GENERAL FUND
Attachment A shows General Fund revenues and expenditures through February, as well as year-end estimates for each category. The estimated year-end projections in the General Fund are as follows:
Revenues $34,462,703
Less:
Expenditures ($32,747,261)
Less:
Council-Approved Use of Contingency:
- Town Manager Recruitment Process ($30,000) Approved July 6, 2016
Estimated Increase in Fund Balance $ 1,685,442
General Fund Revenues
- Local sales tax collections in the General Fund total $10.9 million or 69.5% of the budget amount of $15.7 million. These revenues are estimated to come in over budget by about $532,000 or 3.4% based on actual and estimated trends in construction sales tax, retail and restaurant/bar sales tax, and cable franchise fees. Please see Attachment F for a monthly, year-over-year tracking of General Fund local sales tax collections, including construction and utility sales tax.
- License and permit revenues total almost $1.6 million or 98.5% of the budget amount of $1.6 million. These revenues are estimated to come in over budget by about $411,000 or 25.4% based on current trends and updated forecasts for residential and commercial permitting activity through the remainder of the fiscal year.
- State shared revenues total $7.3 million or 67.7% of the budget amount of $10.8 million. These revenues are estimated to come in over budget by about $293,000 or 2.7% due to vehicle license taxes and state-shared income taxes. These budgets were set conservatively due to the unknown impact of special census efforts undertaken across numerous Phoenix Valley communities last year.
- Charges for Services revenues total $1.4 million or 66.3% of the budget amount of $2.1 million. These revenues are estimated to come in over budget by about $70,000 or 3.3% based on trending actual collections through year-end.
- Interest Income revenues reflect an unrealized loss of about $5,300 through February. It is anticipated that rising interest rates will cause increased volatility in the Town's investment portfolio. While this may cause temporary fluctuation as market values decline due to rising yields (market values move inversely to the direction of interest rates), this volatility tends to average out over longer periods of time as funds are invested at higher yields. For FY 16/17, these revenues are estimated to come in under budget by about $57,000 or 63.7%.
- State grant revenues are estimated to come in under budget by $139,700 or 62.6% due to budgeted grant proceeds that will not be utilized this fiscal year.
- Intergovernmental revenues are estimated to come in over budget by $119,500 or 7.7% due to anticipated RTA reimbursements for Transit.
- Please note that all year-end estimates are subject to change.
General Fund Expenditures
- Expenditures are projected to come in under budget by about $454,000 or 1.4% due to estimated personnel savings, capital savings for grant capacity that will not be utilized, and slight operations & maintenance (O&M) savings in several departments. Please note all figures are subject to change.
HIGHWAY FUND
Highway Fund Revenues
- State shared highway user funds total $2.1 million or 70.2% of the budget amount of $3.0 million. These revenues are estimated to come in over budget by about $242,000 or 8.1%. This budget was set conservatively due to the unknown impact of special census efforts undertaken across numerous Phoenix Valley communities last year. The year-end estimate also includes one-time proceeds of approximately $125,000 from House Bill 2708 passed last year, which allocates one-time, additional HURF monies to incorporated cities and towns for Fiscal Year 16/17.
- Charges for services revenues reflect Highway Fund services provided to the Stormwater Utility Fund. These revenues are estimated to come in under budget by about $74,000 or 55.5%, based on trending actuals through year-end.
- State grant revenues are estimated to come in slightly under budget by $15,000 or 7.7%, due to estimated reimbursements for contract administration of PAG and RTA-funded roadway widening projects.
- Interest Income revenues reflect an unrealized loss of $344 through February, and ae estimated to come in under budget by about $21,000 or 74.2%. Please reference the discussion on interest income revenues in the General Fund Notes above.
- License and permit revenues total $59,008 or 112.4% of the budget amount of $52,500. These revenues are estimated to come in over budget by about $14,000 or 26.3% based on trending actual collections through year-end.
- Please note that all year-end estimates are subject to change.
Highway Fund Expenditures
- Expenditures are projected to come in under budget by about $279,000 or 5.9%. Of this amount, $250,000 is due to the rollover of the Safeway (1st Ave) Safety CIP project, while the remaining $29,000 is due to estimated personnel savings. Please note these figures are subject to change.
BED TAX FUND
Bed Tax Fund Revenues
- Bed tax revenues total $524,757 or 48.3% of the budget amount of $1.1 million. These revenues are estimated to come in under budget by about $45,000 or 4.1%, based on current trends.
- Interest Income revenues reflect an unrealized loss of about $1,600 through February, and are estimated to come in under budget by about $5,000 or 80.7%. Please reference the discussion on interest income revenues in the General Fund notes above.
- The miscellaneous revenues of $3,500 are due to a donation for the Town's annual tree lighting event.
- Please note all year-end estimates are subject ot change.
Bed Tax Fund Expenditures
- Expenditures are estimated to come in under budget by $6,000 due to estimated O&M savings. Please note these estimated savings are subject to chagne.
COMMUNITY CENTER FUND
Attachment D-1 shows the consolidated financial status of the Community Center Fund with all revenues and expenditures from Troon and Town-managed operations.
Attachment D-2 shows the monthly line item detail for the Troon-managed operations, specifically revenues and expenditures associated with the golf, tennis and food and beverage operations. The totals in the revenue and expenditure categories in Attachment D-2 tie to the Contracted Operating Revenues and Expenditures in Attachment D-1.
Attachment D-3 shows the revenues and expenditures for the Troon-managed food and beverage operations only.
Community Center Fund Revenues
- Local sales tax revenues from the dedicated half-cent sales tax total roughly $1.4 million or 67.7% of the budget amount of $2.1 million. These revenues are estimated to come in over budget by about $109,000 or 5.2% due to healthy growth being observed in retail and restaurant/bar sale tax collections. Please note this estimate is subject ot change.
- Contracted operating revenues form Troon total about $1.8 million, or 48.9% of the budget amount of $3.7 million. These revenues are estimated to come in under budget by about $692,000 or 18.5%, based on Troon's forecast through the remainder of the fiscal year.
- Town operating revenues total $480,416 or 65.2% of the budget amount of $737,200. These revenues are estimated to come in over budget by about $53,000 or 7.2%, due mainly to member dues and recreation program revenues.
Community Center Fund Expenditures
- Contracted operating expenditures from Troon total $3.6 million or 67.5% of the budget amount of $5.3 million. These expenditures are estimated to come in under budget by about $188,000 or 3.6%, based on Troon's forecast through the remainder of the fiscal year. This includes identified savings of approximately $176,000 from recently implemented operational changes aimed at reducing expenditures through year-end.
- Town operating expenditures are projected to come in under budget by $7,500 or 0.8%, due to anticipated O&M savings.
- Capital outlay totals $72,392 from mainly cart path improvements and fitness equipment upgrades. Capital expenditures are projected to come in under budget by $445,500 or 84.5%. This is due primarily to the timing of the ADA improvements budgeted at the Community Center.
- Year-end expenditure estimates include the annual loan repayment of $120,000 to the General Fund.
Please see Attachments A, B, and C for additional details on the General Fund, Highway Fund and Bed Tax Fund. See Attachments D-1, D-2 and D-3 for additional details on the Community Center Fund.
See Attachment E for a fiscal year-to-date consolidated summary of all Town Funds. It is important to note the negative fund balance in the Benefit Self Insurance Fund of ($186,764) through February. Due to higher than expected medical claims costs, the current monthly Town and employee contributions to this fund have been insufficient to fully cover these costs. As a result, staff may request Council approval for a transfer of additional funds into the Self Insurance Fund if this trend does not reverse prior to fiscal year-end.
See Attachment F for a breakdown of monthly, year-over-year local sales tax collections for the General Fund. |