CITY OF CHARLOTTESVILLE, VIRGINIA CITY COUNCIL AGENDA Agenda Date: December 21, 2020 Action Required: Report to Council Presenter: John Blair, Acting City Manager Ryan Davidson, Senior Budget and Management Analyst Staff Contacts: Ryan Davidson, Senior Budget and Management Analyst Title: City Financial Snapshot Report for November 2020 Actuals Background: Through discussions with the City Council, the City Manager has arranged to provide periodic financial reports. These reports will be provided on a monthly basis, at the second regular Council meeting of each month. Discussion: The attached report provides a financial snapshot of the General Fund revenues and expenditures, as well as the revenues and expenditures for the Utility Funds (Gas, Water, Wastewater, and Stormwater). Alignment with City Council’s Vision and Strategic Plan: The project supports City Council’s “Smart, Citizen-Focused Government” vision. It contributes to Goal 5 of the Strategic Plan, be a Well-Managed and Responsive Organization, and objective 5.1, to integrate effective business practices and strong fiscal policies. Community Engagement: This report is designed to provide the City Council and the community information in the form of a snapshot report on the City General Fund and Utility Fund finances through November 30, 2020. Budgetary Impact: This has no impact on the General Fund. This is only a report of the revenue that have been collected and the funding expended through November 30, 2020. Recommendation: Review of Report Alternatives: N/A Attachments: Council Financial Snapshot Report for F.Y. 2021 through November 30, 2020 November General Fund Revenue Summary Fiscal Year 2021 Actuals from July 1, 2020 ‐ November 30, 2020 $ Change FY21 Revised Annual (Original Adopted to Original YTD Projected YTD Actual % of FY21 Budget Major Revenue Streams FY21 Original Budget Projections Revised) (through November 30) (through November 30) Collected Real Estate Tax $ 78,353,270 $ 78,175,000 $ (178,270) $ 16,693,816 $ 14,981,245 19.12% County Revenue Sharing $ 14,589,313 $ 14,589,313 $ ‐ $ ‐ $ ‐ 0.00% Meals Tax $ 14,295,064 $ 12,288,232 $ (2,006,832) $ 5,167,482 $ 4,351,978 30.44% Sales Tax $ 11,504,331 $ 11,800,000 $ 295,669 $ 4,247,818 $ 4,485,107 38.99% Personal Property Tax $ 9,800,000 $ 9,600,000 $ (200,000) $ 2,605,208 $ 2,373,613 24.22% Business License $ 6,225,000 $ 6,225,000 $ ‐ $ 348,174 $ 256,623 4.12% Lodging Tax $ 6,282,721 $ 4,420,000 $ (1,862,721) $ 2,638,073 $ 1,634,522 26.02% PILOT: Utilities $ 6,091,667 $ 6,091,667 $ ‐ $ ‐ $ ‐ 0.00% Utility Taxes $ 5,024,112 $ 5,024,112 $ ‐ $ 1,988,711 $ 1,761,226 35.06% Other Revenue $ 39,030,395 $ 38,051,963 $ (978,432) $ 17,454,386 $ 18,672,533 47.84% Total $ 191,195,873 $ 186,265,287 $ (4,930,586) $ 51,143,668.04 $ 48,516,846.78 25.38% "Big 9" Revenue (revenues exceeding $5 Million) comprise 80% of total City Revenue "Other Revenue" will be irregular due to one‐time and quarterly payments, as well as end‐of ‐year accruals All revenues are compared to a detailed year to date revenue projection November Revenue Summary ‐ FY21 $‐ $2,000,000 $4,000,000 $6,000,000 $8,000,000 $10,000,000 $12,000,000 $14,000,000 $16,000,000 $18,000,000 $20,000,000 Real Estate Tax County Revenue Sharing Meals Tax Sales Tax Personal Property Tax Business License Lodging Tax PILOT: Utilities Utility Taxes Other Revenue Original YTD Projected (through November 30) YTD Actual (through November 30) November General Fund Revenue Summary Narrative Real Estate Tax revenue was slightly reduced from original projection based upon revised collections rates experienced for the second half of FY20 and assuming collection rates for FY21 would mirror the FY20 collection rates. Some of the Real Estate Taxes due in December were starting to be remitted in November. Will have a clearer picture of this revenue item with the financial report that presents the December actuals. Meals Tax revenue projections for FY21 Meals Tax were based upon projected recovery rates that exceeded the current rate of recovery. Revised recovery rate projections do not anticipate returning to 100% of previous years collections until the after the beginning of FY22. A portion of this revenue, 1 cent or 1/6 of the total collected is dedicated to pay for debt service. The decrease in this designated portion will result in a corresponding expenditure decrease of the same amount in the Transfer to Debt Service. Sales Tax has performed better than anticipated for the beginning of FY21. Revised revenue projections reflect the increased collections to date and a slightly more conservative recovery rate for the reminder of the fiscal year. Personal Property Tax based upon revised book values and collection history for FY20 this revenue projection was reduced by $200,000 for FY21. Some of the Personal Property Taxes due in December were starting to be remitted in November. Will have a clearer picture of this revenue item with the financial report that presents the December actuals. Lodging Tax revenue projections for FY21 Lodging Tax were based upon projected recovery rates that exceeded the current rate of recovery. While the occupancy rate has continued to improve through FY21 it is still not increasing at the projected rate in the original revenue projections. Revised recovery rate projections do not anticipate returning to 100% of previous years collections until after the beginning of FY22. Other Revenue ‐ the decrease in the projections for Other Revenue can be explained by a decrease of $650,000 in Parks and Recreation Revenue due to continued closure of facilities; a loss of $205,223 in State Recordation Tax revenue due to the General Assembly reallocating those funds to the Hampton Roads area; a $550,000 decrease in the transfer from the Parking Fund; and an increase in Building an Other Permit revenue. October General Fund Expenditure Summary Fiscal Year 2020‐21 Actuals through November 30th ‐ Period 5 of 12 or 41.6% of fiscal year. FY21 YTD Actual and FY21 Remaining Available FY21 Original FY21 Current Encumbrances Annual Budget % of FY21 Major Expenditure Categories Budget Budget (through November 30th) (through November 30th) Budget Utilized Contribution to City Schools $ 58,709,623 $ 58,709,623 $ 24,097,760 $ 34,611,863 41.05% Police Department $ 18,017,555 $ 18,254,682 $ 6,785,031 $ 11,469,651 37.17% Outside and Nonprofit Agencies $ 16,798,273 $ 17,040,773 $ 7,497,934 $ 9,542,839 44.00% Fire Department $ 12,539,795 $ 12,724,350 $ 5,448,693 $ 7,275,657 42.82% Public Works $ 12,531,690 $ 12,753,998 $ 4,641,303 $ 8,112,695 36.39% Parks and Recreation $ 11,535,820 $ 11,728,004 $ 3,597,089 $ 8,130,915 30.67% Debt Service $ 11,013,359 $ 11,013,359 $ ‐ $ 11,013,359 0.00% Interfund Transfers $ 10,638,085 $ 10,648,085 $ ‐ $ 10,648,085 0.00% Citywide Reserve $ 250,000 $ 1,238,730 $ 226,184 $ 1,012,546 18.26% Citywide Reserve ‐ COVID Economic Downturn $ 6,674,971 $ 6,674,971 $ ‐ $ 6,674,971 0.00% Tax and Rent Relief Programs $ 1,895,000 $ 1,895,000 $ 1,355,277 $ 539,723 71.52% Internal and Financial Services $ 9,458,988 $ 9,495,351 $ 3,903,616 $ 5,591,735 41.11% School Contractual Services ‐ Pupil Transportation/Building Maintenance $ 6,788,910 $ 6,800,332 $ 2,490,847 $ 4,309,485 36.63% Management $ 5,493,231 $ 6,259,368 $ 2,484,167 $ 3,775,200 39.69% Public Safety and Justice $ 3,705,176 $ 3,978,943 $ 1,373,635 $ 2,605,308 34.52% Healthy Families and Community $ 2,650,095 $ 2,847,118 $ 1,048,083 $ 1,799,035 36.81% Non Departmental Activities $ 2,495,302 $ 2,673,058 $ 481,310 $ 2,191,748 18.01% Total $ 191,195,873.00 $ 194,735,744.91 $ 65,430,929.15 $ 129,304,815.76 33.60% Notes: Current Budget includes the Original FY21 Adopted Budget as well as FY20 preliminary carryovers. November Expenditure Summary ‐ FY21 Contribution to City Schools Police Department Outside and Nonprofit Agencies Fire Department Public Works Parks and Recreation Debt Service Interfund Transfers Citywide Reserve Citywide Reserve ‐ COVID Economic Downturn Tax and Rent Relief Programs Internal and Financial Services School Contractual Services ‐ Pupil Transportation/Building Maintenance Management Public Safety and Justice Healthy Families and Community Non Departmental Activities $‐ $10,000,000 $20,000,000 $30,000,000 $40,000,000 $50,000,000 $60,000,000 FY21 Current Budget FY21 YTD Actual and Encumbrances (through November 30th) November General Fund Expenditure Summary Narrative Outside and Nonprofit Agencies includes payments to all Vibrant Community fund Agencies, Arts and Culture Agencies, Contractual Agencies including JAUNT and JMRL, and all Organizational Memberships and Agency dues. Actuals to date are above 41.6% due to reflecting both the first and second quarter payments for several outside human service agencies. Interfund Transfers contains all General Fund transfers to other funds including transfer to Transit, Transfer to Social Services and Human Services, Transfer to Capital Improvement Program, Transfer to Facilities Repair Fund, and Transfer to CSA. These transfers and payments are typically made as one time payments and many are made at either the end of the second quarter or beginning of the third quarter. Internal and Financial Services includes the General Fund portions of Finance and Information Technology, and the Office of the City Treasurer, Commissioner of Revenue's Office, and Human Resources. Citywide Reserve includes $250,000 for performance agreements, and $988,730 in other reserve funding some of which is previously appropriated and designated for specific purposes, such as the Citywide 800MHz radio replacements. Citywide Reserve ‐ COVID Economic Downturn includes $6.67M in COVID downturn reserve funding that was originally the cash transfer to the CIP from the General Fund. Rent and Tax Relief includes all rent and tax relief programs for the City including the Charlottesville Housing Affordability Tax Grant Program (CHAP). Actuals to date include approximately half of the CHAP program allocation for FY21 and the Rent and Real Estate Tax Relief program allocations for FY21. Management includes City Council, Council Strategic Initiatives, City Manager's Office, Redevelopment and Housing, Economic Development, Communications, City Attorney, and the Office of the General Registrar. Public Safety and Justice includes the operations for Circuit Court, General District Court, Juvenile and Domestic Relations Court, Commonwealth Attorney, and City Sheriff. Healthy Families and Community includes Neighborhood Development Services and Office of Human Rights. Non Departmental Activities include Citizen Engagement, Police Civilian Review Board, Participatory Budgeting, Strategic Planning, Employee Compensation and Training, and grant matches for the Food Equity Program and Virginia Juvenile Community Crime Control Act. Utility Fund Revenue and Expenditure Summary Fiscal Year 2020‐21 Actuals through November 30th ‐ Period 5 of 12 or 41.6% of fiscal year. FY21 YTD Actual and FY21 Remaining Available FY21 Original FY21 Current Encumbrances Annual Budget % of FY21 Gas Fund Budget Budget (through November 30th) (through November 30th) Budget Utilized Gas Fund Revenue $ 27,081,999 $ 27,081,999 $ 5,480,031 $ 21,601,968 20.23% Gas Fund Expenditures $ 27,873,698 $ 29,434,341 $ 8,982,004 $ 18,891,694 32.22% FY21 YTD Actual and FY21 Remaining Available FY21 Original FY21 Current Encumbrances Annual Budget % of FY21 Water Fund Budget Budget (through November 30th) (through November 30th) Budget Utilized Water Fund Revenue $ 18,279,490 $ 18,279,490 $ 6,279,791 $ 11,999,699 34.35% Water Fund Expenditures $ 17,272,327 $ 18,166,205 $ 7,036,571 $ 10,235,756 40.74% FY21 YTD Actual and FY21 Remaining Available FY21 Original FY21 Current Encumbrances Annual Budget % of FY21 Wastewater Fund Budget Budget (through November 30th) (through November 30th) Budget Utilized Wastewater Fund Revenue $ 17,451,758 $ 17,451,758 $ 10,055,997 $ 7,395,761 57.62% Wastewater Fund Expenditures $ 17,203,764 $ 17,880,005 $ 9,385,750 $ 7,818,014 54.56% FY21 YTD Actual and FY21 Remaining Available FY21 Original FY21 Current Encumbrances Annual Budget % of FY21 Stormwater Fund Budget Budget (through November 30th) (through November 30th) Budget Utilized Stormwater Fund Revenue $ 2,894,572 $ 2,894,572 $ 3,023,676 $ (129,104) 104.46% Stormwater Fund Expenditures $ 2,794,572 $ 2,834,286 $ 2,566,456 $ 228,116 91.84% Notes: Current Budget includes the Original FY21 Adopted Budget as well as FY20 preliminary carryovers November Gas Utility Summary ‐ FY21 Gas Fund Revenue Gas Fund Expenditures $‐ $5,000,000 $10,000,000 $15,000,000 $20,000,000 $25,000,000 $30,000,000 $35,000,000 FY21 Current Budget FY21 YTD Actual and Encumbrances (through November 30th) November Water Utility Summary ‐ FY21 Water Fund Revenue Water Fund Expenditures $‐ $2,000,000 $4,000,000 $6,000,000 $8,000,000 $10,000,000 $12,000,000 $14,000,000 $16,000,000 $18,000,000 $20,000,000 FY21 Current Budget FY21 YTD Actual and Encumbrances (through November 30th) November Wastewater Utility Summary ‐ FY21 Wastewater Fund Revenue Wastewater Fund Expenditures $‐ $2,000,000 $4,000,000 $6,000,000 $8,000,000 $10,000,000 $12,000,000 $14,000,000 $16,000,000 $18,000,000 $20,000,000 FY21 Current Budget FY21 YTD Actual and Encumbrances (through November 30th) November Stormwater Utility Summary ‐ FY21 Stormwater Fund Revenue Stormwater Fund Expenditures $‐ $500,000 $1,000,000 $1,500,000 $2,000,000 $2,500,000 $3,000,000 $3,500,000 FY21 Current Budget FY21 YTD Actual and Encumbrances (through November 30th)