Monthly Financial Report - June 2015

Page updated on Sep 8, 2015 at 3:53 PM

Presented to City Council by City Manager Mark Jinks on August 24, 2015.

Click here to read the original memo.

Report Summary

This report includes highlights of the City’s financial condition and provides fiscal year FY 2015 financial information on revenues and expenditures of the General Fund for the period ending June 30, 2015. These results are un-audited and does not include all revenues and expenditures for FY 2015.  Final revenues and expenditures for FY 2015 will be reported later this year in the City’s audited Comprehensive Annual Financial Report (CAFR). The CAFR will reflect additional revenues received and FY 2015 disbursements made through the end of summer that are attributable to FY 2015. 

Although City General Fund revenues may still come in below the amount budgeted, revenues will at least equal or exceed the FY 2015 revenues projected when the FY 2016 budget was adopted; FY 2015 expenditures will likely be lower than what was projected when the FY 2016 budget was adopted; and the General Fund (GF) Fund Balance should reflect an increase by the time the FY 2015 books are closed and the audit completed. 

As of June 30, 2015, General Fund revenues totaled $661.2 million, or 96.9% of the budgeted revenue, which is 2.4% lower than the four-year average of revenue received to date. Compared to the same period last year, the City received 2.6% more of budgeted revenue in this fiscal year than last year at the same time. Most of this increase is related to the collection of personal property taxes which have exceeded the budgeted and projected amounts. For personal property taxes, a portion of the increase relates to citizen outreach efforts by City staff to work with city apartment complexes to educate tenants about their taxpaying responsibilities as new residents. Several categories of other local taxes will still have additional revenues received after July 1st that will be attributed to FY 2015.  Motor Vehicle License Tax (Decal Fee) for vehicles collections have also exceeded the budgeted and projected amount.  Intergovernmental Revenue has lagged behind in both the budgeted amount and the projection mainly due to a reduction of $0.8M in HB 599 revenue and Compensation Board funding in FY 2015. Other governmental revenue exceeded both the budgeted amount and the projection. One interesting category is  Other Revenue, in which the City recovered more than $0.4 million from the sale of surplus property because of efforts to maximize revenue.

As of June 30, 2015, General Fund expenditures totaled $591.4 million, or 86.6% of budgeted expenditures. The City spent 1.4% less than the four-year average and spent 1.0% less of the budget than the same period last year. The revised budget reflects amounts that were appropriated in the supplemental appropriation ordinance approved in June including the bond refunding. Personnel expenditures are 2.0% lower than the four-year average and reflect only 96.2 % of budget spent even though 100.0% of payrolls have been processed. Non-personnel expenditures are 2.3% less than the four-year average. This is partly due to management of expenditures to keep expenditures below revenue and partly due to savings in subsidy contributions to the Washington Metropolitan Area Transit Authority (WMATA) and Northern Virginia Juvenile Detention Home.

The economic indicator highlighted in this month’s report is Residential Real Estate Sales Volume and Value. Additional economic, revenue, and expenditure charts are also available on the City of Alexandria website at: alexandriava.gov/FinancialReports. Attached are General Fund revenue and expenditure tables.

Revenues

As of June 30, 2015, General Fund revenues totaled $661.2 million, or 96.9% of the budgeted revenue, which is 2.4% lower than the four-year average of revenue received to date. Compared to the same period last year, the City received 2.6% more of budgeted revenue in this fiscal year than last year at the same time. Most of this increase is related to the collection of personal property taxes, both of which have exceeded the budgeted and projected amounts. For personal property taxes, a portion of the increase relates to citizen outreach efforts by City staff to work with city apartment complexes to educate tenants about their taxpaying responsibilities as new residents. Several categories of other local taxes will still have additional revenues received after July 1st that will be attributed to FY 2015.  Motor Vehicle License Tax (Decal Fee) for vehicles collections have also exceeded the budgeted and projected amount.  Intergovernmental Revenue has lagged behind in both the budgeted amount and the projection mainly due to a reduction of $0.8M in HB 599 revenue and Compensation Board funding in FY 2015. Other governmental revenue exceeded both the budgeted amount and the projection. One interesting category is  Other Revenue, in which the City recovered more than $0.4 million from the sale of surplus property because of efforts to maximize revenue. Noticeable variances in revenues are detailed in the table below.

FY15 and Historic Monthly Revenues - June 2015

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

YTD Revenues - June 2015

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

NOTE: Revenue charts exclude refunding bond proceeds so that revenues can be compared accurately year to year.

Revenue Variances in Detail

Revenue Variances in Detail June 2015

Revenue Variances in Detail June 2015 x2


Expenditures

As of June 30, 2015, General Fund expenditures totaled $591.4 million, or 86.6% of budgeted expenditures. The City spent 1.4% less than the four-year average and spent 1.0% less of the budget for the same period last year. The revised budget reflects amounts that were appropriated in the supplemental appropriation ordinance approved in June including the bond refunding. The refunding bond expenses were adjusted in prior years in the charts below to compare expenditures in past years. Personnel expenditures are 2.0% lower than the four-year average and reflect only 96.2 % of budget spent even though 100% of payrolls have been processed. Non-personnel expenditures are 2.3% less than the four-year average. This is partly due to management of expenditures to keep expenditures below revenue and partly due to savings in subsidy contributions to the Washington Metropolitan Area Transit Authority (WMATA) and Northern Virginia Juvenile Detention Home. Noticeable variances in expenditures from the four-year average include various departments with vacancies and General Cash Capital are detailed in the table below. This is not the final FY 2015 expenditure total, as additional expenditures made after July 1st for services provided before June 30th will be attributed to FY 2015. 

FY15 vs FY14 YTD expenditures

Percent of budget expended is 2.0% lower than in FY14, excluding refunding bond expenses.

YTD Personnel Expenditures - June 2015

At this point in the fiscal year, the City YTD Personnel costs are 1.4% lower than this month last year. These costs have been consistently lower than in FY 2014. Salaries and benefits are 2.0% below the four-year average.

YTD Non-Personnel Expenditures - June 2015

YTD Non-Personnel expenditures are 3.2% higher than this point in FY14, excluding refunding bond expenditures.

NOTE: Refunding bond expenditures are not included in charts so that expenditures can be compared year to year.

Expenditure Variances in Detail

Expenditure Variances in Detail - June 2015


Economic Indicators

Residential Real Estate Sales Volume and Value

According to data from Metropolitan Regional Information Systems (MRIS) and the City’s Department of Real Estate Assessments, through May of calendar year 2015, a total of 985 residential dwellings have been sold. This equates to a 9.4% increase over the same period from last year. The average single family home sales price increased by 15.6%, while the average sales price on townhomes and condominiums decreased by 1% when comparing to the same period last year. Also through May of calendar year 2015, the three month moving average of the median sales value ($505,483) is up 1.3% over the same period in calendar year 2014.

There were 28 foreclosures through May of calendar 2015, 6.7% less than the same period last year. 

Residential Property Median Sales Value - June 2015

Source: Real Estate Assessments

New Foreclosures - June 2015

Source: Real Estate Assessments through May 2015

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