The URL can be used to link to this page

Home My WebLink About2015 - 3 General Fund Status Report Third Quarter FY - 2015 S 1 �G Chris Swope Lansing City Clerk rcHIG May 8, 2015 City Council President and Lansing City Council Members 10th Floor City Hall Lansing, MI 48933 Dear President and Council Members: Pursuant to Section 7-110 of the Lansing City Charter, on April 30, 2015 the Mayor's Office placed on file with my office: FY 2015 Third Quarter General Fund Status Report This document is available for review at the office of the City Clerk and on the City Clerk's website (www.lansingmi.gov/clerk). Sincerely, C94111 Chris Swope, CIVIC Lansing City Clerk Lansing City Clerk's Office Ninth Floor, City Hall, 124 W. Michigan Ave., Lansing, MI 48933-1695 517-483-4131 • TDD 517-483-4479. 517-377-0068 FAX www.lansingmi.gov/clerk • clerk@lansingmi.gov _ RECEIVED w OFFICE OF THE MAYOR 2015 APR 30 PM 3° 36 9th Floor, City Hall En 124 W. Michigan Avenue LAWS€NG CITY CLER " Lansing, Michigan48933-1694 (517)483-4141 (voice) (517)483-4479 JDD) (517)483-6066(Fax) Virg Bernero, Mayor TO: City Cleric Chris Swope FROM: Mayor Virg Bernero DATE: April 30, 2015 RE: FY 2015 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 2015. "Equal Opportunity Employer" General Fund Status Report— FY 2015 3rd Quarter Please see accompanying summary detail(page 3) Revenues In total, General Fund revenues collected through the second quarter of Fiscal Year 2015 (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 64%compared to 64% 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 slightly ahead, as a percentage of budget, compared to the average of the past three year's second quarter collection rates, at 99.0% compared to 97.7%. Collections are subject to tax appeals and other adjustments, as well as delinquent personal property amounts,throughout the year. Property taxes comprise 32% of General Fund revenues. • As a percentage of budget, Income Tax collections were right on par with the average collection rate for the past three years, at 56.1% of budget. It should be noted that income tax revenues fluctuate from previous trends due to timing differences in remittances; however, the trend is consistent with that of the past several quarters. Income taxes make up 26% of General Fund revenues. • State Revenue Sharing and Fire Protection/Bad Driver Fees, comprising 13% of General Fund revenues, were on target, both in terms of prior year collection rates and with State schedules. • Charges for Services were higher as a percentage of year-end totals for the average of the same period for the last three years, at 69.8%of budget compared to 68.4% in prior years, but improved from last year. Charges for service comprise about 8% of General Fund revenues. • In total, Licenses and Permits revenues were also higher than the average collection rate of the same period for the last three years as a percentage of year-end totals, at 69.8% of budget, compared to 68.4%. Licenses and permits make up only 1.5% of General Fund revenues. • Collection rates for Fines and Forfeiture were slightly higher as a percentage of year-end totals for the average of the last three years, at 69.4%of the budgeted amounts compared to 68.9%. 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 (48.9% compared to 18.1%), due to a change to a semi-annual payment schedule that began last fiscal year. Return on equity payments account for 18% of General Fund. • "Other" Revenue category amounts are significantly higher than previous year amounts. The category is slightly ahead of the budget, due to the sale of Fire Station#7. In terms of 4/30/2015 Pagel U3 timing, this category of miscellaneous revenues is ahead of previous years' collection rates, the main driver being a transfer of funds for the transition in FY 2015 of funding by the General fund for eight police officers that were previously funded by a grant. • 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 72.2% as of March 31, compared to a budgetary target of 72.9%. Summary Through March 31, General Fund revenues and expenditures, in total, are on track with the FY 2015 budget. 4/30/2015 Page 2 of 3 General Fund Status Report-FY 2015 March 31, 2015 Avg. Percent of Year-End Actuals as of Revenues Annual Actual Percent March 31 Budget as of 3/31/15 of Budget FY 2012-2014 Property Taxes $ 37,595,000 $ 37,232,156 99.0% 97.7% Income Taxes 31,180,000 17,489,439 56.1% 56.1% Revenue Sharing 15,464,595 7,722,762 49.9% 50.9% Licenses & Permits 1,507,500 775,696 51.5% 50.3% Charges for Services 8,305,670 5,799.743 69.8% 68.4% Fines & Forfeitures 2,685,600 1,794,519 69.4% 68.9% Interest& Rent 31,172 34,375 110.3% 87.6% Return on Equity 21,300,000 10,411,279 12I 48.9% 18.1% Other Revenue 1,030,463 1,271,043 123.3% 53.8% Total Revenues $ 119,000,000 $ 82,531,011 ( >'ce) 69.4% 64.8% Less:Addition to Reserves (500,000) $ 118,500,000 Expenditures Annual Actual Percent Target, Including Budget as of 3/31115 of Budget Vacancy Factor Council $ 666,400 $ 440,150 66.0% Internal Audit 204,650 142,776 69.8% Courts 5,979,450 4,199,527 70.2% Mayor's Office 875,130 616,225 70.4% Media Center 355,750 249,374 70.1% Clerk's Office 949,360 696,468 73.4% Planning & Neighborhood Development 825,500 557,940 67.6% Finance 5,014,120 3,093,259 61.7% Human Resources 1,817,300 987,489 54.3% Attorney's Office 1,605,970 1,110,111 69.1% Vacancy Factor (800,000) - 0.0% Police 38,076,900 27,547,073 72.3% Fire 33,406,600 24,687,492 73.9% Public Service 10,130,100 7,747,177.79 76.5% Human Relations &Community Service 1,045,750 655,396 62.7% Parks& Recreation 7,420,800 4,778,174 64.4% Human Services& City Supported Agencies 1,811,400 1,439,491 79.5% $ 109,385,180 $ 78,948,123 72.2% 72.9% Library Lease $ 155,000 $ 129,306 83.4% Debt Service 1,016,000 185,069 18.2% Transfers 7,943,820 7,457,380 93.9% $ 118,500,000 $ 86,719,878 r') Please see Pages f and 2 for an explanation of revenues and expenditures. 't Note: Year-to-date revenue is always greater than expenditures at this time of year, as property taxes, accounting for 32%of General Fund revenues, are collected at the beginning of the year. Property taxes include delinquent amouts that will be reimbursement by the counties upon settlement. (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 in FY 2014, payments are now received semi-annually. Accounting for this change in payment timing, total General Fund revenues in line with budgetary expectations, at 64.3% as of March 31, 2015. Page 3 of 3