Loading...
HomeMy WebLinkAboutFY18 2nd quarter general fund status report S � �G Chris Swope Lansing City Clerk I� x � G February 1, 2018 President and Council Members 10th Floor City Hall Lansing, MI 48933 Dear President and Council Members: My office has received and placed on file this document from the Finance Director: FY 2018 Second Quarter General Fund Status Report This document is available for review at the office of the City Clerk or at http://www.lansingmi.gov/clerk under the heading of Documents Placed on File. Sincerely, cklpll 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 u7 _- General Fund Status Report— FY 2018 2°d Quarter L' Please see accompanying summary detail(page 3) Revenues :JeveQ collection trends are measured by comparing the percentage of budget collected year-to-date to a Ahree=year average collection rate for the same period of time in the previous three years. In tot4, General Fund revenues collected in the second quarter of Fiscal Year 2018 (July—December), as a percent of budget, were on par with the prior three years' second quarter collection rates, as a percentage of year-end amounts, at 60.5% compared to 59.2%. • The vast majority of Property Taxes are collected in the first month of the fiscal year. At the end of the second quarter this year, they were somewhat higher, as a percentage of budget, to the average of the past three year's second quarter collection rates, largely due to a larger-than- anticipated personal property tax reimbursement from the State. It should be noted that property tax collections are subject to tax appeals and other adjustments throughout the year. • As a percentage of budget, Income Tax collections, as a percent of budget,were higher than the average collection rate for the past three years, at 36.4%of budget, compared to 31.7%. It should be noted that income tax revenues can fluctuate from previous trends due to timing differences in remittances. • State Revenue Sharing and Fire Protection/Bad Driver Fees were on target for the second quarter. • Charges for Services were lower than collection rates from the average of the same period for the last three years, at 41.7%of budget compared to 45.0% in prior years, due to slightly lesser-than-anticipated code compliance fees. Charges for services comprise only 7%of General Fund revenues. • In total, Licenses and Permits revenues were much higher than the average collection rate of the same period for the last three years as a percentage of year-end totals, at 51.0% of budget, compared to 24.6%, resulting from marihuana application fees received in the second quarter. Licenses and permits make up only 1.5%of General Fund revenues. • Collection rates for Fines and Forfeiture for the second quarter were lower as a percentage of year-end totals for the average of the last three years, at 30.9%of the budget compared to 40.3%, due to lesser-than-anticipated penal case revenues and ordinance fines and costs (traffic ticket revenue). • The first of two semiannual Return on Equity payments from the Board of Water and Light, was less than previous years' first installment collection percentages at 47.3%, compared to 50.8%. This return on equity payment is dependent on gross revenues of the Board of Water and Light. (continued) 1/31/2018 Page 1 of 3 General Fund Status Report — FY 2018 2"d Quarter Please see accompanying summary detail(page 3) • As a category, Interest and Rents were ahead of previous years' trends due to higher-than- anticipated cell tower revenue payments. Interest revenue is posted as investments mature, the timing of which varies from year-to- year. • The Other Revenues category collection rate was higher as of the second quarter-end due to the timing of the receipt of the FY 2018 Grand Woods Park sale installment. Expenditures Expenditure trends are measured by comparing the percentage of budget spent year-to-date to expected timing of expenditures,taking into account payroll cycles and other know expenditure trends. In total, taking into account the vacancy factor, expenditures for General Fund operating departments (excluding debt service and transfers to other funds) were within the budgetary target-- at 46.6%as of December 31, compared to a budgetary target of 47.7%. All departments were within budgetary targets, with the exception of the Fire Department, which was slightly higher than target(49.3% compared to 49.0%), due to the timing of ratification and implementation of the new International Association of Firefighters (IAFF) Local 421 collective bargaining agreement in the first quarter of the year. Of note due to the relatively small amount expended in comparison to the budget, General Fund debt service payments are on target for the year, with the vast majority due at the end of the fiscal year. Summary For the second quarter of FY 2018, total General Fund revenues and expenditures were meeting budgetary targets. Year-to-date revenues always exceed expenditures in the second quarter of the year as a result of the collection of the majority of property taxes, comprising 31%of total General Fund revenues, at the beginning of the fiscal year. 1/31/2018 Page 2 of 3 General Fund Status Report- FY 2018 2nd Quarter (as of December 31, 2017) Avg. Percent of Year-End Actuals as of Revenues Annual Actual Percent December 31 Budget as of 12/31/17 of Budget FY 2015-2017 Property Taxes $ 40,505,000 $ 41,828,594 103.3% 101.3% Income Taxes 35,600,000 12,941,995 36.4% 31.7% Revenue Sharing 15,764,500 6,461,678 41.0% 40.5% Licenses& Permits 1,906,500 973,132 51.0% 24.6% Charges for Services 9,422,900 3,926,424 41.7% 45.0% Fines& Forfeitures 2,961,600 914,122 30.9% 40.3% Interest& Rent 38,500 65,017 168.9% 79.8% Return on Equity 22,300,000 10,539,262 47.3% 50.8% Other Revenue 451,000 305,240 67.7% 34.4% Total Revenues $ 128,950,000 $ 77,955,464 (') 60.5% 59.2% Less:Addition to Reserves (500,000) $ 128,450,000 Expenditures Annual Actual Percent 12/31/17 Budget as of 12/31/17 of Budget Budgetary Target Council $ 698,000 $ 304,395 43.6% 46.0% Internal Audit 180,700 84,055 46.5% 46.7% Courts 6,579,900 2,734,364 41.6% 45.3% Mayor's Office 1,044,600 458,252 43.9% 46.7% Media Center 437,400 180,736 41.3% 46.8% Clerk's Office 1,062,800 537,952 50.6% 53.0% Planning& Neighborhood Development 1,129,500 513,865 45.5% 48.9% Finance 5,806,300 2,399,843 41.3% 47.2% Human Resources 2,254,000 989,389 43.9% 44.1% Attorney's Office 2,026,500 850,660 42.0% 46.5% Vacancy Factor (500,000) - Police 41,295,000 19,924,001 48.2% 48.7% Fire 34,983,000 17,257,704 49.3% 49.0% Public Service 11,115,500 4,413,071 39.7% 42.0% Human Relations&Community Service 1,332,700 513,598 38.5% 46.5% Parks&Recreation 8,350,300 3,758,265 45.0% 47.9% Subtotal-Departmental Budgets $ 117,796,200 $ 54,920,151 46.6% 47.7% Human Services&City Supported Agencies $ 2,081,400 $ 903,708 43.4% Library Lease 165,000 77,638 47.1% Debt Service 1,065,000 64,635 12► 6.1% Transfers 7,342,400 6,501,510 88.5% Subtotal- Non-departmental Budgets 10,653,800 7,547,491 Total General Fund $ 128,450,000 $ 62,467,641 Please see Pages 1 and 2 for an explanation of revenues and expenditures. Note:Year-to-date revenueis always greater than expenditures at this time of yeafas property taxes, accounting for 31%of General Fund revenues,are collected at the beginning of the year. Property taxes include delinquent amouts that will be reimbursed by the counties upon settlement. Property tax collection exceed budget at this time of year, but are subject to tax appeals and other adjustments throughout the year. (2)The vast majority of General Fund debt service payments are due in the fourth quarter of the fiscal year. Page 3 of 3