Agenda 11/25/2003 - Laserfiche WebLink

Home Browse Search

Enclosure Martinsville CITY WITHOUT LIMITS DATE: TO: FROM: SUBJECT: November 19, 2003 Earl B. Reynolds, Jr., City Manager W. W. Bartlett, Director of Finance Financial Report tbr the Month Ending October 2003 Attached are the "Comparison of Revenues and Expenditures" for the major funds and the "Combined Balance Sheet" for -all funds as of October 31, 2003. The purpose of these schedules and the following comments are to reflect the financial performance of the City as compared to the annual budget. Comparison of Revenues and Expenditures For the eight funds contained in this report revenues are about $300,000 greater than expected. The primary reason was the receipt of $336,160 in unanticipated revenues in the Capital Reserve Fund. This was due to three factors: I) the sale of fire trucks for $150,000; 2) the receipt of $127,000 from the Partnership for Progress to help bring MZM to the City, and 3) the award of $59,160 from the Federal Fire Act Grant. These items are contained in the Consent Agenda and caused positive revenue variance of $341,273 in the Capital Reserve Fund. Of the seven remaining funds, tour posted revenues below our forecast. The largest of these is found in the General Fund. The revenues collected through October in the General Fund are approximately $11 t,000 below my expectations. A review of the General Fund shows we have collected almost $100,000 less in Real Estate taxes this FY than last year. This appears to be a normal variation in collection. A review of the collections through November 19, 2003, show Real Estate Taxes collected in November are almost $50,000 greater than those collected last year. Thus, we should meet our budget projections in the General Fund. The Electric Fund, even with a positive variance of $85,164, continues to report lackluster revenues due to the mild weather. Revenues at the end of October were $3,748,277 and are the smallest amount collected through October since I have been with the City. The last time revenues were this low was in October 1999 and they were still almost $40,000 greater than now. While it is still early in the fiscal year, a repeat of the FY00 electric revenues collection would cause a shorthll of $300,000 when compared to budget. The bright spot in revenues collections can be found in the Refuse Fund. The collection of almost $ I. 1 million is $52,332 more than anticipated. Overall expenditures are almost $903,000 less than budgeted through October. The Electric Fund is reporting the largest of the positive variances spending almost $286,000 less than expected. This was mainly due to a savings in Purchase of Power of $178,000. The Schools Fund's variance of $254,738 is deceptive because of the unexpended amount of almost $179,000 to be used to repair the roof at Druid Hills School. Taking that into account the variance falls to $76,000. Balance Sheet Overall fund balance decreased $591,000 in October. One of the primary reasons for this decline was the decrease in the Capital Reserve Fund of $741,599. Timing issues associated with the sale of the Shell Building caused this decline. While the payment of $1,034,637 to the State posted in October, MZM's payment of $400,000 did not occur until November and we have yet to receive the $250,000 from either the Governor's Opportunity Fund or the Tobacco Commission. 55 West Church Street P.O. Box I 1 I2 Martinsville, VA 24114-1112 540-656-5000 www.ci.martinsville.va.us