FISCAL YEAR END st QUARTER REVIEW

Transcription

1 FISCAL YEAR END st QUARTER REVIEW At the end of September 2016, we reached the mid-year point for this 6-month budget year ending December 31, 2016, prompting a thorough review of the budget. The purpose of this review was to ensure we are still on track with the original budget plan and, if needed, make any necessary adjustments. Below is a revenue and expenditure statement by fund through September 30, Percent trending for this first three months should be about 50.00% in general operating funds such as the General Fund and the Water Fund. Capital Fund expenditures are project specific. CITY OF DEKALB PRELIMINARY REVENUES / EXPENDITURES STATEMENT THROUGH PERIOD 03, FISCAL YEAR REVENUE EXPENDITURES FUND BUDGET Y.T.D. BUDGET Y.T.D. General Fund (01) 20,846,678 11,915, % 21,301,412 10,997, % Special Revenue Funds Refuse & Recycling (07) 1,060, , % 1,020, , % Transportation (09) 4,177,564 65, % 4,177, , % Housing Rehabilitation (18) % 12, % CDBG (19) 320,306 7, % 320,306 7, % Heritage Ridge SSA #3 (23) - - N/A % Knolls Subdivision SSA #4 (24) 5,000 4, % 3,500 3, % Heartland Fields SSA #14 (25) 2,500 2, % 1, % Greek Row SSA #6 (26) 10,000 8, % 10,500 2, % Foreign Fire Insurance Tax (28) 45, % 34,221 11, % Enterprise Funds Water (60) 2,706,625 1,413, % 2,800,235 1,200, % Water New Construction (61) 15, % - - N/A Water Capital (62) 476, , % 476,800 41,822 N/A Airport (65) 495, , % 495, , % Debt Service Funds General Fund Debt Service (40) 364, , % 320, , % TIF Debt Service (45) 961, % 961, % Capital Funds Motor Fuel Tax (10) 706, , % 985, , % Central Area TIF District #1 (13) 6,354,147 6,197, % 6,301, , % TIF District #2 (14) 1,237,356 1,131, % 450,377 29, % Capital Projects (50) 209, , % 205,000 13, % Fleet Replacement (52) 134,893 37, % 208,205 58, % Equipment (53) 625, , % 746,857 31, % Fiduciary Funds & Component Unit Police Pension Fund (93) 3,471,968 1,032, % 1,369, , % Fire Pension Fund (95) 3,682,668 1,973, % 1,628, , % Internal Service Funds Workers Compensation (70) 620, , % 844, , % Health Insurance (71) 2,984,986 1,534, % 2,825,771 1,455, % Property & Liability Insurance (72) 72,500 32, % 63,254 8, % 1 P age

2 GENERAL FUND REVENUE SOURCES General Fund Revenues are the taxes, fees and other charges that the City assesses to provide services to its citizens. General Fund Revenues are composed of the following revenue streams: Sales & Use Taxes (Municipal and Home Rule) Property Taxes Income Tax Other Taxes includes Utility Tax Licenses & Permits Charges for Services Fines Transfers/Other GENERAL FUND FY 16.5 SUMMARY REVENUES Service Charges & Fees 5% Other Income 4% Fines 2% Transfer In 3% Property Taxes 24% Intergovernmental Revenues 13% Licenses & Permits 2% Franchise & Utility Tax 9% Sales & Use Taxes 38% The three largest sources of revenue are property taxes received from the county, sales taxes, both municipal and home rule, and income tax. Other taxes make up items such as local use tax, utility tax and restaurant & bar tax. This first half of this shortened fiscal year show General Fund Revenues in total performing within projected expectations. While the percent of budget seems to be trending ahead of the 50.00% mark, this can be attributed to Property Tax revenue being at 95.00% of budget. Staff will actively continue to observe revenues through the fiscal year to determine if current actuals are still trending within budgeted expectations. 2 P age

3 Property Taxes Every December the City levies property taxes to provide funding for police and fire pension obligations, a portion of employer Social Security obligations and a portion of employer IMRF obligations. Note, other City obligations can be levied with property taxes. These items can include debt payments, audit fees, police and fire protection services and other corporate costs. Below is a graph that indicates the amount levied, or budgeted, and the amount actually received. As a Home Rule community, the City levies dollars and has received between 98.00% and 99.00% of dollars levied the last four years as noted by the chart below. PROPERTY TAXES - GENERAL FUND 12 MONTHS 12 MONTHS 12 MONTHS 12 MONTHS LEVY LINE LEVY LINE ENDING ENDING ENDING ENDING ITEM ITEM FY 2014 FY 2015 FY 2016 FY Corporate Corporate , IMRF IMRF 320, , , , Fire Pension Fire Pension 2,078, ,056, ,177, ,177, Police Pension Police Pension 1,379, ,472, ,636, ,636, Social Security Social Security 467, , , , TOTAL LEVIED 4,244, ,270, ,270, ,094, TOTAL COLLECTED 4,161, ,203, ,231, ,825, % COLLECTED 98.05% 98.42% 99.10% 94.71% 2,500,000 2,000,000 FY 2014 FY 2015 FY 2016 FY ,500,000 1,000, ,000 0 Corporate IMRF Fire Pension Police Pension Social Security Sales Tax Revenues In the State of Illinois, there is a base 6.25% sales tax on general merchandise. It is administered and collected by the Illinois Department of Revenue. One percent of the Sales Tax is distributed to the municipality where the sale occurred. This tax is captured in the City s General Fund and is used for basic City operations. 3 P age

4 Sales tax has trended fairly stable over the last few years. The range of dollars collected for Municipal Sales tax has ranged between $5.30 and $5.40 million annually. Projecting out the remainder of FY16.5 shows the City trending slightly behind budgeted dollars. The City also imposes a 1.75% Home Rule Sales Tax. The amount of Home Rule Sales Tax collected over the last few years has also remained fairly constant at $6.50 to $6.70 million. Trending in the remainder of this fiscal year shows a slight dip in this revenue source as well. Home rule sales tax does not apply to tangible personal property that is titled or registered with an agency of this state s government, (e.g., cars, trucks, boats, motorcycles, trailers, snowmobiles, aircraft), and food for human consumption that is to be consumed off the premises where it is sold (other than alcoholic beverages, soft drinks, and food which has been prepared for immediate consumption) and prescription and non-prescription medicines, drugs, medical appliances, and insulin, urine testing materials, syringes, and needles used by diabetics. These trends can be seen in the two graphs below. MUNICIPAL SALES TAX (1.0%) 12 MONTHS 12 MONTHS 12 MONTHS 12 MONTHS LIABILITY COLLECTION ENDING ENDING ENDING ENDING PERIOD PERIOD FYE 2014 FYE 2015 FYE 2016 FYE JUL OCT 420, , , ,591 AUG NOV 476, , , ,055 SEP DEC 450, , , ,123 OCT JAN 438, , , ,872 NOV FEB 428, , , ,708 DEC MAR 502, , , ,143 JAN APR 398, , ,585 FEB MAY 373, , ,587 MAR JUN 444, , ,186 APR JUL 445, , ,783 MAY AUG 439, , ,976 JUN SEP 440, , ,238 SUB_TOTAL 5,258,561 5,422,936 5,289,536 2,761,492 BUDGET 4,500,636 5,398,150 5,400,000 2,765,000 % OF BUDGET 99.06% % 97.95% 99.87% 600, , ,000 FYE 2014 FYE 2015 FYE 2016 FYE , , , , ,000 JUL AUG SEP OCT NOV DEC JAN FEB MAR APR MAY JUN 4 P age

5 HOME RULE SALES TAX (1.75%) 12 MONTHS 12 MONTHS 12 MONTHS 12 MONTHS LIABILITY COLLECTION ENDING ENDING ENDING ENDING PERIOD PERIOD FYE 2014 FYE 2015 FYE 2016 FYE JUL OCT 509, , , ,982 AUG NOV 549, , , ,378 SEP DEC 538, , , ,435 OCT JAN 540, , , ,924 NOV FEB 617, , , ,758 DEC MAR 588, , , ,938 JAN APR 557, , ,925 FEB MAY 551, , ,496 MAR JUN 672, , ,726 APR JUL 556, , ,083 MAY AUG 546, , ,865 JUN SEP 563, , ,054 TOTAL 6,794,013 6,673,332 6,511,982 3,457,415 ORIGINAL BUDGET 5,807,528 6,926,784 7,000,000 3,510,000 % OF BUDGET % 96.34% 93.03% 98.50% 750, ,000 FYE 2014 FYE 2015 FYE 2016 FYE , , , ,000 JUL AUG SEP OCT NOV DEC JAN FEB MAR APR MAY JUN Income Taxes Income tax has shown a downturn the last several months. Please note this revenue source is a part of the Local Government Distributive Fund (LGDF) which is currently collected and disbursed by the State of Illinois based on a per capita basis. The City uses projections from the Illinois Municipal League (IML) to budget for these dollars. Recent projections from the IML in July 2016 had this revenue trending in at $102/capita. For the City of DeKalb this would equal $4,491,060 annually or $2,245,530 for six months. Trending out the remainder of this six-month cycle shows these dollars coming in below budgeted by parameters by over $450,000. Staff has reached out to the Illinois Municipal League to look for answers as to why this revenue is showing this drastic downturn. Staff will continue to monitor this revenue stream to determine if projections from the IML need to be revised for FY2017 budget. The FY budget projections have been lowered to $1,795, P age

6 INCOME TAX 12 MONTHS 12 MONTHS 12 MONTHS 12 MONTHS LIABILITY COLLECTION ENDING ENDING ENDING ENDING PERIOD PERIOD FYE 2014 FYE 2015 FYE 2016 FYE JUL JUL 390, , , , AUG AUG 242, , , , SEP SEP 236, , , , OCT OCT 413, , , , NOV NOV 273, , , , DEC DEC 218, , , , JAN JAN 404, , , FEB FEB 429, , , MAR MAR 245, , , APR APR 428, , , MAY MAY 665, , , JUN JUN 247, , , TOTAL 4,197, ,515, ,462, ,795, BUDGET 4,200, ,320, ,358, ,245, % OF BUDGET 99.93% % % 79.96% 900, , ,000 FYE 2014 FYE 2015 FYE 2016 FYE , , , , , ,000 0 JUL AUG SEP OCT NOV DEC JAN FEB MAR APR MAY JUN While Income Tax dollars appear to be trending down other revenue sources such as Local Use tax, Video Gaming Tax and Ambulance revenue are trending in strong and above budgeted parameters. Overall, it appears total revenues in the General Fund for FY16.5 may fall just short of budgeted dollars by close to $400,000 or 1.90% of total revenue. 6 P age

7 GENERAL FUND EXPENDITURES General Fund Expenditures account for the general operations of the City, including public safety, public works streets and engineering, community development, including building, and general administration, including finance, human resources and information technology. At the end of the second quarter for FY16.5, General Fund Expenditures are at 51.63% of budget. Overall, the General Fund is operating within or below of budgeted dollars. The chart below shows General Fund expenditures by department. PRELIMINARY THROUGH PERIOD 03, FISCAL YEAR-END GNERAL FUND BUDGET FY16.5 YTD AVAILABLE PCT USED EXPENSES Legislative 102,687 39,916 62, % Administration 606, , , % Human Resources 274, , , % Finance 353, , , % IT 409, , , % Police 7,708,309 4,201,779 3,506, % Fire 6,843,743 4,099,806 2,743, % Public Works 1,980, ,960 1,137, % Community Development 829, , , % General Support 2,193, ,054 1,361, % TOTAL EXPENDITURES 21,301,412 10,997,452 10,303, % Community Development GENERAL FUND FY16.5 BUDGETED DEPARTMENTAL EXPENSES General Support Public Works Fire Police IT Finance Human Resources Administration Legislative 0 2,000,000 4,000,000 6,000,000 8,000,000 10,000,000 While it appears Police and Fire are trending ahead of budget parameters, this can be primarily attributed to all employer pension contributions collected and remitted within the first quarter of 7 P age

8 the City s fiscal year. These are large dollars for both departments. $2,535,041 for Fire and $2,103,837 for Police. All other departments are trending behind budgeted parameters. Projecting out to the end of FY expenditures should come right at budgeted amounts. The next chart breaks out expenditures by type. Trending again should be right around 50.00% after the first half of this shortened fiscal year. The detail within each of these categories can be seen in the monthly report included within the agenda packets each month. PRELIMINARY THROUGH PERIOD 03, FISCAL YEAR-END GNERAL FUND BUDGET FY16.5 YTD AVAILABLE PCT USED EXPENSES Personnel Services 17,198,029 10,032,757 7,165, % Commodities 677, , , % Contractual 1,454, ,394 1,161, % Capital/Equipment 283,720 35, , % Other Charges 1,075, , , % Interfund Transfers 612, , , % TOTAL EXPENDITURES 21,301,412 10,997,452 10,303, % Personnel Services: Expenditures within this category appear to be trending above their budgeted parameters. However, this is where the property tax dollars show up for the police and fire employer contributions. These taxes are fully collected within the first quarter of the City s fiscal year. If we were to subtract half of these dollars from the actual cost, personnel expenditures would be showing percent used of 40.74% of budgeted dollars spent which is below the 50.00% point. Contractual: Expenditures within this category are trending within or below their budgeted parameters. Commodities: Expenditures within this category are trending within or below their budgeted parameters. Capital Outlay: These capital purchases appear to be behind budgeted expenditures, however it is expected that this category will come in at budget for FY16. Other Charges: This category includes the sales tax rebate payouts. The largest of these rebates is to DeKalb County. This category appears to be trending behind budgeted parameters, however payments to DeKalb County are made every four months and an expenditure has not yet hit that line item within the first three months of the City s fiscal year. This category is expected to come in right at budget. Interfund Transfers: This category will come in right at budget. The next chart is projecting fund balances out for all funds in the City s budget. 8 P age

9 CITY OF DEKALB PRELIMINARY FUND BALANCE SUMMARY FY 2016 FY FUND BALANCE % FUND NAME PROJECTION REVENUES EXPENSES PROJECTION POLICY General Fund (01) 9,280,985 20,446,678 21,080,502 8,647, % 25.88% 25.00% Refuse & Recycling (07) (3,008) 1,060,000 1,020,350 36,642 Transportation (09) 0 4,177,129 4,177,129 0 Housing Rehabilitation (18) 63, ,081 62,644 CDBG (19) 1 320, ,306 1 Heritage Ridge SSA #3 (23) 4, ,007 Knolls Subdivision SSA #4 (24) (1,444) 5,000 3, Heartland Fields SSA #14 (25) 1,170 2,500 1,750 1,920 Greek Row SSA #6 (26) (8,831) 10,000 1,169 0 Foreign Fire Insurance Tax (28) 27,261 45,000 34,221 38,040 * Water (60) 4,852,624 2,706,625 2,800,235 4,759,014 ** Water Impact Fees (61) 1,096,590 15, ,111,590 Water Capital (62) 0 476, ,800 0 * Airport (65) (162,050) 495, ,553 (162,050) General Fund Debt Service (40) (13,513) 364, ,086 30,401 TIF Debt Service (45) 0 961, ,675 0 Motor Fuel Tax (10) 3,097, , ,000 2,819,068 Central Area TIF District #1 (13) 1,745,887 6,354,147 5,935,991 2,164,043 TIF District #2 (14) 8,475,176 1,237, ,540 9,198,992 Capital Projects (50) 156, , , ,825 Fleet Replacement (52) 75, , ,205 9,017 Equipment (53) 146, , ,857 24,945 Police Pension Fund (93) 29,526,499 3,471,968 1,369,613 31,628,854 Fire Pension Fund (95) 24,571,182 3,682,668 1,628,932 26,624,918 Workers Compensation (70) 1,487, , ,374 1,288,920 $1,487,344 $ 1,288,920 $ 1,000,000 Health Insurance (71) 219,691 2,984,986 2,825, ,906 1 month premium = $377,000 Property & Liability Insurance (72) 137,928 72,500 63, , % % 25.00% 82,429,371 54,119,622 48,522,733 88,026,260 * Cash & Cash Equivalents ** Restricted Dollars The General Fund balance increased in FY 2016 to over 27% of expenditures. The City s Fund Balance Policy is 25.00%. At this three month mark revenues appear to be trending in below budgeted parameters by $400,000 and expenditures appear to be just below budget by $150,000. With these projections, FY still maintains a 25.88% fund balance reserve which is within the City policy. 9 P age