HomeMy WebLinkAboutAgenda 05-24-22; 12-2 - Information Item - Financial Report - Third Quarter FY 2021-22 1
ORANGE COUNTY
NORTH CAROLINA
FINANCE and ADMINISTRATIVE SERVICES
Gary Donaldson,CTP,Chief Financial Officer I gdonaldson@orangecountync.gov I PO Box 8181, Hillsborough, NC 27278 919.245.2453
MEMORANDUM
To: Board of County Commissioners
From: Gary Donaldson, Chief Financial Officer
Date: May 24, 2022
Re: Financial Report- Third Quarter FY 2021-22
This Third Quarter Financial Report provides an updated status of Revenue and Expenditure of the County's
Operating Funds as compared with the prior fiscal year. Following a review of the first nine months of FY 2021-
22. The revenue performance through the third quarter of the fiscal year reflects lifting of COVID restrictions.
Table 3: General Fund Summary
FY 2022 FY 2021 FYs 2022 vs 2021
GENERAL FUND Original Budget Revised Budget YTDActual* Percentage YTDActual* Percentage YTD %Variance'
Property Tax $177,661,825 $177,661,825 $176,343,430 99.26% $164,375,915 98.02% $11,967,515 1.24%
Sales&Use Tax $28,952,047 $28,952,047 $24,924,864 86.09% $20,554,026 80.36% $4,370,838 5.73%0 1
Licenses and Permits $274,550 $274,550 $128,652 46.86% $136,322 49.65% -$7,670 -2.79%
Charges for Services $12,478,132 $12,977,191 $9,442,318 72.76% $7,029,219 55.59% $2,413,099 17.17% Z
> 3$18,226,773 $21,772,439 $11,366,341 52.21% $14,920,894 59.71% -$3,554,553 -7.50% a
Transfers In $74,504 $95,337 $20,833 21.85% $0 0.00% $20,833 21.85%0 4
Miscellaneous $1,126,346 $1,537,500 $767,532 49.92% $732,951 41.45% $34,581 8.47%0 s
Appropriated Fund Balance $1,968,184 $14,411,090 $0 0.00% $0 0.00% $0 0.00%
Total $240,762,361 $257,681,979 $222,993,970 86.54% $207,749,326 84.36% $15,244,644 2.28%0
Community Services $13,621,295 $14,261,710 $9,278,402 65.06% $9,804,102 64.89% -$525,700 0.17%
General Government $10,277,361 $10,380,822 $7,843,196 75.55% $7,904,647 70.84% -$61,451 4.71%
Public Safety $28,528,552 $28,827,819 $19,882,405 68.97% $21,454,129 75.39% -$1,571,724 -6.42%0 e
Human Services $40,547,146 $45,206,734 $28,070,968 62.09% $27,049,977 61.59% $1,020,991 0.50%
a Education $93,834,876 $95,583,514 $69,835,741 73.06% $68,971,146 73.52% $864,595 -0.46%
ux, Support Services $12,881,850 $15,282,833 $11,410,106 74.66% $12,562,715 87.26% -$1,152,609 -12.60%6 '
Debt Service $40,027,279 $40,208,373 $38,896,234 96.74% $32,745,297 98.01% $6,150,937 -1.27%
Transfers Out $1,044,002 $7,930,174 $0 0.00% $0 0.00% $0 0.00%
Total $240,762,361 $257,681,979 $185,217,052 71.88% $180,492,013 72.92% $4,725,039 itk49
Notes:
*-Actual amounts include Encumbrances.
+-Based on percentage.
1-Sales tax performance reflects opening of economy from COVID restrictions.
2-Positive variance attributed to Register of Deeds Excise Fees,EMS Charges and Medicaid revenue.
3-FY 2021 included$4 million in COVID State Grants.This variance is not a Performance variance.
4-Represents a transfer from the County Capital Fund.
5-Miscellaneous includes Donations and Leases.
6-Not a Performance variance;expenses are non-Congregate care now budgeted in COVID Emergency Fund instead of General Fund.
7-FY 2021 included One-Time IT Equipment Purchases for Hybrid Remote Work and Software Licenses.
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General Fund revenues are 86.5% of budgeted revenues compared to 84.4% the prior fiscal year.
General Fund Revenues
• Property Tax collections are 99.2% of the total Property tax budget compared to 98% the prior fiscal
year. Real and personal taxes collections peaked at the end of December prior to the January
assessment of penalties and interest. The remaining property taxes include delinquent taxes and the last
three months of motor vehicle tax revenues.
• Sales Tax for Articles 39, 40, 42 and Hold Harmless are 86% of the budget as compared to 80.3% in the
prior fiscal year. This sales tax distribution reflects the State easing public health protocols, sustained
online sales and the impact of inflation which indicates an 8.5% CPI increase from March 2021 through
March 2022.
Note: Article 39, 40 and 42 sales tax are applied to food purchases.
• Though actual sales tax is projected to exceed the budget, there will be additional taxpayer refund
adjustments that the NC Department of Revenue will make by mid-August. As previously noted, there is
a three-month lag in sales tax revenue. Therefore the County will receive its last sales tax revenue for
this fiscal year by mid-September.
• Charges for services are 72.7% of the budget as compared to 55.5% lower the prior fiscal year. The
increase is attributed to increased Register of Deeds Excise Fees associated with increased real estate
transfer activities. Additionally, there has been an increase in Ambulance Charges Medicaid
Reimbursements.
• Miscellaneous revenue includes Facility Leases and Donations.
General Fund expenditures are 71.8% of budgeted expenditures as compared to 72.9% the prior fiscal year.
The variance is attributed to debt service, emergency services COVID-related contracted services and
reclassified non-departmental retiree health care benefits previously paid from the Health and Dental Fund.
General Fund Expenditures
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General Government third quarter expenditures represented 75.5% of the total general government as
compared to 70.8% the prior fiscal year. This variance reflects additional Cyber-Security insurance and a
timing variance in the payment for insurance premiums.
• Human Services third quarter expenditures represented 62% of total human services expenditures as
compared to 61.5% the prior fiscal year. This category consists of Department of Social Services
expenditures for Foster Care Board, Adoption Assistance Permits and OPC Mental Health.
• Public Safety expenditures represented 68.9% of total public safety expenditures as compared to 75%
the prior fiscal year. The decrease is attributed primarily to reclassification of Emergency Service
expenditures for non-congregate care housing, food insecurity, vaccine support and other emergency
related expenditures to the COVID Emergency Fund.
• Support services expenditures represented 74.6% of total support service as compared to 87.2% the
prior fiscal year. The decrease reflects a reduction in COVID grant funded expenditures as compared to
the prior fiscal year. In FY 2020-21 $1.3 million in Round 2 CARES funds were paid out of a Non-
Departmental to the towns. In addition, FY 2020-21 had one-time costs for Information Technology
Equipment and Software associated with deployment of Hybrid Remote Work.
• Education expenditures represented 73% of its budget as compared with 73.5% the prior fiscal year.
School appropriations are paid to both School systems by the 15th of each month. The remaining
Education budget includes School Health and Safety Contracts, Deferred Maintenance, Durham Tech
Current Expense and Recurring Capital.
• Third Quarter debt service represents 96% of total debt service compared to 98% in the prior fiscal year.
The County has remaining April 1, May 1, and June 1 debt service payments for the remainder of the
fiscal year.
• The remaining Functional Leadership teams are consistent with historical spending rates and compliance
with the County's proactive measures in response to the COVID related economic crisis.
The following table provides an overview of the other County operating funds.
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Summary of Other Funds
FY 2022 FY 2021 FYs 2022 vs 2021
OTHER FUNDS Original Budget Revised Budget YTDActual* Percentage YTDActual* Percentage YTD %Variance
29-Annual Grants Project Fund $153,943 $153,943 $38,365 24.92% $10,405 6.98% $27,960 17.94%0
30-Multi-Year Grant Projects Fund $552,076 $789,986 $687,553 87.03% $729,858 64.22% -$42,305 22.81%
32-Multi-Year Community Development Fund $948,056 $2,813,557 $1,858,068 66.04% $3,054,805 30.05% -$1,196,737 35.99%
33-Housing Fund $4,501,584 $4,628,077 $3,930,459 84.93% $3,209,834 69.45% $720,625 15.48%0
m 35-Emergency Telephone Fund $759,757 $759,757 $506,507 66.67% $503,647 66.67% $2,860 0.00%
m 37-Visitor's Bureau Fund $1,432,667 $2,500,585 $1,308,841 52.34% $911,073 45.77% $397,768 6.57%0
38-Spay/Neuter Fund $71,350 $75,651 $36,076 47.69% $47,997 58.28% -$11,921 -10.60%0
50-Solid Waste Enterprise Fund $11,690,750 $12,545,384 $11,045,065 88.04% $10,543,813 87.19% $501,252 0.85%
53-Sportsplex Fund $3,690,656 $4,556,562 $2,943,935 64.61% $1,805,920 47.56% $1,138,015 17.05%0
70-Employee Health&Dental Fund $12,336,336 $12,343,842 $8,270,361 67.00% $9,594,159 68.12% -$1,323,798 -1.12%
29-Annual Grants Project Fund $153,943 $153,943 $84,892 55.15% $57,688 38.69% $27,204 16.45%0
30-Multi-Year Grant Projects Fund $552,076 $789,986 $490,937 62.15% $501,879 44.16% -$10,942 17.98% 7
32-Multi-Year Community Development Fund $948,056 $2,813,557 $2,325,351 82.65% $5,665,876 55.74% -$3,340,525 26.91%0 7
;! 33-Housing Fund $4,501,584 $4,628,077 $3,709,021 80.14% $3,403,934 73.46% $305,087 6.68%
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v 35-Emergency Telephone Fund $759,757 $759,757 $349,011 45.94% $662,961 87.75% $313,950 -41.82%08
c 37-Visitor's Bureau Fund $1,432,667 $2,500,585 $1,554,925 62.18% $1,671,323 82.28% $116,398 20.10%
W 38-Spay/Neuter Fund $71,350 $75,651 $34,388 45.46% $73,706 70.34% -$39,318 -24.89%
50-Solid Waste Enterprise Fund $11,690,750 $12,545,384 $7,137,318 56.89% $7,051,237 55.87% $86,081 1.02%
53-Sportsplex Fund $3,690,656 $4,556,562 $2,056,965 45.14% $2,111,497 48.53% -$54,532 -3.39%0
70-Employee Health&Dental Fund $12,336,336 $12,343,842 $8,787,179 71.19% $9,118,427 64.70% -$331,248 6.48%
Notes:
*-Actual amounts include Encumbrances.
+-Based on percentage.
7-Finance monitoring these funds with management to achieve breakeven results.
8-Timing variance;for payment of Hardware and Telphone charges.
Sportsplex Fund
Sportsplex revenues are 64.6% of budget as compared to 47.6%the prior fiscal year due to the lifting of the
public health restrictions. Sportsplex expenditures are 45.5% of budget as compared to 48.5%the prior fiscal
year. The Sportsplex Fund is projected to finish the fiscal year with revenues exceeding expenses. The
resumption in pre-COVID revenue levels (Wellness and Membership and Ice Rink fees) are key factors for the
positive financial results for this fiscal year. FY 2021-22 revenues of$2,943,935 compare to expenditures of
$2,056,965 through the third quarter. FY 2020-21 revenues of$1,805,920 compared to expenditures of
$2,111,497 through the third quarter.
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Visitors Bureau Fund
Visitors Bureau revenues are 52.3% of FY 2021-22 budget as compared to 45.7%the prior fiscal year due to the
lifting of public health restrictions at the County's lodging facilities which collect a 3% occupancy tax. Visitors
Bureau expenditures are 62.2% of FY 2021-22 budget as compared to 82.3% the prior fiscal year. FY 2021-22
revenues are $1,308,341 and expenditures are $1,544,925 through the third quarter. FY 2020-21 revenues
were $911,073 and expenditures were $1,671,323 through the third quarter. The fund is projected to finish in a
breakeven position reflecting price escalations as measured by the Average Daily Room (ADR) price attributed
to inflation and post-COVID demand.
Solid Waste Fund
Solid Waste revenues are 88% of the total revenues as compared to 87%the prior fiscal year. The solid waste
program fee of$142 is billed as a line item on the Property Tax bill. As noted previously, peak collections occur
by the end of December. Solid waste expenditures are 57% of total expenditures as compared to 55.8% the
prior fiscal year through the third quarter.
Functional Leadership Teams by Department
Community Services-Animal Services, NC Cooperative Extension, DEAPR, Economic Development, Orange
Public Transportation, Planning and Inspections.
General Government- Board of Elections, Clerk to the Board, County Attorney, County Manager, Register of
Deeds and Tax Administration
Public Safety—Courts, Emergency Services, Criminal Justice Resource Department, and Sheriff's Office
Human Services— Department on Aging, Child Support, Housing, Human Rights, and Community Development,
Library, Public Health and Social Services
Support Services-Asset Management Services, Community Relations, Finance, Human Resources, and
Information Technology
Thanks to the Budget Division for their support in the preparation of this quarterly report.
cc: Bonnie Hammersley, County Manager
Travis Myren, Deputy County Manager
Department Directors
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