HomeMy WebLinkAbout2014 - 3 General Fund Status Report Third Quarter FY - 2014 RECEIVED
OFFICE OF THE MAYOR 291h APR 30 PH 1: 52
9tn Floor,city Hall LANSING Cj f y CLERK
124 W. Michigan Avenue
Lansing, Michigan 48933-1694
(517)483-4141 (voice)
` (517)483-4479(TDD)
(517)483-6066(Fax)
}aI 1 0-
Virg Bernero, Mayor
TO: City Clerk Chris Swope
FROM: Mayor Virg Bernero
DATE: April 30, 2014
RE: FY 2014 3rd Quarter General Fund Status Report
Pursuant to Section 7-110 of the City Charter, attached please find the General Fund Status Report for the third
quarter of Fiscal Year 2014.
"Equal Opportunity Employer"
General Fund Status Report-- FY 2014 3rd Quarter
Please see accompanying summary detail(page 3)
Revenues
In total, General Fund revenues collected through the second quarter of Fiscal Year 2014 (July—
March)were on par with the average of the past three years' second quarter collection rates, as a
percentage of year-end amounts, at 63%compared to 63% as adjusted (see footnote 2 on the
accompanying summary).
• The vast majority of Property Taxes are collected in the first month of the fiscal year. At
the end of the third quarter, they were were generally on par, as a percentage of budget,
compared to the average of the past three year's second quarter collection rates, at 97.5%
compared to 97.1%. Property taxes comprise 32%of General Fund revenues.
• As a percentage of budget, Income Tax collections were higher than the average collection
rate for the past three years, at 60.4% of budget, compared to 56.0%. It should be noted that
income tax revenues fluctuate from previous trends due to timing differences in remittances;
however, they have shown sustained strength this fiscal year. Income taxes make up 25% of
General Fund revenues.
• State Revenue Sharing and Fire Protection/Bad Driver Fees are higher than the March 31
target, at 57.2% compared to 51.0%, due to increased collections of State sales tax. The
City has complied with the October 1 Economic Vitality Program (EVIP) deadline for the
Accountability and Transparency submission and the February 1 deadline for consolidation
of services. State revenue accounts for 13%of General Fund revenues.
• Charges for Services were lower as a percentage of year-end totals for the average of the
same period for the last three years, at 60.3%of budget compared to 67.8% in prior years,
but improved from last year. The lower percentage is primarily attributed to ambulance
revenues. Charges for service comprise about 8%of General Fund revenues.
• In total, Licenses and Permits revenues were slightly lower than the average collection rate
of the same period for the last three years as a percentage of year-end totals, at 48.3%of
budget, compared to 50.3%. Licenses and permits make up only 1.5%of General Fund
revenues.
• Collection rates for Fines and Forfeiture were lower as a percentage of year-end totals for
the average of the Iast three years, at 63.6%of the budget compared to 67.8%. Fines and
Forfeiture revenue makes up 2%of General Fund revenues
• The City's Return on Equity payment from the Board of Water and Light(BWL), was
higher as a percentage of year-end totals for the average of the last three years (49.7%
compared to 1.4%), due to a change in the new contract payment schedule. Payments are
now received semi-annually,where they were previously received annually at the end of the
fiscal year. Return on equity payments account for 18% of General Fund.
4/30/2014 Page 1 of 3
• Interest revenue is posted as investments mature,the timing of which varies from year-to-
year.
Expenditures
In total, taking into account the vacancy factor, expenditures for General Fund operating
departments (excluding debt service and transfers to other funds)were under the budget target-- at
68.9% as of March 31, compared to a budgetary target of 70.5%. Due to the December and January
storms, spring flood preparedness, and Human Service needs, the Public Service and Human
Relations & Community Services budgets exceeded third quarter targets and will likely require
budget amendments.
Summary
Through March 31, General Fund revenues and expenditures, in total, are on track.
4/30/2014 Page 2 of 3
General Fund Status Report-FY 2014 March 31, 2014
Avg. Percent
of Year-End
Actuals as of
Revenues Annual Actual Percent March 31
Budget as of 3/31/14 of Budget FY 2011 -2013
Property Taxes $ 37,519,000 $ 36,571,655 97.5% 97.1%
Income Taxes 29,130,000 17,589,786 60.4% 56.0%
Revenue Sharing 14,568,300 8,331,687 57.2% 51.0%
Licenses& Permits 1,563,700 756,425 48.3% 50.3%
Charges for Services 9,002,000 5,428,653 60.3% 67.8%
Fines& Forfeitures 2,595,400 1,651,484 63.6% 67.8%
Interest& Rent 60,000 41,799 69.7% 86.3%
Return on Equity 21,000,000 10,445,735 49.7% (2) 1.4%
Other Revenue 276,144 325,945 118.0% 41.7%
Total Revenues $ 115,714,544 $ 81,142,169 cal 70.1% (2) 63.6%
Expenditures Annual Actual Percent Target, Including
Budget as of 3/31114 of Budget Vacancy Factor
Council $ 631,600 $ 428,658 67.9%
Internal Audit 184,460 121,778 66.0%
Courts 5,608,490 3,805,742 67.9%
Mayor's Office 792,470 671,622 72.1%
Media Center 334,250 233,045 69.7%
Clerk's Office 880,400 622,662 70.7%
Planning & Neighborhood Development 846,060 668,034 67.2%
Finance 4,895,100 3,254,016 66.5%
Human Resources 1,612,670 982,395 60.9%
Attorney's Office 1,452,640 1,012,309 69.7%
Vacancy Factor (600,000) - 0.0%
Police 35,525,605 24,494,828 68.9%
Fire 31,704,800 21,197,887 66.9%
Public Service 9,442,090 7,019,869 74.3%
Human Relations& Community Service 869,910 722,181 83.0%
Parks& Recreation 7,048,750 4,560,985 64.7%
Human Services& City Supported Agencies 1,860,607 1,413,038 75.9%
$ 103,088,892 $ 71,008,948 68.9% 70.5%
Library Lease $ 155,000 $ 116,959 75.5%
Debt Service 1,106,620 526,396 47.6%
Transfers 11,613,860 9,638,680 83.7%
$ 115,864,362 $ 81,290,882
Please see Pages 1 and 2 for an explanation of revenues and expenditures.
(�1 Note:Year-to-date revenueis always greater than expenditures at this time of veafas property taxes,
accounting for 32% of General Fund revenues,are collected at the beginning of the yearProperty taxes
include delinquent amouts that will be reimbursement by the counties upon settlemei
(2)Variance from budget target is due to a change in payment timing for the Board of Water and Light return on
equity payment. Previously,the payment was made annually at the end of the year. Starting this year, payments
will be received semi-annually. Excluding this payment, total General Fund revenues in line with budgetary
expectations, at 63% as of March 31,2014.
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