HomeMy WebLinkAboutPackets - Council Packets (1237)Council Meeting
Special Session
November 20, 2019
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Fiscal Year 2019/2020
Financial Update Through September 2019
November 20, 2019
Thank you Mr. Mayor, members of the Council for the opportunity to present our August financials tonight. I’m pleased to report that things continue to look positive for the Town in
all of our funds at this point in the fiscal year, with revenues trending at or over budget and expenditures trending at or under budget
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General Fund
In the General Fund, total revenues collected this year through Aug are $6.3M compared to $5.9M collected last year through this month. We are about 17% of the way through the fiscal
year, and trending right in line with where we expect to be.
Expenditures through Aug total $6.4M compared to $5.5M spent last fiscal year through this month.
So through the month of August our total expenditures exceed total revenues by about $130K, which is typical at this point. Our summer months are lower in terms of revenue collections,
and on the expenditure side, we always make our transfer out to the debt service fund in July for our debt service payments, so that entire transfer for the year is in the YTD expenditures,
and we’ve also already made our $500K budgeted lump sum payment to PSPRS towards our unfunded liability.
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General Fund Highlights
Local sales tax collections estimated to exceed budget by about $410K or 2.1%, due to construction sales tax
License and permit revenues estimated to exceed budget by $213K or 10.7%, due to residential and commercial building and grading permits
Interest income estimated to exceed budget by about $440,000, due to better than expected interest earnings on investments
Expenditures estimated to end year under budget by $220K or 0.5%, due to personnel savings
Year-end fund balance estimated at $18.3M
A few highlights in the General Fund :
Local sales taxes are trending to end the year on budget, currently at about $3.0M or 15.6% of budget
License and permit revenues are trending over budget, at almost $500K, or about 25% of budget. We budgeted 300 single family residential permits, and we’re already at 54 through August.
We also had an unbudgeted commercial project, which is the expansion of Leman Academy, and that has contributed to our commercial building permit revenues. Overall for this category,
we’re estimating to end the year about $200K over budget.
State shared revenues are trending right on budget
Charges for services revenues typically trend a little high early on in the fiscal year, due to summer recreation programs and aquatic revenues, so those are still expected to end the
year on budget.
Expenditures are estimated to end under budget by $170K due to personnel savings.
Overall, we are estimating to end the year with expenditures exceeding revenues by about $2.2M and an ending fund balance of about $17.4M, or about 41% of budgeted expenditures. As a
reminder, our Council-adopted reserve policy for the Gen Fund is 25% of expenditure, so very positive there
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Highway Fund
In the Highway Fund, total revenues collected this year through Aug are $823K compared to $581K collected last year through this month. The total revenue budget is $3.8M.
Expenditures through Aug total $218K compared to $363K spent last fiscal year through this month. Total expenditure budget is $4.1M.
So through the month of Aug total collected revenues exceed expenditures by just over $600,000.
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Highway Fund Highlights
HURF gas tax revenues expected to exceed budget by about $200K, due to one-time allocation approved in final state budget
Total revenues estimated to exceed budget by $232K
Expenditures estimated on budget at this time
Year-end fund balance estimated at $762K
For Highway Fund highlights, HURF gas tax revenues are expected to end the year over budget by about $200K, due to one-time allocation approved in final state budget.
Total revenues estimated to end the year over budget by about $227K
Expenditures are estimated on budget at this time
Overall, expenditures expected to exceed revenues by about $110K, which results in a year-end fund balance of roughly $760K
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Community Center Fund
In the Community Center Fund, looking positive as well. Total revenues collected this year through Aug are $964K compared to $870K collected last year through this month. The total revenue
budget is $6.7M.
Expenditures through Aug are roughly flat to last fiscal year, at about $1.1M
So through the month of Aug total expenditures within the fund exceed revenues by roughly $175K. To note, that figure was $252K last year through Aug, so seeing some improvement there.
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Community Center Fund Highlights
Revenues estimated to exceed budget by about $125K or 1.8%, due primarily to outside play on the member course
Expenditures estimated under budget by roughly $57K or 0.9%
Total revenues in the fund projected to exceed total expenditures by $479K
Year-end fund balance estimated at $975K
Overall, total revenues at year-end are estimated to come in just over budget, by about $50K, due primarily to our contracted revenues for golf and F&B.
Total expenditures are estimated about on budget, just under by about $6K
Total revenues in fund projected to exceed total expenditures by $355K
With a year-end fund balance of just over $850K
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QUESTIONS?
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Financing Options for Capital Improvements for the Town Community Center and Golf Course
November 20, 2019
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Background
October 2, 2019 Town Council directed staff to present options and recommendation to finance capital improvements for Community Center and Golf Course.
November 6, 2019 Town Council Meeting staff presented:
Assumptions
Options
Pay-as-you-go
Inter-Fund Loans
Bonds
Recommendation
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Revised Staff Recommendation
Course irrigation replacement take place in summer of 2021 and summer of 2022 (covers three fiscal years).
Complete evaluation and irrigation system design July-December 2020 for both courses.
Solicit bids and award contract for both courses spring 2021.
PAYG financing covers all costs, with possible exception of an inter fund borrow of up to $600,000 in final fiscal year of project. Effectively a “one day” loan.
Projection still accommodates a low interest bond financing for Community Center improvements as previously recommended.
Continued recommendation for $500,000 fund balance
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Revised Staff Recommendation
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