Agenda 10/23/2001 - Laserfiche WebLink

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Enclosure #4 Martinsville A CiTY WITHOUT LIMITS DATE: October 16, 2001 TO: Earl B. Reynolds, Jr., City Manager FROM: W. W. Bartlett, Director of Finance SUBJECT: Financial Report for the Month Ending September 30, 2001 Attached are the "Comparison of Revenues and Expenditures" for the major funds and the "Combined Balance Sheet" for all funds as of September 30, 2001. The purpose of these schedules and the following comments are to reflect the financial performance of the City as compared to the annual budget. This report is pre~ented prior to final year-end adjustments and before any adjustments from the auditors. All amounts are subject to revision once the audit is completed. Comparison of Revenues and Expenditures Revenues are exceeding expectations in all but the General and Meals Tax funds. Revenues in the General Fund are less than anticipated due to the inability to collect Real Estate and Personal Property taxes. The Electric Fund has the largest positive variance of any fund. While the variance of $223,170 appears impressive, it is considerably below the normal for this time of year. The average positive variance in the Electric fund for the previous five years is $331,399. The negative variance in the Meals Tax fund when combined with the negative variance in the Local Sales and Use Tax is proof of a decline in the spending habits of local residents. It is impossible to know exactly why spending has declined, but it is a reasonable to assume the numerous layoffs and cutbacks in local industry have caused the slow down in spending. Expenditures are below anticipated amounts in all but the Refuse fund. Costs associated with the ongoing project at the landfill caused the negative variance in the Refuse Fund. The large positive variances found in the General, Sewer, Electric and Capital Reserve Funds are due to the timing associated with the purchase and completion various projects and equipment. As these projects are completed and equipment purchased, these positive variances should decline. Balance Sheet Overall, fund balances decreased $1,448,396 during September. The General and School funds were the primary reasons for the decline. The decline in these two funds is a normal occurrence in September. Neither fund receives a substantial amount of revenue during the month. The Electric fund's increase of $318,287 was the largest of all the funds. Overall eight funds improved while nine declined during the month. I would be pleased to answer any questions you or Council may have regarding this report. ., 1/'0 .--/~,,~ W. W. Bartlett /lmh Attachments 55 West Church Street P.O. Box 1112 Martinsville, VA 24114-1112 540-656-5000 www.ci.martinsvitle.w~.us