City of Charlottesville Revenue Scenarios for FY 2021 Budget (Projections Revised April 2021) Adopted January 2021 $ Change Current $ Change Year to Date Year to Date 2020-2021 Forecast (from Adopted FY 21 Forecast (from Adopted FY Actuals (as of Proj ections per to Current Forecast) 21 to Current 3-31-2021) Current Forecast) Forecast Real Estate Taxes $ 78,353,270 $ 78,075,000 ($278,270) $ 78,075,000 ($278,270) $ 39,564,031 $ 37,709,071 City/County Revenue Sharing $ 14,589,313 $ 14,589,313 $0 $ 14,589,313 $0 $ 14,589,313 $ 14,589,313 Meals Tax $ 14,295,064 $ 10,144,598 ($4,150,466) $ 10,605,268 ($3,689,796) $ 7,472,465 $ 7,466,441 Sales & Use Tax $ 11,504,331 $ 11,395,481 ($108,850) $ 11,519,874 $15,543 $ 8,587,831 $ 8,591,587 Personal Property Tax $ 9,800,000 $ 9,550,000 ($250,000) $ 9,550,000 ($250,000) $ 5,115,062 $ 5,348,000 Transient Room Tax $ 6,282,721 $ 3,298,223 ($2,984,498) $ 3,548,322 ($2,734,399) $ 2,490,900 $ 2,490,273 Business & Professional Licenses $ 6,225,000 $ 6,225,000 $0 $ 7,000,000 $775,000 $ 7,012,149 $ 7,000,000 Payment in Lieu of Taxes: Utilities $ 6,091,667 $ 6,091,667 $0 $ 6,091,667 $0 $ - $ - Utility Taxes $ 5,024,112 $ 4,300,000 ($724,112) $ 4,300,000 ($724,112) $ 3,461,646 $ 3,225,000 Recreation Income $ 1,335,824 $ 635,060 ($700,764) $ 635,060 ($700,764) $ 261,006 $ 281,352 Transfer from Parking Enterprise Fund $ 1,200,000 $ 400,000 ($800,000) $ 400,000 ($800,000) $ - $ - Other Local Taxes Subtotal $ 7,241,431 $ 7,210,249 ($31,182) $ 7,099,970 ($141,461) $ 4,785,063 $ 4,788,485 Other Licenses and Permits Subtotal $ 1,975,500 $ 2,420,500 $445,000 $ 2,481,500 $506,000 $ 1,348,983 $ 1,329,951 Other Intergovernmental Revenue Subtotal $ 12,984,420 $ 13,158,609 $174,189 $ 13,198,432 $214,012 $ 10,497,689 $ 10,274,257 Other Charges for Service Subtotal $ 5,596,604 $ 5,196,604 ($400,000) $ 5,161,604 ($435,000) $ 2,935,188 $ 3,077,582 Other Miscellaneous Revenue Subtotal $ 1,563,956 $ 1,612,956 $49,000 $ 1,657,250 $93,294 $ 1,457,194 $ 1,278,999 Transfers from Other Funds Subtotal $ 250,000 $ 250,000 $0 $ 250,000 $0 $ - $ - Other Designated Revenue $ 6,882,660 $ 6,685,079 ($197,581) $ 6,685,079 ($197,581) $ 6,657,047 $ 6,664,079 GENERAL FUND BUDGET TOTAL $ 191,195,873 $ 181,238,338 ($9,957,535) $ 182,848,338 ($8,347,535) $ 116,235,568 $ 114,114,390 Forecast Date Total Amount Change from Original Adopted January 2021 $181,238,338 ($9,957,535) April 2021 $182,848,338 ($8,347,535) Further Downturn $177,976,973 ($13,218,900) 1 4/19/2021 General Fund Revenue Summary Narrative for Current Forecast (April 2021) column Real Estate Tax revenue was slightly reduced from the original projection and September Forecast based upon the collection rate experienced for the December 2020 deadline, which was off by about 1.2%. This reduction isn’t lost revenue, but the expectation is that all revenue may not materialize in the current fiscal due to slower payment rates. Meals Tax revenue projections for FY21 Meals Tax were based upon projected recovery rates that exceeded the current rate of recovery. The Meals Tax revenue was continuing to improve through the beginning of FY21, but saw a sharp decline in revenue for the December payments. While Meals Tax saw an increase revenue for the January through March payments, this revenue is still not increasing at the projected rate in the original revenue projections or the revised September Forecast, but is projected to see slight increases over the January 2021 projections. Revised recovery rate projections project a slower recovery than the original revenue projections and 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 (estimated at approximately $685,026) will result in a corresponding expenditure decrease of the same amount in the Transfer to Debt Service. Sales Tax initially performed better than anticipated for the beginning of FY21. However recent trends show a projection slightly above the January 2021 projections, but still have a recovery rate for the reminder of the fiscal year that is approximately 6% per month lower than was projected as part of the revised September Forecast. Personal Property Tax based upon revised book values and the collection rate from the December 2020 deadline, this revenue projection has been reduced by $250,000 from the original Adopted FY21 budget. Lodging Tax revenue projections for FY21 were based upon projected recovery rates that exceeded the current rate of recovery. The occupancy rate and overall Lodging Tax revenue was continuing to improve through the beginning of FY21, but saw a sharp decline in revenue for the December payments. Lodging Tax saw an increase revenue for the January through March payments, this revenue is still not increasing at the projected rate in the original revenue projections or the revised September Forecast, but is projected to see slight increases over the January 2021 projections. Revised recovery rate projections do not anticipate returning to 60% of previous years collections until after the beginning of FY22. Utility Tax revenue has continued to lag behind initial revenue projections that we are continuing to monitor. The impacts of COVID, UVA’s modified school year and mild weather conditions continue to still be a factor in the performance of this revenue and the current forecast does not anticipate revenue amounts to reach the original projections for FY21. Business and Professional Licenses is now projected to exceed the FY21 revised estimates by $775,000. 1 General Fund Revenue Summary Narrative for Current Forecast (April 2021) column Parks and Recreation Revenue is projected to see a decrease of approximately $700,000 due to continued closure of facilities, as well as not offering the usual recreation class and instructional opportunities. Parking Revenue is now projecting an $800,000 decrease in the transfer from the Parking Fund, due to decreased revenue generation in the City owned parking facilities based upon decreased usage. Other Licenses and Permits ‐ the increase in projected revenue is due to continued strong performance in Building an Other Permit revenue. Other Intergovernmental Revenue ‐ the increase is due to slight increases in a some of the revenue sources that are received from the State. Other Charges for Services ‐ the decrease in the projections for Other Charges for Services Revenue can be explained by a decrease in the amount of Court Revenue projected as well as a decrease in the projected revenue from Reimbursable Public Safety Overtime, which should also show a corresponding decrease in expenditures. Other Designated Revenue ‐ the decrease in the projections for Other Designated Revenue can be explained by a decrease in the transfer to the CIP for Mall Vendor Fees, which will have a corresponding expenditure decrease for that project; and due to a decrease in the Pupil Transportation revenue that was to come from bus rentals and field trip revenue. 2 March General Fund Expenditure Summary Fiscal Year 2020‐21 Actuals through March 31st ‐ Period 9 of 12 or 75% 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 March 31st) (through March 31st) Budget Utilized Contribution to City Schools $ 58,709,623 $ 58,709,623 $ 43,375,968 $ 15,333,655 73.88% Police Department $ 18,017,555 $ 18,254,682 $ 12,121,083 $ 6,133,598 66.40% Outside and Nonprofit Agencies $ 16,798,273 $ 17,040,773 $ 15,840,302 $ 1,200,471 92.96% Fire Department $ 12,539,795 $ 12,658,000 $ 9,687,410 $ 2,970,590 76.53% Public Works $ 12,531,690 $ 12,817,180 $ 8,478,398 $ 4,338,782 66.15% Parks and Recreation $ 11,535,820 $ 11,728,454 $ 5,900,537 $ 5,827,918 50.31% Debt Service $ 11,013,359 $ 11,013,359 $ 10,328,333 $ 685,026 93.78% Interfund Transfers $ 10,638,085 $ 14,648,995 $ 14,157,090 $ 491,905 96.64% Citywide Reserve $ 250,000 $ 1,238,730 $ 232,203 $ 1,006,527 18.75% 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 $ 1,358,406 $ 536,594 71.68% Internal and Financial Services $ 9,458,988 $ 9,495,351 $ 6,539,616 $ 2,955,736 68.87% School Contractual Services ‐ Pupil Transportation/Building Maintenance $ 6,788,910 $ 6,800,332 $ 4,096,514 $ 2,703,818 60.24% Management $ 5,493,231 $ 6,277,993 $ 4,073,168 $ 2,204,824 64.88% Public Safety and Justice $ 3,705,176 $ 3,978,943 $ 2,590,703 $ 1,388,240 65.11% Healthy Families and Community $ 2,650,095 $ 2,847,118 $ 1,726,915 $ 1,120,203 60.65% Non Departmental Activities $ 2,495,302 $ 2,841,872 $ 493,780 $ 2,348,092 17.38% Total $ 191,195,873.00 $ 198,921,376.09 $ 141,000,426.98 $ 57,920,949.11 70.88% Notes: Current Budget includes the Original FY21 Adopted Budget as well as FY20 carryovers. March 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 March 31st) March General Fund Expenditure Summary Narrative (Actuals through March 31, 2021) 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 75% due to reflecting all 4 quarterly payments for most of the outside human service agencies. Debt Service represents the General Fund transfer to the Debt Service Fund. The actuals contain the General Fund contribution to the City's annual debt service of $8,560,788, and the portion of the Meals Tax revenue, 1 cent or 1/6 of the total collected, that is dedicated to pay for debt service. This portion of the transfer is now showing a reduction of $685,026, due to the decrease in Meals Tax revenue projections. The designated Meals Tax portion of this revenue will be adjusted at the end of the fiscal year based upon the actual revenue that is collected. 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 and are adjusted at the end of the fiscal year if necessary. 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. 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 Real Estate Tax Relief program allocations for FY21, and all of the CHAP program and Rent 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. 1 March General Fund Expenditure Summary Narrative (Actuals through March 31, 2021) 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. 2 Utility Fund Revenue and Expenditure Summary Fiscal Year 2020‐21 Actuals through March 31st ‐ Period 9 of 12 or 75% of fiscal year. FY21 YTD Actual and FY21 Remaining Available FY21 Original FY21 Current Encumbrances Annual Budget % of FY21 Gas Fund Budget Budget (through March 31st) (through March 31st) Budget Utilized Gas Fund Revenue $ 27,081,999 $ 27,081,999 $ 18,187,803 $ 8,894,196 67.16% Gas Fund Expenditures $ 26,473,698 $ 28,034,341 $ 14,531,066 $ 13,503,275 54.89% FY21 YTD Actual and FY21 Remaining Available FY21 Original FY21 Current Encumbrances Annual Budget % of FY21 Water Fund Budget Budget (through March 31st) (through March 31st) Budget Utilized Water Fund Revenue $ 12,504,490 $ 12,504,490 $ 8,023,389 $ 4,481,101 64.16% Water Fund Expenditures $ 11,497,327 $ 12,391,205 $ 6,128,195 $ 6,263,010 53.30% FY21 YTD Actual and FY21 Remaining Available FY21 Original FY21 Current Encumbrances Annual Budget % of FY21 Wastewater Fund Budget Budget (through March 31st) (through March 31st) Budget Utilized Wastewater Fund Revenue $ 15,451,758 $ 15,451,758 $ 10,589,106 $ 4,862,652 68.53% Wastewater Fund Expenditures $ 15,203,764 $ 15,880,005 $ 7,922,705 $ 7,957,300 52.11% FY21 YTD Actual and FY21 Remaining Available FY21 Original FY21 Current Encumbrances Annual Budget % of FY21 Stormwater Fund Budget Budget (through March 31st) (through March 31st) Budget Utilized Stormwater Fund Revenue $ 1,944,572 $ 1,944,572 $ 1,077,596 $ 866,977 55.42% Stormwater Fund Expenditures $ 1,844,572 $ 1,884,286 $ 1,391,446 $ 492,840 75.43% Notes: These figures represent the Operating Budgets only. CIP and Debt have been omitted for clarity. Current Budget includes the Original FY21 Adopted Operating Budget as well as all non‐capital FY20 carryovers. March 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 FY21 Current Budget FY21 YTD Actual and Encumbrances (through March 31st) March 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 FY21 Current Budget FY21 YTD Actual and Encumbrances (through March 31st) March 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 FY21 Current Budget FY21 YTD Actual and Encumbrances (through March 31st) March Stormwater Utility Summary ‐ FY21 Stormwater Fund Revenue Stormwater Fund Expenditures $‐ $500,000 $1,000,000 $1,500,000 $2,000,000 $2,500,000 FY21 Current Budget FY21 YTD Actual and Encumbrances (through March 31st)