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Enclosure #5 <br /> <br />DATE: <br /> <br />TO: <br /> <br />FROM: <br /> <br />SUBJECT: <br /> <br /> Martinsville <br /> A CITY WITHOUT LIMITS <br />August 30, 2000 <br /> <br />Earl B. Reynolds, Jr., City Manager <br /> <br />W. W. Bartlett, Director of Finance <br /> <br />Financial Report for the Month Ending June30, 2000 <br /> <br />Attached are the "Comparison of Revenues and Expenditures" for the major funds and the "Combined Balance <br />Sheet" for all funds as of June 30, 2000. The purpose of these schedules and the following comments are to <br />reflect the financial performance of the City as compared to the annual budget. This report is presented prior to <br />final year-end adjustments and before any adjustments from the auditors. All amounts are subject to revision <br />once the audit is completed. <br /> <br />Comparison of Revenues and Expenditures <br />As we anticipated, the closing of Tultex and the loss of its payroll in the community has impacted the revenues of <br />almost every fund. Only the Refuse Fund' s revenues exceed budget projections. The collection of $3,634,284 <br />in revenues in the Refuse Fund exceeded the budgeted amount by slightly more than $415,000. The shortfall in <br />Water & Sewer revenues of $247,888 and $379,798 respectively can be traced directly to the closing of Tultex. <br />The revenue shortfalls are in line with what was projected by the administration in December 1999. Meals Tax <br />fell short of its revenue goals by $34,380. It is my belief the loss of the Tultex payroll caused our citizens to <br />adjust their spending patterns, which contributed heavily to this deficit. The failure to meet projected student <br />enrollment and the decision to reduce the General Fund transfer by $300,000 were the primary contributors to <br />the School's revenue defick of almost $527,000 when compared to the budget. <br /> <br />Expenditures in all Funds were less than anticipated. The amounts contained in this report are prior to any <br />reappropriations. Thus, it can be expected that these variances will shrink. The largest of these positive <br />variances are in the General, Electric, Capital and School Funds. The main cause of the almost $1.3M savings <br />in the General Fund was the decision to reduce the transfer to the schools by $300,000. Another $158,000 was <br />saved due to the decision to halt the planning and design activities related to the jail project. The department <br />with the largest savings was the Sheriff with a total of approximately $122,000 in savings. The Electric <br />Department's variance of $771,772 was mainly the result of a savings of $530,000 in purchased power. The <br />variance in the Capital Reserve Fund of more than $1,700,000 was due to several projects not being completed in <br />FY 00. These included the Albert Harris Project, street paving and the purchase of equipment. Finally, the <br />School's positive variance of $280,029 was primarily the result of savings in personnel costs. <br /> <br />Balance Sheet <br /> <br />Total operating fund balances decreased by $1,264,416 in June. The increase in the General Fund of almost <br />$2.7 million dominated the changes. This increase was due to the collection of almost $1 million in Real Estate <br />Taxes and the transfer of almost $2 million into the General Fund from the Electric, Refuse & Water Funds. <br />The decrease in the School Fund of $1,550,881 was the result of posting two payrolls in June. This is a normal <br />process due to the contract nature of the school teachers. The decreases in the Electric, Refuse and Water Funds <br />were caused by the transfer of funds into the General Fund. <br /> <br />Overall five funds improved, ten declined and one remained unchanged. <br /> <br />I would be pleased to answer any questions you or Council may have regarding this report. <br /> <br /> W. W. Bartlett <br /> 55 West Church Street P.O. Box 1112 Martinsville, VA 24114-1112 540-656-5000 <br /> www.ci .martinsville.va.us <br /> <br />/lmh <br />Attachments <br /> <br /> <br />