HomeMy WebLinkAboutQ3 General Fund Status Report - FY- 2023 Narrative General Fund Status Report — FY 2023 3rd Quarter
General Fund Summary
For FY23,the City budgeted $145,800,000 in total revenue including transfers and $155,512,500 in total
expenditures. The City's fund balance policy recommends a fund balance that is between 12%- 15%of
expenditures. With estimated expenditures of$155,512,500,the recommended fund balance is
$18,661,500 to $23,326,875.
Revenue Summary
Where the Money Comes From
FY 2022/2023 General Fund Budgeted Revenues
145.8 Million
Licensesand Permits
Fines and Forfeitures 1%
1% Other Revenue
Charges for Services 1%
6%
State Shared Property Taxes
Revenues 33%
15%
Return On
Equity
17%
Income Taxes
26%
General Fund revenue collected through the third quarter of fiscal year 2022-2023 are above
expectations. 77.1%of the budgeted revenue has been received, over 6% higher than the 3-year
average for March 31 YTD.
• Property Taxes(33.2%of GF revenue budget) are largely collected at the beginning of the fiscal
year. They were initially estimated to be $48.245M. At the end of the third quarter, collections
were roughly$46.1 million. Although collections currently are below estimated amounts,they
are subject to tax appeals and other adjustment throughout the fiscal year.
1
• Income Tax(25.8%of GF revenue budget) collections are above the third quarter target. At the
end of the 3rd quarter, income tax collections were$27.3 million (72.8%of its budgeted
$37.51M).This amount exceeds the 3-year average for March 31"
• Return on Equity(ROE) (17.2%of GF revenue budget) represents payment to the City from the
Board of Water& Light. Historically, payments have been received in December and June.
However,the new agreement calls for quarterly payment. The YTD amount is almost$14
million. BWL notified the city that the next quarterly payment will be in the amount of
$6,041,324.
• State Revenue (14.8%of GF revenue budget) are estimated to be$16,899,500 in revenue
sharing and $4.62 million in other payments. Quarter 3 YTD is just over$14.15 million.
• Charges for Services(6.2%of GF revenue budget) are trending ahead of the 3 Year Average for
the 3rd Quarter.
• Fines and Forfeitures (1.2%of GF revenue budget) are budgeted to be $1,692,200. Quarter-to-
date, they are trending below expectations. This is because Court Costs-Penal Cases-DI and
Ordinance fines are down.
• Licenses and Permits (1.2%of GF revenue budget) are budgeted to be $1,769,300. The City has
received 66.6%of the budgeted amount.
• Interest and Rents (0.2%of GF revenue budget) are budgeted to be $330,000 in FY23. The
quarter-to-date amount of$212,000 is low because the interest income has been lower.
• Other Revenues(0.2%of GF revenue budget) are a very small percentage of the General Fund
budget.This is where the money from the Opioid settlement was placed, resulting in a higher
"Miscellaneous" amount.
Overall, revenues are exceeding expectations.This is due to higher income tax revenues, return on
equity, and charges for services.
2
Expenditure Summary
How the Money is Spent
FY 2022/2023 General Fund Budget
155.5 Million
Recreation& Information Fleet/ Debt Service Public Service
Culture Technology Equipment 1% Engineering
Capital/Fund 4% 4% 4% 1%
Transfers City 311 Service
4% 0% Retirement/Fixed
Community Fringes
28%
Development
6%
Public Service
6% -
General Government
10%
Police Department
18%
Fire
Department
14%
FY23 YTD
100.0%
90.0%
80.0%
70.0%
60.0%
50.0%
40.0%
30.0%
20.0%
10.0%
0.0%
°z U c a`ni U U (UU °6 00 a
C O C F U N 0 U LL > � U .,
L
O Q O O 41 O 0 C v O d 41 O v
V O
c ) of V V, t O L N v 9 v O-
L' U 41 N ~ U (0 U u i Q
L LO Y O W Q Q al
? U C O
a1 C6 0 a?+
6 U U
z lC4 O <( Y =
LL
3
Circuit Court
Last fiscal year,there was one payment made for the Circuit Court Building Rental in February.The
payment this year was made in March.
Clerk's Office
The reason why the Clerk's Office is higher is because the city has had two elections this fiscal year,
causing higher expenditures in the first three quarters.
Economic Development and Planning
The reason EDP's YTD expenditures are high is because of the General Fund LEPFA Subsidy.The
$1,975,000 subsidy amount was given in the first quarter. Because the full subsidy amount was paid to
LEPFA in the first quarter and not distributed equally among the quarters, it skews EDP's current YTD
percentage to the high side.
Assessor and HR
The reason why Assessing and HR's YTD is so low is because of less expenditures on salaries and payroll
fringes.
Human Service Agency Support
The reason why Human Services'YTD is higher than the target is because of higher expenditures for
Chronic Homeless Outreach and Community Problem Solving. We are working on their carryforwards
and will have them before Council before the end of the fiscal year.
Conclusion
If revenues and expenditures continue in the trend they are now,the city will not have to use as much
ARPA reimbursement money as was previously approved.The administration continues to monitor
expenditures and seek necessary savings to maintain vital services while also making strategic
investments to grow the City's economy and strengthen the quality of life for residents,workers,
business owners, and visitors. With the aid of the American Rescue Plan Act,the City has been able to
restore services negatively impacted by the COVID-19 pandemic.
The general fund budget report is presented in several formats for informational value as follows. After
a separate revenue and expenditure summary,the City's general fund is presented as formally adopted
in appropriation detail showing personnel vs. operating expenditures.
4