Agenda 05/25/1999 - Laserfiche WebLink

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Enclosure #1 CITY OF MARTINSVILLE 55 West Church Street P.O. Drawer t112 Martinsville, VA 24114-1112 City Manager 656-5180 656-5280 FAX Community Development 656-5173 656-5280 FAX Electric 656-5183 656-5280 FAX Finance 656-5142 Director 656-5143 Accounting 656-5146 Billing 656-5118 FAX Fire 656~5325 656-5118 FAX Housing Services 656-5190 656-5118 FAX Personnel 656-5181 656-5280 FAX Police 656-5300 656-5306 FAX Public Works 656-5154 656-5280 FAX Purchasing 656-5354 656-5356 FAX Recreation 656-5140 656-5280 FAX Water Resources 656-5157 656-5280 FAX Other inquiries 656-5000 AREA CODE 703 DATE: TO: FROM: SUBJECT: May 18, 1999 Earl B. Reynolds, Jr., City Manager W. W. Bartlett, Director of Finance Financial Report for the Month Ending April 30, 1999 Attached are the "Comparison of Revenues and Expenditures. for the major funds and the "Combined Balance Sheet" for all funds as of April 30, 1999. 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 Revenues are exceeding expectations in all but the Water Fund. The positive variance in the School Fund is normal due to the quarterly reimbursement received from the Commonwealth. As the year progresses, this variance will evaporate and it is expected revenues will meet budgeted amounts in the School Fund. As has been the case all year, the Electric Fund Revenues are exceeding expectations and will for the remainder of the FY. The General Fund revenues are exceeding expectations, but by less than one percent. The positive variance in the Meals Tax is due entirely to interest revenues earned from the two million dollar short-term note. Actual Meals Tax receipts are matching budgeted amounts. Refuse Revenues are exceeding budgeted amounts due to higher than expected interest earnings and collection charges. With the exception of the Electric and Meals Tax Funds, expenditures are less than projected. The positive variance in the Refuse Fund is the result of lower than anticipated spending on salaries. The inability to fill vacancies has caused this situation. The variances in the Water and Sewer expenditures are the result of contracts which have not been expended. These contracts have been awarded and the funds will be spent. The positive variance in the General Fund is, also, temporary. Over $600,000 of this variance will disappear when the contributions are made to the Egl 1 Center, Social Services and Comprehensive Services. It is too early to project with any degree of certainty what the unexpended amounts will be in each fund. But at this time, I would estimate the total unexpended amount. in the funds shown will be approximately $500,000 - $750,000. Balance Sheet When totaled together, fund balances declined $299,598. This is not unusual for April, but when the receipt of the settlement from AEP is factored into the equation the decline at first sight appears excessive. This decline was the result of several large expenditures. Over one million dollars was expended on the Albert Harris renovation project, $123,000 was expended on street paving, and $196,000 was used to purchase the fire truck. These three items were paid from the Capital Reserve Fund and explain the decrease of almost $900,000 in that Fund. The reduction in fund balance will be reversed when the Capital Lease funding is received. A decline in the School Fund is to be expected during April due to low receipts of Revenues. But the movement of almost $300,000 in State construction funding to the Capital Reserve Fund exacerbated this month's decline of over $903,000.