finance budget retreat january 30 2016 final

8/20/2019 Finance Budget Retreat January 30 2016 Final

1/26

Council Retreat – Mid-Year

Financial Review and FY17 Budget

Planning

January 30, 2016

1


2/26

Agenda

Budget Process and Calendar

Mid-Year Review

Revenue Forecast

Key Expenditure Changes

Strategies to Close the Gap

2


3/26


3


4/26


4

• Budget Developed, Proposedand Adopted

• January – June of each year

Creation

• Adopted Budget executed byManager & staff

• Adapted for changing needswith recommendations toCouncil for Amendments, if

necessary• July – June of each year

Implementation• Audit and preparation of CAFR

to present actual results

• July – December of each year

Reporting


5/26


October: FY17 Budget instructions to Departments & Outside Agencies

December 31: Departmental Requests Due

January 31: Requests Compiled and Formatted by Finance and Submitted toManager

Feb. & March: Manager and Management Team Develop RecommendedBudget

April: Manager Submits Recommended FY17 Budget to Council

April & May: Budget Work Sessions

May 10: Public Hearing on Proposed FY17 Budget

June 14: Council Adopts FY17 Budget

July 1: FY17 Begins

5


6/26

Mid-Year Review: GF Revenues

FY16 Revenue Total (as amended) $13,663,989

Collected as of 12/31/15 – 34.5% $4,689,918

42.0% FY15 collected as of 12/31/14 $4,168,133 (of total $9,918,646, as amended)

Key FY15 & FY16 Mid-Year Comparisons FY15/FY16 FY15 / FY16

Sales Tax 40% / 38% $210,455/$228,428 (4 months)

Utility Tax 42% / 38% $197,967/$189,575 (5 months)

Meals Tax 46% / 44% $921,235/$957,038 (5 months)

Cigarette Tax 48% / 45% $90,324/$85,311

Lodging Tax 49% / 54% $90,695/$102,813 (5 months)

Permits & Fees 67% / 79% $97,905/$108,763

Court Fines 37% / 31% $70,719/$58,390

WARF Charges 39% / 38% $557,627/$543,711

State + Federal Aid 62% / 53% $1,758,617/$1,753,922

BPOL, Bank Stock, Vehicle Licenses collected in Q4

6


7/26

Mid-Year Review: GF Expenditures

FY16 Exp. Total (as amended) $13,663,989

Spent as of 12/31/15 – 45.3% $6,192,52944.5% FY15 spent as of 12/31/14

No Significant FY16 actual/budget expenditure

variancesNo use of Fund Balance appropriation to date

7


8/26


9/26

Mid-Year Review: W&S Fund Expenses

FY16 Exp. Total (as amended) $5,519,140

Spent as of 12/31/15 – 39.2% $2,164,018

43.6% FY15 spent as of 12/31/14 $2,164,767 ($4,960,517)

No Significant FY16 actual/budget expense variances

No use of Reserves/Retained Earnings appropriation to date

9


10/26

GF Revenue Forecast: RE & PP Tax

10

FY13 FY14 FY15 FY16 FY17 FY18 FY19 FY20

Series1 $539,313 $605,047 $678,228 $683,100 $687,972 $692,844 $697,716 $702,588

$0

$100,000

$200,000

$300,000

$400,000

$500,000

$600,000

$700,000

$800,000Property Taxes


11/26

GF Revenue Forecast: Sales Tax

11


Series1 $530,836 $561,074 $595,653 $625,000 $640,625 $656,641 $673,057 $673,057

$0

$100,000

$200,000

$300,000

$400,000

$500,000

$600,000

$700,000

$800,000Sales Tax


12/26

GF Revenue Forecast: Meals Tax

12


Series1 $2,152,237 $2,191,572 $2,265,639 $2,290,000 $2,346,701 $2,395,437 $2,444,172 $2,492,908

$0

$500,000

$1,000,000

$1,500,000

$2,000,000

$2,500,000

$3,000,000Meals Tax


13/26


14/26

GF Revenue Forecast: BPOL

14


Series1 $1,366,360 $1,914,525 $1,656,923 $1,700,000 $1,742,500 $1,786,063 $1,785,000 $1,800,000

$0

$500,000

$1,000,000

$1,500,000

$2,000,000

$2,500,000

BPOL


15/26

GF Revenue Forecast: Permits & Fees

15


Series1 $182,847 $128,220 $203,476 $217,526 $227,841 $238,093 $244,046 $246,486

$0

$50,000

$100,000

$150,000

$200,000

$250,000

$300,000Permits & Fees


16/26


17/26

W&S Fund Revenue Forecast:

Consumption Charges

17


Series1 $3,570,606 $3,608,609 $3,527,588 $3,848,595 $5,073,691 $5,225,902 $5,382,679 $5,544,159

$0

$1,000,000

$2,000,000

$3,000,000

$4,000,000

$5,000,000

$6,000,000

Water & Sewer Charges


18/26

W&S Fund Revenue Forecast:

Availability Fees

18


Series1 $333,225 $123,913 $175,350 $355,250 $276,313 $288,064 $299,815 $311,566

$0

$50,000

$100,000

$150,000

$200,000

$250,000

$300,000

$350,000

$400,000

W&S Availability Fees


19/26

Key Expenditure Changes: GF* Cost of Merit-Based Pay Increases

General Fund = $159,3599

Cost of VRS Increases $0

Cost of Health Insurance Increases

General Fund = 38,568

Requested Additional Positions: 242,167

Police (1 officer, sal. & benefits) $67,604

Recreation (3 positions, sal. & benefits) $174,563

Warrenton Volunteer Fire Department requested increase 150,000

Comprehensive Plan 220,000

Public Works Equipment (513,500)

Eliminate Appropriation of Fund Balance to Revenue 713,430

Net Key GF Expenditure Increases: $1,016,625

* Includes internal service funds (IT and Motor Pool)19


20/26

Key Expense Changes: W&S Fund

Cost of Merit-Based Pay Increases

Utility Fund = $51,839

Cost of VRS Increases 0

Cost of Health Insurance Increases

Utility Fund = 12,312

Eliminate Appropriation of Reserves to Revenue 952,474

Requested Operating Increases: 0

Net Key Utility Fund Expense Increases: $1,016,625

20


21/26

Strategies for Closing the Gap

Possible Sources for Increased Revenue – Rate Increases

RE Tax: 1¢ = $147,000

PP Tax: $1.00/$100 valuation = $450,000

Utility Consumption Tax = $495,000

Electric Monthly Max: $3/$20 (Resid./Bus.)

Gas Monthly Max: $3/$20 (Resid./Bus.)

Vehicle Licenses (“Stickers”): = $101,000

Cars - $15; Motorcycles - $10

21


22/26


More Possible Options for Tax Rate Increases

Meals Tax: 4% = $2,170,000 Each ¼% = $135,000

Cigarette Tax: 15¢/pack = $190,000

Fauquier Co. = $0

Lodging Tax: 4% = $190,000

Each 1% = $47,500

22


23/26


Options for Increased Revenue – Rate Increases

WARF Charges = $1,405,538

Memberships & Passes = $800,000

5% Increase = $40,000

Lane Rentals = $145,000

5% Increase = $7,250

Lessons, Classes = $320,000

5% Increase = $16,000

Conservatively, estimate + $50,000 over FY16 actual

23


24/26


Planned Water & Sewer Rate Increase – As Part II of

Phased Increase

Category Average Increase of 20% = $1,225,096Adopt in Conjunction with FY17 Budget

Effective July 1, 2016

Eliminates appropriation of reserves ($952,474)

24


25/26


No new positions

Prioritize existing services for reductions

Grow our Tax Base!

25


26/26

Final slide – Enjoy the rest of your

Saturday!

finance budget retreat january 30 2016 final

Documents