Attached for your review is the unaudited Financial Report for the City and School Board for the six months ended December 31, 2018.

Transcription

1 OFFICE OF THE CITY MANAGER (757) (757) FAX VBgov.oom MUNICIPAL CENTER BUILDING 1, ROOM COURTHOUSE DRIVE VIRGINIA BEACH, VA January 11, 2019 The Honorable Robert M. Dyer, Mayor Members of City Council Subject: Fiscal Year 2019"' Interim Financial Report (Cash Basis) through December 31, 2018 Dear Mayor and Council Members: Attached for your review is the unaudited Financial Report for the City and School Board for the six months ended December 31, As indicated in the attached report from Ms. Alice Kelly, Interim Director of Finance, General Fund Revenues are $491.2 million or 42.4% of budget through December 31, Year-to-date revenues are ahead of the prior year by $5.8 million, or 1.2%. General Fund Expenditures are $677 million or 55.1 % of budget, and consistent with the prior two years. Detailed information pertaining to major funds, revenue and expenditures can be found within the report. The Federal shutdown has not had a direct impact on the City's revenues and expenditures. The Departments of Finance and Management Services will continue to monitor for any potential changes. As requested by City Council, Ms. Kelly will be briefing you on the status of the current year's revenues and expenditures on January 15, Attachment cc: Thomas M. Leahy III, Deputy City Manager David A. Bradley, Director of Budget and Management Services Alice M. Kelly, Interim Director of Finance

2 1/11/2019 FY2019 Interim Financial Statements General Fund 6months overview As of December 31, 2018 FY2019 General Fund Revenue & Expenditures Through December 31, 2018 Budget YTD Variance Revenues Local $ $ $ (555.5) State (99.0) Federal (12.5) Total Revenues $ 1,158.2 $ $ (667.0) 42.4% Expenditures City Operations $ $ $ City Capital Projects Cash Funding Trsf to Schools Trsf to School Reserve Fund Total Expenditures $ 1,227.6 $ $ Less Amounts from Fund Balance $ % $ amount in Millions 1

3 1/11/2019 FY2019 General Fund Revenue Through December 31, 2018 BUDGETED REVENUES YTD = $1,158.2M ACTUAL REVENUES YTD = $491.2M Personal Property Taxes $15.5 Real Estate Taxes $278.4 Other Revenues $41.8 Other Taxes $78.4 Commonwealth $60.2 Federal Government $10.2 Unrealized $ % Transfers $6.7 $ amounts in millions Real Estate Revenues GF Portion Only December 31, $500 $441.0 $428.2 $443.7 $466.4 $482.0 BUDGET $521.9 $ % $400 80% Revenues $ Million $300 $ % 51.2% 51.7% 51.1% 51.2% 51.9% 51.8% $225.9 $219.3 $229.3 $238.5 $247.0 $271.7 $ % 40% % of Total Collections $100 20% $0 $0.96 ( ) $0.93 ( ) $0.93 ( ) $0.99 ( ) $0.99 ( ) $ ( ) $ ( ) FY 2013 FY 2014 FY 2015 FY 2016 FY 2017 FY 2018 FY % Annual Collections YTD % of Total 2

4 1/11/2019 $100 $80 Personal Property Taxes (excludes PPTRA) December 31, $74.7 $78.7 $90.9 $95.9 BUDGET $100.1 $102.5 $ % 80% Revenues $ Million $60 $40 $20 $0 20.9% 21.4% 21.6% $15.6 $ % 18.7% 19.8% $19.6 $17.9 $18.8 $ % $3.70 $3.70 $4.00 $4.00 $4.00 $4.00 $15.5 FY 2013 FY 2014 FY 2015 FY 2016 FY 2017 FY 2018 FY % 40% 20% 0% % of Total Collections Annual Collections YTD % of Total General Sales Tax December 31, State 5% City 1% $60 $55.0 $56.4 $58.2 $61.1 $62.6 $63.5 BUDGET $66.6 Revenues $ Million $50 $40 $30 $20 $23.9 $24.9 $25.3 $26.6 $27.4 $27.9 $ % 44.2% 43.4% 43.5% 43.7% 44.0% 42.6% 100% 50% % of Total Collections $10 $0 FY 2013 FY 2014 FY 2015 FY 2016 FY 2017 FY 2018 FY 2019 Actual YTD % of Total 0% 3

5 1/11/2019 Total Hotel Room Taxes December 31, Revenues $ Million $35 $30 $25 $20 $15 $10 $5 $27.2 $ % 72.8% $28.7 $20.1 $20.0 $20.6 $ % 71.5% $21.9 $32.8 $ % 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 BUDGET $35.5 $37.3 $25.1 $ % 66.6% 75.0% $0 FY 2013 FY 2014 FY 2015 FY 2016 FY 2017 FY 2018 FY % Annual Collections YTD % of Total Total Restaurant Meal Taxes December 31, $70 $60 $55.1 $56.9 $60.0 $63.4 $65.2 $68.8 BUDGET $ % Revenues $ Million $50 $40 $30 $20 $ % 53.0% 52.2% 52.3% 52.8% 50.6% $33.2 $34.4 $34.8 $28.9 $30.1 $31.3 Meal Taxes 5.5% Allocation General Fund 3.5% TIP 1.06% TAP 0.5% Open Space 0.44% 46.3% $ % 25% % of Total Collections $0 FY 2013 FY 2014 FY 2015 FY 2016 FY 2017 FY 2018 FY 2019 Actual YTD % of Total 0% 4

6 1/11/2019 Hotel/ Meal Tax Allocation Through December 31, 2018 GF 2% TIP 5% TAP 1% Hotel Tax : TIP 5.0 % (excluding Sandbridge) $ 10.7 General Fund 2 % 5.4 TAP 1.0 % 2.7 TAP $1 Flat Rate (excluding Sandbridge) 1.2 TIP $1 Flat Rate 1.3 Sandbridge SSD 5% plus $1 Flat Rate additional 1.5% Total Hotel Tax Revenue 8.0 % $ 24.9 OS 0.44% TAP 0.5% $ amount in millions GF 3.5% TIP 1.06% Meal Tax : General Fund 3.5 % $ 20.8 TIP 1.06 % 6.3 TAP 0.50 % 2.9 Open Space 0.44 % 2.6 Total Restaurant Meal Tax Revenue 5.5 % $ 32.6 FY2019 General Fund Expenditures Through December 31, 2018 BUDGETED EXPENDITURES YTD = $1,227.8M ACTUAL EXPENDITURES YTD = $677.0M Capital Projects $60.3 Debt Service $22.9 Operating $127.9 Personnel $191.2 Transfers to Other Funds $26.3 Unencumbered $ % School Support $248.4 $ amounts in millions 5

7 1/11/2019 FY2019 YTD General Fund Revenues and Expenditures Comparison 100% 80% ACTUAL REVENUES YTD = $491.2M ACTUAL EXPENDITURES YTD= $677.0M 70.1% 77.5% 100.0% 92.8% 100.0% 85.1% 80.1% Percent of Total Revenue/Expenditures 60% 40% 20% 0% 62.3% 54.7% 57.8% 45.6% 55.1% 55.3% 42.4% 49.1% 36.7% 44.5% 42.0% 45.0% 27.8% 36.2% 32.4% 32.5% 29.0% 20.1% 14.7% 21.9% 13.5% 12.5% 8.4% 1.3% 8.2% 4.5% 12.1% 1.8% 4.0% Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun % of FY2019 Exp Budget Exp Trend % of FY 2019 Rev Budget Rev Trend Next Steps January Interim February 20, 2019 Proposed Budget March 26, 2019 Adopted Budget May 14,

8 FY2019 UNAUDITED CASH BASIS FINANCIAL STATEMENTS Report Prepared by: Finance Department Accounting and Reporting Division Alice M. Kelly, Interim Director of Finance Financial Status Report for the period of July 1, 2018 through December 31, 2018.

9 CITY OF VIRGINIA BEACH, VIRGINIA CITY COUNCIL Robert M. Dyer, Mayor... Bayside District James L. Wood, Vice Mayor... Lynnhaven District David Nygaard... Beach District Sabrina Wooten... 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 Aaron R. Rouse... At-Large CONSTITUTIONAL OFFICERS V. Leigh Henderson... 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 Joel A. McDonald, Vice Chairman... District 3 Rose Hall Trenace B. Riggs... District 1 Centerville Daniel D. Edwards... District 2 Kempsville 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 Laura K. Hughes... At-Large Victoria C. Manning... At-Large i

10 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 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 Section F Summary of All Funds Summary of All Operating Funds -- Revenues... 1 Summary of All Operating Funds -- Appropriations... 2 Interim Financial Statements ii

11 DEPARTMENT OF FINANCE (757) FAX (757) January 11, 2019 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 December 31, 2018 Dear Mr. Hansen: I am pleased to present the Financial Report for the six months ended December 31, Please note that these statements are presented on a cash basis and are unaudited. 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 Six Months Ended December 31, 2018 $ in millions Percent of Total* Budget Actual YTD FY 2019 FY 2018 FY 2017 General Fund Revenues $1,158.2 $ % 42.3% 41.6% Expenses 1, School Operating Revenues Expenses Revenues Water and Sewer Expenses Storm Water Revenues Expenses * FY 2017 and FY 2018 are based on Actual, while FY 2019 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.

12 Mr. David L. Hansen December 2018 Interim Financial Report January 11, 2019 Page 2 GENERAL FUND: GENERAL FUND REVENUES As of December 31, 2018 General Fund revenues of $491.2 million are $5.8 million more than FY 2018 and $38.2 million greater than FY The main areas of this increase are Real Estate Taxes ($6.7 million), revenue from the Commonwealth ($3.6 million), and Charges for Services ($2.7 million). Local Revenues o Real Estate Tax revenues are $278.4 million year-to-date (51.8% of budget), an increase of $6.7 million from FY This increase is mainly due to a 3.7% increase in assessed values. Revenues to date include $15.7 million in Real Estate Tax Relief for the Elderly and Disabled Veterans, which is recorded both as revenue and as an appropriation. o The Personal Property Tax levy will not be billed until April 2019, with a due date of June 5 th. Collections-to-date of $15.5 million (14.6% of the $106.3 million budget), represent collections on current year supplemental, public service and pro-rated billings and prior year delinquents. o General Sales Taxes are $28.3 million. This represents an increase from the prior year of $426,375 or 1.4%. o Hotel Room Taxes of $5.4 million represents the General Fund (2% of total 8%) share only, which is less than the prior year by $9,180. City wide, Hotel Room Tax revenue is $24.9 million which is slightly less than the prior year. o Restaurant Meal Taxes revenue of $20.8 million represents the General Fund share only, which is less than the prior year by $1.4 million. City wide, Restaurant Meal Tax revenue is $32.6 million, which is $2.2 million or 6.2% less than the prior year. The reason for this difference is due to a timing difference with November collections. State Revenues State revenues received-to-date of $60.2 million equal 37.8% of budget and are $3.6 million more than the prior year due to an increase in the revenue received for maintenance of roads, Human Services reimbursements and other State revenue. The other State revenue includes a $1.8 million grant the City received on behalf of the Development Authority. 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 FY 2019, are scheduled to be received in July and August 2019, and will be accrued back to June 30, Federal Revenues Federal revenues are $10.2 million and are lower than the prior year by $5.1 million due to monies received from FEMA last year for Hurricane Matthew reimbursements.

13 Mr. David L. Hansen December 2018 Interim Financial Report January 11, 2019 Page 3 Total revenues are summarized in the following table: Comparison of FY2019 and FY2018 General Fund Revenues As of December 31, 2018 (in millions) FY 2019 YTD FY 2018 YTD VARIANCES Budget Actual % Actual % Actual % * Real Estate Taxes $ $ % $ % $ % Personal Property Taxes (4.8) (23.6) Commonwealth - PPTRA General Sales Tax Utility Taxes Telecommunications Taxes Business Licenses (0.2) (13.3) * Hotel Taxes * Restaurant Taxes (1.4) (6.3) * Cigarette Taxes (0.5) (9.3) Human Services Charges Other Charge for Services Other Local Revenues Commonwealth - Maintenance of Roads Commonwealth - Human Services Reimb * Commonwealth - Other State Revenues * Federal Revenues (5.1) (33.3) * Transfers from Other Funds $ 1,158.2 $ % $ % % $ % * GF portion only Notes: FY2019 % is based on Budget, while FY2018 is based on Actual. GENERAL FUND EXPENDITURES General Fund expenditures are $677 million, or 55.1% of budget, compared to 55.4% for FY 2018 and 54.0% for FY Personnel expenses, which represent 28% of the total General Fund budget are $191.2 million, which are $5.2 million or 2.8% more than the prior year. Total expenditures are summarized in the following table: Comparison of FY2019 and FY2018 General Fund Expenditures As of December 31, 2018 (in millions) FY 2019 YTD FY 2018 YTD VARIANCES Budget Actual Variance Actual Actual % Salaries $ $ $ $ $ % Fringe Benefits Operating Expenses Capital Outlay (0.5) (5.6) Leases (0.3) (9.8) Debt Service Transfers to Schools Transfers to Schools Reserve Fund Transfers to Capital Projects (0.6) (1.0) Transfers to Sheriff Department Transfers to Storm Water Capital Projects Transfers to Other Areas (2.9) (36.0) Reserve for Contingencies $ 1,227.8 $ $ $ $ %

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15 SECTION A SUMMARY FINANCIAL STATEMENTS FOR MAJOR FUNDS

16 CITY OF VIRGINIA BEACH, VIRGINIA GENERAL FUND SUMMARY OF REVENUES AND EXPENDITURES COMPARED TO BUDGET THROUGH DECEMBER 31, 2018 (In Millions) FY 2019 Year-To-Date FY 2018 Annual Percent Percent Budget Actual Unrealized Realized Realized Revenues by Source: (Section A, Page 2) From Local Sources: Real Estate Taxes $ $ $ % 51.9% Personal Property Taxes % 18.7% Other Local Taxes % 35.9% Charges for Services (Section A, Page 3) % 41.0% Other Local Revenues (Section A, Page 4) % 39.2% From the Commonwealth (Section A, Page 5) % 35.7% From the Federal Government % 66.3% Transfers for Operational Support % 26.3% Total Revenues $ 1,158.2 $ $ % 42.3% FY 2019 Year-To-Date FY 2018 Annual Unencum- Percent Percent Budget Actual bered Obligated Obligated Expenditures/Encumbrances: (Section A, Page 6-7) Departmental Totals $ $ $ % 55.2% Debt Service % 40.0% Transfers to School Division % 51.8% Transfers to School Reserve Fund % 14.3% Transfers to General Government Capital Projects % 100.0% Transfers to Sheriff % 49.7% Transfers to Storm Water Capital Projects % 100.0% Transfers to Other Funds % 48.6% Reserve for Contingencies Total Expenditures/Encumbrances $ 1,227.8 $ $ % 55.4% Less Amounts Appropriated From Fund Balance: Encumbrances & Approved Carryovers at 6/30/ Funding for Various Capital Projects 21.6 School Reversion and True Up 24.4 School CIP/Operations 10.2 Total Appropriations From Fund Balance $ 69.6 Adjusted Expenditures/Encumbrances $ 1,

17 CITY OF VIRGINIA BEACH, VIRGINIA GENERAL FUND COMPARISON OF REVENUES THROUGH DECEMBER 31 OF FISCAL YEARS 2019, 2018 AND 2017 Revenues: Local Revenue Actual Actual Actual Fiscal Annual Through Through As Percent (b) Year Budget Dec 31 Jun 30 of Total (a) Trend Real Estate Taxes (RE) 2019 $ 537,918,638 $ 278,441,667 $ % A Includes Tax Relief for the ,861, ,714, ,598, Elderly and Disabled Veterans (c) ,990, ,987, ,031, Personal Property Taxes (PP) ,316,488 15,482, U (See Section A, Page 4 for ,520,511 20,255, ,123, State PPTRA portion of revenue) ,566,788 18,761, ,075, General Sales Taxes ,621,323 28,347, A ,135,023 27,921,204 63,511, ,160,061 27,391,401 62,614, Utility Taxes ,580,890 13,126, F ,757,106 10,874,003 25,866, ,472,704 10,728,342 25,341, Telecommunications Taxes ,756,947 9,440, F ,861,320 8,172,688 23,965, ,702,425 8,281,355 24,651, Business Licenses ,669,429 1,285, U ,786,036 1,485,321 48,676, ,389,703 1,518,943 47,009, Hotel Room Taxes ,699,337 5,354, (d) U ,215,382 5,364,036 7,228, (d) ,714,871 5,158,623 6,976, (d) Restaurant Meal Taxes ,933,289 20,793, (d) U ,841,222 22,168,907 42,213, (d) ,342,843 21,922,144 41,547, (d) Total Charges for Services ,426,411 21,212, F See Section A, Page 3 for details ,817,507 18,512,769 45,119, ,305,365 21,983,838 45,777, Total Other Local Revenues ,964,707 20,603, A See Section A, Page 4 for details ,442,151 20,838,221 53,112, ,472,389 20,707,719 49,783, From the Commonwealth ,213,640 60,219, F See Section A, Page 5 for details ,422,048 56,608, ,589, ,699,412 54,275, ,066, From the Federal Government ,681,617 10,221, A ,706,624 15,305,287 23,083, ,776,298 8,799,940 22,105, Transfers ,414,565 6,699, A ,678,534 6,147,226 23,375, ,583,152 6,538,713 24,410, TOTAL - REVENUES 2019 $ 1,158,197,281 $ 491,229,178 $ A ,140,044, ,367,792 1,146,465, ,076,176, ,055,869 1,089,391, (a) (b) (c) (d) Actual as a Percent to Total - FY 2017 and FY 2018 are based on acutal, while FY 2019 is based on Budget. Trend - F = Favorable. U = Unfavorable. A = Acceptable. Tax Relief for Ederly/ Disabled - FY 2019 is $15.7 million, FY 2018 is $14.3 million and FY 2017 is $13.8 million. Hotel Room and Resturant Meal Taxes reflects GF portion, see footnotes for city totals. 2

18 CITY OF VIRGINIA BEACH, VIRGINIA GENERAL FUND COMPARISON OF CHARGES FOR SERVICES THROUGH DECEMBER 31 OF FISCAL YEARS 2019, 2018 AND 2017 Actual Actual Actual Fiscal Annual Through Through As Percent (b) Year Budget Dec 31 Jun 30 of Total (a) Trend Convention Center 2019 $ 999,001 $ 405,111 $ % F ,027, ,303 1,021, , ,123 1,135, DMV , , A Specialized license plates & , , , STOP Reimbursements ,500 72,722 1,117, DVP Street Lights ,000 82, A , , , ,000 67, , Human Services ,409,794 12,671, F (includes Medicaid and other ,526,102 10,005,262 26,427, client billings) ,521,109 13,257,001 25,728, Libraries , , A , , , , , , Museums/Virginia Aquarium ,052,038 5,253, A ,967,997 4,990,379 10,796, ,903,236 4,969,386 10,827, City Treasurer Charges ,143, , A ,080, ,675 1,250, ,092, ,358 1,112, Police -False Fire Alarms Fees , , U , , , , , , Sale of Salvage Materials , , F , , , , , , Other Charges for Services ,127,365 1,600, U ,862,898 1,921,902 3,698, ,811,930 1,990,985 4,260, TOTAL - CHARGES 2019 $ 46,426,411 $ 21,212,508 $ F FOR SERVICES ,817,507 18,512,769 45,119, To Section A, Page ,305,365 21,983,838 45,777, (a) (b) Actual as a Percent to Total - FY 2017 and FY 2018 are based on acutal, while FY 2019 is based on Budget. Trend - F = Favorable. U = Unfavorable. A = Acceptable. 3

19 CITY OF VIRGINIA BEACH, VIRGINIA GENERAL FUND COMPARISON OF OTHER LOCAL REVENUES THROUGH DECEMBER 31 OF FISCAL YEARS 2019, 2018 AND 2017 Actual Actual Actual Fiscal Annual Through Through As Percent (b) Year Budget Dec 31 Jun 30 of Total (a) Trend Cigarette Taxes 2019 $ 10,835,826 $ 4,913,503 $ % U ,113,112 5,426,250 10,645, ,063,425 5,706,911 11,112, Use of Money ,819,777 1,248, F ,317,984 1,007,253 5,268, , ,202 2,374, Use of Property ,972,833 1,833, A ,844,474 1,874,121 4,728, ,892,991 2,076,017 5,555, Automobile Licenses ,757,313 4,835, F ,807,765 4,565,046 10,961, ,336,210 3,857,941 9,324, Fines and Forfeitures ,546,186 2,016, U ,800,656 2,150,659 5,039, ,538,394 2,498,663 4,978, City Tax on Deeds ,910,904 3,276, U ,617,589 3,307,742 7,475, ,820,299 3,436,799 7,755, Permits, Privilege Fees and ,633,663 2,435, U Licenses ,535,829 2,467,346 5,433, ,577,542 2,506,592 5,477, Bank Net Capital Taxes and ,488,205 45, A City Tax on Wills ,404,742 39,804 3,559, ,679,034 37,594 3,203, TOTAL - OTHER 2019 $ 51,964,707 $ 20,603,978 $ A LOCAL REVENUE ,442,151 20,838,221 53,112, To Section A, Page ,472,389 20,707,719 49,783, (a) (b) Actual as a Percent to Total - FY 2017 and FY 2018 are based on acutal, while FY 2019 is based on Budget. Trend - F = Favorable. U = Unfavorable. A = Acceptable. 4

20 CITY OF VIRGINIA BEACH, VIRGINIA GENERAL FUND COMPARISON OF REVENUES FROM THE COMMONWEALTH THROUGH DECEMBER 31 OF FISCAL YEARS 2019, 2018 AND 2017 Actual Actual Actual Fiscal Annual Through Through As Percent (b) Year Budget Dec 31 Jun 30 of Total (a) Trend Reimbursements: Commonwealth's Attorney 2019 $ 2,807,324 $ 1,148,004 $ % A ,613,174 1,140,017 2,768, ,639,470 1,084,391 2,642, State Aid Law Enforcement ,706,066 5,853, A ,282,311 5,644,198 11,288, ,282,311 5,644,198 11,288, Other Constitutional Officers ,382,546 1,386, A and Appointed Officials ,344,815 1,363,185 3,432, ,333,542 1,340,783 3,344, Maintenance of Roads ,529,337 25,627, F ,547,749 24,276,374 48,552, ,901,216 23,951,108 48,869, Recordation Fee ,993, , A ,993, ,233 2,394, ,955, ,882 1,993, Public Assistance Grants ,655,816 6,353, A ,000,614 5,952,267 14,385, ,052,594 4,652,306 14,075, Mental Health/MR/SA ,645,256 9,098, F ,167,973 8,638,903 17,366, ,232,269 8,155,263 17,509, Personal Property Tax Relief Act ,412,868 6,526, A ,412,868 6,526,559 53,412, ,412,868 6,526,559 53,412, Other ,080,698 3,705, F ,059,009 2,116,344 4,986, ,889,781 1,971,887 3,929, TOTAL - FROM THE 2019 $ 159,213,640 $ 60,219,450 $ F COMMONWEALTH ,422,048 56,608, ,589, To Section A, Page ,699,412 54,275, ,066, (a) (b) Actual as a Percent to Total - FY 2017 and FY 2018 are based on acutal, while FY 2019 is based on Budget. Trend - F = Favorable. U = Unfavorable. A = Acceptable. 5

21 CITY OF VIRGINIA BEACH, VIRGINIA GENERAL FUND SUMMARY OF EXPENDITURES COMPARED TO BUDGET THROUGH DECEMBER 31, 2018 Expenditures/ Annual Encumbrances Unencumbered Appropriation Units Budget To Date Balance FY 2019 FY 2018 FY 2017 Percent Percent Percent Expended/ Expended/ Expended/ Encumbered * Encumbered * Encumbered * 6 AGRICULTURE $ 893,401 $ 377,013 $ 516, % 44.2% 43.1% AUDIT SERVICES 955, , , % 50.2% 49.2% BENEFITS ADMINISTRATION 735, , % 0.0% 0.0% BOARD OF EQUALIZATION 2,980 1,539 1, % 89.1% 68.3% BUDGET & MANAGEMENT SERVICES 1,441, , , % 51.0% 55.1% CIRCUIT COURT 1,157, , , % 51.1% 50.6% CITY ATTORNEY 4,513,926 2,314,724 2,199, % 56.2% 55.2% CITY CLERK 646, , , % 50.7% 45.8% CITY MANAGER 2,334,416 1,060,126 1,274, % 48.8% 46.3% CITY REAL ESTATE ASSESSOR 3,380,962 1,597,491 1,783, % 49.1% 47.6% CITY TREASURER 6,404,681 3,017,362 3,387, % 51.8% 51.9% CLERK OF THE CIRCUIT COURT 3,678,299 1,820,050 1,858, % 48.5% 49.0% COMMISSIONER OF THE REVENUE 4,797,348 2,351,583 2,445, % 51.4% 50.1% COMMONWEALTH'S ATTORNEY 9,082,614 4,278,548 4,804, % 49.0% 48.6% COMMUNICATIONS OFFICE 1,817, , , % 49.5% 50.8% COMMUNITY ORGANIZATION GRANTS-ON-GOING 502, , , % 55.2% 60.1% COMPUTER REPLACEMENT PROGRAM 3,456,435 2,410,319 1,046, % 55.7% 35.6% CONVENTION AND VISITOR DEVELOPMENT 10,772,067 5,156,956 5,615, % 50.3% 48.2% CULTURAL AFFAIRS 4,286,139 3,539, , % 86.1% 83.4% ECONOMIC DEVELOPMENT 6,174,823 3,414,267 2,760, % 44.4% 41.5% EMERGENCY COMMUNICATIONS AND CITIZEN SERVICES 6,254,572 2,293,385 3,961, % 51.5% 50.9% EMERGENCY MANAGEMENT 11,513,185 4,863,468 6,649, % 50.6% - EMERGENCY MEDICAL SERVICES 633, , , % 63.0% 61.9% EMPLOYEE SPECIAL BENEFITS 12,259,752 7,520,691 4,739, % 62.4% 63.6% FINANCE 7,751,131 4,356,341 3,394, % 48.7% 49.6% FIRE 55,208,558 31,249,918 23,958, % 56.3% 55.3% GENERAL DISTRICT COURT 491, , , % 37.1% 50.3% GENERAL REGISTRAR 1,740,828 1,079, , % 54.3% 55.6% HEALTH 3,611,231 2,349,670 1,261, % 63.1% 47.2% HOUSING AND NEIGHBORHOOD PRESERVATION 5,341,831 2,002,839 3,338, % 47.3% 50.8% HUMAN RESOURCES 5,024,754 2,350,902 2,673, % 49.9% 50.8% HUMAN SERVICES 121,945,386 55,614,914 66,330, % 48.7% 48.9% INDEPENDENT FINANCIAL SERVICES 168, ,000 3, % 100.0% 98.9% INFORMATION TECHNOLOGY 28,523,886 16,258,354 12,265, % 58.6% 60.6% JUVENILE AND DOMESTIC RELATIONS DISTRICT COURT 186,496 50, , % 43.3% 43.3% JUVENILE PROBATION 1,494, , , % 44.9% 56.9% LEASES 2,155,539 1,060,773 1,094, % 65.9% 65.9% LIBRARY 18,643,903 9,604,430 9,039, % 55.4% 53.9% MAGISTRATES 70,211 7,790 62, % 5.3% 14.1% MUNICIPAL COUNCIL 583, , , % 54.5% 57.3% MUSEUMS AND CULTURAL ARTS 13,382,600 5,700,742 7,681, % 47.5% 51.5% OFFICE OF VOLUNTEER RESOURCES 307, , , % 46.6% 46.5%

22 CITY OF VIRGINIA BEACH, VIRGINIA GENERAL FUND SUMMARY OF EXPENDITURES COMPARED TO BUDGET THROUGH DECEMBER 31, 2018 Expenditures/ Annual Encumbrances Unencumbered Appropriation Units Budget To Date Balance FY 2019 FY 2018 FY 2017 Percent Percent Percent Expended/ Expended/ Expended/ Encumbered * Encumbered * Encumbered * PARKS AND RECREATION LANDSCAPE SERVICES $ 15,289,048 $ 8,696,815 $ 6,592, % 56.9% 60.6% PLANNING AND COMMUNITY DEVELOPMENT 18,949,472 11,850,099 7,099, % 60.6% 49.3% POLICE 104,092,325 53,871,781 50,220, % 54.5% 54.4% PUBLIC WORKS 74,386,128 39,791,651 34,594, % 54.8% 59.8% REGIONAL PARTICIPATION 3,043,228 1,347,945 1,695, % 36.8% 54.2% STRATEGIC TRANSPARENCY INNOVATION RESILIENCY 698, , , % 50.3% - TAX RELIEF FOR THE ELDERLY 16,976,794 15,703,301 1,273, % 90.5% 93.9% VEHICLE REPLACEMENTS 5,548,567 4,951, , % 100.0% 99.2% TOTAL DEPARTMENTAL EXPENDITURES $ 603,313,931 $ 319,139,906 $ 284,174, % 55.2% 55.8% DEBT SERVICE $ 52,883,834 $ 22,944,873 $ 29,938, % 40.0% 37.6% 7 TRANSFERS TO OTHER FUNDS: SCHOOL OPERATING FUNDS $ 450,367,146 $ 243,619,033 $ 206,748, % 51.9% 51.7% SCHOOL SPECIAL RESERVE FUND 6,800,000 1,942,858 4,857, % 14.3% 28.6% COMMUNITY DEVELOPMENT FUND 684, , % 100.0% 100.0% GENERAL GOVERNMENT CAPITAL PROJECT FUND 60,344,710 60,344, % 100.0% 100.0% SCHOOL GENERAL REVENUE CAPITAL PROJECTS 13,371,000 4,753,013 8,617, % 45.0% 50.0% GRANTS FUNDS 874, ,057 29, % 79.1% 100.0% SHERIFF'S SPECIAL REVENUE FUND 24,812,881 13,511,451 11,301, % 49.7% 50.0% PARKS & RECREATION SPECIAL REVENUE FUND 6,480,791 3,524,600 2,956, % 49.8% 50.0% FEDERAL SECTION 8 PROGRAM 143,726 78,396 65, % 0.0% 53.1% PUBLIC SAFETY CITY MARINA SLIP 20,965 11,436 9, % 50.0% 50.0% AGRICULTURAL RESERVE PROGRAM 10,000 10, % 0.0% - STORM WATER CAPITAL PROJECT FUND 5,586,510 5,586, % 100.0% - TOTAL TRANSFERS TO OTHER FUNDS $ 569,496,258 $ 334,910,582 $ 234,585, % 57.1% 53.6% RESERVE FOR CONTINGENCIES (BALANCE) 2,132,299-2,132, % 0.0% 0.0% TOTAL EXPENDITURES AND ENCUMBRANCES $ 1,227,826,322 $ 676,995,361 $ 550,830, % 55.4% 54.0% * FY 2017 and FY 2018 Percent Expended/Encumbered is based on Actual, while FY 2019 is based on Budget. * Capital Projects for prior years have been adjusted from actuals to total appropriation for variance comparision reasons.

23 CITY OF VIRGINIA BEACH, VIRGINIA SCHOOL OPERATING FUND COMPARISON OF REVENUES, EXPENDITURES AND ENCUMBRANCES THROUGH DECEMBER 31 OF FISCAL YEARS 2019, 2018, AND 2017 (a) Percent Actual Actual Actual of Fiscal Annual Through Through as Percent (b) Budget Year Budget Dec 31 Jun 30 of Total Trend REVENUES: From the Commonwealth: State Share of Sales Tax 9.3 % 2019 $ 75,344,490 $ 31,784,790 $ % A ,718,340 31,138,936 74,264, ,741,805 30,693,293 73,084, Basic School Aid ,992,491 89,496, A ,972,380 88,630, ,412, ,303,720 88,819, ,909, Other Commonwealth ,732,587 32,929, A ,471,101 33,867,648 94,797, ,120,105 30,889,283 81,374, Federal Revenue ,200,000 9,056, A ,200,000 3,566,188 12,614, ,476,532 1,672,076 13,464, Other Revenue Sources ,782,803 1,479, A ,782,803 1,633,043 3,404, ,782,803 1,461,917 2,759, Subtotals $ 363,052,371 $ 164,746,849 $ A ,144, ,836, ,494, ,424, ,535, ,592, General Fund ,411, ,610, A ,309, ,553, ,427, ,606, ,532, ,014, School Reserve Fund ,800,000 3,709, A ,803,897 4,401,948 8,803, ,000,000 2,500,000 10,000, TOTAL - REVENUES % 2019 $ 809,263,724 $ 408,066,658 $ % A ,258, ,791, ,726, ,031, ,568, ,606, EXPENDITURES, ENCUMBRANCES AND TRANSFERS: Instruction 2019 $ 573,191,319 $ 246,654,351 $ % Administration, Attendance & Health ,894,510 11,566, Pupil Transportation ,768,631 21,322, Operations and Maintenance ,777,511 45,792, Technology ,718,879 22,601, Debt Service ,951,320 18,481, TOTAL - EXPENDITURES, ENCUMBRANCES 2019 $ 816,302,170 $ 366,418,753 $ % A AND TRANSFERS ,003, ,784, ,748, ,361, ,798, ,218, TOTAL APPROPRIATIONS 2019 $ 816,302,170 Less Amounts Appropriated from 06/30/18 Fund Balance: Encumbrances at 06/30/18 brought forward 7,038,446 TOTAL APPROPRIATIONS FROM CURRENT REVENUES 2019 $ 809,263,724 (a) Actual as a Percent of Total - FY 2017 and FY 2018 are based on Actual, while FY 2019 is based on Budget. (b) Trend - F = Favorable. U = Unfavorable. A = Acceptable. 8

24 REVENUES: CITY OF VIRGINIA BEACH, VIRGINIA WATER AND SEWER ENTERPRISE FUND COMPARISON OF REVENUES, EXPENDITURES AND ENCUMBRANCES - BUDGETARY BASIS THROUGH DECEMBER 31 OF FISCAL YEARS 2019, 2018, AND 2017 (a) Percent Actual Actual Actual of Fiscal Annual Through Through as Percent (b) Budget Year Budget Dec 31 Jun 30 of Total Trend Use of Money and Property 0.6 % 2019 $ 742,891 $ 286,116 $ % A , ,655 2,743, , ,915 1,486, Sale of Water ,245,249 20,567, U ,178,138 21,205,049 45,485, ,177,100 21,061,628 46,245, Sewer Charges ,912,576 29,952, U ,347,377 29,992,492 65,972, ,550,000 28,439,166 66,250, Other Charges for Services ,616,819 5,703, F ,275,385 5,383,834 10,573, ,476,478 5,140,499 10,471, Miscellaneous Revenue ,997,388 2,057, U and Non-Revenue ,590,061 3,055,483 5,958,004 (c) 51.3 Receipts ,148,808 2,370,024 6,710,247 (c) 35.3 TOTAL - REVENUES % 2019 $ 131,514,923 $ 58,567,141 $ % U ,926,109 60,222, ,733, ,753,986 57,464, ,163, EXPENDITURES AND ENCUMBRANCES Expenditures and Encumbrances 36.0 % 2019 $ 63,671,180 $ 30,258,170 $ % A (excluding interfund transfers, ,231,325 30,111,814 54,120, debt service and water purchases) ,416,575 27,565,165 48,425, Water Services Contract ,130,000 32,987, U ,789,880 10,398,999 24,811, ,294,000 10,370,287 24,721, Debt Service ,397,596 10,710, F ,795,921 10,722,512 17,826, ,810,833 11,075,631 16,847, Interfund Transfers for ,348,545 4,511, U Indirect Costs and ,502,320 4,076,368 9,690, General Fund Support ,546,866 3,998,162 9,448, Interfund Transfers for ,740,000 32,740, F Capital Projects ,770,000 35,770,000 35,770, ,215,361 32,535,361 35,215, TOTAL - EXPENDITURES % 2019 $ 175,287,321 $ 111,207,792 $ % A AND ENCUMBRANCES ,089,446 91,079, ,218, ,283,635 85,544, ,657, TOTAL APPROPRIATIONS 2019 $ 175,287,321 Less Amounts Appropriated from 06/30/18 Fund Balance: Encumbrances at 06/30/18 brought forward 3,532,398 Norfolk Water Services Contract 20,000,000 Water & Sewer CIP 20,240,000 43,772,398 TOTAL APPROPRIATIONS FROM CURRENT REVENUES 2019 $ 131,514,923 (a) Actual as a Percent of Total - FY 2017 and FY 2018 are based on Actual, while FY 2019 is based on Budget. (b) Trend - F = Favorable. U = Unfavorable. A = Acceptable. (c) Excludes Norfolk water contract true-up in FY18 of $1.2M, as well as FY18 developer contributions totaling $869K 9

25 REVENUES: CITY OF VIRGINIA BEACH, VIRGINIA STORM WATER UTILITY ENTERPRISE FUND COMPARISON OF REVENUES, EXPENDITURES AND ENCUMBRANCES - BUDGETARY BASIS THROUGH DECEMBER 31 OF FISCAL YEARS 2019, 2018, AND 2017 Percent Actual Actual Actual of Fiscal Annual Through Through as Percent (b) Budget Year Budget Dec 31 Jun 30 of Total Trend (a) Use of Money and Property 0.2 % 2019 $ 85,000 $ 330,947 $ % F , , , , , , Charges for Services (c) ,959,666 19,204, A ,509,147 19,191,045 41,862, ,417,213 17,279,504 40,046, Miscellaneous Revenue , , A and Non-Revenue , , , Receipts ,597 1, , Transfers From Other Funds ,873 16, A ,873 14,936 29, ,873 14,937 29, TOTAL - REVENUES % 2019 $ 42,402,136 $ 19,704,580 $ % A ,951,617 19,545,899 42,643, ,859,683 17,451,874 40,838, EXPENDITURES AND ENCUMBRANCES Expenditures and Encumbrances 66.8 % 2019 $ 30,778,679 $ 17,035,324 $ % A (excluding interfund transfers ,353,609 16,811,557 27,243, and debt service) ,184,238 14,652,650 28,418, Debt Service ,955,648 2,610, A ,543,563 2,578, , ,397,182 2,423,603 3,401, Interfund Transfers for ,311, , A Indirect Cost and ,268, ,767 3,525, General Fund Support ,017, ,501 3,017, Interfund Transfers for ,000,000 8,000, A Capital Projects ,500,000 7,500,000 7,500, ,090,000 9,090,000 9,090, TOTAL - EXPENDITURES % 2019 $ 46,045,822 $ 28,395,572 $ % A AND ENCUMBRANCES ,665,500 27,610,211 39,071, ,688,493 26,648,754 43,926, TOTAL APPROPRIATIONS 2019 $ 46,045,822 Less Amounts Appropriated from 06/30/18 Fund Balance: Encumbrances at 06/30/18 brought forward 3,643,686 TOTAL APPROPRIATIONS FROM CURRENT REVENUES 2019 $ 42,402,136 (a) Actual as a Percent of Total - FY 2017 and FY 2018 are based on Actual, while FY 2019 is based on Budget. (b) Trend - F = Favorable. U = Unfavorable. A = Acceptable. (c) Equivalent Residential Unit Fee increased in FY 2018 to.458 cents per day, compared to.433 cents per day in FY 2017 and FY

26 REVENUES: CITY OF VIRGINIA BEACH, VIRGINIA WASTE MANAGEMENT ENTERPRISE FUND COMPARISON OF REVENUES, EXPENDITURES AND ENCUMBRANCES - BUDGETARY BASIS THROUGH DECEMBER 31 OF FISCAL YEARS 2019, 2018, AND 2017 (a) Percent Actual Actual Actual of Fiscal Annual Through Through as Percent (b) Budget Year Budget Dec 31 Jun 30 of Total Trend Use of Money and Property 0.4 % 2019 $ 131,500 $ 122,683 $ % F ,000 84, , ,000 82, , Charges for Services ,122,980 15,533, F ,816,980 15,493,432 34,044, ,749,380 14,697,830 34,200, Miscellaneous Revenue , , U and Non-Revenue Receipts , ,337 1,118, , ,647 1,017, Transfers From Other Funds ,476, , A ,712,041 2,856,020 5,712, ,062,505 4,999,364 10,062, From Commonwealth ,000 45, F ,000 42,871 42, ,000 43,950 43, TOTAL - REVENUES % 2019 $ 36,657,766 $ 16,609,042 $ % U ,511,307 18,654,846 41,123, ,893,885 20,622,741 45,499, EXPENDITURES AND ENCUMBRANCES Program Support 4.3 % 2019 $ 1,603,058 $ 521,465 $ % F ,331, ,778 1,127, ,079, , , Waste Disposal (c) ,832,396 5,257, F ,839,232 8,261,236 15,022, ,139,755 9,656,745 19,503, Waste Collection ,044,980 9,749, A ,161,504 9,557,628 13,780, ,774,328 9,973,402 13,728, Yard Debris / Hazardous Waste ,165,107 1,981, U ,711, ,815 1,541, ,829, ,675 1,635, Recycling ,500,676 4,199, U ,910,734 1,817,826 4,629, ,232,785 2,438,011 4,999, Transfers To Other Funds ,986,789 1,629, U ,052,247 1,495,742 2,581, ,818,909 1,409,454 2,818, TOTAL - EXPENDITURES % 2019 $ 37,133,006 $ 23,339,029 $ % U AND ENCUMBRANCES ,006,555 22,550,025 38,683, ,875,480 24,822,724 43,583, TOTAL APPROPRIATIONS 2019 $ 37,133,006 Less Amounts Appropriated from 06/30/18 Fund Balance: Encumbrances at 06/30/18 brought forward 475,240 TOTAL APPROPRIATIONS FROM CURRENT REVENUES 2019 $ 36,657,766 (a) Actual as a Percent of Total - FY 2017 and FY 2018 are based on Actual, while FY 2019 is based on Budget. (b) Trend - F = Favorable. U = Unfavorable. A = Acceptable. (c) Waste disposal expenditures reflects a SPSA tipping fee of $62 per ton in FY2019, $65 per ton from January 1, 2018 to June 30, 2018 and $125 per ton prior to January 1,

27 CITY OF VIRGINIA BEACH, VIRGINIA SHERIFF'S DEPARTMENT SPECIAL REVENUE FUND STATEMENT OF REVENUES AND EXPENDITURES FOR THE PERIOD ENDING DECEMBER 31, 2018 Annual Budget YTD Difference REVENUES: Charges for Services: Court Security Fee $ 500,000 $ 36,290 $ 184,342 $ (315,658) Criminal Justice Academy 295,000 18,655 94,069 (200,931) Inmate Fees 1,387,000 91, ,291 (889,709) Commissary 1,150, , ,065 (413,935) Workforce Services 775, , ,916 (26,084) Other 677,608 50, ,571 (347,037) Commonwealth: Sheriff Reimbursement 15,344,683 1,298,316 6,225,564 (9,119,119) Jail Reimbursement 3,200,000-1,519,315 (1,680,685) Correctional Center 500,000 7,329 21,250 (478,750) Federal - Jail Reimbursement 140,000 5,777 18,560 (121,440) Miscellaneous 13,000 2,288 8,185 (4,815) Transfer from General Fund 24,812,881 2,260,286 13,511,451 (11,301,430) TOTAL - REVENUES $ 48,795,172 $ 4,686,366 $ 23,895,579 $ (24,899,593) EXPENDITURES: Salaries $ 26,809,087 $ 2,143,973 $ 13,305,448 $ 13,503,639 Overtime 2,210, ,423 1,595, ,530 Fringe Benefits 9,031, ,751 4,640,745 4,390,934 Contractual Services 7,571, ,765 7,443, ,272 Internal Service Charges 1,677,594 4,193 1,608,401 69,193 Other Charges and Supplies 1,796, , ,460 1,183,882 TOTAL - EXPENDITURES AND ENCUMBRANCES $ 49,097,038 $ 3,982,173 $ 29,205,588 * $ 19,891,450 EXCESS OF REVENUES OVER (UNDER) EXPENDITURES AND ENCUMBRANCES $ (301,866) $ 704,193 $ (5,310,009) AMOUNT APPROPRIATED FROM FUND BALANCE $ (301,866) FUND BALANCE - JULY 1, ,409,272 FUND BALANCE - ENDING $ 1,107,406 Actual Revenues, Commitments & Expenditures FY 2019 Actual Revenues, Commitments & Expenditures *Includes encumbrances of $4,618,663 as of December 31,

28 CITY OF VIRGINIA BEACH, VIRGINIA TOURISM INVESTMENT PROGRAM SPECIAL REVENUE FUND STATEMENT OF REVENUES AND EXPENDITURES FOR THE PERIOD ENDING DECEMBER 31, 2018 REVENUES: Annual Budget Current Month Actual Revenues & Expenditures FY 2019 YTD Actual Revenues, Commitments & Expenditures YTD Difference Hotel Room Tax (5% of total 8% and $1/night) $ 18,950,087 $ 235,677 $ 11,973,705 $ (6,976,382) Restaurant Meal Tax (1.06% of total 5.5%) 13,562, ,437 6,274,460 (7,288,479) Amusement Tax 6,872, ,160 4,048,648 (2,823,739) Cigarette Tax (5 cents of 75 cents/pack) 773,988 49, ,596 (371,392) Resort Area Franchise/Permits 390,154 8, ,774 (240,380) Parking Tickets & Penalties 458,900 36, ,680 (73,220) Interest on Bank Deposits 5,000 27,295 90,752 85,752 Use of Property 843, ,500 (632,672) TOTAL - REVENUES $ 41,856,627 $ 840,405 $ 23,536,115 $ (18,320,512) EXPENDITURES: Debt Service $ 22,365,740 $ 555,411 $ 18,198,895 $ 4,166,845 Beach Operations 2,252,881 69,529 1,195,875 1,057,006 Building Maintenance 592,958 20, , ,909 Special Events 5,045,378 86,254 4,253, ,509 Recycling 102,000-38,704 63,296 Cultural Affairs 50,500-50,500 - Transit & Trolleys 1,200, ,200,548 P&R-Resort Landscape Maintenance 747,775 44, , ,254 Transfer to Storm Water Utility 14,873 1,352 8,112 6,761 Transfer to Waste Management 1,476, , , ,909 Transfer to General Government 500, ,000 - Contingencies 7,599, ,599,202 TOTAL - EXPENDITURES AND ENCUMBRANCES $ 41,947,855 $ 912,645 $ 25,632,616 * $ 16,315,239 EXCESS OF REVENUES OVER (UNDER) EXPENDITURES AND ENCUMBRANCES $ (91,228) $ (72,240) $ (2,096,501) AMOUNT APPROPRIATED FROM FUND BALANCE $ (91,228) FUND BALANCE - JULY 1, ,362,357 FUND BALANCE - ENDING $ 20,271,129 *Includes encumbrances of $847,491 as of December 31,

29 CITY OF VIRGINIA BEACH, VIRGINIA TOURISM ADVERTISING PROGRAM SPECIAL REVENUE FUND STATEMENT OF REVENUES AND EXPENDITURES FOR THE PERIOD ENDING DECEMBER 31, 2018 Annual Budget Current Month Actual Revenues, Commitments & Expenditures FY 2019 YTD Actual Revenues, Commitments & Expenditures YTD Difference REVENUES: Hotel Room Taxes (1% of total 8% and $1/night) $ 6,233,501 $ 94,543 $ 3,919,012 $ 2,314,489 Restaurant Meal Taxes (0.5% of total 5.5%) 6,397, ,961 2,959,651 3,437,962 Use of Money and Property 67,000 4,419 41,386 25,614 Charges for Services 53,000 3, ,628 44,372 Miscellaneous 10, ,000 TOTAL - REVENUES $ 12,761,114 $ 273,080 $ 6,928,677 $ 5,832,437 EXPENDITURES: Visitor Information Center $ 664,458 $ 40,893 $ 276,337 $ 388,121 Marketing, Public Relations & Communications 9,997, ,917 4,352,925 5,644,481 Sports Marketing & Sales 1,193,033 94, , ,117 Tourism Marketing & Sales 464,218 33, , ,151 Administration 152,187-9, ,912 Convention Center 709,904 91, , ,619 Transfer to General Fund (Direct Costs) 56,838 5,167 31,002 25,836 TOTAL - EXPENDITURES AND ENCUMBRANCES $ 13,238,044 $ 1,017,533 $ 5,412,807 * $ 7,825,237 EXCESS OF REVENUES OVER (UNDER) EXPENDITURES AND ENCUMBRANCES $ (476,930) $ (744,453) $ 1,515,870 AMOUNT APPROPRIATED FROM FUND BALANCE $ (476,930) FUND BALANCE - JULY 1, ,071,934 FUND BALANCE - ENDING $ 595,004 *Includes encumbrances of $356,282 as of December 31,

30 FOOTNOTES December 31, 2018 The comparative statements summarize the financial information for Fiscal Year 2019-to-date and comparative historical information for the prior two fiscal years. Comparative percentages within the schedules for Fiscal Year 2019 are based on actual year-to-date figures compared to budget, while prior year percentages are based on actual year-to-date figures compared to actual year end results. Each category is noted as being on a favorable, unfavorable, or acceptable trend as compared to prior years. GENERAL PROPERTY TAXES o o o Real Estate (RE): The first half Real Estate levy for the 2019 tax year due December 5, 2018, was recorded in August for $280,602,140, which was $8.2 million more than the first half billing for the 2018 tax year. The FY 2019 Second Half Real Estate Levy, due June 5, 2019, has also been recorded. Total Real Estate revenue posted-to-date for all funds is $301,664,171. It includes current year taxes, prior year delinquent tax collections and Tax Relief for the Elderly and Disabled. Senior & Disabled Tax Relief and Disabled Veterans Exemption: The Tax Relief for the Elderly and Disabled posted-to-date is $15.7 million, compared to $14.3 million at December 31, 2017 and $13.8 million at December 31, Personal Property (PP): Personal Property Tax is an annual tax due on June 5 th ; however properties acquired after June 5 th each year are billed on a monthly basis. The Personal Property supplemental billing posted through December 31, 2018, totals $12,864,854. The actual revenue to date of $15,482,504 represent current year collections, prior year delinquent tax collections and Public Service Personal Property payments. All Personal Property revenue is accounted for in the General Fund. TRUSTEE AND OTHER TAXES o o Business Licenses: Business License Tax is an annual tax due on March 1 st, based on prior year gross receipts or anticipated gross receipts for new businesses. This revenue source realized 104.0% and 101.3% of budgeted revenue in fiscal years 2018 and 2017, respectively. Actual Business License revenues posted as of December 31, 2018 totals $1.3 million (2.6% of budget), which is $200,294 less than the prior year. General Sales Tax: The general sales tax rate for Virginia is 5.3 percent with an additional 0.7 percent imposed in Northern Virginia and Hampton Roads (5 percent state tax and 1 percent local tax). This revenue source realized 97.5% and 99.1% of budgeted revenue in fiscal years 2018 and 2017, respectively. Actual General Sales Tax revenues for the current fiscal year of $28.3 million are ahead of FY 2018 collections by $426,375 or 1.5%. Revenues represent taxes collected through November. 15