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Home My WebLink AboutCouncil Presentation - FY2024-2025 First Quarter Financial UpdateFinancial Brief: First Quarter 1 Fiscal Year 2024 - 2025 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 Half Cent Sales Tax Fund Revenues 10 Half 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 FISCAL YEAR 2024 - 2025 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 2025 (July 2024 - June 2025). 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 Fund FY 2025 Budget Actual % Budget GENERAL FUND EXPENDITURES OVER/UNDER FY 2025 Budget Actual % Budget YTD Over/Unde 80,688,255 22,096,624 27% 110,794,468 27,083,427 24%-4,986,803 HURF 4,991,037 1,374,244 28% TRANSPORTATION FUND BED TAX FUND 8,116,176 389,719 5% 984,525 12,090,997 5,312,398 44% 33,982,791 2,167,126 6% 3,145,272 170,451 1/2 CENT SALES TAX 8,790,654 1,897,075 22% 39,880,292 8,655,268 22%-6,758,193 1,600,000 285,977 18% WATER FUND 12,866,308 2,879,598 22% 2,152,840 115,526 5% 15,734,077 2,425,136 15% 454,462 WATER RECLAMATION FUND 6,739,941 951,831 14% 7,462,725 1,949,810 26% -997,979 AIRPORT FUND 857,505 8,421 1 % 857,505 95,503 11% -87,082 Click HERE for a User Guide and FAQ about this report MARANA 1 FY 2024-2025 FIRST QUARTER: GENERAL FUND REVENUES Select Revenue or Expense EXPENSES REVENUES Mir Category Sales Tax Intergovernmental Licenses, Fees, & Permits Charges for Services Other FY 2025 Budget Actual 43, 684,077 11,492,189 23, 316,474 7,039,000 723,500 5,925,204 5,950,599 2,308,781 145,702 2,199,354 % Budget 26% 26% 33% 20% 37% 80,688,255 22,096,624 27% General Fund Relevant Information 81M 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 first quarter of FY2025. Sales tax and contracting tax revenues are slightly above budgeted expectations due to continued economic stability. 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 exceed expectations with greater first quarter revenues this year due primarily to higher than anticipated new commercial permits. Other 1 Year • 2023 •2024 •2025 10M 5M OM 1 1 MN Category .11. Sales Tax Intergovernmental Licenses, Fees, & Permits Charges for Services Other 9,920,528 5,228,433 1,732,660 278,955 1,925,276 11,372,599 6,413,488 2,168,260 189,150 2,744,365 11,492,189 5,950,599 2,308,781 145,702 2,199,354 19,085,852 22,887,863 22,096,624 Sales Tax Intergovernmental Licenses, Fees, & Charges for Permits Services Other 2 FY 2024-2025 FIRST QUARTER: GENERAL FUND EXPENSES Select Revenue or Expense EXPENSES REVENUES Category Personnel & Benefits Contracted Services Operating Supplies & Equipment Capital Outlay Debt Service Other Financing Uses FY 2025 Budget Actual 60,210,353 12,066,286 15,812,931 8,680,580 60,000 13,964,318 23, 284,180 2,307,682 1,333,389 156,782 1,393 % Budget 39% 19% 8% 2% 2% 110,794,468 27,083,427 24% General Fund Relevant Information 111M General Fund expenses through the first quarter of FY2025 overall are as anticipated. Personnel & Benefits expenses are in line with expectations and include a one-time down payment of the Public Safety Pension Retirement System's outstanding liability balance. Capital Outlay is associated with several 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, as well as $7.76 million in restricted budget, the majority of which is for the Facilities Project Design Startup plan. Year • 2023 •2024 •2025 20M OM Personnel & Benefits Contracted Services Operating Capital Outlay Debt Service Supplies & Equipment M Category M Personnel & Benefits Contracted Services Operating Supplies & Equipment Capital Outlay Debt Service Other Financing Uses 14,286,649 10,025,939 23,284,180 1,866,205 1,987,091 2,307,682 1,442,288 1,376,333 1,333,389 140,559 1,106 6,000 32,120 9,828 158,801 156,782 1,393 17,742,807 13,590,112 27,083,427 3 FY 2024-2025 FIRST QUARTER: HURF REVENUES Select Revenue or Expense EXPENSES REVENUES Category Intergovernmental Charges for Services Other ota HURF Relevant Information FY 2025 Budget Actual % Budget 4,651,037 1,102,248 24% 91% 58% 230,000 208,197 110,000 63,799 4,991,037 1,374,244 28% 5M 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. First quarter HURF revenue collections are slightly below budgeted expectations when excluding revenues from charges for services and investment income. Charges for services are payments in lieu of fees collected from third parties to be expended for the preservation of roads. Significantly higher than anticipated investment income is the result of investment decisions from the prior year. Year • 2023 •2024 12025 i.ory 0.5 M Mlib. Category Intergovernmental Charges for Services Other 1,105,388 1,108,683 34,202 17,132 1,156,723 46,270 1,154,952 1,102,248 208,197 63,799 1,374,244 O.0 M Intergovernmental Charges for Services Other 4 FY 2024-2025 FIRST QUARTER: HURF EXPENSES Select Revenue or Expense EXPENSES REVENUES Category i Contracted Services Operating Supplies & Equipment Capital Outlay Other Financing Uses HURF Relevant Information FY 2025 Budget Actual % Budget 6,554,154 322,571 5% 383,500 67,117 18% 978,522 200,000 8,116,176 389,687 5% o„w. 390K 8M HURF expenses are overall below budgeted amounts through the first quarter of FY2025. Contracted Services is below budget due to the timing of the Town's Pavement Preservation Program. The prior year preservation program budget was carried forward to the current budget year due to a variety of reasons and is on -going during the first quarter. Operating Supplies & Equipment expenses to date are a little below budgeted expectation. Capital Outlay is associated with construction and vehicle and equipment purchases, some of which were carried forward. Other Financing Uses reflect restricted budget for possible monsoon storm damage or other unanticipated needs. Year • 2023 •2024 •2025 0.8 M 0.6M 0.4M 0.2 M 0.0M MIL Category All Contracted Services Operating Supplies & Equipm... Capital Outlay 492,070 719,718 322,571 59,155 53,928 67,117 188,232 551,224 961,878 389,687 Contracted Services Operating Supplies & Equipment Capital Outlay Debt Service 5 FY 2024-2025 FIRST QUARTER: TRANSPORTATION FUND REVENUES Select Revenue or Expense EXPENSES REVENUES Mi._ Category Sales Tax Charges for Services Other I FY 2025 Budget Actualji % Budget 9,000,000 4,344,298 48% 1,232,526 1,858,471 968,099 52% 12,090,997 5,312,398 44% 12M Transportation Fund Relevant Information The Transportation Fund comprises 75% of all contracting taxes collected by the Town and is used for new road construction and reconstruction projects. First quarter revenue collections are surpassing expectations to date due to stronger than anticipated construction activity throughout the Town. Charges for Services is comprised of drainage in lieu of fees. Other revenue includes donations, investment income, and planned transfers. Year • 2023 •2024 •2025 4M 2M Category .1111 Sales Tax Other M 3,207,440 4,758,433 4,344,298 133,639 83,928 968,099 3,341,079 4,842,361 5,312,398 OM Sales Tax Other 6 FY 2024-2025 FIRST QUARTER: TRANSPORTATION FUND EXPENSES Select Revenue or Expense EXPENSES REVENUES Category Operating Supplies & Equipment Capital Outlay Debt Service Other Financing Uses FY 2025 Budget Actual 650,000 % Budget 31,948,301 2,167,000 7% 20,000 126 1% 1,364,490 33,982,791 2,167,126 6% Transportation Fund Relevant Information OM III 2N1 34M Overall, Transportation Fund expenses are below budgeted levels through the first quarter of FY2025. Operating Supplies & Equipment is associated with ongoing developer reimbursements 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. Year • 2023 •2024 •2025 2M 1M Capital Outlay Debt Service 1,723,188 199,761 2,167,000 151 1,343 126 1,723,339 201,103 2,167,126 i OM Capital Outlay Debt Service 7 FY 2024-2025 FIRST QUARTER: BED TAX FUND REVENUES Select Revenue or Expense EXPENSES REVENUES 111 Category FY 2025 Budget A ua % Budget Sales Tax 1,600,000 285,977 1,600,000 285,977 o1 286K Bed Tax Fund Relevant Information 2M The Bed Tax Fund accounts for the collection of the discriminatory portion of revenues restricted for tourism initiatives. First quarter revenue collections for FY2025 are in line with expectations. They are less than FY24 first quarter revenue due to a one-time refund included in last year's revenues. Room occupancy is slightly lower compared to FY2024. However, overall hotel revenues continue to be resilient with room pricing rates remaining significantly above pre -pandemic levels while overall demand has fully recovered to normal prior year cycles. i Year • 2023 •2024 2025 0.3 M 0.2 M 0.1 M Mihm. Category 2023 2024 2025 Sales Tax 292,553 220,687 285,977 292,553 220,687 285,977 0.0 M Sales Tax FY 2024-2025 FIRST QUARTER: BED TAX FUND EXPENSES Select Revenue or Expense EXPENSES REVENUES MICategory f Personnel & Benefits Contracted Services Operating Supplies & Equipment Other Financing Uses FY 2025 Budget Actua 111 % Budget 249,374 39,001 16% 1,196,121 53,434 4% 207,345 23,091 11% 500,000 2,152,840 115,526 5% OM IIII Bed Tax Fund Relevant Information 116K 2M The Bed Tax Fund spending is as expected through the first quarter of FY2025. Personnel & Benefits expenses are less than budgeted to date as the hiring of a new Tourism & Marketing Specialist did not occur until late in the quarter. Contracted Services is primarily related to the annual State Land lease payment, which is normally paid during the second quarter, and also includes planned advertising costs in support of tourism activities. Operating Supplies & Equipment includes developer rebates. Other Financing Uses is restricted budget for unanticipated needs and includes $500,000 for future tourism related opportunities not yet identified by the department. i Year • 2023 •2024 •2025 0.6 M 0.4 M 0.2 M 0.0 M Mii.tegory .1M Personnel & Benefits Contracted Services Operating Supplies & Equipment 9,892 35,098 39,001 675,228 55,094 53,434 23,091 685,121 90,192 115,526 i Personnel & Benefits Contracted Services Operating Supplies & Equipment 9 FY 2024-2025 FIRST QUARTER: HALF CENT SALES TAX FUND REVENUES Select Revenue or Expense EXPENSES REVENUES Category FY 2025 Budget AcM11 Sales Tax 7,790,654 1,844,641 Other % Budget 24°r� 1,000,000 52,433 5 °r 8,790,654 1,897,075 22% 9M 1/2 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 first quarter of the fiscal year continue to meet expectations as the economy remains stable. Collections from the tax continue to average more than $600,000 per month. Other revenues are related to investment income from debt proceeds to help pay for the construction of the facility. Year • 2023 •2024 •2025 2.0 M 1.5M 1.0M 0.5 M Mom Category Sales Tax Other 2023 202A 1,809,158 1,887,520 1,844,641 52,433 1,809,158 1,887,520 1,897,075 0.0 M Sales Tax Other 10 FY 2024-2025 FIRST QUARTER: HALF CENT SALES TAX FUND EXPENSES Select Revenue or Expense EXPENSES REVENUES Category Capital Outlay Other Financing Uses FY 2025 Budget Actual 36,289,042 8,655,268 % Budget 249. 3,591,250 39,880,292 8,655,268 22% 40M 1/2 Cent Sales Tax Fund Relevant Information The FY2025 budget is associated with the design, construction and equipping of the new multi -generational recreation facility. Construction of the facility began in the second quarter of FY2024. Capital Outlay costs reflect on -going construction costs for the facility whose anticipated completion date remains on schedule. Other Financing Uses is for principal and interest payments related to debt issued to pay for the facility's construction. Year • 2023 •2024 •2025 10M SM Category Capital Outlay 20irl ras 21,070 480,367 8,655,268 480,367 8,655,268 OM Capital Outlay 11 FY 2024-2025 FIRST QUARTER: WATER OPERATING FUND REVENUES Select Revenue or Expense EXPENSES REVENUES Category Intergovernmental Licenses, Fees, & Permits Charges for Services Other Tota 1 Water Fund Relevant Information FY 2025 Budget Actual 1,386,000 200,000 84,897 % Budget 42% 9,685,592 2,707,296 28% 1,594,716 87,405 5% 12,866,308 2,879,598 22% 13M 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 quarter of FY2025 are above budget due to strong account growth. Intergovernmental includes anticipated revenues from WIFA and other grants as well as water credits. Other revenue is primarily comprised of planned interfund transfers used for debt service payments. Year 2023 •2024 2025 3M 2M 1M Category 111 Licenses, Fees, & Permits Charges for Services Other 30,304 48,623 84,897 2,031,190 2,599,560 2,707,296 48,190 78,504 87,405 2,109, 684 2,726,688 2,879,598 OM Licenses, Fees, & Permits Charges for Services Other 12 FY 2024-2025 FIRST QUARTER: WATER OPERATING FUND EXPENSES Select Revenue or Expense EXPENSES REVENUES Category Personnel & Benefits Contracted Services Operating Supplies & Equipment Capital Outlay Debt Service Other Financing Uses Water Fund Relevant Information FY 2025 Budget Actual 3,792,917 3,841,540 2,869,122 392,850 1,384,586 3,453,062 631,401 329,986 459,095 1,004,654 % Budget 17% 9% 16% 73% 15,734,077 2,425,136 15% 2M 16M Overall, FY2025 first quarter expenses for the Water Operating Fund are below budget levels but within expectations. Personnel & Benefits are below expectations due to higher than anticipated turnover in several positions, many of which have now been filled. Capital Outlay budget is for vehicle purchases planned for later in the year. Debt Service is related to WIFA loan and bond payments during FY2025. Capital costs associated with infrastructure and CIP projects are captured in separate funds. Other Financing Uses is associated with transfers to the Water Capital Fund for the construction of capital projects. Year • 2023 •2024 •2025 1.OM 0.5 M 0.0 M 1 m Eligory Personnel & Benefits Contracted Services Operating Supplies & Equipm... Capital Outlay Debt Service 590,751 701,461 631,401 240,922 204,882 329,986 508,032 543,867 459,095 7,200 1,110,510 979,203 1,004,654 2,457,416 2,429,412 2,425,136 Personnel & Benefits Contracted Operating Supplies Capital Outlay Debt Service Services & Equipment 13 FY 2024-2025 FIRST QUARTER: WATER RECLAMATION OPERATING FUND REVENUES Select Revenue or Expense EXPENSES REVENUES Category Licenses, Fees, & Permits Charges for Services Other FY 2025 Budget Actual 100,000 3,645,407 2,994,534 64,009 881,058 6,764 % Budget 64% 24% 0% 6,739,941 951,831 14% Water Reclamation Fund Relevant Information ok 952K 7M 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 FY2025 first quarter revenue collections are within expectations. Other planned revenue is related primarily to budgeted transfers between funds for debt service payments. Year • 2023 •2024 2025 1.0M 0.5M Category 2023 2024 2025 Licenses, Fees, & Permits Charges for Services Other 1,249 23,032 64,009 661,206 776,288 881,058 1,602 7,434 6,764 664,056 806,754 951,831 0.0M Licenses, Fees, & Permits Charges for Services Other 14 FY 2024-2025 FIRST QUARTER: WATER RECLAMATION OPERATING FUND EXPENSES Select Revenue or Expense EXPENSES REVENUES Imo Category Personnel & Benefits Contracted Services Operating Supplies & Equipment Capital Outlay Debt Service Other Financing Uses Total FY 2025 Budget Actual ' 847,840 1,656,800 580,623 164,000 2,465,530 1,747,932 % Budget 163,172 19% 272,999 16% 98,898 17% 1,414,741 57% 7,462,725 1,949,810 26% Water Reclamation Fund Relevant Information 7M Overall, first 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 and bond 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 • 2023 •2024 2025 2.0 M 1.5M 1.0M 0.5 M 0.0 M Category a Personnel & Benefits Contracted Services Operating Supplies & Equipm... Debt Service Total 1023 I2024 2025 136,741 167,355 163,172 219,232 80,593 272,999 88,996 97,316 98,898 39,401 40,329 1,414,741 484,371 385,593 1,949,810 Personnel & Benefits Contracted Services Operating Supplies & Debt Service Equipment 15 FY 2024-2025 FIRST QUARTER: AIRPORT OPERATING FUND REVENUES Select Revenue or Expense EXPENSES REVENUES Category Charges for Services Other FY 2025 Budget Actul 368,551 488,954 8,096 325 % Budget 2 0% 857,505 8,421 1% OK Airport Fund Relevant Information 8.421 858K Overall, first 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 • 2023 •2024 •2025 10K 5K OK Category Charges for Services Other 9,239 10,068 8,096 10,225 150 325 10,218 8,421 Charges for Services Other 16 FY 2024-2025 FIRST QUARTER: AIRPORT OPERATING FUND EXPENSES Select Revenue or Expense EXPENSES REVENUES Category Personnel & Benefits Contracted Services Operating Supplies & Equipment Capital Outlay FY 2025 Budget Actu' % Budget 437,730 69,372 259,850 16,724 76,925 9,408 83,000 16% 6% 12% 857,505 95,503 11% OK Airport Fund Relevant Information 96K 858K Overall, expenses for the Airport Fund are in line with expectations through the first quarter of FY2025. Contracted Services general maintenance expenses were less than anticipated to date. Costs related to CIP projects are captured in other funds. Year • 2023 •2024 •2025 80K 60K 40K 20K OK Category Personnel & Benefits Contracted Services 70,093 73,663 69,372 54,674 41,059 16,724 Operating Supplies & Equipm... 12,246 15,974 9,408 130,696 95,503 Personnel & Benefits Contracted Services Operating Supplies & Equipment 17