CECIL COUNTY GOVERNMENT

Transcription

1 Office of the County Executive Department of Finance Tari Moore Winston L. Robinson, Director County Executive Alfred C. Wein, Jr. Front Desk & Payments Director of Administration Office: County Information Fax: CECIL COUNTY GOVERNMENT Department of Finance 200 Chesapeake Boulevard, Suite 1100, Elkton, MD From: Winston L. Robinson Craig W. Whiteford To: Tari Moore, County Executive Al Wein, Director of Administration Cecil County Council Members Date: November 25, 2015 Re: FY2016 First Quarter Fiscal Projections The Department of Finance is pleased to present the FY2016 First Quarter Fiscal Projection. This projection includes by necessity certain broad assumptions in addition to detailed reviews of various areas. As the fiscal year has just started, this First Quarter Projections assumes that revenues primarily will agree to the budget projection and expenditures will be made at or close to budgeted amounts. Where we have obtained new information or see a change in patterns, we have considered that information in our projection. The schedules have attached notes that indicate significant assumptions. A cautionary note that projections are just that and actual results will vary based on the economy and operational challenges. General Fund Comparison to Budget Overall, the first quarter projection finds the County s General Fund expecting to see a greater excess of Revenues over Expenditures than originally budgeted; the projection of $772,853 vs the revised budget of $1,373,109 is $600,256 to the better. Revenues projections reflect the uncertainty of the economy. Real and personal property taxes are expected to be $1,186,833 less than budgeted, reflecting the less conservative nature of the real property tax budget for FY Income tax estimates reflect the receipt of the September distribution, known as the adjusted final tax year distribution. The September adjusted final distribution reflects revenues attributable to tax year 2014 claimed on returns processed between July 1 and September 1, 2015, reconciled to prior distributions for tax year These revenues are now projected to be $200,000 better than budget. The projected net of all revenue streams is $1,269,026 less than budgeted. Withholding growth versus budgeted expectations will be monitored closely going forward, especially as the first reduction of the County s distribution for the Wynne case will occur in the 4 th quarter. Projected expenditures as usual are expected to approach but not equal the budget. A total of $1,869,282 less than budgeted is projected to be spent. The first quarter expenditure patterns have been impacted by increases in the costs for water and sewer billings, particularly felt in the Cecil County Detention Center, although within budget at this time. Reduced overall expenditures for Electricity and Gasoline have been realized in the 1 st quarter. The unfavorable budget variances in Youth Panel are as a result the expense hitting the general fund, whereas the budget was established under the Community Services budget. The Z:\2016 Projections\2016 Projection 1st Quarter \FY Q Projection Commentary docx

2 FY2016 First Quarter Fiscal Projection December 1, 2015, Page 2 expense will be reclassified shortly. A positive variance is also realized in Parks and Recreation as a budgeted expense for Open Space land acquisition is not likely to occur during the fiscal year. Negative variances exist in Law Enforcement and Emergency Services due to actual attrition falling short of budgeted attrition. Enterprise Funds The Landfill Fund is projecting $142,466 in lower operating revenues than budget and $264,196 in lower expenditures. If this continued, the fund would be $121,730 to the positive compared to budget. The Wastewater Fund is projected to have $701,954 more in user fee revenue vs budget and $133,680 less connection fee revenue than budget. Connection fees are currently projected to be 87% of original budget. Savings in expenses are anticipated approximating $238,759; again, these are tentative given the small period size. If the sales, expenditure, and connection projections hold up, the result will be $743,595 better than budgeted. General Fund Comparison to Prior Year Revenues compared to the same period last year are up $1,909,835. Our commitment to keep property tax rates the same as the last of the property tax downward assessments flow through tax bills resulted in the projection of increased property taxes of approximately $2,014,778, largely due to an increase in the payment in lieu program for Wildcat Point. Income taxes are expected to match budget for FY2016, but exceed the 1 st quarter results by 48%. Expenditures are down by $2,119,129 compared to FY2015, largely due to timing of distributions to the Public Schools and the College. Transfers to the Cecil County Public Schools will rise by $3,597,733, while transfers to Cecil College will rise by $512,156; both areas will be within budget but both include major expenditures that have been transferred to the County from the State (Teacher pension costs). Enterprise Funds Rate and volume increases in the Landfill Fund are expected to reduce a 2015 deficit of $4,977,179 current projections reduce the 2015 deficit by a modest $113,744 to $4,863,435. The Wastewater Fund is expected to see its operating gain decrease from $124,535 in 2015 to $11,560 projected for Revenues are increased slightly for the first quarter due to the timing of actual billings, and the bulk of the 1st quarter charges (billed in arrears) will be realized in the 2 nd quarter. The revenues will likely reflect the positive impact of the increase in rates versus FY 2015 Attached Schedules Attached are the following schedules: - FY2016 First Quarter Projection vs Revised Budget - General Fund - Landfill Fund - Wastewater Fund - FY2015 vs FY2016 Actual YTD & FY2016 Revised Budget vs. FY2016 Actual YTD - General Fund - Landfill Fund - Wastewater Fund - FY2016 First Quarter Projection Significant Assumptions - Income Tax Collections Schedule - Hollywood Casino Perryville Revenues Z:\2016 Projections\2016 Projection 1st Quarter \FY Q Projection Commentary docx

3 11/30/2015 General Fund Revenues & Expenditures by Major Department - Projection as of Three Months Through 09/30/15 See Note (a) as to limitations (Unaudited) Page 1 Current Year vs Prior Year Actual Current Year Budget (b) vs Projection FY 2015 FY 2016 (Unfavorable) FY 2016 FY 2016 (Unfavorable) Actual Actual thru Sep Budget Projected thru June 30 thru Sep thru Sep 2016 vs 2015 Fiscal Year thru June 30 Annual Budget Revenues Real Property Tax 90,944, ,557, , ,663, ,476, (1,186,832.70) Personal Property Tax 2,277, ,044, , ,883, ,883, Payment in Lieu of Tax 3,063, ,698, , ,705, ,698, (6,464.02) Discount (1,076,220.65) ,076, Interest & Penalties (120.11) 8, , , , (47,172.00) Income Tax 770, ,146, , ,900, ,100, , License & Permits 194, , , ,014, ,743, (271,576.00) Federal Grants - 77, , ,033, ,033, State Grants 152, , (1,438.53) 6,005, ,946, (58,710.00) Other Intergovernmental 4, , , ,241, ,321, , Charges for Services 265, , , ,581, ,790, , Recordation 1,101, ,217, , ,000, ,870, (129,166.80) Investment Earnings 14, , , , , (33,465.90) Contributions & Other 81, , , , , (24,434.13) Transfers 2,115, (2,115,000.00) 1,749, ,749, Total Revenues 99,907, ,817, ,909, ,089, ,820, (1,269,026.17) Expenditures COUNTY EXECUTIVE 35, , (3,590.63) 186, , , COUNTY COUNCIL 63, , (1,939.67) 404, , , ADMINISTRATOR 114, , , , , , HUMAN RESOURCES 475, , (31,694.19) 1,228, ,094, , CIRCUIT COURT 470, , , ,473, ,451, , STATE'S ATTORNEY'S OFFICE 412, , (26,016.03) 2,176, ,144, , YOUTH PANEL 15, , , , (49,066.08) ORPHAN'S COURT 6, , (848.19) 35, , , BOARD OF ELECTIONS 107, , , , , , FINANCE 700, , , ,773, ,716, , LIQUOR BOARD 37, , (3,261.94) 224, , , PLANNING & ZONING 194, , (7,813.36) 1,049, ,015, , MAINTENANCE 815, , (12,499.59) 3,945, ,759, , INFORMATION TECHNOLOGY LEGAL SERVICES 22, , (8,127.73) 176, , , LAW ENFORCEMENT 4,327, ,202, , ,296, ,516, (219,640.76) EMERGENCY SERVICES 4,199, ,342, (143,338.08) 13,680, ,747, (66,975.90) PERMITS & INSPECTIONS 214, , , ,051, ,032, , ANIMAL CONTROL 240, , , , , PUBLIC WORKS 1,939, ,882, , ,744, ,146, , PUBLIC HEALTH 3, , (923,820.44) 3,657, ,539, , MD SCHOOL BLIND/ADULT DAYCARE , , SOCIAL SERVICES 382, , , ,045, ,855, , BOARD OF EDUCATION 19,377, ,081, , ,553, ,553, CECIL COLLEGE 3,828, ,794, ,034, ,002, ,002, NON-PROFIT AGENCIES 88, , , , PARKS & RECREATION 149, , (322.42) 1,409, , , LIBRARIES 1,138, ,169, (31,186.76) 4,785, ,785, AGRICULTURE 120, , (194,423.12) 613, , , ECONOMIC DEVELOPMENT 218, , (9,843.63) 1,075, ,033, , JUDGEMENT & LOSSES , , GRANTS TO MUNICIPALITIES 659, , (4,243.68) 671, , DEBT SERVICE - PRINCIPAL 2,828, ,076, , ,211, ,211, DEBT SERVICE - INTEREST 666, , , ,531, ,531, OPERATING TRANSFER 555, , ,451, ,451, Total Expenditures 44,411, ,292, ,119, ,462, ,593, ,869, Revenues over Expenditures 55,496, ,525, ,028, (1,373,109.00) (772,852.88) 600, (b) (a) September includes pro-rata estimates and accrual calculations which may be revised after 2016 Yearend Adjustments. (b) For FY 2016 Budget, the difference between revenue over expenditures is equal to the budgeted use of Fund Balance. (c) Budget numbers are presented as full year budget. R:\Monthly Report\2016\ Financial Report Government Funds - CWW

4 11/30/2015 Page 2 General Fund Revenues & Expenditures by Category - Projection as of Three Months Through 09/30/15 See Note (a) as to limitations (Unaudited) Current Year vs Prior Year Actual Current Year Budget vs Projection FY 2015 FY 2016 (Unfavorable) FY 2016 FY 2016 (Unfavorable) Actual Actual thru Sep Budget Projection thru June 30 thru Sep thru Sep 2016 vs 2015 Fiscal Year thru June 30 Annual Budget Revenues Real Property Tax 90,944, ,557, , ,663, ,476, (1,186,832.70) Personal Property Tax 2,277, ,044, , ,883, ,883, Payment in lieu of Tax 3,063, ,698, , ,705, ,698, (6,464.02) Discount (1,076,220.65) ,076, Interest & Penalties (120.11) 8, , , , (47,172.00) Income Tax 770, ,146, , ,900, ,100, , License & Permits 194, , , ,014, ,743, (271,576.00) Federal Grants - 77, , ,033, ,033, State Grants 152, , (1,438.53) 6,005, ,946, (58,710.00) Other Intergovernmental 4, , , ,241, ,321, , Charges for Services 265, , , ,581, ,790, , Recordation 1,101, ,217, , ,000, ,870, (129,166.80) Investment Earnings 14, , , , , (33,465.90) Contributions & Other 81, , , , , (24,434.13) Transfers 2,115, (2,115,000.00) 1,749, ,749, Total Revenues 99,907, ,817, ,909, ,089, ,820, (1,269,026.17) Expenditures Salary & Fringe 8,212, ,107, , ,769, ,065, , Professional & Related Services 2,250, ,454, (204,293.24) 13,906, ,453, , Supplies & Materials 2,241, ,182, ,059, ,127, ,024, , Utilities 229, , (2,714.78) 1,335, ,316, , Training & Related 87, , (2,671.11) 666, , , Capital Outlay 542, , , ,994, ,461, , Debt Service , , Special Purpose 136, , (8,082.94) 631, , Debt Service - Principal 2,828, ,076, , ,211, ,211, Debt Service - Interest 666, , , ,531, ,531, Transfers & Intergovernment 27,216, ,600, (383,818.66) 99,276, ,241, , Total Expenditures 44,411, ,292, ,119, ,462, ,593, ,869, Revenues over Expenditures 55,496, ,525, ,028, (1,373,109.00) (772,852.88) 600, (b) (a) September includes pro-rata estimates and accrual calculations which may be revised after 2016 Yearend Adjustments. (b) For FY 2016 Budget, the difference between revenue over expenditures is equal to the budgeted use of Fund Balance. (c) Budget numbers are presented as full year budget. R:\Monthly Report\2016\ Financial Report Government Funds - CWW

5 11/25/2015 Landfill Fund Revenues & Expenditures by Category - Projections as of Three Months Through 09/30/15 Unaudited Current Year vs Prior Year Actual Current Year Rev Budget vs Projected FY 2015 FY 2016 (Unfavorable) FY 2016 FY 2016 (Unfavorable) Actual Actual thru Sep Rev Budget Projected thru June thru Sep thru Sep 2016 vs 2015 Fiscal Year thru June 30 Annual Budget Revenues Sales & User Fees 1,732, ,874, , ,270, ,141, (129,122.43) Charges for Services 81, , (5,549.87) 275, , , Discount (14,182.66) - 14, Interest & Penalties 1, , (277.95) 4, , , Federal Grants State Grants , , Contributions & Other 34, (34,212.03) 111, , (44,500.00) Total Revenues 1,835, ,951, , ,662, ,519, (142,466.15) Expenditures Salary & Fringe 309, , , ,431, ,489, (58,026.60) Professional & Related Services 430, , , ,112, ,678, , Supplies & Materials 101, , , , , , Utilities 6, , (98,290.33) 292, , (156,872.88) Training & Related 3, , , , , Depreciation (b) 607, ,745, (2,137,388.35) 2,745, ,745, Transfers & Intergovernment 22, , , , , Total Expenditures 1,482, ,514, (2,031,648.36) 7,198, ,934, , Operating Gain/(Loss) 352, (1,562,556.35) (1,915,069.33) 463, , , Non-Operating Revenues (Expenses) Interest Expense 18, , , (491,383.00) (491,383.00) - Investment Earnings (7.45) 20, , Change in Net Position 370, (1,294,320.22) (1,664,989.45) (7,985.00) 113, , (c) (a) Budget numbers are presented as full year budget and are not prorated for year to date comparison (b) Depreciation, Depletion & Closure for FY2015 is shown as a percentage of yearend actual and FY2016 as a percentage of budget. (c) The FY 2016 budget includes Fund Balance and capital outlay in the change in net position. R:\Monthly Report\2016\ Financial Report Enterprise Funds - CWW

6 11/25/2015 Waste Water Fund Revenues & Expenditures by Category - Projections as of Three Months Through 09/30/15 Unaudited Current Year vs Prior Year Actual Current Year Rev Budget vs Projected FY 2015 FY 2016 (Unfavorable) FY 2016 FY 2016 (Unfavorable) Actual Actual thru Sep Rev Budget Projected thru June thru Sep thru Sep 2016 vs 2015 Fiscal Year thru June 30 Annual Budget Revenues Sales & User Fees 51, , , ,894, ,597, , Interest & Penalties 6, , (26.68) 45, , , Federal Grants Charges for Services Contributions & Other - 6, , , , (9,000.00) Total Revenues 58, , , ,955, ,657, , Expenditures Salary & Fringe 231, , , ,157, ,188, (30,488.82) Professional & Related Services 233, , , ,162, , , Supplies & Materials 95, , (5,626.75) 483, , , Utilities 83, , (773.21) 500, , (8,525.00) Training & Related 4, , (872.56) 29, , , Depreciation (b) 586, ,551, (1,965,121.05) 2,551, ,551, Transfers & Intergovernment Total Expenditures 1,235, ,163, (1,927,284.32) 5,884, ,645, , Operating Gain/(Loss) (1,177,762.66) (2,977,107.51) (1,799,344.85) (929,153.00) 11, , Non-Operating Revenues (Expenses) Interest Expense (25,916.53) (47,840.98) (21,924.45) (631,609.00) (631,609.00) - Bond Issue Expense (122,591.36) (122,591.36) - (63,781.00) (122,591.36) (58,810.36) Investment Earnings , (4,627.32) Capital Contributions Connection Fees 215, , , , , (133,680.00) Change in Net Position (1,110,832.70) (2,800,909.13) (1,690,076.43) (623,743.00) 119, , (c) (a) Budget numbers are presented as full year budget and are not prorated for year to date comparison (b) Depreciation for FY2015 is shown as a percentage of yearend actual and FY2016 as a percentage of budget. (c) The FY 2016 budget includes Fund Balance and capital outlay in the change in net position. R:\Monthly Report\2016\ Financial Report Enterprise Funds - CWW

7 12/1/2015 Cecil County, Maryland Fiscal Year 2016 First Quarter Projections Significant Assumptions General Fund Revenues Major Assumptions Real Property Tax collections tend to exceed budget by ½ to ¾ % due to economic growth and conservative estimates lagging initial estimates by 1% Personal Property Tax collections, due to inconsistent billing patterns, tend to show a decline using first quarter estimates particularly in the largest segment, Public Utilities. Neutral for Q. Income Taxes expect 2% withholding growth over prior year, but net gain of zero with impact of Wynne case to be felt in final quarter distribution for FY Current collections exceed prior year by 49%, but distribution is highly volatile as it includes adjusted final tax year distributions, as well as delinquent payments. The first withholding component is to be received in November, which should show modest growth in withholdings. Recordation Tax collections are slightly behind prior year through September (2%). Transfer tax, due largely to rate increase, is tracking ahead of budget by 20%. Small sample size, will continue to monitor. General Fund Expenses Major Assumptions Salary and Fringes are projected for 26 pay periods, using 6 periods as the base. Overtime is projected using current trends - Annual overtime expense County-wide is projected at $1.366 million, versus budget of $1.771 million, besting budget by $405,000, a great deal of which is through the change in shift configuration in Law Enforcement. Offsets 180% overage at Detention Center, due to vacancies in Correctional Officer positions during 1 st quarter. $290,000 in budgetary savings currently seen in DES/EMS savings should decline as year progresses. - Overall budgetary savings All Salary and Fringe through 1 st Quarter = $700,000 Operating expenses are projected using different assumptions from current activity results in a favorable projection of $ 1,165,000 dollars

8 11/25/2015 Page 4 INCOME TAX RECEIPTS as of September 30, 2015 (Unaudited) FISCAL YEAR FISCAL YEAR FISCAL YEAR FISCAL YEAR % of Act % of Act % of Act % of Bud Actual Total Actual Total Actual Total Actual Total SEPTEMBER 610, % $ 1,195, % $ 770, % $ 1,146, % OCTOBER 1,287, % 1,253, % 1,533, % - 0.0% NOVEMBER 11,798, % 12,126, % 13,101, % - 0.0% DECEMBER - 0.0% 74, % 132, % - 0.0% JANUARY 455, % 386, % 543, % - 0.0% FEBRUARY 12,102, % 11,562, % 12,275, % - 0.0% MARCH 607, % 540, % 481, % - 0.0% APRIL - 0.0% - 0.0% - 0.0% - 0.0% MAY 9,845, % 9,735, % 10,019, % - 0.0% JUNE 9,180, % 9,114, % 9,513, % - 0.0% JULY 3,249, % 3,243, % 3,501, % - 0.0% AUGUST 1,284, % 1,568, % 2,080, % - 0.0% Year to Date $ 50,421, % $ 50,800, % $ 53,954, % $ 1,146, % Budget $ 48,644,519 $ 52,139,853 $ 53,643,746 $ 53,900,000 Comparative Year to Year Sep 30 $ 610,303 $ 1,195, % $ 770,924 $ 0 $ 1,146,884 FY 2016 YTD Actual Receipts % change current year vs. prior year 48.77% FY 2016 YTD Actual Receipts $ change current year vs. prior year $ 375,960 R:\Monthly Report\2016\ Financial Report Government Funds - CWW

9 11/25/2015 Page 5 HOLLYWOOD CASINO - PERRYVILLE REVENUES as of September 30, 2015 (Unaudited) FISCAL YEAR FISCAL YEAR Total From Gaming Commission Town of Perryville's Portion Cecil County's Portion % of Actual Total Total From Gaming Commission Town of Perryville's Portion Cecil County's Portion % of Budget Total JULY $ 288,451 $ 100,958 $ 187, % $ 326,878 $ 114,407 $ 212, % AUGUST 296, , , % 305, , , % SEPTEMBER 275,524 96, , % 286, , , % OCTOBER 281,020 98, , % % NOVEMBER 286, , , % % DECEMBER 286, , , % % JANUARY 277,821 97, , % % FEBRUARY 277,857 97, , % % MARCH 302, , , % % APRIL 316, , , % % MAY 333, , , % % JUNE 302, , , % % Year to Date $ 3,526,358 $ 1,234,225 $ 2,292, % $ 919,097 $ 321,684 $ 597, % Budget $ 2,429,547 $ 2,184,500 Comparative Year to Year Sep 30 $ 860,954 $ 301,334 $ 559, % $ 919,097 $ 321,684 $ 597, % (1) September 2015 is an estimate from the Maryland Gaming Commission. (2) The County sends 35% of the gaming commissions to Perryville when received from the State. The County typically transmits the money to the Town within 2 days of receipt from the State. R:\Monthly Report\2016\ Financial Report Government Funds - CWW