% 86.4% SCHOOL SPECIAL RESERVE FUND 8,803,897 6,288,498 2,515, % 76.2% 66.7% COMMUNITY DEVELOPMENT FUND 539, , % 100.0% 100.0% GENERAL GOVERNMENT CAPITAL PROJECT FUND 60,955,333 60,955, % 100.0% 100.0% SCHOOL GENERAL REVENUE CAPITAL PROJECTS 4,491,000 4,491, % 83.3% 83.3% GRANTS FUNDS 1,740,622 1,693,107 47, % 100.0% 100.0% SHERIFF'S SPECIAL REVENUE FUND 24,457,726 20,370,241 4,087, % 83.3% 81.4% PARKS & RECREATION SPECIAL REVENUE FUND 6,223,868 5,182,749 1,041, % 83.3% 83.3% PUBLIC SAFETY CITY MARINA SLIP 20,965 17,471 3, % 83.3% 83.3% WASTE MANAGEMENT FUND 5,712,041 4,760, , % 83.3% 83.3% RISK MANAGEMENT FUND 1,000, , , % 100.0% - OYSTER HERITAGE FUND 40,000 40, % - - STORM WATER CAPITAL PROJECT FUND 5,420,501 5,420, % 100.0% - TOTAL TRANSFERS TO OTHER FUNDS $ 557,980,282 $ 474,492,901 $ 83,487, % 87.1% 87.0% RESERVE FOR CONTINGENCIES (BALANCE) 915, , % 0.0% 0.0% TOTAL EXPENDITURES AND ENCUMBRANCES $ 1,197,022,304 $ 980,974,795 $ 216,047, % 84.9% 85.8% * FY 2016 and FY 2017 Percent Expended/Encumbered is based on Actual, while FY 2018 is based on Budget. * Capital Projects for prior years have been adjusted from actuals to total appropriation for variance comparision reasons. 7

30 REVENUES: CITY OF VIRGINIA BEACH, VIRGINIA SCHOOL OPERATING FUND COMPARISON OF REVENUES, EXPENDITURES AND ENCUMBRANCES THROUGH APRIL 30 OF FISCAL YEARS 2018, 2017, AND 2016 (a) Percent Actual Actual Actual of Fiscal Annual Through Through as Percent (b) Budget Year Budget Jun 30 Apr 30 of Total Trend From the Commonwealth: State Share of Sales Tax 9.1 % 2018 $ 73,718,340 $ - $ 55,309, % A ,741,805 73,084,563 54,687, ,783,907 72,382,607 54,328, Basic School Aid ,972, ,124, A ,303, ,909, ,945, ,797, ,363, ,496, Other Commonwealth ,471,101-67,166, A ,120,105 81,374,051 57,891, ,242,244 77,221,087 54,482, Federal Revenue ,200,000-10,548, A ,476,532 13,464,377 12,009, ,476,532 10,984,116 4,653, Other Revenue Sources ,782,803-2,760, A ,782,803 2,759,412 2,092, ,782,803 3,120,071 2,543, Subtotals $ 362,144,624 $ - $ 283,909, A ,424, ,592, ,626, ,082, ,071, ,504, General Fund ,747, ,969, A ,077, ,014, ,774, ,012, ,466, ,284, School Reserve Fund ,803,897-7,336, A ,000,000 5,000,000 4,166, ,299,318 8,299,318 7,080, TOTAL - REVENUES % 2018 $ 809,696,292 $ - $ 656,215, % A ,502, ,606, ,568, ,394, ,837, ,870, EXPENDITURES, ENCUMBRANCES AND TRANSFERS: Instruction 2018 $ 567,728,154 $ - $ 451,270, % Administration, Attendance & Health ,295,155-19,543, Pupil Transportation ,276,298-39,355, Operations and Maintenance ,391,080-72,298, Technology ,489,399-33,011, Debt Service ,947,680-37,864, TOTAL - EXPENDITURES, ENCUMBRANCES 2018 $ 818,127,766 $ - $ 653,343, % A AND TRANSFERS ,361, ,218, ,557, ,620, ,367, ,539, TOTAL APPROPRIATIONS 2018 $ 818,127,766 Less Amounts Appropriated from 06/30/17 Fund Balance: Encumbrances at 06/30/17 brought forward 8,431,472 TOTAL APPROPRIATIONS FROM CURRENT REVENUES 2018 $ 809,696,294 (a) FY 2016 and FY 2017 are based on Actual, while FY 2018 is based on Budget. (b) F = Favorable. U = Unfavorable. A = Acceptable. 8

31 REVENUES: CITY OF VIRGINIA BEACH, VIRGINIA WATER AND SEWER ENTERPRISE FUND COMPARISON OF REVENUES, EXPENDITURES AND ENCUMBRANCES - BUDGETARY BASIS THROUGH APRIL 30 OF FISCAL YEARS 2018, 2017, AND 2016 (a) Percent Actual Actual Actual of Fiscal Annual Through Through as Percent (b) Budget Year Budget Jun 30 Apr 30 of Total Trend Use of Money and Property 0.4 % 2018 $ 535,148 $ - $ 1,203, % F ,600 1,486, , ,151 1,118, , Sale of Water ,178,138-35,325, F ,177,100 46,245,249 34,028, ,405,816 44,846,586 34,547, Sewer Charges ,347,377-52,073, F ,550,000 66,250,075 49,323, ,024,322 65,249,503 49,748, Other Charges for Services ,275,385-9,081, F ,476,478 10,471,046 8,491, ,490,462 10,903,478 9,179, Miscellaneous Revenue ,590,061-5,032, A and Non-Revenue ,148,808 6,710,247 (c) 4,891, Receipts ,430,692 6,734,815 (c) 4,951, TOTAL - REVENUES % 2018 $ 125,926,109 $ - $ 102,716, % F ,753, ,163,085 97,665, ,736, ,853,135 98,845, EXPENDITURES AND ENCUMBRANCES Expenditures and Encumbrances 40.0 % 2018 $ 63,231,325 $ - $ 44,036, % A (excluding interfund transfers, ,416,575 48,425,389 40,146, debt service and water purchases) ,644,290 48,555,009 41,063, Water Services Contract ,789,880-18,584, A ,294,000 24,721,565 18,434, ,943,865 24,487,885 18,350, Debt Service ,795,921-16,760, A ,810,833 16,847,307 16,727, ,801,983 18,968,318 17,282, Interfund Transfers for ,502,320-6,797, A Indirect Costs and ,546,866 9,448,153 6,647, General Fund Support ,508,315 9,294,411 6,606, Interfund Transfers for ,770,000-35,770, A Capital Projects ,215,361 35,215,361 35,215, ,275,000 16,275,000 16,275, TOTAL - EXPENDITURES % 2018 $ 157,089,446 $ - $ 121,949, % A AND ENCUMBRANCES ,283, ,657, ,170, ,173, ,580,623 99,578, TOTAL APPROPRIATIONS 2018 $ 157,089,446 Less Amounts Appropriated from 06/30/17 Fund Balance: Encumbrances at 06/30/17 brought forward 3,393,337 Water & Sewer CIP 27,770,000 TOTAL APPROPRIATIONS FROM CURRENT REVENUES ,926,109 (a) FY 2016 and FY 2017 are based on Actual, while FY 2018 is based on Budget. (b) F = Favorable. U = Unfavorable. A = Acceptable. (c) Excludes Norfolk water contract true-up in FY16 of $0.8M, as well as FY17 and FY16 developer contributions totaling $1.5M and $0.7M, respectively. 9