Agenda 09/05/2000 - Laserfiche WebLink

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