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Home My WebLink AboutCouncil Presentation - FY2023-2024 Second Quarter Financial UpdateFinancial Brief: Second Quarter Fiscal Year 2023 Prepared by: Finance Department 2024 Contents Summary General Fund Revenues2 General Fund Expenses ___________________________________________ 3 HURF Revenues 4 HURFExpenses------------------------------------------------------------5 Transportation Fund Revenues -------------------------------- 6 Transportation Fund Expenses ---------------------------------- 7 Bed Tax Fund Revenues8 Bed Tax Fund Expenses --------------------------------------------- 9 Half Cent Sales Tax Fund Revenues 10 Half Cent Sales Tax Fund Expenses ------------------------- 1 1 Water Revenues 12 WaterExpenses ----------------------------------------------------------- 13 Water Reclamation Revenues --------------------------------- 14 Water Reclamation Expenses ---------------------------------- 15 Airport Revenues --------------------------------------------------------- 16 Airport Expenses ---------------------------------------------------------- 17 FISCAL YEAR 2023 - 2024 SECOND QUARTER FINANCIAL BRI B 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 second quarter of fiscal year 2024 (July 2023 - December 2023). Major funds included in this financial brief are the General Fund, Highway User Revenue Fund (HURF), Bed Tax Fund, Half Cent Sales Tax Fund and Transportation Fund. Also included are the Airport, Water, and Water Reclamation enterprise funds. Please note that all amounts are preliminary, unaudited and subject to change based upon adjusting entries, as necessary_ The table below shows an overview for each fund. REVENUES EXPENDITURES Fund FY 2024 Budget Actual % Budget FY 2024 Budget Actual % Budget GENERAL FUND 69,792,496 44,371,452 640/� 75,085,291 27,195,120 36% HURF 5,079,784 2,343,090 46% 6,765,028 2,246,757 33% TRANSPORTATION FUND 4,300,000 8,686,839 20201,- 29,654,333 610,302 2% BED TAX FUND 1,450,000 647,237 45% 1,950,000 848,927 44% 112 CENT SALES TAX 59,561,367 3,748,496 6% 63,170,697 5,500,146 9% WATER FUND 10,686,919 4,953,603 46% 13,478,206 4,280,171 32% WATER RECLAMATION FUND 4,047,125 2,038,826 50% 5,658,587 867,937 15% AIRPORT FUND 647,162 94,897 15% 647,162 209,777 32% OVER/UNDER YTD Over/Under 17,175,481 96,333 8,076,537 -201,690 -1,751,650 673,432 1,170,857 -114,880 lick HERE for a User Guide and FAQ about this report MARANA � FY 2023-2024 SECOND QUARTER: GENERAL FUND REVENUES Category Sales Tax Intergovernmental Licenses, Fees, & Permits Charges for Services Other FY 2024 Budget 35,123,831 25,945,620 4,617,500 829,000 Actual 22,374,659 12,824,089 4,482,955 371,474 3,276,545 4,318,274 % Budget 64% 49% 97% 45% 132% 0M 44M Select Revenue or Expense EXPENSES REVENUES 70M General Fund Relevant Information The General Fund is the Town's primary operating fund. Sales Tax, Intergovernmental revenues and Licenses, Fees, & Permits make up over 95% of budgeted revenues for the fund. Overall, collections are above expected levels through the second quarter of FY2024. Sales tax and contracting tax revenues are both well above last fiscal year's second quarter revenues despite continued economic uncertainty. Intergovernmental revenues include amounts received from the State's shared revenue program and are distributed based upon population estimates and economic conditions. Licenses, Fees, & Permits also are exceeding expectations with revenues greater after the second quarter this fiscal year when compared to last year due to Year • 2022 02023 02024 WCategory 20M Sales Tax 17,865,199 Intergovernmental 7,948,598 Licenses, Fees, & Permits 5,453,151 10M Charges for Services 521,080 Other 1,047,438 OM id 32,835,465 Sales Tax Intergovernmental Licenses, Fees, & Charges for Other Permits Services 20,405,566 10,417, 643 3,580,121 481,782 2,302,749 22,374,659 12,824,089 4,482,955 371,474 4,318,274 2 FY 2023-2024 SECOND QUARTER: GENERAL FUND EXPENSES MMCategory Personnel & Benefits Contracted Services Operating Supplies & Equipment Capital Outlay Other Financing Uses W I FY 2024 Budget Actual * % Budget 44,131,900 18,971,163 43% 10,335,756 3,902,190 38% 8,998,362 3,381,495 38% 6,898,792 554,726 8% 4,720,481 385,547 8% 0M A 27M Select Revenue or Expense EXPENSES REVENUES 75M General Fund Relevant Information General Fund expenses through the second quarter of FY2024 overall are lower than anticipated. Personnel & Benefits expenses are in line with expectations. Savings to date are due to vacancies across several departments. Capital Outlay is associated with a number of projects and capital equipment purchases, many of which will occur later in the fiscal year. Other Financing Uses is related to budgeted transfers which will also be completed later in the year. Year • 2022 02023 02024 20M 10M 0M I&... Category Personnel & Benefits Contracted Services Operating Supplies & Equipment Capital Outlay Other Financina Uses 14,798,293 22,476,945 18,971,163 2,746,187 3,311,795 3,902,190 2,622,777 2,737,145 3,381,495 357,220 1,224,720 554,726 390,087 314,393 385,547 Personnel & Benefits Contracted Services Operating Supplies & Equipment Capital Outlay 3 FY 2023-2024 SECOND QUARTER: HURF REVENUES MLh— Category Other Intergovernmental FY 2024 Budget 110,000 Actua % Budget 81,511 74% •-• NO I• 4" 5,079,784 2,343,090 46% 0M A 2 M Select Revenue or Expense EXPENSES REVENUES A& 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. Second quarter HURF revenue collections are slightly below budgeted expectations. Charges for services are payment in lieu of fees collected from third parties to be expended for the preservation of roads. There were no charges for services revenues in the second quarter. Other revenue is comprised of investment income and reflects the current environment of higher interest rates. Year 2022 02023 _ 2024 EL Category 2M Intergovernmental 2,083,093 2,298,042 2,261,579 Charges for Services 48,098 115,029 Other 7,620 61,443 81,511 �•� 1M 0M Intergovernmental Charges for Services Other 4 FY 2023-2024 SECOND QUARTER: HURF EXPENSES Select Revenue or Expense EXPENSES REVENUES Category FY 2024 Budget Actua % u ge Operating Supplies & Equipment 293,050 137,499 47% Capital Outlay 852,044 390,954 46% Contracted Services 5,419,934 1,718,304 32% Other Financing Uses 200,000 OM 2M 7M HURF Relevant Information HURF expenses are overall below budgeted amounts through the second quarter of FY2024. Contracted Services is below budget due to the timing of the Town's Pavement Preservation Program. The prior year preservation budget was carried forward to the current budget year due to a variety of reasons, and is ongoing during the second quarter, with additional funding available later this fiscal year. Operating Supplies & Equipment is overall in line with expectations. Capital Outlay is associated with vehicle/equipment purchases, some of which were carried forward, and ADA compliance and irrigation project funding that will be utilized in future periods. Other Financing Uses is restricted budget for possible monsoon storm damage or L- other unanto6nated needs - Year • 2022 02023 # 2024 2.OM Contracted Services 450,599 1,057,944 1,718,304 1.5M Operating Supplies & Equipm... 100,075 125,336 137,499 1.0M Capital Outlay 33,282 456,508 390,954 0.5 M MAI M O.OM Contracted Services Operating Supplies & Equipment Capital Outlay FY 2023-2024 SECOND QUARTER: TRANSPORTATION FUND REVENUES Category Other Sales Tax FY 2024 Budget Actua % Budget 150,000 35,715 24% 4,150,000 8,651,124 208% 4,300,000 0M Select Revenue or Expense EXPENSES REVENUES 4M 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. Second quarter revenue collections have exceeded budget expectations for the year due to higher than anticipated residential and commercial construction activity throughout the Town. In addition, revenues reflect a one-time sales tax recovery from a prior period as the result of a statewide audit. Other budgeted revenue is comprised of investment income and one-time third party contributions. Year • 2022 02023 2024 Year Category110M M 022J LO 2 3J 024 Sales Tax 3,387,341 7,022,586 8,651,124 Other 647,071 49,884 35,715 Total :.:. : 5M 0M - Sales Tax Other 6 FY 2023-2024 SECOND QUARTER: TRANSPORTATION FUND EXPENSES Category Other Financing Uses Debt Service Capital Outlay Operating Supplies & Equipment FY 2024 Budget Actua 1,260,419 93,890 10,000 12,084 27,733,914 492,048 650,000 12,280 % Budget Select Revenue or Expense EXPENSES REVENUES 610K OM � 30M Transportation Fund Relevant Information Transportation Fund expenses are below budgeted levels through the second quarter of FY2024.0 Operating Supplies & Equipment is associated with ongoing developer reimbursements p p 9 9 q p g pp9 9 p paid on a semi-annual basis. Capital Outlay is associated with multi -year CIP projects, including Tangerine Road widening east of 1-10 and Twin Peaks Road & Rattlesnake Pass widening. Other Financing Uses is primarily associated with planned transfers related to debt service. Category Year 2022 02023 2024 EL 202 02024 23 � 2 MAWllllll 2M Operating Supplies & Equipm... 78,549 56,402 12,280 Capital Outlay 170,109 2,280,790 492,048 Debt Service 12,154 11,561 12,084 1M Other Financing Uses 125,078 109,872 93,890 0M Operating Supplies & Equipment Capital Outlay Debt Service Other Financing Uses 7 FY 2023-2024 SECOND QUARTER: BED TAX FUND REVENUES M Sales Tax Category FY 2024 Budget Actua 1,450,000 647,237 % Budget 45°ro 0M Select Revenue or Expense EXPENSES REVENUES Bed Tax Fund Relevant Information The Bed Tax Fund accounts for the collection of the discriminatory portion of revenues restricted for tourism initiatives. Second quarter revenue collections for FY2024 are slightly lower than last year due a refund issued to one of the properties. However, total revenues should not be impacted from this one-time event in a material manner. Overall, hotel revenues are proving to be resilient with room pricing rates remaining significantly above pre -pandemic levels while overall demand has fully recovered to normal prior year cycles. Year • 2022 •2023 2024 0.8 M I& Category 2022 2023 2024 Sales Tax 736,486 745,648 647,237 0.6 M OAM 0.2 M 0.0 M Sales Tax 8 FY 2023-2024 SECOND QUARTER: BED TAX FUND EXPENSES Category Personnel & Benefits Contracted Services Operating Supplies & Equipment Other Financing Uses FY 2024 Budget Actua 161,953 70,368 1,079,056 178,403 530,588 778,560 % Budget 43% 72% 0M Select Revenue or Expense EXPENSES REVENUES JOP8 A49K zM Bed Tax Fund Relevant Information As a whole, the Bed Tax Fund spending is as expected through the second quarter of FY2024. Contracted services is primarily related to the annual State Land lease payment, which was paid during the second quarter, and also includes planned advertising costs in support of tourism activities. Operating Supplies & Equipment includes developer rebates. The latter are normally paid in later quarters. Other Financing Uses is restricted budget for unanticipated needs and includes $500,000 for future tourism related opportunities not yet identified by the department. Year • 2022 •2023 2024 Year F Category ML.OAM 2022 202 2024 Personnel & Benefits 67,709 19,907 70,368 0.6M Contracted Services 697,524 719,672 778,560 Operating Supplies & Equipment 30 0.2 M 0.0M - Personnel & Benefits Contracted Services Operating Supplies & 9 Equipment FY 2023-2024 SECOND QUARTER: HALF CENT SALES TAX FUND REVENUES Category Sales Tax Other Total - FY 2024 Budget 6,561,367 53,000,000 Actual _dL_ 3,748,496 % Budget 5 7 io o„ft 4M Select Revenue or Expense EXPENSES REVENUES 60M 112 Cent Sales Tax Fund Relevant Information Town Council adopted Ordinance 2021.022 to amend the Town Tax Code by increasing the tax rate on certain activities by one-half cent for a new multi -generational recreation facility. Collections through the second quarter of the fiscal year continue to exceed expectations as the economy continues to perform better than anticipated in an uncertain economic environment. Collections from the tax continue to average more than $600,000 per month. Other revenues are related to debt proceeds for future debt issuance. Year • 2023 •2024 4M 3M 2M 1M 0M EL Category 2023 202 Sales Tax 3,707,875 3,748,496 3,707,875•. 10 Sales Tax FY 2023-2024 SECOND QUARTER: HALF CENT SALES TAX FUND EXPENSES Category Capital Outlay Debt Service FY 2024 Budget 60,670,697 2,500,000 Actual Ak_ 5, 500,146 % Budget y io o„ft 6M Select Revenue or Expense EXPENSES REVENUES 63M 112 Cent Sales Tax Fund Relevant Information The FY2024 budget is associated with the design and construction and equipping of a new multi -generational recreation facility. Construction of the facility began in the second quarterof 9 9 9 tY• Y g q FY2024. Moving forward additional facility construction costs will be shown here. Debt Service expense is related to future debt issuance. Year • 2023 •2024 6M 4M 2M 0M Category Capital Outlay I5S2,721 S,500,146 552,721 5,500,146 Capital Outlay FY 2023-2024 SECOND QUARTER: WATER OPERATING FUND REVENUES Category Intergovernmental Licenses, Fees, & Permits Charges for Services Other FY 2024 Budget Actual 328,000 130,000 125,727 8,622,500 4,684,114 1,606,419 143,763 % Budget 97% 54% 9% 0M Select Revenue or Expense EXPENSES REVENUES kat& 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. Revenue collections through the first half of FY2024 are slightly above expectations. Other revenue is primarily comprised of planned interfund transfers used for debt service payments. Year 2022 •2023 2024 Caftao 2022 2023 2024 4M Licenses, Fees, & Permits 58,866 127,591 125,727 Charges for Services 3,499,514 3,853,458 4,684,114 Other 183,286 133,549 143,763 2M ... .1 OM Intergovernmental Licenses, Fees, & Charges for Services Other Permits 12 FY 2023-2024 SECOND QUARTER: WATER OPERATING FUND EXPENSES Select Revenue or Expense EXPENSES REVENUES Category FY 2024 Budget Actua!1A % Budget Personnel & Benefits 3,544,061 1,434,669 40% Contracted Services 2,628,534 795,316 30% Operating Supplies & Equipment 2,457,813 1,070,984 44% Capital Outlay 322,000 Debt Service 1,372,213 979,203 71% ZM Other Financing Uses 3,153,585 OM h 13M 0. 4,280,171 Water Fund Relevant Information Overall, FY2024 second quarter expenses for the Water Operating Fund continue to be below budget levels but within expectations. Personnel & Benefits are below expectations due to turnover in a number of positions. Debt Service is related to WIFA loan payments made in the first quarter of FY2024. Capital costs associated with infrastructure and CIP projects are captured in separate funds. Other Financing Uses is associated with planned transfers to the Water Capital Fund for the construction of capital projects. WITI 41t��F.Pt��11�t.L l 2.or. O.SM 0.0 M Personnel & Contracted Operating Supplies Benefits Services & Equipment Capital Outlay Debt Service I&... Category Personnel & Benefits Contracted Services Operating Supplies & Equipm Capital Outlay Debt Service 2 BE 2023 352024 1,088,540 1,244,403 1,434, 669 783,916 728,271 795,316 819,494 1,003,859 1,070,984 134,067 7,200 1,085,612 1,110,510 979,203 13 FY 2023-2024 SECOND QUARTER: WATER RECLAMATION OPERATING FUND REVENUES Category Charges for Services Other Licenses, Fees, & Permits FY 2024 Budget Actual % Budget 3,070,105 1,590,370 52% 847,020 404,527 48% 130,000 43,928 34% ffla 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. Char, revenue for the fund. Overall, preliminary FY2024 second quarter revenue collections meet expectations. The majority of Other I funds for debt service payments. Year • 2022 •2023 2024 2.0 M 1.5M 1.0 M 0.5M Select Revenue or Expense EXPENSES REVENUES Category 2022 2023 Licenses, Fees, & Permits 68,762 8,387 Charges for Services 1,241,687 1,388,798 Other 416,734 404,539 Total , 2024 43,928 1,590,370 404,527 Licenses, Fees, & Permits Charges for Services Other 14 FY 2023-2024 SECOND QUARTER: WATER RECLAMATION OPERATING FUND EXPENSES Category Personnel & Benefits Contracted Services Operating Supplies & Equipment Debt Service Capital Outlay FY 2024 Budget Actual 780,944 1,316,675 438,012 866,981 112,300 342,85z 311,014 173,742 40,329 % Budget 24% 40% I5% Select Revenue or Expense EXPENSES REVENUES 868K bM Water Reclamation Fund Relevant Information Overall, second quarter expenses for the Water Reclamation Operating Fund are within or below expectations at this time of year. Debt Service is related to annual WIFA loan payments. Capital costs associated with infrastructure and CIP projects are captured in separate funds. Other Financing Uses is associated with transfers for capital improvement projects. Year • 2022 •2023 •2024 0.6 M 0.4 M 0.2 M 0.0 M Personnel & Benefits Contracted Services Operating Supplies & Equipment Debt Service Category fir 2022 2023 2024 Personnel & Benefits 291,198 284,524 342,852 Contracted Services 677,249 420,286 311,014 Operating Supplies & Equipm... 188,577 182,922 173,742 Debt Service 44,325 39,401 40,329 )1,348 1927,133 1867,937 15 FY 2023-2024 SECOND QUARTER: AIRPORT OPERATING FUND REVENUES WM&Ca1egc Charges for Services Other FY 2024 Budget 347,672 299,490 Actual % Budget 94,657 27010 240 0% o„Aj 95K Select Revenue or Expense EXPENSES REVENUES 647K Airport Fund Relevant Information Overall, preliminary second quarter revenue collections for the Airport Fund are in line with expectations. Other revenue is primarily comprised of miscellaneous revenues and transfers between funds scheduled to be completed as the Town reconciles and closes the books at the end of the fiscal year. Year • 2022 •2023 2024 iooK M Category 202 &023 2024 Charges for Services 96,168 91,224 94,657 Other 7,715 10,745 240 SOK OK Charges for Services Other 16 FY 2023-2024 SECOND QUARTER: AIRPORT OPERATING FUND EXPENSES MMCategory Personnel & Benefits Contracted Services Operating Supplies & Equipment FY 2024 Budget 324,362 254,950 67,850 Actual % Budget 131,790 41 % 52,538 21 % 25,449 38% OK Airport Fund Relevant Information Overall, expenses for the Airport Fund are in line with expectations through the second quarter of FY2024. Costs related to CIP Select Revenue or Expense EXPENSES REVENUES Year • 2022 •2023 2024 M— Category 202 MIL]L 023 2024 MMA& Personnel & Benefits 132,567 101,381 131,790 1OOK Contracted Services 105,267 68,566 52,538 Operating Supplies & Equipm... 21,086 25,212 25,449 50K W Personnel & Benefits Contracted Services Operating Supplies & Equipment 17