HomeMy WebLinkAboutFY2017 FirstQuarter OFFICE OF THE MAYOR
9th Floor,City Half
_ 124 W. Michigan Avenue
Lansing, Michigan 48933-1694
(517)483-4141 (voice)
(517)483-4479(TOO)
(517)483-6066(Fax)
Virg Bernero, Mayor
TO: City Clerk Chris Swope
FROM: Mayor Virg Bernero
DATE: October 31, 2016
RE: FY 2017 1 st Quarter General Fund Status Report
Pursuant to Section 7-110 of the City Charter, attached please find the General Fund Status Report for the first
quarter of Fiscal Year 2017.
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"Equal Opportunity Employer"
General Fund Status Report—FY 2017 Ist Quarter
Please see accompanying summary detail(page 3)
Revenues
In total, General Fund revenues collected in the first quarter of Fiscal Year 2017 (July--September)
were slightly less than the average of the past three years' first quarter collection rates, as a percentage
of year-end amounts, at 35.9%compared to 36.6%.
The vast majority of Property Taxes are collected in the first month of the fiscal year. At the
end of the first quarter this year,they were slightly below, as a percentage of budget, to the
average of the past three year's first quarter collection rates due to State changes in personal
property tax. FY 2017 is the first-year phase-out of personal property tax for parcels
exceeding $80,000. Where the majority of personal property taxes were previously collected
in the first quarter of the year, State reimbursement for the phase-out will not be received until
later in the year. It should be noted that property tax collections 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 9.6%of budget, compared to 9.4%. 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 and Fire Protection/Bad Driver Fees were on target for the first
quarter.
• Charges for Services were somewhat lower than collection rates from the average of the same
period for the last three years, at 17.3%of budget compared to 20.5% in prior years due lower
code compliance administration fee receipts.
• In total, Licenses and Permits revenues were also on par with the average collection rate of the
same period for the last three years as a percentage of year-end totals, at 2.5%of budget,
compared to 2.2%. Licenses and permits make up only 1.5%of General Fund revenues.
Collection rates for Fines and Forfeiture for the first quarter were higher as a percentage of
year-end totals for the average of the last three years, at 15.4%of the budget compared to
11.8%, due mainly to penal case revenues.
The City's Return on Equity payment from the Board of Water and Light(BWL), which
accounts for 18%of General Fund revenues, is not collected until later in the year.
As a category, Interest and Rents were behind previous years' trends due to timing of cell
tower revenue payments. Interest revenue is posted as investments mature, the timing of
which varies from year-to-year.
• Other Rcvenues were slightly lower as of the first quarter-end due to timing of interfund
transfers.
(continued)
10/31/2016 Page 1 of 3
F1,11enditu res
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 21.6%as of
September 30, compared to a budgetary target(taking into account the timing of payroll dates)of
22.8%. All departments were within budgetary targets as of September 30`', with the exception of
Human Relations &Community Services, resulting from work involved from the announcement of
the closing of the Magnuson Hotel.
Summary
For the first quarter,total General Fund revenues and expenditures were close to budgetary
expectations,taking into account changes in personal property taxation and reimbursement.
10/31/2016 Page 2 of 3
General Fund Status Report--FY 2017(as of September 30, 2016)
Avg. Percent
of Year-End
Actuals as of
Revenues Annual Actual Percent September 30
Budget as of 09/30/16 of Budget FY 2014-2016
Properly Taxes $ 38,952,000 $ 38,690,130 99.3% 100.5%
Income Taxes 33,150,000 3,183,295 9.6% 9.4%
Revenue Sharing 15,655,900 70,209 0.4% 0.5%
Licenses& Permits 1,652,500 40,540 2.5% 2.2%
Charges for Services 9,153,500 1,581,342 17.3% 20.5%
Fines& Forfeitures 2,960,100 454,386 15.4% 11.8%
Interest& Rent 38,500 16,464 42.8% 52.4%
Return on Equity 22,000,000 300,000 1.4% 1.4%
Other Revenue 437,500 119,748 27.4% 29.4%
Total Revenues $ 124,000,000 $ 44,456,114 of 35.9% 36.6%
Less:Addition to Reserves (500,000)
$ 123,500,000
Expenditures Annual Actual Percent 09/30/16
Budget as of 09/30/16 of Budget Budgetary Target
Council $ 675,800 $ 132,830 19.7% 22.0%
Internal Audit 202,200 28,364 14.0% 23.9%
Courts 6,247,400 1,309,520 21.0% 23.3%
Mayor's Office 1,050,200 237,085 22.6% 235%
Media Center 415,600 87,781 21.1% 24.1%
Financial Empowerment Center 182,100 28,602 15.7% 24.6%
Clerk's Office 1,018,700 255,756 25.1% 26.7%
Planning& Neighborhood Development 1,091,500 240,627 22,0% 25.8%
Finance 5,063,800 951,318 18.8% 23.2%
Human Resources 2,139,000 506,715 23.7% 23.5%
Attorney's Office 1,880,700 392,744 20.9% 23.1%
Vacancy Factor (800,000) -
Police 38,952,900 8,195,227 21.0% 22.0%
Fire 33,612,300 7,523,533 22.4% 22,4%
Public Service 10,867,100 2,167,227 19.9% 24.9%
Human Relations&Community Service 1,249,200 364,954 29.2% 23.2%
Parks& Recreation 7,893,900 1,715,143 21.7% 24.0%
Subtotal-Departmental Budgets $ 111,742,400 $ 24,137,427 21.6% 22.8%
Human Services&City Supported Agencies $ 1,868,900 $ 348,070 18.6%
Library Lease 165,000 23,610 14.3%
Debt Service 1,045,200 - (2) 0.0%
Transfers 8,678,500 7,575,072 87.3%
Subtotal-Non-departmental Budgets 11,757,600 7,946,751
Total General Fund $ 123,500,000 $ 32,084,178 f�f
Please see Pages 1 and 2 for an explanation of revenues and expenditures.
Note:Year-to-date revenue is always 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 amouts 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.
(2)No debt service payments were due as of September 30.
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