Monthly Financial Report -- July 2012

Page updated on Sep 24, 2012 at 1:13 PM

Presented to City Council by City Manager Rashad M. Young on an informational basis only.

Download Original Signed Memo

Final revenues and expenditures for FY 2012 will be reported later this fall in the City’s audited Comprehensive Annual Financial Report (CAFR). We expect to realize the revenue surplus we reported to City Council during budget deliberations. Final expenditures are still being reviewed.

NOTE: Click on the headings below or the "online references" to view more detailed economic, revenue or expenditure data. Click on any highlighted bullet or text to view additional information, including charts and memos.

ECONOMIC HIGHLIGHTS:

Sales Tax Collections: June local Sales Tax collections ($2.3 million), excluding gasoline, are up 1.8 percent from June 2011. Second quarter collections ($6.6 million) are up 2.9 percent from the second quarter of 2011 ($6.4 million). Through the first half of 2012 sales tax revenues are $12.6 million this is $0.8 million more than what was collected in the first half of 2011. Since 2007 collections in the second half of the calendar year have exceeded collections in the first half by roughly 4.6 percent. If that trend continues total retail collections for calendar year 2012 will be approximately $25.8 million, roughly $1.6 million over 2011 collections.

National total sales, including gas and auto sales, in July are up 2.4 percent from July 2011 while the three month trailing average from May through July is up 3.5 percent from the same period in 2011. Nationally, all segments showed improvement over last year except electronics and appliance sales which decreased 1.1 percent and general merchandise retailers which decreased by 1.4 percent. The largest growth by segment over last year came from non-store retailers (on-line retailers) which grew by 15.4 percent while furniture and home furnishing stores increased by 9.0 percent and motor vehicle and parts dealer’s sales increased 8.3 percent.

Increases in retail sales coincide with lower gas prices ($0.22 below the price last July), stronger job growth in July (163,000 jobs added, the best month for job growth since February), and increased home prices (national composite is up 1.2 percent in the second quarter of 2012 versus the same period from 2011).

State and Local Government Employment: Since 2009 state and local governments have lost an estimate 621,000 jobs with 129,000 lost in 2009, 262,000 in 2010 and 230,000 in 2011. This year, through July, state and local governments have lost a total of 42,000 jobs. Over the same period in 2011, state and local governments lost 205,000 jobs. These trends suggest employment loss in state and local government is slowing but has not stopped yet. From FY 2007 through the FY 2013 Approved budget Alexandria City has lost a total of 92 jobs. The graph below shows total state and local government payroll employment since 2007:

State and Local Employment -- July 2012

There were 163,000 payroll jobs added in July with 172,000 coming from the private sector while 9,000 government jobs lost. The federal government has lost 38,000 over the last 12 months and 2,000 in July.

REVENUE HIGHLIGHTS:

Year-to-Date Revenues: As of July 31, 2012, actual General Fund revenues totaled $2.0 million, which is 18 percent more than the revenues for the same period last year, mainly due to increases in charges for highway maintenance, sanitation, and the use of parks and recreation facilities as well as for the sale of surplus property. Government accounting principles require that most taxes and intergovernmental revenues received in July are counted as revenue for the fiscal year ended June 30, 2012. See the online reference for more information.

EXPENDITURE HIGHLIGHTS:

Year-to-Date Expenditures: As of July 31, 2012, actual General Fund expenditures totaled $39.3 million, an increase of $2.4 million, or 6.5 percent, above expenditures for the same period last year. One month does not provide enough data to recognize any trends either positive or negative.

  • Health Department: The Health Department made the first $0.97 quarterly payment to the Commonwealth of Virginia to cover the City’s local commitment earlier in the year than in FY 2012. 
  • Debt Service:  The increase in debt services reflects planned expenditures for the FY 2012 general obligation bonds. 

ONLINE REFERENCES (ATTACHMENTS):

 

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