The URL can be used to link to this page

Home My WebLink AboutCouncil Presentation 12-18-2018 FY2018-2019 First Quarter Financial Update FY 2018-19 Prepared by: Finance Department Financial Brief – 1st Quarter 2019 Contents Summary……………......................................1 General Fund Revenues………………………….2 General Fund Expenses………………….……….3 HURF Revenues……………….……………………..4 HURF Expenses……………….……………….……..5 Transportation Fund Revenues………………6 Transportation Fund Expenses………….……7 Bed Tax Revenues…………………….……….……8 Bed Tax Expenses……………………...……………9 ½ Cent Sales Tax Fund Revenues…….…….10 ½ Cent Sales Tax Fund Expenses…….…….11 Water Revenues…………………………………...12 Water Expenses…………………………………...13 Water Reclamation Revenues………….…..14 Water Reclamation Expenses…………..…..15 Airport Revenues………………………….……...16 Airport Expenses………………………..………...17 12/12/2018 SUMMARY TAB 1/1 Expenditures FY 2019 Budget Expenditure Amount % of Budget 48,829,804 3,763,784 22,054,047 878,799 4,852,956 6,153,934 2,261,593 575,204 9,037,766 228,129 214,478 54,069 1,175,522 1,533,128 588,400 78,528 19 % 6 % 1 % 6 % 24 % 25 % 26 % 14 % YTD Over/Under Over/(Under) 3,372,367 642,891 1,820,456 105,073 216,574 -36,181 -224,060 -2,883 Revenues Fund  FY 2019 Budget Revenue Amount % Budget GENERAL FUND HURF TRANSPORTATION FUND BED TAX FUND 1/2 CENT SALES TAX FUND WATER FUND WATER RECLAMATION FUND AIRPORT FUND 44,956,009 3,276,078 5,906,742 1,088,016 2,952,570 6,013,950 2,258,671 557,704 12,410,133 871,020 2,034,934 159,142 1,392,096 1,496,947 364,340 75,645 28 % 27 % 34 % 15 % 47 % 25 % 16 % 14 % FY 2018 - 2019 FIRST QUARTER FINANCIAL BRIEF This financial brief is intended to provide a broad overview and status of revenues and expenditures for the Town's selected major funds through the first quarter of fiscal year 2019 (July 2018 - September 2018). Major funds included in this financial brief are the General Fund, Highway User Revenue Fund (HURF), Bed Tax Fund, 1/2 Cent Sales Tax Fund and Transportation Fund. Also included are the enterprise funds Airport, Water, and Water Reclamation. Please note that all amounts are preliminary, un-audited and subject to change based upon adjusting entries, as necessary. The table below shows an overview for each fund. Click HERE for a User Guide and FAQ about this report 1 12/12/2018 GENERAL FUND 1/1 General Fund Relevant Information  The General Fund is the Town's primary operating fund. Sales Tax, Intergovernmental Revenues and Licenses, Fees, & Permits makes up 95% of budgeted revenues for the General Fund. Overall preliminary first quarter collections are slightly above budgeted expectations for FY2019. Intergovernmental Revenues are amounts received from the State's shared revenue program and are distributed based upon population estimates. Licenses, Fees, & Permits are above budgeted expectations due to higher than anticipated Single Family Residential (SFR) permits thru the first quarter. Category 2017 2018 2019 Sales Tax Intergovernmental Licenses, Fees, & Permits Charges for Services Other 6,077,543 2,647,293 979,862 153,332 433,654 6,513,575 2,817,376 1,489,739 167,185 413,605 6,790,954 2,950,239 1,654,259 133,628 881,052 Total 10,291,685 11,401,481 12,410,133 Category  FY 2019 Budget Amount % Budget Sales Tax Intergovernmental Licenses, Fees, & Permits Charges for Services Other 26,284,560 11,748,196 4,818,090 518,637 1,586,526 6,790,954 2,950,239 1,654,259 133,628 881,052 26 % 25 % 34 % 26 % 56 % Total 44,956,009 12,410,133 28 % Select Revenues or Expenses Expenses Revenues 0M 45M12M Year 0M 5M Sales Tax Intergovernmental Licenses, Fees, & Permits Other 2017 2018 2019 Revenues FY 2018 - 2019 FIRST QUARTER RESULTS: GENERAL FUND 2 12/12/2018 GENERAL FUND 1/1 General Fund Relevant Information  General Fund Expenses through the first quarter of FY2019 are slightly below budgeted expectations. Capital expenditures for the General Fund are below budgeted levels due the timing of several CIP projects scheduled for later this fiscal year. Other Financing Uses is related to budgeted transfers scheduled to take place later in the fiscal year. Category 2017 2018 2019 Personnel & Benefits Contracted Services Operating Supplies & Equipm… Capital Outlay Other Financing Uses 5,554,521 1,540,252 931,119 83,415 165,158 5,570,676 1,466,762 945,795 299,809 2,000 5,955,212 1,724,856 1,194,163 163,535 Total 8,274,465 8,285,042 9,037,766 Category  FY 2019 Budget Amount % Budget Personnel & Benefits Contracted Services Operating Supplies & Equipment Capital Outlay Other Financing Uses 29,920,421 7,728,240 5,687,079 1,191,418 4,302,646 5,955,212 1,724,856 1,194,163 163,535 20 % 22 % 21 % 14 % Total 48,829,804 9,037,766 19 % Select Revenues or Expenses Expenses Revenues 0M 49M9M Year 0M 5M Personnel & Benefits Contracted Services Operating Supplies & Equipment Capital Outlay 2017 2018 2019 Expenses FY 2018 - 2019 FIRST QUARTER RESULTS: GENERAL FUND 3 12/12/2018 HURF 1/1 Category 2017 2018 2019 Intergovernmental Other 702,565 1,201 864,951 2,926 864,915 6,105 Total 703,766 867,877 871,020 Category  FY 2019 Budget Amount % Budget Intergovernmental Other 3,268,578 7,500 864,915 6,105 26 % 81 % Total 3,276,078 871,020 27 % Select Revenues or Expenses Expenses Revenues 0M 3M871K Year 0.0M 0.5M 1.0M Intergovernmental Other 2017 2018 2019 HURF Relevant Information The Highway User Revenue Fund or HURF is set by the collection of fees and taxes from users of the State's road and highways which the State collects. Cities and towns receive a percentage of revenues based on population estimates and gasoline sales within each county. Preliminary first quarter HURF revenue collections are as expected. Investment income makes up the small amount of Other revenue for the fund. Revenues FY 2018 - 2019 FIRST QUARTER RESULTS: HURF 4 12/12/2018 HURF 1/1 Category 2017 2018 2019 Personnel & Benefits Contracted Services Operating Supplies & E… Capital Outlay 70,992 127,569 30,463 190,570 72,286 139,972 44,475 3,196 3,194 155,992 58,693 10,250 Total 419,594 259,929 228,129 Category  FY 2019 Budget Amount % Budget Personnel & Benefits Contracted Services Operating Supplies & Equipment Capital Outlay 23,600 2,665,357 407,000 667,827 3,194 155,992 58,693 10,250 14 % 6 % 14 % 2 % Total 3,763,784 228,129 6 % Select Revenues or Expenses Expenses Revenues 0M 4M228K Year 0.0M 0.1M 0.2M Personnel & Benefits Contracted Services Operating Supplies & Equipment Capital Outlay 2017 2018 2019 HURF Relevant Information FY2019 HURF expenses are modestly below budgeted amounts through the first quarter but are expected to reach budgeted expectations as the fiscal year progresses. Contracted Services are currently below budget due to several large projects that will be completed later this fiscal year. Below budget expenses within Capital Outlay are due to the timing of several planned equipment purchases. Expenses FY 2018 - 2019 FIRST QUARTER RESULTS: HURF 5 12/12/2018 TRANSPORTATION FUND 1/1 Category 2017 2018 2019 Sales Tax Other 1,328,108 14,871 1,677,275 59,821 1,911,167 123,766 Total 1,342,979 1,737,096 2,034,934 Category FY 2019 Budget Amount % Budget Sales Tax Other 5,906,742 0 1,911,167 123,766 32 % 0 % Total 5,906,742 2,034,934 34 % Select Revenues or Expenses Expenses Revenues 0M 6M2M Year 0M 1M 2M Sales Tax Other 2017 2018 2019 Transportation Fund Relevant Information The Transportation Fund is comprised of 75% of all contracting taxes collected by the Town and is to be used for new road construction and reconstruction projects. Preliminary first quarter revenue collection for FY2019 is slightly higher than anticipated. It is important to note that as several major construction projects come to completion, revenue collection is expected to meet forecasted levels. Other revenue is comprised of investment income. Revenues FY 2018 - 2019 FIRST QUARTER RESULTS: TRANSPORTATION FUND 6 12/12/2018 TRANSPORTATION FUND 1/1 Category 2017 2018 2019 Personnel & Benefits Capital Outlay Debt Service Other Financing Uses 26,250 45,624 1,552 6,252 14,703 16,585 762 13,956 199,279 1,243 Total 79,678 32,050 214,478 Category FY 2019 Budget Amount % Budget Personnel & Benefits Capital Outlay Debt Service Other Financing Uses 17,425 20,391,126 0 1,645,496 13,956 199,279 1,243 80 % 1 % 0 % Total 22,054,047 214,478 1 % Select Revenues or Expenses Expenses Revenues 0M 22M215K Year 0.0M 0.2M Personnel & Benefits Capital Outlay Other Financing Uses 2017 2018 2019 Transportation Fund Relevant Information Transportation Fund expenses are far below budgeted expectations through the first quarter of FY2019 but are expected to reach budgeted levels as several major projects such as the Ina Road area projects, Coachline, and Lon Adams reconstruction are completed or commence later in the fiscal year. Personnel & Benefit costs are associated contract employees tied to the Tangerine Road project that is now completed. Expenses FY 2018 - 2019 FIRST QUARTER RESULTS: TRANSPORTATION FUND 7 12/12/2018 BED TAX FUND 1/1 Category 2017 2018 2019 Sales Tax 182,851 199,728 159,142 Total 182,851 199,728 159,142 Category  FY 2019 Budget Amount % Budget Sales Tax 1,088,016 159,142 15 % Total 1,088,016 159,142 15 % Select Revenues or Expenses Expenses Revenues 0M 1M159K Year 0.0M 0.1M 0.2M Sales Tax 2017 2018 2019 Bed Tax Fund Relevant Information The Bed Tax Fund accounts for the collection of the discriminatory portion of revenues restricted for tourism initiatives. First Quarter revenue for FY2019 is slightly below budgeted expectations. This was anticipated due to the temporary closure of one resort for renovations as well as the lower tourism numbers during the summer months. The fund is expected to reach budgeted levels by the end of the fiscal year. Revenues FY 2018 - 2019 FIRST QUARTER RESULTS: BED TAX FUND 8 12/12/2018 BED TAX FUND 1/1 Category 2017 2018 2019 Personnel & Benefits Contracted Services Operating Supplies & Equipm… 5,958 14,569 29 21,494 595,987 170 24,594 29,475 Total 20,556 617,651 54,069 Category  FY 2019 Budget Amount % Budget Personnel & Benefits Contracted Services Operating Supplies & Equipment 116,477 760,322 2,000 24,594 29,475 21 % 4 % Total 878,799 54,069 6 % Select Revenues or Expenses Expenses Revenues 0K 879K54K Year 0.0M 0.5M Personnel & Benefits Contracted Services Operating Supplies & Equipment 2017 2018 2019 Bed Tax Fund Relevant Information As a whole, the Bed Tax Fund is spending it's resources as expected through the first quarter of FY2019. Contracted services are sharply below budget but will normalize as tourism related projects and planned State land lease payments are made. Expenses FY 2018 - 2019 FIRST QUARTER RESULTS: BED TAX FUND 9 12/12/2018 1/2 CENT SALES TAX FUND 1/1 Category 2017 2018 2019 Sales Tax Other 1,203,462 2,971 1,312,344 7,836 1,371,687 20,409 Total 1,206,433 1,320,179 1,392,096 Category FY 2019 Budget Amount % Budget Sales Tax Other 2,952,570 0 1,371,687 20,409 46 % 0 % Total 2,952,570 1,392,096 47 % Select Revenues or Expenses Expenses Revenues 0M3M1M 0M 3M1M Year 0M 1M Sales Tax Other 2017 2018 2019 1/2 Cent Sales Tax Fund Relevant Information On April 28, 2015 the Town Council adopted Ordinance 2015.011 to amend the Town Tax Code by increasing the tax rate on certain activities by one-half cent for a new police facility. A total of $18,000,000 is expected to be collected through December 2018. Per Ordinance 2018.020 adopted by Town Council on October 16, 2018, the Town Tax Code will be reduced on certain activities by one-half cent beginning January 1, 2019. The Town has notified the AZ Department of Revenue to cease collection as of January 1, 2019. Revenues FY 2018 - 2019 FIRST QUARTER RESULTS: 1/2 CENT SALES TAX FUND 10 12/12/2018 1/2 CENT SALES TAX FUND 1/1 Category 2017 2018 2019 Capital Outlay 147,047 372,075 1,175,522 Total 147,047 372,075 1,175,522 Category FY 2019 Budget Amount % Budget Capital Outlay 4,852,956 1,175,522 24 % Total 4,852,956 1,175,522 24 % Select Revenues or Expenses Expenses Revenues 0M7M372K 0M 7M1M Year 0M 1M Capital Outlay 2017 2018 2019 1/2 Cent Sales Tax Fund Relevant Information Estimated expenses through the first quarter of FY2019 are as expected. As final invoices related to the police facility are paid the fund is expected to reach budgeted levels. Expenses FY 2018 - 2019 FIRST QUARTER RESULTS: 1/2 CENT SALES TAX FUND 11 12/12/2018 WATER FUND 1/1 Category  2017 2018 2019 Licenses, Fees, & Permits Charges for Services Other 21,062 1,215,237 9,931 18,628 1,358,157 10,379 13,704 1,413,986 69,257 Total 1,246,230 1,387,163 1,496,947 Category  FY 2019 Budget Amount % Budget Intergovernmental Licenses, Fees, & Permits Charges for Services Other 60,000 25,000 5,637,381 291,569 13,704 1,413,986 69,257 55 % 25 % 24 % Total 6,013,950 1,496,947 25 % Select Revenues or Expenses Expenses Revenues 0M 6M1M Year 0M 1M Licenses, Fees, & Permits Charges for Services Other 2017 2018 2019 Water Fund Relevant Information The current rates and fees for Marana Water customers can be at - http://www.maranaaz.gov/water-rates-and-fees . Charges for Services (water sales) comprise of the majority of the operating revenue for the fund. Revenues FY 2018 - 2019 FIRST QUARTER RESULTS: WATER OPERATING FUND 12 12/12/2018 WATER FUND 1/1 Category  2017 2018 2019 Personnel & Benefits Contracted Services Operating Supplies & Equipment Capital Outlay Debt Service 374,580 97,092 269,785 0 381,894 230,032 387,410 0 398,912 259,589 377,056 90,571 407,000 Total 741,457 999,336 1,533,128 Category  FY 2019 Budget Amount % Budget Personnel & Benefits Contracted Services Operating Supplies & Equipment Capital Outlay Debt Service 2,030,413 1,733,699 1,662,279 210,000 517,543 398,912 259,589 377,056 90,571 407,000 20 % 15 % 23 % 43 % 79 % Total 6,153,934 1,533,128 25 % Select Revenues or Expenses Expenses Revenues 0M 6M2M Year 0.0M 0.2M 0.4M Personnel & Benefits Contracted Services Operating Supplies & Equipment 2017 2018 2019 Water Fund Relevant Information Overall, FY2019 preliminary first quarter expenses for the Water Operating Fund are as expected. The large amount of Debt Service is due to the timing of a scheduled payment. Capital costs associated with infrastructure and CIP projects are captured in separate funds. Expenses FY 2018 - 2019 FIRST QUARTER RESULTS: WATER OPERATING FUND 13 12/12/2018 WATER RECLAMATION FUND 1/1 Category 2017 2018 2019 Licenses, Fees, & Permits Charges for Services Other 8,950 257,452 293,393 54,758 10,018 353,359 962 Total 266,402 348,150 364,340 Category  FY 2019 Budget Amount % Budget Licenses, Fees, & Permits Charges for Services Other 30,000 1,419,602 809,069 10,018 353,359 962 33 % 25 % 0 % Total 2,258,671 364,340 16 % Select Revenues or Expenses Expenses Revenues 0M 2M364K Year 0.0M 0.2M 0.4M Licenses, Fees, & Permits Charges for Services 2017 2018 2019 Water Reclamation Fund Relevant Information The current rates and fees for Marana Sewer customer can be found at - http://www.maranaaz.gov/water-rates-and-fees . Charges for Services (sewer rates) comprise the majority of the revenue for the fund. Preliminary FY2019 first quarter revenue collections are as expected. The majority of Other revenue is related to a planned transfer scheduled for later in the fiscal year Revenues FY2018-2019 FIRST QUARTER RESULTS: WATER RECLAMATION OPERATING FUND 14 12/12/2018 WATER RECLAMATION FUND 1/1 Category 2017 2018 2019 Personnel & Benefits Contracted Services Operating Supplies & Equipm… Capital Outlay Debt Service 79,566 85,162 23,486 70,936 115,457 32,154 261 96,134 48,091 39,641 404,534 Total 188,214 218,808 588,400 Category  FY 2019 Budget Amount % Budget Personnel & Benefits Contracted Services Operating Supplies & Equipment Capital Outlay Debt Service 601,211 438,965 357,548 54,800 809,069 96,134 48,091 39,641 404,534 16 % 11 % 11 % 50 % Total 2,261,593 588,400 26 % Select Revenues or Expenses Expenses Revenues 0M 2M588K Year 0.0M 0.1M Personnel & Benefits Contracted Services Operating Supplies & Equipment 2017 2018 2019 Water Reclamation Fund Relevant Information Overall, preliminary expenses for the Water Reclamation Operating Fund are slightly below expectations through the first quarter of FY2019. The amount associated with Debt Service is due to the timing of a scheduled payment. Capital costs associated with infrastructure and CIP projects are captured in separate funds. Expenses FY2018-2019 FIRST QUARTER RESULTS: WATER RECLAMATION OPERATING FUND 15 12/12/2018 AIRPORT FUND 1/1 Category 2017 2018 2019 Charges for Services Other 55,937 1,640 57,756 2,645 69,318 6,327 Total 57,577 60,401 75,645 Category  FY 2019 Budget Amount % Budget Charges for Services Other 330,068 227,636 69,318 6,327 21 % 3 % Total 557,704 75,645 14 % Select Revenues or Expenses Expenses Revenues 0K 558K76K Year 0K 50K Charges for Services Other 2017 2018 2019 Airport Fund Relevant Information  Charges for Services comprise of the majority of budgeted operating revenue for the Airport Fund. Preliminary first quarter revenue collection for the Airport Fund near budgeted expectations and is expected to reach budget as the year progresses. Other revenue is primarily comprised of scheduled transfers between funds. Revenues FY 2018 - 2019 FIRST QUARTER RESULTS: AIRPORT OPERATING FUND 16 12/12/2018 AIRPORT FUND 1/1 Category 2017 2018 2019 Personnel & Benefits Contracted Services Operating Supplies & Equipm… Capital Outlay 55,652 16,258 19,126 6,282 56,936 24,134 9,274 668 55,598 9,881 13,049 Total 97,318 91,012 78,528 Category  FY 2019 Budget Amount % Budget Personnel & Benefits Contracted Services Operating Supplies & Equipment Capital Outlay 292,114 176,090 79,500 27,500 55,598 9,881 13,049 19 % 6 % 16 % Total 575,204 78,528 14 % Select Revenues or Expenses Expenses Revenues 0K 575K79K Year 0K 50K Personnel & Benefits Contracted Services Operating Supplies & Equipment Capital Outlay 2017 2018 2019 Airport Fund Relevant Information  Overall, expenses for the Airport Fund are slightly below budgeted levels through the first quarter of FY2019 but are expected to be at or near budgeted levels as the fiscal year progresses. Expenses FY 2018 - 2019 FIRST QUARTER RESULTS: AIRPORT OPERATING FUND 17