Monthly Financial Report - January 2015

Page updated on Apr 10, 2015 at 3:42 PM

Presented to City Council by Acting City Manager Mark Jinks on March 10, 2015.

Click here to download the full report.

Report Summary

Seven months through fiscal year 2015, year-to-date General Fund revenues and expenditures are 2.1% and 1.7% lower than the four-year average for percent of budget collected and spent, respectively. While expenditures appear to be on pace to end the year within budget, the revenue picture remains a concern as detailed in last month’s report. The Office of Management and Budget is working with departments to identify areas for expenditure savings to ensure expenditures remain below revenue projections, and that the budget remains in balance. 

As of January  31, 2015, General Fund revenues totaled $321.9 million, or 50.1% of the budgeted revenue. Through the first seven months of the fiscal year, the City is 2.1% below the four year average rate of revenue received.  Tax revenue from sources other than real estate and personal property continue to lag relative to the four-year average. Part of this is due to the timing of payments, but in large part this is due to the Washington D.C. and regional economy growing at a very slower pace. In recent years the Washington D.C. economy has gone from one of the fastest growing regional economies in the U.S. to one of the slowest growing economies in the nation.  

Revenue projections for FY 2016 were based on the analysis of revenues received to date in FY 2015, so this negative budget vs. actual trend for FY 2015 revenues has already been taken into account. This negative trend is the primary cause of having low revenue growth predicted for FY 2016. The biggest revenue unknown for FY 2015 remains business license tax gross receipts, where the bulk of the tax payments were due on March 2.

As of January 31, 2015,  General Fund expenditures totaled $322.3 million, or 50.2% of budgeted expenditures. Compared to the historical four-year average, the City has spent 1.7% less of its budget in FY 2015. Personnel expenditures are 1.9% less than the four-year average percent of budget spent to date, and non-personnel expenditures are 1.7% less than average.  

Revenues

As of January  31, 2015, General Fund revenues totaled $321.9 million, or 50.1% of the budgeted revenue. Through the first seven months of the fiscal year, the City is 2.1% below the four year average rate of revenue received.  Tax revenue from sources other than real estate and personal property continue to lag relative to the four-year average. Part of this is due to the timing of payments, but part is due to the economy continuing to grow at a slower pace. Noticeable variances in revenues including Consumer Utility, Communication Sales and Use, Real Estate Recordation, Admissions, Other Local Taxes, Revenue from the Fed. Government, Revenue from the Commonwealth, Fines and Forfeitures, License and Permits,  Revenue from Use of Money and Property, Other Revenue are detailed in the table below.  

FY15 and Historic Monthly Revenues - January 2015

*4-year average data comes from FY 2011-FY 2014 data

YTD Revenues - January 2015

*4-year average data comes from FY 2011-FY 2014 data

Revenue Variances in Detail

Revenue Variances in Detail - January 2015

Revenue Variances in Detail 2 - January 2015


Expenditures

As of January 31, 2015,  General Fund expenditures totaled $322.3 million, or 50.2% of budgeted expenditures. Compared to the historical four-year average, the City spent has spent 1.7% less of its budget in FY 2015. Personnel expenditures are 1.9% less than the four-year average percent of budget spent to date, and non-personnel expenditures are 1.7% less than average. The charts below comparing the current fiscal year to last year’s percent of budget expended show that non-personnel, personnel, and total expenditures for FY 15 are all lower than at this point in time last year.  Noticeable variances in expenditures include departments with vacancies, Cash Capital, and Cash Match.  Variances are detailed in the table below.  As discussed in last month’s report, given the revenue outlook for the remainder of the year, expenditures need to be closely monitored to ensure that the City’s expenditures remain lower than revenue collected.

FY15 vs FY14 YTD Expenditures - January 2015

Percent of budget expended is 3.0% lower than in FY14 and 1.7% lower than the 4-year average.

YTD Personnel Expenditures - January 2015

At this point in the fiscal year, the City YTD Personnel expenditures continue to be slightly lower than last year. Salaries and Benefits are 1.9% below the 4-year average.

YTD Non-Personnel Expenditures - January 2015

YTD Non-Personnel expenditures are 2.8% lower than this point in FY14 and 1.7% lower than the 4-year average.

Expenditure Variances in Detail

Expenditure Variances in Detail - January 2015

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