08-11-2020 Financial UpdateJuly
Financial Update
Presented by:
Ade Ariwoola, Finance Director
August 11, 2020
Update On Major Revenues
1.Sales Tax –36% of GF. 2.Property Tax –26% of GF.3.Building Permit Fees –8%4.Traffic Safety (Red Lights)5.Utility Tax –18%6.Prop 1
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Jul Jan-July Aug Sep Oct Nov Dec YTD Total
2019 Actual 1,263,066 7,443,232 1,502,252 1,401,269 1,438,593 1,528,439 2,595,078 15,908,863
2020 Budget 1,328,309 7,524,360 1,280,196 1,194,140 1,225,947 1,302,513 1,930,225 14,457,381
2020 Actual 1,423,588 7,590,321 7,590,321
Sales Tax Revenue
•Original Budget -$15.95 million
•Revised Budget -$14.46 million
•YTD revenue is $7.59 million, better than last year and current YTD budget.
•YTD budget is $7.52 million.
•2019 YTD Actual was $7.44 million.
•May/July budget -$1.33 million.
•May/July revenue –$1.42 million.
•July revenue is 107.17% of revised budget
•Reduction from original budget is about $1.5 million
•Sales Tax –36% of General Fund Revenue.
Sales Tax
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Jul Jan-July Aug Sep Oct Nov Dec YTD Total
2019 Actual 48,704 5,831,926 66,266 215,895 3,554,163 1,141,913 107,265 10,917,428
2020 Budget 50,159 6,006,225 68,247 222,348 3,660,386 1,176,041 110,471 11,243,718
2020 Actual 95,061 5,896,486 5,896,486
25.48%
Property Tax Revenue
Property Tax as % of year 2020 General Fund (GF) budgeted revenue
•YTD revenue is $5.90 million.
•YTD is only $110k short of 2020 budget
•YTD is more than 2019 YTD actual
•YTD budget is $6.01 million.
•2019 YTD Actual was $5.83 million.
•It may affect our cashflow but NOT revenue.
Property Tax
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Jul Jan-July Aug Sep Oct Nov Dec YTD Total
2019 Actual 238,899 2,530,991 436,819 181,193 600,317 359,558 437,556 4,546,434
2020 Budget 84,525 1,814,941 85,663 71,187 93,213 71,605 64,645 2,201,254
2020 Actual 75,894 1,124,007 1,124,007
Building permits as % of year 2020 General Fund (GF) budgeted revenue7.69%
Building Permit
•Building Permit revenue is 7.69% of General Fund
•Original budget –$3.4 million
•Revised budget –$2.20 million, reduction of $1.2 million
•YTD revenue is $1.12 million
•YTD budget is $1.81 million, and
•2019 YTD Actual was $2.53 million
•April revenue was 63.33% of budget
•May revenue was 34.32% of budget
•June revenue was 67.75% of budget
•July revenue was 89.78% of budget
Building Permit
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Jul Jan - July Aug Sep Oct Nov Dec YTD Total
2019 Actual 309,469 2,241,819 237,046 249,582 299,469 287,654 261,679 3,577,248
2020 Budget 136,108 2,189,864 121,162 127,569 153,068 147,029 133,752 2,872,444
2020 Actual 136,108 1,443,649 1,443,649
Required Reserve $1.2 million
Traffic Safety Revenue
•Original budget -$3.80 million.
•Revised budget –$2.87 million.
•June revenue was 26.16% of budget.
•May revenue was 35.24% of budget.
•April revenue was 79.62% of budget.
•This revenue stream funds 1 Lieutenant, 8 police officers, and
emergency communication system.
•Required fund balance will NOT be met at the end of the year.
Traffic Safety (Red Light)
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Jul Jan - July Aug Sep Oct Nov Dec YTD Total
2019 Actual 617,562 4,498,100 607,842 609,077 670,599 597,293 1,610,557 8,593,468
2020 Budget 1,854,751 5,991,630 766,385 767,941 845,510 753,084 2,030,636 11,155,186
2020 Actual 1,854,751 5,702,380 5,702,380
Projected loss
Utility Tax
•Potential loss is minimal but it affects GF.
•Commercial buildings use the most utility and pay the largest share.
•$8.47 million was transferred into General fund in 2019.
•$8.56 million is expected to be transferred into General Fund in 2020.
•Its major source of funding for FWCC, DBC, and Prop 1.
•Increased budget by about $2.0 million for Water, sewer, and Garbage.
•Utility tax for Storm water is not available for July.
•2020 Budget went from $9.16 to $11.16 million.
Utility Tax
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Jul Jan-June Aug Sep Oct Nov Dec YTD Total
2019 Actual 180,122 1,314,133 177,287 177,647 195,591 174,211 469,746 2,508,615
2020 Budget 541,102 1,733,704 209,077 209,499 230,661 205,448 553,971 3,142,360
2020 Actual 541,102 1,664,815 1,664,815
Utility Tax Prop 1
•Potential loss is minimal but it affects GF.
•This revenue stream funds 1 Code Compliance Officer, 2 Prosecutors,
1 Court Clerk, 0.5 Judge, 1 Maintenance Worker, 1 Record Specialist,
17 Police Officers, and 2 Lieutenants.
•It usually doesn’t generate enough revenue to cover required items.
•Increased the budget by about $400k from $2.74 million to $3.14
million for the new water, sewer, and garbage taxes.
Utility Tax Prop 1
Summary
1.We’ve adjusted budget to reflect the new reality
as of now.
2.Traffic Safety may not meet required Fund
balance at the end of the year.
3.Utility tax on Water, and Sewer is reflected on the
Utility tax and Prop 1.
4.The City’s financial condition is still better than
most (Utility tax, SCORE, ADP, and business
makeup).
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Questions?
Thank You