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HomeMy WebLinkAboutAgenda - 11-19-2024; 12-3 - Information Item - Memorandum - American Rescue Plan Act Update and Financial Report- First Quarter FY 2024-25 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 1 919.245.2453 INFORMATION ITEM To: Board of County Commissioners From: Gary Donaldson, Chief Financial Officer Date: November 19, 2024 Re: American Rescue Plan Act Update and Financial Report- First Quarter FY 2024-25 The County provided the quarterly report to the US Treasury as required.As noted, ARPA spending continues to proceed well in advance of the December 31, 2026, spending deadline.The General Fund and Other Funds begins on page 2. American Rescue Plan Act(ARPA)Life To Date Expenditures as of September 30,2024 Project Expenditures Code Project Name Department kRevised Bud et Life to Date) ate %of Budget Spent Project Status 96133 Emergency Housing Assistance Housing 3,787,883.00 $ 3,787,877.47 100.00% Com leted 96113 ARPA Coordinator Finance Contract $133,772.00 $ 92,363.75 69.05% Com leted 50 or more 96120 Government Alliance on Racial E uit Youth Pro ram Human Ri hts&Relations 26,540.00 $ 0.00% Funds Obli ated to be S ent 96131 Fire district radios Fire Districts 2,562,300.00 $ 2,408,201.75 93.99% Completed 50 or mor96135 Street Outreach,Harm Reduction,and Deflection(SOHRAD) CJRD/Housing 141,033.00 $ 121,033.00 85.82% Completed 50 or more 96122 Broadband Design and Implementation Information Technologies $ 10,000,000.00 $ 4,000,000.00 40.00% Completed less than 50 96102 Senior Lunch Program Aging $ 119,229.00 $ 115,151.39 96.58% Completed 50 or more 96124 Long Time Homeowner Assistance Program Software Tax/Housing $ 10,414.00 $ 10,414.00 100.00% Completed 96126 Youth Enhancement Fund Social Services $ 25,348.00 $ 25,348.21 100.00% Completed 96116 Housing Helpline Coordinated Entry Specialist Housing $ 201,414.00 $ 219,394.77 108.92% Completed/Pending Journal Enti 96117 Housing Locator Housing $ 70,075.00 $73,622.29 105.06% Completed/Pending Journal Enti 96123 Lon Time Homeowner Assistance Program xAdministration/Housing&Community Developme $ 510,971.00 $ 510,971.26 100.00% Completed 96119 Eviction Diversion Housing $ 155,248.00 $ 155,251.39 100.00% Completed 96125 Countywide Food Distribution and Storage Social Services $ 60,059.00 $ 60,059.46 100.00% Completed 96127 Stabilization Program for Former Foster Youth Social Services $ 8,749.00 $ 8,749.19 100.00% Completed 96104 Point Ionization Asset Management $68,800.00 $ 68,800.00 100.00% Completed 96114 Affordable Housing&Home Repairs Housing $ 120,000.00 $ 120,000.00 100.00% Completed 96118 Landlord Incentive Program Housing $75,000.00 $ 75,000.00 100.00% Completed 96130 ChildcareSupport Parent Fees Social Services $ 540,000.00 $ 539,977.10 100.00% Completed 96105 ARPA Grant Compliance Position CJRD $ 38,625.00 $ 39,107.95 101.25% Completed 96112 Powered Air Purifying Respirators PAPRS Emergency Services $ 96,182.00 $ 96,182.00 100.00% Completed 96128 Support for Low Income Families Social Services $ 24,333.00 $ 24,333.23 100.00% Completed 96121 Language Access Services Human Rights&Relations $ 15,000.00 $ 15,000.00 100.00% Completed 96103 Replacement Temporary Facility Modifications Asset Management $ 48,747.29 $ 48,747.29 100.00% Completed 96136 Revenue Replacement:Countywide Food Distribution and Storat Social Services $ 46,550.00 $46,550.00 100.00% Completed 96106 Revenue Replacement:Street Outreach,Harm Reduction/Defle CJRD/Housing $ 158,889.00 $ 197,085.44 124.049t Completed 96107 Revenue Replacement:Restart the Arts Grants County Manager $100,000.00 $ 100,000.00 100.00% Completed 96109 Revenue Replacement:Tourism and Hospitality Recovery Economic Development $ 299,285.00 $ 299,285.60 100.00% Completed 96108 Revenue Replacement:Arts Commission Aid to Impacted Inclustrl County Manager $ 15,797.00 $ 15,797.06 100.00% Completed 96115 Revenue Replacement:Emergency Housing Assistance(EHA) Housing $ 9,345,167.00 $9,287,471.37 99.38% Completed 96134 Revenue Replacement:Financial Reporting and Auditing Finance Contract $ 34,312.00 $23,876.25 69.59% Completed $ 28,839,722.29 $ 22,585,641.22 78.31% 1 2 The following UNC-Charlotte Economic report by Dr.John Connaughton provides insightful regional and national economic data. FY 2025 FY 2024 FYS 2025 vs 2024 GENERAL FUND Original Budget Re vise d8u age t YTD Actual• Percentage Act d' YTDActuol• Percentage YTD %Variance' Pro pertyTax $201,999,345 $201,999,345 $36,019,106 1783% $30,402,822 15.94% $5,616,284 189% Sales&Use Tax $44,139,012 $44,139,012 $0 0.00% $0 0.00% $0 0.00% Licenses and Permits $274,200 $274,200 $330 0.12% $555 0.20% ($225) -0.08% Ch a rges to r Services $15,103,690 $15,106,609 $3,094,688 20.49% $2,757,304 19A1% $337,384 1.08% Intergovernmental $22,017,818 $22,232,233 $2,199,312 989% $2,155,730 10.59% $43,582 -0.70% Investment Earnings $1,800,000 $1,800,000 $439,783 24A3% $0 0.00% $439,783 24d3% Transfers In $1,006,039 $1,089,201 $0 0.00% $0 0.00% $0 0.00% Miscellaneous $596,371 $619,371 $210,097 33.92% $148,611 17.13% $61,486 16.79% Appropriated Fund Balance $7,100,000 $7,176,895 $0 0.00% $0 0.00% $0 0.00% Total $294,036,475 $294,436,866 $41,963,316 14.25% $35,465,022 12.66% $6,498,294 1.59% CommunityServices $16,096,949 $16,326,351 $3,526,854 21.82% $3,434,382 22.10% $92,472 -0.28% General Government $12,699,830 $12,699,830 $3,144,281 24.30% $2,765,875 23.06% $378,406 1.24% 3 Public Safety $40,930,579 $40,996,977 $9,172,405 22.05% $8,707,579 24.24% $464,826 -2.19% a+ � Human Services $53,023,027 $53,070,723 $10,707,279 21.76% $11,852,421 24.22% ($1,145,142) -2d6% N Education $113,115,311 $113,115,311 $31,294,861 27.65% $25,979,480 24.10% $5,305,381 3.55% K Sup part Services $18,787,800 $18,837,800 $6,353,114 37.13% $6,775,899 36.67% ($422,785) ❑A6% W Debt Service $0 $0 $0 0.00% $0 0.00% $0 0.00% Transfers Out $39,756,619 $39,763,514 $0 0.00% $0 0.00% $0 0.00% total $294,410,115 $294,810,506 $64,188,794 22.22% $59,515,636 21.24% $4,673,158 0.99% General Fund Summary General Fund revenues are 14.2% of budgeted revenues compared with the prior fiscal year at 12.6%. The slight uptick in FY 2024-25 is attributed to property tax revenue collections. As indicated above, the underlying drivers of the revenue base are strong through the first quarter. The County's 16%fund balance policy provides the working capital to fund expenditures until property tax collections begin to peak by the end of the second quarter. General Fund Revenues • Property Tax collections are 17.8% of the total Property tax budget compared to 15.9% the prior fiscal year. Real and personal taxes were due September 1 but peak at the end of December tax collections for tax deduction purposes and the pending January assessment of penalties and interest. • The FY 2024-25 Budget increased the tax rate by 2.75 cents from 83.53 cents to 86.28 cents per $100 of assessed value. The tax rate increase funds the continuing operations of both the County and Schools. The tax collection rate budgeted for real and personal is 99.2% and for motor vehicle is 99.6%. There are no foreseen economic disruptions that would impact the collection rate assumptions. • Motor vehicles taxes are payable on the vehicle renewal date and the tax is based on the market value of the vehicles. The North Carolina Department of Revenue remits this tax to the County monthly. Registered Motor Vehicle Taxes become delinquent after 30 days. 2 3 • FY 2024-25 Motor Vehicles are $2.6 million as compared to $3.3 million the prior fiscal year this represents a timing variance and not due to economic performance. • Sales Tax for Articles 39, 40, 42 and Hold Harmless amounts are recorded in the General Fund. As noted, there is a three-month. The October remittance will be the first sales tax revenue recorded in FY 2024- 25. • Charges for services are 20.4% of the budget as compared to 19.4% the prior fiscal year, with the favorable performance variance attributed to higher Emergency Charges of$244,357 compared to the prior fiscal year. Two key charges for services revenue sources are: Emergency Medical Charges. Emergency Medical Charges collections are $1.1 million or 22% of the budgeted amount compared to $909,195 or 21.5% in the prior fiscal year. Excise Stamps (Real Estate Transfers). Excise Stamps collections are consistent with the prior year with FY 2024-25 collections of$316,451 compared to $352,284 the prior fiscal year. • Intergovernmental revenues recorded is $2.1 million, the same amount as the prior fiscal year. The Department of Social Services represents $1 million of the revenue collected primarily Medicaid Administration revenue. • Investment earnings are at $439,783 or 24.4% of the budgeted amount and is consistent with the interest rate with a yield as of September 301" of 4.86%. The priority order of investments are Safety, Liquidity and Yield with 60% invested in U.S. Treasuries. September 30,2024 <, Ir ■Overnight Repo ■Term Repo ■Fixed Rate Agencies Floating Rate Agencies Fixed Rate Treasuries ■Floating Rate Treasuries 3 4 General Fund expenditures are 22.2% of budgeted expenditures as compared to 21.2% the prior fiscal year. All Functional Leadership teams are within the normal spend rates with no areas of concern. General Fund Expenditures • General Government represented $3.1 million or 24.3% of the budgeted amount as compared to $2.7 million or 23.1% of the prior budgeted amount thus the straight-lined spending pattern aligns with historical spending. • Support Services represented $6.3 million or 37.1% of the budgeted amount as compared to $6.7 million or 36.6% of the prior budgeted amount. This category includes Insurance premium payments which are paid upfront and account for the higher spend rate. • The remaining Functional Leadership teams are consistent with historical spending rates. • Education appropriations are $31.2 million or 27.6% of its budget as compared with $25.9 million or 24.1%the prior fiscal year. School appropriations are paid to both School systems by the 1511 of each month. The remaining Education budget includes School Health and Safety Contracts, School Equity Training, Deferred Maintenance, Durham Tech Current Expense and Recurring Capital. The higher spending percentage through the first quarter is attributed to the advancing of additional cash to assist CHCCS until the district receives their Special Tax district revenues in December. Of course, the Education budget will remain in the adopted Board authorization for the fiscal year. 4 5 FY 2025 FY 2024 FYs 2025 vs 2024 QTHER FL1NQ5 Bud t Dnglnal Ftevlsed Budget YTDActual' Pe ♦ Drcentage Actual' YTD Actual' Percentage YTD %Variance 11-Debt Service Fund 34,322,203 34,322,203 101,144 0.29% 50 0.00% 5101,144 0.29% 33-Housing Fund $7,542,500 $7,606,396 51,542,486 20.28% 51,476,702 21.53% 565,794 -1.25% 35-Emergency Telephone Fund $429,404 $1,463,957 541,055 2.80% $0 0.00% $41,055 2.80 3 37-Visitor's Bureau Fund $3,059,121 53,059,321 $590,226 19.30% $493,141 18.10% 597,085 1.20% d 38-Spay/Neuter Fund $0 $0 $0 0.00% $0 0.00% $0 0.00% 44-Inspections Fund $1,766,217 $1,766,217 5288,121 16.31% 5304,799 18.94% (S16.678) -2.63% 50-Solid Waste Enterprise Fund $12,967,299 $12,967,299 51,763,387 13.60% 51,599,364 12.60% 5164,023 1.00% 53-Sportsplex Fund $5,214,172 $5,214,172 51,337,948 25.66% 5713,941 15.20% 5624,007 10.46% 70-Employee Health&Dental Fund $18,045,547 $18,045,547 53,011,332 16.69% 52,821,828 17.36% 5189,504 -0.67% 11-Debt ServiceFund $34,322,203 $34,322,203 57,511,549 21.89% 56,978,027 18.63% $533.522 3.26% 33-Housing Fund $7,542,500 $7,606,396 52,021,651 26.58% 52,095,007 30.55% (573,356) -3.97% 35-Emergency Telephone Fund $429,404 $1,463,957 599,289 6.78% 533,004 5.71% 566,285 1.07% 37-Visitor's Bureau Fund $3,059,121 $3,059,321 5783,875 25.63% 5659,528 24.21% 5124,347 1.42% a 38-Spay/Neuter Fund $0 $0 $0 0.00% $0 0.00% $0 0.00% Q44-Inspections Fund $1,766,217 $1,766,217 5362,233 20.51% 5308,153 19.15% $54,080 1.36% W 50-Solid Waste Enterprise Fund $12,967,299 $12,967,299 $4,080,828 31.47% 54,230,065 33.33% (S149.237) -1.86% 53-Sportsplex Fund $5,214,172 $5,214,172 51,015,118 19.47% $456,504 9.72% $558,614 9.75% 70-Employee Health&Dental Fund $18,045,547 $18,045,547 $4,587,392 25.42% 52,8713,527 17.72% 51,707,865 7.70% Summary of Other Funds There are no areas of concern through the first quarter for any of the Other Funds listed above. Sportsplex Fund Sportsplex revenues are at $1.3 million or 25% of budget as compared to $713,941 or 15.2%the prior fiscal year. The revenue variance is a mix of strong performance Ice Rink and Wellness While and some timing of the recording of prior revenues compared to this fiscal year. The Ice Rink is the largest revenue source with $578,093 through the first three months. This is followed by Wellness and Membership with $414,569 through the first three months. Aquatics, Kidsplex, and Fieldhouse are the remaining sources of revenue. Sportsplex Expenditures are $1 million or 19.4% of the budgeted amount compared to $456,504 or 9.7% of the budgeted amount. Like revenues, this variance is driven by increased maintenance and repairs and last year's timing of recording expenses. Visitors Bureau Fund Visitors Bureau revenues are 19.3% of budget as compared to 18.1%the prior fiscal year. Visitors Bureau expenditures are 25.6% of budget as compared to 24.2%the prior fiscal year. Solid Waste Fund Solid Waste revenues are 13.6% of the total revenues as compared to 12.6%the prior fiscal year. The Solid Waste program fee of$138 is billed as a line item on the Property Tax bill and peak collections occur by the end 5 6 of December. Solid waste expenditures are 31.4% of total expenditures as compared to 33.3%the prior fiscal year. 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 cc: Travis Myren, County Manager Caitlin Fenhagen, Interim Deputy Manager Department Directors 6