01262010 FINANCE PRESENTATION (2)FY 2010
City of Virginia Beach
Budget to Actual Financial Update
For July 1 through December 31, 2009
Overview
- FY 2010 General Fund Revenues
- FY 2010 General Fund Expenditures
- Limited Projections
- Next Steps
General Fund .Revenues and Expenditures
4pared to «d~ct Tr`~ I)ece ber 1, ~~-~-
{iii millions}
Revenues
Local Revenues
State Revenues*
Federal Revenues
Total Revenues
Expe nditure s/Encumbrance s
Departmental Totals
Transfers
Reserve for Contingencies
Total Expe nditure s/Encumbrance s
Less Amounts Funded from Fund Balance
Outstanding Encumbrance at 6/30/09
Approved Carryover Requests
Funding for City Capital Projects
Operarting Budget FY10
Adjusted Expenditures/Encumbrances
Annual YTD
Budget Actual Variance
$ 861.5 $ 387.3 $ (474.2)
159.1 52.8 (106.3)
23.1 10.5 (12.6)
$ 1,043.7 $ 450.6 $ (593.1)
$ 522.4 $ 280.5 $ 241.9
564.1 285.5 278.6
3.2 - 3.2
$ 1,089.7 $ 566.0 $ 523.7
$ 6.1
1.2
33.9
aQ
$ 1,043.7
* State Revenues contain PPTRA Budget of $53.4M and Actual of $6. SM
100%
so°ro
y 60%
x
0
E~
0
40%
a~
a
20%
0%
100.0%
YTD ACTUAL = $450
6M
.
ANNUAL BUDGET = $1,043.7M 71.3°i°
JUI
9.5%
~o~ 5.2%
Aug Sep
55.3%
49.5%
58.3%
4
Oct Nov Dec Jan Feb Mar Apr May Jun
• Rev Trend ~' ®°% of FY10 Rev Budget
FY 2010 -General Fund lZevenues
- follow the trendline but keep in mind ...
• Several items are on a 1-2 month lag
• 2"a Real Estate installment due June 5
• Annual Business License Tax (BPOL) due in March
• Local Annual Personal Property Tax due June 5
• Vulnerability of State Revenues
- About $51 million of $157 million of total State revenues received
after 6-3 0-10, Personal Property Tax Relief Act: $47M
- Other State Revenues (such as public assistance and mental heath)
- These State Payments to cities in July are considered State FY 11 (but
FY10 for Cities)
State uses cash basis budgeting (not legal for cities)
5
Real Estate Revenues
December 31, 2005 - 2009
$600
$500
o $400
rn
a~
~ $300
a~
a~
$383.3
$198.8
$200
$100
$0
6
6
$493.0
51.1%
7
FY 2006 FY 2007 FY 2008 FY 2009
Actual Collections oYTD % of Total
* Does not include additional appropriation for Senior Tax Credit of $400K.
Dec 5 billing = $239.7M ($5.8M less than FY 2009)
FAVORABLE TREND
$479.1
$443.1
52.7% 51.3%
BUDGET*
$477.1
52.0%
.0
100%
80%
rn
0
60% .j
a~
0
U
0
40% O
0
20%
0%
6
FY 2010
Senior and Disabled Credit
December 31, 2005 - 2009
$18
$16
$14
~ $12
0
~ $10
N
a~i $8
$6
$4
$2
$0
®Through June 30
=amount of relief pending additional appropriation of $400K
7
FY 2006 FY 2007 FY 2008 FY 2009 FY 2010
Personal Property Taxes - Local Billed
December 31, 2005 - 2009
$100
$90
$80
$70
0
$60
to
~ $50
d
~ $40
$30
$20
$10
$0
100%
FAVORABLE TREND
$73.1 75%
$67.5 $68.1 BUDGET
$64.4 $64.2
d
50% ~j
0
H
0
0
° 23.9%
21.5% 19.6% 22.4 /° 25%
$14.6 $14.5 $14.4 15.2 $15.3
0%
FY 2006 FY 2007 FY 2008 FY 2009 FY 2010
oActual Collections o YTD %of Total
8
Personal Property
I'` ~xn
• Currently personal property is assessed at Loan Value X
3.70/$100.
• The bill is then reduced by 70%, so that taxpayer is billed 3 0
%.
• The PPTRA originally was designed to reimburse localities
70%.
• 2004 the State froze the reimbursement at $53.4 million; of that,
$47 million is received after 6/30 - a structural problem.
~si.s
~ 105.8
Revenue Received at June 30
Revenue Received after June 30 9
General Sales Taxes
December 31, 2005 - 2009
$7o UNFAVORABLE TREND 5.1% Down from FY09
$60 BUDGET
$54.0 $54.1
c $51.4 $51.4
51.1
_ $50
~ $40
43.1 % 44.1 % 45.3% 43.3%
~ $30
1 oo°io
75%
as
0
U
50% ~
0
H
w
0
0
25%
0%
10
General Sales Taxes Collections
Monthly %Change from FY09 to FY10
0.02
0
-0.02
-0.04
-0.06
-0.08
-0.1
Monthly %Change from PY
* Collections lag sales by 2 months
~~
JULY AUGUST SEPTEMBER OCTOBER NOVEMBER DECEMBER JANUARY
Hotel Room Taxes
December 31, 2005 - 2009
$30
$25
c $20
as
~ $15
as
as
$10
$5
$0
100%
80%
0
60%
0
U
0
I-
40% o
0
20%
0%
12
FY 2006 FY 2007 FY 2008 FY 2009 FY 2010
o Actual Collections o YTD ®% of Total
Restaurant Meal Taxes
December 31, 2005 - 2009
$60
$50
o $40
N
N
~ $30
d
$20
$10
$0
100%
80%
60%
40%
20%
0%
N
C
O
d
0
U
0
H
0
0
13
FY 2006 FY 2007 FY 2008 FY 2009 FY 2010
Actual Collections o YTD ~ %of Total
FY 2010 Year-to-Date General Fund Revenues
i~~ it ~~~
~-~. 1
X1,500
c X1,000
.~
a~
a~
~ $500
$0
^AnnualActual AnnualBudget
14
FY 2007 FY 2008 FY 2009 FY 2010
Year to FY 2010
Budget Trend
Date `%- of Budget
Real Estate Taxes $477.1 $248.0 52.0 % F
Personal Property Taxes 64.2 15.3 23.9 F
PPTRA 53.4 6.5 12.2 -
General Sales Tax 51.1 22.1 43.3 U
Utility Taxes 25.7 10.1 39.3 U
Telecommunications Taxes 23.7 7.3 30.7 U
Franchise Taxes 5.9 2.1 35.2 F
Business Licenses 40.6 1.5 3.8 F
Restaurant Taxes 49.8 25.5 51.3 U
Hotel Taxes 23.9 16.4 68.5 U
Cigarette Taxes 12.9 6.3 48.4 U
Automobile Licenses 9.1 3.6 40.1 U
. Amusement Taxes 5.3 3.2 60.6 U
City Taxon Deeds 5.9 2.8 47.9 F
Other Local Revenues 66.3 23.1 34.8 F
State Revenues 105.7 46.3 43.8 U
Federal Revenues 23.1 10.5 45.5 U
$1,043.7 $450.6 43.2 % F
Excludes Schools Revenues is
100%
~ 80%
a
W
60%
0
Ei
0
~" 40%
A~
20%
0%
100.0%
.-
• 94.8%
• 85.5%
• 78.0%
• 68.1
• ~n.~oi
51.9%
44.5% 51.9%
37.5% ~ 44.8%
~` 37.6%
28.5%
29.0%
17.1%
17.0%
9.8
8.9%
Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun
~~Expenditure Trend '~ %of FY10 Exp Budget _
16
c~ gyred ~o Y~~~oi ~°e~~d ~-.~ ~e
100.0%
ioo°ro
. 94.8`~~
sue. 80%
..~
c
a~
a
~c
W
60%
0
c
a~
U
S.
a~
a
40%
• 85.5%
• 78.0%
37.5 /° ~< 37.6 /o
28.5
29.0% 23.5%
2 °
• 68.1
0
51.9%~ 58.3%
'~' 51.9% 55.3%
44.5 % 49.5%
43.2%
X44.8°/~ 45.4%
o ~ o O
SPSA
17.1% 4.4 /o
20%
17.0% 14.4%
9.8
9.7%
0
8.9 ~%~ 4.4 /0 14.0%
9.5%
1.9%
5.2%
0% ,7 %
Jul Aug Sep Oct
State $ received after 6/30/10
- PPTRA $46.9M
-Other $4.6M
Nov Dec Jan Feb Mar Apr May Jun
~~Rev Trend %of FY10 Rev Budget ~~~Expenditure Trend %of FY10 Exp Budget
71.3%
17
General Fund FY 2010 Expenditures
- Total at December 31, 2009: $566.OM, or 51.9%, of $1.09B Budget
- Summary of Actual Expenditures Under Budget at June 30:
(in millions)
of Total % of City
Total Budget City Budget
2008 (1lctual) $60.3 5.6% $25.0 3.5%
2009 (Actual) $43.0 3.8% $28.1 3.6%
Schools
$35.3
$14.9
~g
Water and Sewer Enterprise Fund
December 31, 2009
- Lower water consumption than budgeted (32.2 MGD
budgeted vs. 30.0 MGD actual)
- Lower Connection fees revenues due to slowdown in
COl"IStT'LlCtl Ol"1
FY09 FY10
Budget Actual* % Budget Actual*
Revenues $ 101.4 $ 42.8 42.3% $ 102.4 $ 43.6 42.6%
Expenditures $ 109.0 $ 48.9 50.5% $ 118.6 $ 51.5 43.4%
* CASH BASIS -EXCLUDES ACCRUALS
• Costs also down: Water Services contract -- only 12% variable costs
Year-end expected to be within budget overall
~9
Revenues
Expenditures
Risks
~ SPSA
~ PPTRA
Bottom Line
<$6M - $12M> under
<$22M - $26M> under
Zo
Next Steps
- Continue to Monitor Revenues in FY 2010
^ Business Licenses -March
^ Personal Property -March/April
- Next briefing on February 23, 2010 for
data through January 2010.
2~