Agenda 06/24/2003 - Laserfiche WebLink

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Enclosure Martinsville DATE: TO: FROM: SUBJECT: June 18, 2003 Earl B. Reynolds, Jr., City Manager W. W. Bartlett, Director of Finance Financial Report for the Month Ending May 2003 Attached are the "Comparison of Revenues and Expenditures" for the major funds and the "Combined Balance Sheet" for all funds as of May 31, 2003. The purpose of these schedules and the following comments are to reflect the financial pertbrmance of the City as compared to the annual budget. Comparison of Revenues and Expenditures Through the end of May, revenues in the eight funds contained in the report are exceeding expectations by almost $220,000. This is primarily due to the positive variance in the General Fund of almost $462,000. But as I stated in my last report, this variance will not hold through the end of the fiscal year. Twenty-five percent of General Fund Revenues are recorded in June. This is caused by three factors. First, one-half of the transfers into the General Fund are not completed until June. Second, quarterly payments from the State for various reimbursements are not received until June or July. Finally, a large portion of several local taxes, primarily the second half of the Real Estate Taxes, are not collected until June. Using trend analysis and information we have received regarding funding from the State, I estimate General Fund Revenues will fall $400,000 short of budgeted amounts. This is and has been reflected in the Projected Fund Balance spreadsheet and is somewhat offset by the $204,000 positive variance in expenditures I project for the General Fund. The expenditure variance of $3,376,790 for all funds will shrink as various projects are completed this summer. Currently, I estimate the total expenditure variance will be approximately $2.1 million at the end of the fiscal year. Balance Sheet Overall fund balances increased by $872,871 in May to a total of $3,455,283. An increase of this size is not unusual and is the result of collections of $1.2 million in Real Estate Taxes. Projected Fund Balance I project the City's total fund balance at year-end will be $3,004,911. This is an increase of approximately $101,000 since my last report. This change was mainly due to increases in the Electric ($55,000) and Refuse Funds ($34,000). The increase in the Electric Fund was the result of lower than expected expenses associated with purchasing electricity while an increase in revenues caused the increase in the Refuse Funds. I would be pleased to answer any questions you or Council may have regarding this report. W. W. Bartlett /lmh Attachments 55 West Church Street EO. Box 1112 Martinsville, VA 24114- I I 12 540-656-5000 www.ci.martinsville.va.us