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HomeMy WebLinkAboutFY2017 3rdQuarter v2 OFFICE OF THE MAYOR 9th Floor, City Hall 124 W. Michigan Avenue r Lansing, Michigan 48933-1694 (517)483-4141 (voice) ' (517)483-4479(TDD) (517)483-6066(Fax) . C7 Virg sernero, Mayor n tag r'l TO: City Clerk Chris Swopero z�a `CO FROM: Mayor Virg Bernero DATE; April 28, 2017 RE: FY 2017 3rd Quarter General Fund Status Report Pursuant to Section 7-110 of the City Charter, attached please find the General Fund Status Report for third quarter of Fiscal Year 2017. "Equal Opportunity Employer" General Fund Status Report—FY 2017 3rd Quarter Please see Accompanying summary detail(page 3) Revenues In total, General Fund revenues collected through the third quarter of Fiscal Year 2017 (July—March) were higher than the average of the past three years' third quarter collection rates, as a percentage of year-end amounts, at 71.8%compared to 68.9%. • The vast majority of Property Taxes are collected in the first month of the fiscal year. At the end of the third quarter of the fiscal year, they were higher as a percentage of budget, at 101.3%, compared to the average of the past three year's third quarter collection rates of 98.1%. Part of the difference was due to a change in timing recognition of certain infrastructure fee agreement receipts. Additionally, State reimbursement of phased-out personal property taxes for the current and two previous years was received in the second quarter and exceeded purposefully-conservative budget estimates. It should be noted that property tax collections normally exceed budget at this time of year, but are subject to tax appeals and other adjustments throughout the year. • As a percentage of budget, Income Tax collections were higher than the average collection rate for the past three years, at 61.8% of budget, compared to 55.9%. 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. State Revenue Sharing was higher than the past three years' average trend, as Fire Protection/Bad Driver Fees, received once per year, were $413,000 higher than anticipated. State Revenue Sharing and Fire Protection/Bad Driver fees are dependent on State revenue collections. Although Charges for Services were higher in total, dollar-wise, than same period last fiscal year, they were somewhat lower than collection rates from the average of the same period for the last three years, at 62.8%of budget compared to 67.2% in prior years. The lower collection rate is attributable to a combination of ambulance revenues, code compliance inspection fees, and citywide administrative fund fees which, like the overall trend, are all higher than last year, but each being slightly lower when compared to the three-year average percentage of year-end collections. Charges for Services make up only 7% 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 47.4% of budget, compared to 48.8%. Licenses and permits make up only 1.5%of General Fund revenues. Collection rates for Fines and Forfeiture for the third quarter were lower as a percentage of year-end totals for the average of the last three years, at 49.9%of the budget compared to 68.1%, due to reductions in traffic tickets and penal case revenues. 4/28/2017 Page 1 of 3 General Fund Status Report—FY 2017 3rd Quarter Please see accompanying summary detail(page 3) Revenues continued The City's Return on Equity payment from the Board of Water and Light(BWL) for the third quarter of the fiscal year exceeded budgetary expectations at 53% of the budget, compared to 50.6%. • As a category, Interest and Rents were on par with previous years' trends. Interest revenue is posted as investments mature,the timing of which varies from year-to-year. • Other Revenues were higher as of the third quarter-end, at 96.8%, compared to previous years' averages of 45.7%due to the sale of fire station #43. ExPenditures 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 70.3%as of March 31, compared to a budgetary target(taking into account the timing of payroll dates) of 72.6%. All departments were within budgetary targets as of March 31,with the exception of the City Clerk's Office, due to timing of elections;and the Financial Empowerment Center, due to supplies for events. Budget adjustments may be needed for those two departments, depending on reimbursements and grant amounts received. Summary For the third quarter of the fiscal year,total General Fund revenues were ahead of budgetary expectations, and overall, expenditures were within budgetary expectations. 4/28/2017 Page 2 of 3 General Fund Status Report-FY 2017 (as of March 31, 2017) Avg. Percent of Year-End Actuals as of Revenues Annual Actua! Percent March 31 Budget as of 3/31/17 of Budget FY 2014-2016 Property Taxes $ 38,952,000 39,443,402 101.3% 98.1% Income Taxes 33,150,000 20,503,201 61.8% 55.9% Revenue Sharing 15,655,900 8,999,687 57.5% 53.8% Licenses& Permits 1,652,500 783,289 47.4% 48.8% Charges for Services 9,153,500 5,749,966 62.8% 67.2% Fines&Forfeitures 2,960,100 1,476,399 49.9% 68.1% Interest&Rent 38,500 19,361 50.3% 50.4% Return on Equity 22,000,000 11,651,819 53.0% 50.6% Other Revenue 437,500 423,485 96.8% 45.7% Total Revenues $ 124,000,000 $ 89,050,607 71.8% 68.9% Less:Addition to Reserves (58,586) $ 123,941,414 Expenditures Annual Actual Percent 3/31/17 Budget as of 3/31/17 of Budget Budgetary Target Council $ 675,800 $ 458,954 67.9% 74.0% Internal Audit 202,200 106,171 52.5% 73.6% Courts 6,247,400 4,462,856 71.4% 73.8% Mayor's Office 1,050,200 768,033 73.1% 73.7% Media Center 415,600 279,831 67.3% 73.6% Financial Empowerment Center 182,100 153,344 84.2% 74.1% Clerk's Office 1,018,700 795,438 78.1% 77.2% Planning& Neighborhood Development 1,091,500 759,151 69.6% 75.3% Finance 5,163,800 3,439,955 66.6% 73.9% Human Resources 2,139,000 1,607,976 75.9% 75.9% Attorney's Office 1,880,700 1,237,623 65.8% 73.5% Vacancy Factor (800,000) Police 38,952,900 27,356,593 70.2% 72.1% Fire 33.612,300 23,468,976 69.8% 72.2% Public Service 11,032,712 7,908,299 71.7% 71.7% Human Relations&Community Service 1,249,200 778,632 62.3% 73.6% Parks& Recreation 7,893,900 5,154,293 65.3% 74.1% Subtotal- Departmental Budgets $ 112,008,012 $ 78,736,127 70.3% 72.6% Human Services&City Supported Agencies $ 2,044,702 $ 1,598,754 78.2% Library Lease 165,000 108,481 65.7% Debt Service 1,045,200 74,965 (2) 7.2% Transfers 8,678,500 8,518,047 98.2% Subtotal-Non-departmental Budgets 11,933,402 10,300,247 Total General Fund $ 123,941,414 $ 89,036,373 ail Please see Pages 1 and 2 for an explanation of revenues and expenditures. Note:Year-to-date revenue is greater than expenditures at this time of year,as property taxes,accounting for 31%of General Fund revenues,are collected at the beginning of the year. Property taxes include delinquent amounts that will be reimbursed by the counties upon settlement. Property tax collections exceed budget at this time of year, but are subject to tax appeals and other adjustments throughout the year. (27 The majority of General Fund debt service is paid in the fourth quarter of the fiscal year. Page 3 of 3