City of Danville

Virginia


FINANCE DEPARTMENT P.O. Box 3300
_______________ Danville, Virginia 24543
Michael L. Adkins Telephone (434) 799-5186
INTERIM DIRECTOR adkinml@danvilleva.gov


To: Joseph C. King, City Manager

From: Michael L. Adkins, Interim Director of Finance

Date: August 21, 2014

Subject: Summary of Preliminary General Fund Financial Results for July 31, 2014

After completing the first month of the new fiscal year, revenues are very comparable to
the previous year. An exception exists in Categorical Aid from the State because of a
timing difference. State funding for Social Services and J uvenile Detention was
received in J uly of last year, but were not received until August of this year, causing a
timing difference of about $850,000. As of J uly 31, General Fund revenues were
$4,858,170. This represents 5% of our FY 2015 budget. Last year, at this time, we had
collected $5,597,871, or 6% of budget. Adjusting for the timing difference, revenues
would be at 6.85% of budget at J uly 31, 2014.

We continue to see good performance in the collection of delinquent real estate taxes
this year with $179,781 realized in the first month of this fiscal year. This accounts for
nearly 20% of the current years budget. Local taxes collected through J uly 31, were
$1,676,615, or 7% of budget. This is very comparable to FY 2014, showing a small
increase of $1,153 from last year. Sales tax collections in J uly amounted to $704,624,
or 8.7% of budget. Meals taxes collected for the first month of the fiscal year amounted
to $643,478, an increase of $24,107 from last year, running ahead of budget at 9.6%.
Business Licenses realized at the end of J uly were $104,056, a decrease of $45,264
from the prior year. Lodging taxes received as of J uly 31, were $68,242, or 9% of
budget, almost identical to the prior year.

Another timing difference is noted in Charges for Services. The first billing for J uvenile
Detention services was delayed until August this year, creating a $100,000 difference
between the two years. This will correct itself next month. All other revenue categories
appear to be on track at present.

Expenditures at J uly 31 were $7,955,372, or 7.9% of budget. This is an increase of
$1,621,560 from J uly 31, 2013 resulting from the timing of budgeted transfers to
Danville City Schools. Departmental expenditures at the end of J uly show a decrease
of about $485,000 from last year. Total General Fund expenditures exceeded revenues
by $3,097,202. This is typical for the start of the fiscal year in the General Fund
because the timing of the revenue recognition is not matched to expenditures. For now,
the General Fund is performing as expected.



Budgets & Actual Percent Actual
Appropriations For Revenues & Expenditures Realized/Expended Balance to be Revenues & Expenditures
Current Year For Year-to-Date This Year Encumbrances Realized/Expended At This Date Last Year
REVENUES:
Property Taxes 28,092,220 $ 526,883 $ 1.88% 27,565,337 $ 435,426 $
Other Local Taxes 23,449,000 1,676,616 7.15% 21,772,384 1,675,462
License Permits & Privilege Fees 209,180 16,979 8.12% 192,201 23,525
Fines & Forfeitures 500,200 33,915 6.78% 466,285 34,640
Revenue From Use Money & Property 919,280 67,924 7.39% 851,356 64,479
Charges For Services 3,309,270 175,192 5.29% 3,134,078 259,590
Miscellaneous Revenue/Bonds 123,000 23,979 19.50% 99,021 29,574
Recovered Cost 5,531,090 373,413 6.75% 5,157,677 353,172
Non-Categorical Aid 5,808,000 290,996 5.01% 5,517,004 272,690
Shared Expenses (Categ. Aid State) 4,610,290 389,280 8.44% 4,221,010 350,419
Categorical Aid (State) 8,616,380 43,817 0.51% 8,572,563 900,394
Emergency Services (Federal) 27,020 - 0.00% 27,020 -
Categorical Aid (Federal) - 3,343 (3,343) -
Transfers From Utilities 14,830,000 1,235,833 8.33% 13,594,167 1,198,500
Transfers From Other - - - -
TOTAL REVENUES 96,024,930 $ 4,858,170 $ 5.06% 91,166,760 $ 5,597,871 $
EXPENDITURES:
General Government Administration 7,954,553 $ 909,822 $ 11.44% 242,282 $ 6,802,449 $ 1,062,721 $
J udicial Administration 6,169,497 494,016 8.01% 2,897 5,672,584 473,777
Public Safety 26,052,601 2,082,259 7.99% 622,428 23,347,914 2,305,693
Public Works 4,306,160 272,041 6.32% 214,208 3,819,911 259,228
Health, Education, Welfare & Soc. Svc. 8,309,705 403,508 4.86% 15,854 7,890,343 552,142
Parks, Recreation & Cultural 4,890,034 356,014 7.28% 50,471 4,483,549 328,920
Community Development 2,630,796 108,330 4.12% 36,597 2,485,869 129,214
Non-Departmental 12,604,513 676,323 5.37% 10,454 11,917,736 551,285
Transfer to Schools - Operating 19,583,045 2,632,005 13.44% 904,735 16,046,305 622,895
Transfer to Capital Projects 3,903,100 - 0.00% - 3,903,100 -
Transfer to Other Funds 4,419,080 21,054 0.48% - 4,398,026 47,937
TOTAL EXPENDITURES 100,823,084 $ 7,955,372 $ 7.89% 2,099,926 $ 90,767,786 $ 6,333,812 $
Revenue over(under) Expenditures (3,097,202) $
FUND BALANCE:
Beginning Fund Balance 07/01/14 - preliminary figure 41,204,500 $
Revenue over(under) Expenditures (3,097,202)
Ending Fund Balance 07/31/2014 38,107,298 $
Composition of Fund Balance:
Reserved for Encumbrances/Designated Funds 9,408,479 $
Unassigned 28,698,819

TOTAL FUND BALANCE 07/31/2014 38,107,298 $
CITY OF DANVILLE, VIRGINIA
8% OF YEAR LAPSED AS OF JULY 31, 2014
GENERAL FUND REPORT
**PRE-CLOSING FIGURES - SUBJECT TO CHANGE - UNAUDITED**
8/21/2014
Current Revenue Percentage Prior Year Prior Year Percentage
Description Budget Realized Realized Budget Realized Prior Year
Sales Tax 8,100,000 $ 704,624 $ 8.70% 8,100,000 $ 677,009 $ 8.36%
Business Licenses 4,800,000 104,056 2.17% 4,700,000 149,320 3.18%
Meals Tax 6,700,000 643,478 9.60% 6,700,000 619,371 9.24%
Utility Taxes 981,000 81,557 8.31% 975,000 82,975 8.51%
Vehicle License Fees 960,000 44,008 4.58% 950,000 40,188 4.23%
Bank Stock Tax 750,000 - 0.00% 750,000 - 0.00%
Recordation Tax 160,000 8,872 5.55% 150,000 19,245 12.83%
Hotel Motel Tax 760,000 68,242 8.98% 700,000 68,912 9.84%
Daily Property Rental Tax 12,000 4,794 39.95% 10,000 4,113 41.13%
Motor Vehicle Tax 126,000 11,407 9.05% 100,000 9,425 9.43%
DMV Fees 100,000 5,577 5.58% 65,000 4,904 7.54%
TOTAL 23,449,000 $ 1,676,615 $ 7.15% 23,200,000 $ 1,675,462 $ 7.22%
City of Danville, Virginia
Summary of Other Local Tax Revenues PRECLOSING UNAUDITED
For the period ending July 31, 2014 (year to date)