AGENDA DATE: 12/9/2015
TITLE:
Title
Q1 FY 16 Unaudited Quarterly Financial Report; Q1 FY 16 General Fund Revised Financial Projections Report; and Q1 FY 16 Quarterly Economic Indicators Report
BODY
SUBJECT/PROPOSAL/REQUEST: Status Report
ITEM TYPE: Consent Information Item
STAFF CONTACT(S): Foley, Letteri, Davis, Burrell, Breeden, Allshouse, S.
PRESENTER (S): N/A
LEGAL REVIEW: Yes
REVIEWED BY: Thomas C. Foley
BACKGROUND: The attached Quarterly Financial Report (QFR) (Attachment A) provides information regarding the County’s FY 16 General Fund and School Fund performance as of September 30, 2015. The General Fund Revised Financial Projections Report (Attachments B and C) includes projected General Fund revenues and expenditures for FY 16. The Quarterly Economic Indicator Report (Attachments D and E) provides an overview of recent general economic conditions in the County.
STRATEGIC PLAN: Operational Capacity: Ensure County government’s ability to provide high quality service that achieves community priorities. Economic Prosperity: Foster an environment that stimulates diversified job creation, capital investments, and tax revenues that support community goals.
DISCUSSION:
Quarterly Financial Report
The Quarterly Financial Report (QFR) reflects year-to-date (YTD) data through September 30, 2015, the end of the first quarter of FY 16. The data in the attached QFR is organized in a way that is consistent with Exhibit 12 of the County’s Comprehensive Annual Financial Report (CAFR). Most line item titles in the QFR match the line item titles in the CAFR. Highlights from the QFR include:
Revenues - YTD Actual
YTD total revenues in Q1 FY 16 was $16,853,385 compared to $14,951,433 in Q1 FY 15. In percentage terms, FY 16 YTD actual revenues as a percentage of FY 16 Revised Budget revenues, were 6.76% compared to 6.18% in FY 15. Bearing in mind the segregation of the Fire Rescue Services Fund from the General Fund, this result means that the rate of revenue collection was essentially consistent between the two years.
Individual revenue streams performed fairly consistently in Q1 FY 16 compared to Q1 FY 15. Four revenue streams did experience significant year-to-year variance. These revenue streams included Business License Tax, Charges for Services, Revenues from State Government, and Revenues from Federal Government. For additional information about these revenue variances, please see the analysis on page 2 of the QFR.
Expenditures - YTD Actual
YTD total expenditures in Q1 FY 16 equaled $70,423,828 compared to $61,199,925 in Q1 FY 15. In percentage terms, FY 16 YTD actual expenditures as a percentage of FY16 Revised Budget expenditures, were 28.25% compared to 25.31% in FY 15. This means that expenditures essentially were consistent between the two years, bearing in mind, again, the segregation of the Fire Rescue Services Fund from the General Fund.
Individual expenditure streams performed fairly consistently in Q1 FY 16 compared to Q1 FY 15. Five expenditure streams did experience significant year-to-year variance. These expenditure streams included Fire Rescue Services, Regional Jail, Transfer to School Fund, Transfer to Schools CIP, and Transfers Out: Transfer Accounts. For additional information about these expenditure variances, please see the analysis on pages 2 and 3 of the QFR.
ACPS Quarterly Financial Report
As requested by the Board, the Albemarle County Public Schools Quarterly Financial Report as of September 30, 2015 is included as a table in the QFR.
General Fund Revised Financial Projections Report
The General Fund Revised Financial Projections Report (GFRFPR) (Attachment B) provides a streamlined summary of forecasted revenues and expenditures. The GFRFPR indicates that by June 30, 2016, actual revenues are forecasted to be below appropriated revenues by $0.756 million. This deficit reflects in large part lower-than-expected delinquent property tax revenue. Expenditures are projected to be $0.807 million below appropriated expenditures. The difference between appropriated expenditures and forecasted expenditures is due primarily to savings associated with salary lapse and insurance. The result of the deficit in revenues plus the anticipated expenditures savings is a projected net increase of $0.051 million additional fund balance by the end of FY 16. Please note that this projected $0.051 million in additional fund balance equals only 0.02% of the forecasted $248.520 million FY 16 expenditures and transfers; this small percentage “buffer” reflects an extremely tight budgetary environment.
Quarterly Economic Indicators Report
The Quarterly Economic Indicators Report (QEIR) (Attachment D) shows the state of the County’s economy. The QEIR contains data taken from the most recently available quarter and compares this data with data from the same quarter of previous fiscal years. General economic activity, as measured by six select revenue streams, collectively grew between Q1 FY 15 and Q1 FY 16, although revenue in certain streams fell while revenue in other streams increased. The unemployment rate in Albemarle declined between Q1 FY 15 and Q1 FY 16, dropping from 4.70% to 3.80%. This year-over-year decline was the largest in the Q1 FY 12 to Q1 FY 16 period. Note that the County’s jobs base appears to have experienced robust growth between Q3 FY 14 and Q3 FY 15, the most recent quarter for which information is available. The total number of jobs increased from 48,881 to 50,334. This growth of 1,453 positions was the largest year-over-year rise during the Q3 FY 11 to Q3 FY 15 time frame. The revenue stream, unemployment rate, and jobs data suggest that the County’s economy improved in the most recent year, a situation that is consistent with an improving U.S. economy.
BUDGET IMPACT: Revenues and expenditures data contained in the QFR reflects the state of the County’s FY 16 budget-to-actual financial performance as of September 30, 2015. Year-end projections contained in the GFRFPR are subject to change, based on the result of actual collections and expenditures through June 30, 2016. Data shown in the QEIR reflects economic variables that impact the County’s current and future revenues and expenditures.
RECOMMENDATION:
Recommendation
These reports are for information only. Staff welcomes the Board’s feedback regarding the content and presentation of these reports.
ATTACHMENTS:
A - Quarterly Financial Reports (QFR)
B - General Fund Revised Financial Projections Report (GFRFPR)
C - GFRFPR Table 11/11/15
D - Q1 FY16 Quarterly Economic Indicators Report (QEIR) E - Q1 FY16 Quarterly Economic Indicators