Submitted by Suanne Z. Thamm
Reporter – News Analyst
June 17, 2020
City Comptroller Pauline Testagrose provided the report below to the Fernandina Beach City Commission (FBCC) for their consideration at their June 16, 2020 Regular Meeting.
Overall: May’s report is the eighth month of fiscal year 2019/2020 and represents 66.7% of the budgeted fiscal year. All revenue and various grant revenues have been accrued for the month of May.
The State has been distributing 95% of the forecasted amounts of revenues available for the county and municipal revenue sharing programs. With the decrease in taxable sales activity, and the timing being late in the State’s fiscal year, the revenue sharing distributions are being adjusted downward. The State is using a conservative assumption with a reduction of 50% for May and June. There will be a true-up process in August that will fully distribute any remaining 19/20 funds due to the local governments. This will ensure that the County and Municipal Revenue Sharing Trust Funds do not end the year in a deficit. I will continue to keep you informed when additional information is received.
The City’s overall expenses are at 52.4% of the budget with a few exceptions noted below. All recurring expenses have been recorded. Finance will monitor expenses and prepare budget amendments to ensure budgeted amounts are not exceeded on a line by line basis. …
General Fund: (001)
Total General Fund revenues are at 83.1% of the annual budget. This is primarily due to the timing of Property Taxes. For the month of May, 96.7% or just over $15.2M has been received year-to-date. Local Business Tax revenue is also above the 66.7% mark at 105.0% due to the timing of receipts. The accrual for May’s Franchise Fees was recorded for $140,000. Specific revenue sources we are tracking are detailed below.
For expenses, the Information and Technology Department is over the mark due to the annual maintenance and software contracts and communication expenses. The overall General Fund expenses are below the mark at 52.4%
Special Revenue Funds: (100 – 190) In addition to the $1.2M property tax levy, the Land Conservation Trust Fund has received $233,230, year-to-date through May, in donations. This amount includes the funds received from Amelia Bluff and the private anonymous donation. In Fund 110 – Federal Forfeiture and Fund 190 – Law Enforcement Recovery, it was anticipated that expenditures would exceed revenues due to capital purchases.
Debt Service Funds: (220 – 230)
The semiannual interest payment was paid in October and the principal payment was made April 1st for the GO Bond in the Debt Service Fund – Fund 220. The semiannual interest was paid in March on the Series 2013A Utility Bonds.
Capital Improvement Funds: (300 – 330)
The Capital Improvements Fund – 300, encumbrances have been issued for a generator, new
fire truck, sidewalks, street paving, trails, and beach monitoring.
Golf Course: (410)
Revenues exceed expenses due to the transfer from the General Fund. The Golf Course for the month of May opened adhering to the CDC Guidelines due to COVID-19. The margin on Pro Shop Sales is above the budgeted ratio. Food and Beverage is at 20.1% which is below the budget ratio of 28.2%.
Airport: (420) Revenues exceeded expenses on a year-to-date bases due to payments for rent, land leases and other revenue.
Sanitation: (440) Revenues exceeded expenses year-to-date.
Wastewater: (450)
Revenue exceeds expenses due to septic dumping fees, interest, miscellaneous fees, and year- to-date expenses slightly lower than the budgeted ratio. Revenue for Wastewater charges are $156,455 or 4.1% higher than May 2019 year-to-date.
Water: (460) As anticipated, expenses exceed revenues year-to-date due to capital improvements, such as the large new reservoir #3 water plant.
Stormwater: (470)
Expenses exceed revenues primarily due to the loss on the disposal of a fixed asset (street
sweeper).
Marina: (480)
Although the Marina is still running a deficit, for the month of May, $51,866 was recorded in
transient slip rental fees.
Fleet: (510) Revenues exceed expense year-to-date. This Fund is meant to be self-supporting.
Utility Billing and Utility Administration: (520 – 530)
It is anticipated in the budget, that Revenues plus Cash Balance Forward exceed Expenditures in Utility Billing and Utility Administration.
I am wondering if there is a better way to report expenditure vs budget than to look at it as the % of the fiscal year that has elapsed. Often, Ms. Testagrosse has to report a variance by saying that ‘it is an annual payment that occurred early in the year’.
If the annual budget were time-phased – that is, that expenditures were budgeted in the month in which they were expected to be paid (or received) – we could focus on expenditure vs budget for both the month, and the year-to-date. In my view, this would provide a better indication of financial control.
What do others think?