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Home My WebLink AboutCouncil Presentation 09-21-2021 FY2020-2021 Fourth Quarter Financial Update Financial Brief: Fourth Quarter Fiscal Year 2020 – 2021 Prepared by: Finance Department 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 Fund Revenues 8 Bed Tax Fund Expenses 9 Water Revenues 10 Water Expenses 11 Water Reclamation Revenues 12 Water Reclamation Expenses 13 Airport Revenues 14 Airport Expenses 15 9/21/2021 SUMMARY TAB 1/1 EXPENDITURES FY 2021 Budget Actual % Budget 48,168,333 4,166,655 21,647,629 1,092,603 7,658,018 2,497,887 460,178 44,996,558 3,702,599 11,456,595 887,697 7,022,634 2,525,168 362,572 93% 89% 53% 81% 92% 101% 79% OVER/UNDER YTD Over/Under 16,469,911 578,733 -3,949,719 205,536 2,148,947 877,794 60,468 REVENUES Fund  FY 2021 Budget Actual % Budget GENERAL FUND HURF TRANSPORTATION FUND BED TAX FUND WATER FUND WATER RECLAMATION FU… AIRPORT FUND 50,265,356 3,281,296 5,800,000 1,104,840 7,065,276 2,681,248 585,178 61,466,469 4,281,332 7,506,876 1,093,233 9,171,581 3,402,962 423,040 122% 130% 129% 99% 130% 127% 72% FISCAL YEAR 2020 - 2021 FOURTH 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 fourth quarter of fiscal year 2021 (July 2020 - June 2021). Major funds included in this financial brief are the General Fund, Highway User Revenue Fund (HURF), Bed 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 9/20/2021 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 make up 95% of budgeted revenues for the fund. Fourth quarter collections are above expected levels for FY2021 due to stronger than anticipated activity in most categories. Intergovernmental Revenues are amounts received from the State's shared revenue program and are distributed based upon population estimates and economic conditions. Licenses, Fees, & Permits include Single Family Residential (SFR) permit revenue. Other revenues, comprised of various sources include investment income earnings, AMRRP dividends and budgeted transfers-in from AZ CARES funding. Category 2019 2020 2021 Sales Tax Intergovernmental Licenses, Fees, & Permits Charges for Services Other 28,972,723 12,012,620 5,851,394 582,922 2,769,219 30,497,789 13,098,547 5,992,340 510,232 6,370,726 33,846,720 15,371,516 7,225,295 658,737 4,364,201 Total 50,188,878 56,469,634 61,466,469 Category  FY 2021 Budget Actual % Budget Sales Tax Intergovernmental Licenses, Fees, & Permits Charges for Services Other 24,389,464 13,435,743 4,427,112 563,000 7,450,037 33,846,720 15,371,516 7,225,295 658,737 4,364,201 139% 114% 163% 117% 59% Total 50,265,356 61,466,469 122% Select Revenue or Expense EXPENSES REVENUES 0M 50M61M 0M 10M 20M 30M 40M Sales Tax Intergovernmental Licenses, Fees, & Permits Other Year 2019 2020 2021 REVENUES FY 2020-2021 FOURTH QUARTER: GENERAL FUND 2 9/20/2021 GENERAL FUND 1/1 General Fund Relevant Information  General Fund expenses through the fourth quarter of FY2021 are overall as expected. Capital Outlay is less than anticipated due to the downtown visitor center project coming in under budget and court jury assembly room project being carried forward into the next fiscal year. Other Financing Uses is related to budgeted transfers, some of which are yet to occur as the Town reconciles and closes the books for the year. Category 2019 2020 2021 Personnel & Benefits Contracted Services Operating Supplies & Equipm… Capital Outlay Other Financing Uses 27,959,081 5,466,830 5,413,555 1,093,813 3,730,917 29,957,935 5,140,196 5,606,589 1,675,482 4,749,652 30,268,994 4,630,889 4,779,816 1,010,337 4,306,521 Total 43,664,196 47,129,854 44,996,558 Category  FY 2021 Budget Actual % Budget Personnel & Benefits Contracted Services Operating Supplies & Equipment Capital Outlay Other Financing Uses 30,404,536 5,681,693 5,815,466 1,572,723 4,693,915 30,268,994 4,630,889 4,779,816 1,010,337 4,306,521 100% 82% 82% 64% 92% Total 48,168,333 44,996,558 93% Select Revenue or Expense EXPENSES REVENUES 0M 48M45M 0M 10M 20M 30M Personnel & Benefits Contracted Services Operating Supplies & Equipment Capital Outlay Year 2019 2020 2021 EXPENSES FY 2020-2021 FOURTH QUARTER: GENERAL FUND 3 9/20/2021 HURF 1/1 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 roads and highways which the State collects. Cities and towns receive a percentage of revenues based on population estimates and gasoline sales within each county. Fourth quarter HURF revenue collections are above forecasted levels due to better than anticipated activity. Charges for services are payment in lieu of fees collected from third parties to be expended for the preservation of roads. Other revenue is comprised of investment income. Category 2019 2020 2021 Intergovernmental Charges for Services Other 3,607,631 39,943 3,825,665 256,695 156,695 3,956,482 324,246 603 Total 3,647,574 4,239,055 4,281,332 Category  FY 2021 Budget Actual % Budget Intergovernmental Charges for Services Other 3,276,296 0 5,000 3,956,482 324,246 603 121% 0% 12% Total 3,281,296 4,281,332 130% Select Revenue or Expense EXPENSES REVENUES 0M 3M4M 0M 1M 2M 3M 4M Intergovernmental Charges for Services Other Year 2019 2020 2021 REVENUES FY 2020-2021 FOURTH QUARTER: HURF 4 9/20/2021 HURF 1/1 HURF Relevant Information  HURF expenses are slightly below budgeted amounts through the fourth quarter of FY2021. Contracted Services includes amounts carried forward from the previous year as well as current year amounts spent toward the Town's Pavement Preservation Program which was completed as planned and below initial cost estimates. Operating Supplies & Equipment are below budgeted levels due to savings in fuel and oil and in utility costs, as the Town continues the process of converting to LED street lamps. Capital Outlay is associated with vehicle/equipment purchases and capital projects that will be completed next fiscal year. Other Financing Uses is restricted budget for possible monsoon storm damage or other unanticipated needs. Category 2019 2020 2021 Personnel & Benefits Contracted Services Operating Supplies & Equipm… Capital Outlay 12,900 1,442,758 531,523 499,487 3,354,679 220,631 505,706 2,754,594 180,283 767,722 Total 2,486,666 4,081,016 3,702,599 Category  FY 2021 Budget Actual % Budget Contracted Services Operating Supplies & Equipment Capital Outlay Other Financing Uses 2,999,230 240,000 848,710 78,715 2,754,594 180,283 767,722 92% 75% 90% Total 4,166,655 3,702,599 89% Select Revenue or Expense EXPENSES REVENUES 0M 4M4M 0M 1M 2M 3M 4M Personnel & Benefits Contracted Services Operating Supplies & Equipment Capital Outlay Year 2019 2020 2021 EXPENSES FY 2020-2021 FOURTH QUARTER: HURF 5 9/20/2021 TRANSPORTATION FUND 1/1 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. Annual revenue collections are significantly higher than anticipated due to strong residential housing activity (1,067 SFR permits issued vs. 617 budgeted for the year) and commercial construction spurred by low interest rates. Other revenue is comprised of investment income. Category 2019 2020 2021 Sales Tax Other 8,101,697 259,317 8,657,955 186,302 7,378,783 128,092 Total 8,361,015 8,844,257 7,506,876 Category  FY 2021 Budget Actual % Budget Sales Tax Other 5,750,000 50,000 7,378,783 128,092 128% 256% Total 5,800,000 7,506,876 129% Select Revenue or Expense EXPENSES REVENUES 0M 6M8M 0M 2M 4M 6M 8M 10M Sales Tax Other Year 2019 2020 2021 REVENUES FY 2020-2021 FOURTH QUARTER: TRANSPORTATION FUND 6 9/20/2021 TRANSPORTATION FUND 1/1 Transportation Fund Relevant Information  Transportation Fund expenses are below budgeted levels through the end of FY2021. Operating Supplies & Equipment is associated with ongoing developer reimbursements paid on a semi-annual basis. Developer rebates were greater than expected due to an unanticipated boom in construction activity. Capital Outlay is associated with CIP projects many of which were delayed into future years which is why actual expenses were much lower than budgeted. Other Financing Uses is associated with planned transfers related to debt service. Category 2019 2020 2021 Personnel & Benefits Operating Supplies & Equipm… Capital Outlay Debt Service Other Financing Uses 31,591 730,617 10,592,347 19,534 788,706 979,395 4,720,199 19,752 691,899 1,323,442 9,421,469 18,029 693,655 Total 12,162,795 6,411,245 11,456,595 Category  FY 2021 Budget Actual % Budget Operating Supplies & Equipment Capital Outlay Debt Service Other Financing Uses 996,200 19,828,848 0 822,581 1,323,442 9,421,469 18,029 693,655 133% 48% 0% 84% Total 21,647,629 11,456,595 53% Select Revenue or Expense EXPENSES REVENUES 0M 22M11M 0M 5M 10M Personnel & Benefits Operating Supplies & Equipment Capital Outlay Year 2019 2020 2021 EXPENSES FY 2020-2021 FOURTH QUARTER: TRANSPORTATION FUND 7 9/20/2021 BED TAX FUND 1/1 Bed Tax Fund Relevant Information  The Bed Tax Fund accounts for the collection of the discriminatory portion of revenues restricted for tourism initiatives. Fourth quarter revenue collections for FY2021 are slightly below forecasted levels as anticipated given the impact of the pandemic on the hospitality industry. However, hotel occupancy rates and revenue have shown a consistent positive trend in the fourth quarter, on par with pre-pandemic levels. Category 2019 2020 2021 Sales Tax Other 1,429,401 3,212 1,288,972 1,093,233 Total 1,432,613 1,288,972 1,093,233 Category  FY 2021 Budget Actual % Budget Sales Tax 1,104,840 1,093,233 99% Total 1,104,840 1,093,233 99% Select Revenue or Expense EXPENSES REVENUES 0M 1M1M 0.0M 0.5M 1.0M 1.5M Sales Tax Year 2019 2020 2021 REVENUES FY 2020-2021 FOURTH QUARTER: BED TAX FUND 8 9/20/2021 BED TAX FUND 1/1 Bed Tax Fund Relevant Information  As a whole, the Bed Tax Fund was below forecasts primarily due to reduced travel, advertising and consulting services which were deferred due to the impact of the pandemic. Category 2019 2020 2021 Personnel & Benefits Contracted Services Operating Supplies & Equipment 112,507 750,098 120,929 133,245 687,048 482 139,718 747,761 217 Total 983,535 820,775 887,697 Category  FY 2021 Budget Actual % Budget Personnel & Benefits Contracted Services Operating Supplies & Equipment 137,707 829,891 125,005 139,718 747,761 217 101% 90% 0% Total 1,092,603 887,697 81% Select Revenue or Expense EXPENSES REVENUES 0M 1M888K 0.0M 0.2M 0.4M 0.6M 0.8M Personnel & Benefits Contracted Services Operating Supplies & Equipment Year 2019 2020 2021 EXPENSES FY 2020-2021 FOURTH QUARTER: BED TAX FUND 9 9/20/2021 WATER OPERATING FUND 1/1 Water Fund Relevant Information  The current rates and fees for Marana Water customers can be found at - http://www.maranaaz.gov/water-rates-and-fees . Charges for Services (water sales) comprise the majority of the revenue for the fund. Annual revenue collections are above expectations for FY2021 due to stronger than anticipated growth. Licenses, fees, & permits is above expectations primarily due to fees collected in connection with the Water Treatment Plants' construction. Other revenue is primarily comprised of miscellaneous revenue sources and an interfund transfer associated with a WIFA loan payment. Other revenue was greater than expected as they include the forgivable portion of WIFA loan proceeds. Category 2019 2020 2021 Intergovernmental Licenses, Fees, & Permits Charges for Services Other 46,843 5,341,370 3,586,040 84,659 5,982,986 12,269,908 68,554 371,224 6,926,989 1,804,814 Total 8,974,253 18,337,553 9,171,581 Category  FY 2021 Budget Actual % Budget Intergovernmental Licenses, Fees, & Permits Charges for Services Other 85,000 42,500 5,655,873 1,281,903 68,554 371,224 6,926,989 1,804,814 81% 873% 122% 141% Total 7,065,276 9,171,581 130% Select Revenue or Expense EXPENSES REVENUES 0M 7M9M 0M 5M 10M Licenses, Fees, & Permits Charges for Services Other Year 2019 2020 2021 REVENUES FY 2020-2021 FOURTH QUARTER: WATER OPERATING FUND 10 9/21/2021 WATER OPERATING FUND 1/1 Water Fund Relevant Information  Overall, FY2021 annual expenses for the Water Operating Fund are at or below expected levels. Operating Supplies & equipment is slightly greater than budgeted due to higher than expected electric utility costs from additional flows at the plant. Capital Outlay is associated with two vehicles related to two new positions, that were not delivered before year-end. Debt Service is related to an annual WIFA loan payment that was made in the first quarter of FY2021, as we continue to draw down the full amount of the WIFA loans that are financing the Water Treatment Plant projects. Capital costs associated with infrastructure and CIP projects are captured in separate funds. Category 2019 2020 2021 Personnel & Benefits Contracted Services Operating Supplies & Equipm… Capital Outlay Debt Service 1,747,854 1,328,532 1,625,580 0 109,702 2,013,803 1,175,100 1,776,758 0 115,893 2,220,202 1,622,516 1,824,416 30,635 1,324,864 Total 4,811,668 5,081,554 7,022,634 Category  FY 2021 Budget Actual % Budget Personnel & Benefits Contracted Services Operating Supplies & Equipment Capital Outlay Debt Service Other Financing Uses 2,287,468 1,825,273 1,772,971 114,000 1,399,956 258,350 2,220,202 1,622,516 1,824,416 30,635 1,324,864 97% 89% 103% 27% 95% Total 7,658,018 7,022,634 92% Select Revenue or Expense EXPENSES REVENUES 0M 7M7M 0.0M 0.5M 1.0M 1.5M 2.0M 2.5M Personnel & Benefits Contracted Services Operating Supplies & Equipment Year 2019 2020 2021 EXPENSES FY 2020-2021 FOURTH QUARTER: WATER OPERATING FUND 11 9/20/2021 WATER RECLAMATION OPERATING FUND 1/1 Water Reclamation Fund Relevant Information The current rates and fees for Marana Sewer customers 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. Overall, preliminary FY2021 fourth quarter revenue collections are above expectations. Licenses, Fees, & Permits are above expectations due to stronger than anticipated growth. The majority of Other revenue is mainly related to budgeted transfers between funds for debt service payments. Category 2019 2020 2021 Licenses, Fees, & Permits Charges for Services Other 26,849 1,599,545 1,609,961 49,513 1,823,690 3,463,667 152,263 2,212,272 1,038,427 Total 3,236,356 5,336,870 3,402,962 Category  FY 2021 Budget Actual % Budget Licenses, Fees, & Permits Charges for Services Other 28,900 1,841,278 811,070 152,263 2,212,272 1,038,427 527% 120% 128% Total 2,681,248 3,402,962 127% Select Revenue or Expense EXPENSES REVENUES 0M 3M3M 0M 1M 2M 3M 4M Licenses, Fees, & Permits Charges for Services Other Year 2019 2020 2021 REVENUES FY 2020-2021 FOURTH QUARTER: WATER RECLAMATION OPERATING FUND 12 9/21/2021 WATER RECLAMATION OPERATING FUND 1/1 Water Reclamation Fund Relevant Information Overall, fourth quarter expenses for the Water Reclamation Operating Fund are at or above budgeted levels. Contracted services is greater over budget due to unexpected emergency systems repairs to the Saguaro Bloom lift station. Operating Suplies & Equipment was greater than expected due to a payable being recorded for electrical utilities in accordance with an agreement. Debt Service is related to annual WIFA loan payments. Other Financing Uses is associated with transfers out and restricted budget amounts. Capital costs associated with infrastructure and CIP projects are captured in separate funds. Category 2019 2020 2021 Personnel & Benefits Contracted Services Operating Supplies & Equipm… Debt Service 537,218 269,360 157,019 1,193,915 552,114 351,616 283,359 789,381 548,615 599,826 545,633 831,094 Total 2,157,511 1,976,469 2,525,168 Category  FY 2021 Budget Actual % Budget Personnel & Benefits Contracted Services Operating Supplies & Equipment Debt Service Other Financing Uses 583,306 537,000 302,800 858,781 216,000 548,615 599,826 545,633 831,094 94% 112% 180% 97% Total 2,497,887 2,525,168 101% Select Revenue or Expense EXPENSES REVENUES 0M 2M3M 0.0M 0.2M 0.4M 0.6M Personnel & Benefits Contracted Services Operating Supplies & Equipment Year 2019 2020 2021 EXPENSES FY 2020-2021 FOURTH QUARTER: WATER RECLAMATION OPERATING FUND 13 9/20/2021 AIRPORT OPERATING FUND 1/1 Airport Fund Relevant Information  Overall, preliminary fourth quarter revenue collections for the Airport Fund are higher than expected. Charges for Services, comprising of the majority operating revenue, was higher than expected primarily due to larger commercial aircraft parking for part of the year. Also, fuel revenue was budgeted to be lower but, in fact, was not negatively impacted by the pandemic. Other revenue is primarily comprised of miscellaneous revenues and transfers between funds scheduled to take place at year-end once all fund activity is finalized. The fund will be balanced once transfers are completed. Category 2019 2020 2021 Licenses, Fees, & Permits Charges for Services Other 328,630 4,440,219 50 372,781 2,412,896 420,389 2,651 Total 4,768,849 2,785,727 423,040 Category  FY 2021 Budget Actual % Budget Charges for Services Other 360,336 224,842 420,389 2,651 117% 1% Total 585,178 423,040 72% Select Revenue or Expense EXPENSES REVENUES 0K 585K423K 0M 1M 2M 3M 4M 5M Charges for Services Other Year 2019 2020 2021 REVENUES FY 2020-2021 FOURTH QUARTER: AIRPORT OPERATING FUND 14 9/20/2021 AIRPORT OPERATING FUND 1/1 Airport Fund Relevant Information  Overall, expenses for the Airport Fund are at or below budgeted levels through the fourth quarter of FY2021. Other Financing Uses is related to restricted budget amounts. Costs related to CIP projects are captured in other funds. Category 2019 2020 2021 Personnel & Benefits Contracted Services Operating Supplies & Equipm… Capital Outlay 257,773 113,691 81,971 300,396 65,810 50,235 0 273,329 28,357 44,195 16,691 Total 453,435 416,441 362,572 Category  FY 2021 Budget Actual % Budget Personnel & Benefits Contracted Services Operating Supplies & Equipment Capital Outlay Other Financing Uses 290,663 108,665 60,850 0 125,000 273,329 28,357 44,195 16,691 94% 26% 73% 0% Total 585,178 362,572 62% Select Revenue or Expense EXPENSES REVENUES 0K 585K363K 0.0M 0.1M 0.2M 0.3M Personnel & Benefits Contracted Services Operating Supplies & Equipment Year 2019 2020 2021 EXPENSES FY 2020-2021 FOURTH QUARTER: AIRPORT OPERATING FUND 15