County of Gloucester Finance Department

6467 Main Street Gloucester, Virginia 23061 (804)693-6927

Interoffice Memorandum To: Gloucester County Board of Supervisors From: Nickie C. Champion, Director of Financial Services CC: Brenda G. Garton, County Administrator Date: January 16, 2014 Re: Financial Report for Period Ending December 31, 2013 The second quarter financial report for fiscal year 2014 will include review of the following:

• Summary General Fund revenue reports at December 31, 2013, which includes projections out to June 30, 2014. Highlights include:

o Personal property tax collections have been better than expected; and at this time, I am estimating we will collect $608,015 more than budget. The majority can be attributed to my cautiousness in judging taxpayers ability and willingness to pay.

o The projection for Public Service Tax has been increased by $506,000. This increase can be attributed to assessments increasing by 54% between calendar year 2012 and calendar year 2013.

o Other Income will show gains totaling $190,045. This amount is divided between excess funds being returned by the Health Department ($65,046) and monies received from land sales due to delinquent taxes ($124,999).

• Summary General Fund expenditure reports at December 31, 2013, which includes

projections out to June 30, 2014. At this time, I am estimating expenditures will be close to budgeted amounts.

• Summary of Utility Fund results at December 31, 2013 with a look back for two years. The Utility Fund continues to struggle. Our budget forecasts for water and sewer service are finally beginning to reflect actual collections. Water and sewer charges are booked on a cash basis; and at the end of the second quarter, we would expect the collection percentages to be approximately 48% to 52%.

• Summary of the County Administrator’s Contingency Fund at January 13, 2014.

I have also attached PowerPoint slides, which provide additional information to be presented at the February 4th Board meeting. Please do not hesitate to contact me if you have any questions.

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Estimated EstimatedFY 13 Collections to Collections to 6/30/2013 FY 14 Collections to Collections to 6/30/2014

Adjusted Budget 12/31/2012 % Collected 6/30/2013 % Collected Over/(Short) Adjusted Budget 12/31/2013 % Collected 6/30/2014 % Collected Over/(Short)Real Estate Tax 26,930,110 13,129,076 48.8% 26,890,278 99.9% (39,832) ` 26,940,000 13,133,538 48.8% 26,940,000 100.0% 0

Public Service 510,000 401,245 78.7% 752,581 147.6% 242,581 594,000 685,436 115.4% 1,100,000 185.2% 506,000Personal Property Tax 8,261,985 4,251,351 51.5% 9,149,679 110.7% 887,694 8,591,985 4,205,231 48.9% 9,200,000 107.1% 608,015

Mobile Home 36,000 18,604 51.7% 45,791 127.2% 9,791 43,000 19,893 46.3% 43,000 100.0% 0Penalties & Interest 494,000 297,330 60.2% 601,847 121.8% 107,847 530,000 292,720 55.2% 530,000 100.0% 0

Total Property Taxes 36,232,095 18,097,606 49.9% 37,440,175 103.3% 1,208,080 36,698,985 18,336,818 50.0% 37,813,000 103.0% 1,114,015

Local Sales Tax 3,763,114 1,227,652 32.6% 3,777,448 100.4% 14,334 3,785,144 1,237,367 32.7% 3,785,144 100.0% 0Communication Sales Tax 1,214,000 390,031 32.1% 1,158,470 95.4% (55,530) 1,214,000 381,893 31.5% 1,214,000 100.0% 0

Consumer Utility Tax 701,000 291,957 41.6% 702,582 100.2% 1,582 701,000 293,439 41.9% 701,000 100.0% 0Electric Consumption Tax 133,112 50,398 37.9% 130,943 98.4% (2,169) 133,112 48,517 36.4% 133,112 100.0% 0

Business LicenseTax 1,446,819 27,544 1.9% 1,504,047 104.0% 57,228 1,546,400 15,324 1.0% 1,546,400 100.0% 0Cable TV Franchise Tax 404,000 135,775 33.6% 405,495 100.4% 1,495 404,000 133,799 33.1% 404,000 100.0% 0

Bank Stock Tax 170,000 0 0.0% 222,162 130.7% 52,162 170,000 0 0.0% 170,000 100.0% 0Recordation Tax 275,000 162,991 59.3% 377,843 137.4% 102,843 385,000 160,867 41.8% 385,000 100.0% 0

Deeds of Conveyance 60,500 29,600 48.9% 73,301 121.2% 12,801 72,000 41,148 57.1% 72,000 100.0% 0Meals Tax 1,770,000 770,083 43.5% 1,857,427 104.9% 87,427 1,851,000 749,824 40.5% 1,851,000 100.0% 0

Lodging Tax 109,528 66,283 60.5% 143,402 130.9% 33,874 120,000 65,234 54.4% 120,000 100.0% 0Total Local Taxes 10,047,073 3,152,314 31.4% 10,353,120 103.0% 306,047 10,381,656 3,127,412 30.1% 10,381,656 100.0% 0

Permits & Licenses 274,600 136,561 49.7% 307,747 112.1% 33,147 294,400 153,767 52.2% 294,400 100.0% 0Fines & Forfeitures 132,500 59,634 45.0% 108,507 81.9% (23,993) 132,500 46,023 34.7% 132,500 100.0% 0

Use of Money & Prop 145,356 81,102 55.8% 154,030 106.0% 8,674 147,031 76,424 52.0% 147,031 100.0% 0Charges for Services 689,864 273,698 39.7% 736,965 106.8% 47,101 720,550 319,269 44.3% 720,550 100.0% 0

Miscellaneous 307,933 106,736 34.7% 269,971 87.7% (37,962) 292,888 230,591 78.7% 482,933 164.9% 190,045Recovered Costs 378,373 269,197 71.1% 337,904 89.3% (40,469) 385,270 320,296 83.1% 385,270 100.0% 0

Total Other Local Revenue 1,928,626 926,927 48.1% 1,915,123 99.3% (13,503) 1,972,639 1,146,370 58.1% 2,162,684 109.6% 190,045

Total Local Revenue 48,207,794 22,176,847 46.0% 49,708,419 103.1% 1,500,625 49,053,280 22,610,599 46.1% 50,357,340 102.7% 1,304,060

General Fund Revenue SummaryThrough December 31, 2013Projected to June 30, 2014

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Estimated EstimatedFY 13 Collections to Collections to 6/30/2013 FY 14 Collections to Collections to 6/30/2014

Adjusted Budget 12/31/2012 % Collected 6/30/2013 % Collected Over/(Short) Adjusted Budget 12/31/2013 % Collected 6/30/2014 % Collected Over/(Short)

General Fund Revenue SummaryThrough December 31, 2013Projected to June 30, 2014

State RevenueNon-Categorical Aid 2,980,640 2,287,154 76.7% 2,995,186 100.5% 14,546 2,985,725 2,293,243 76.8% 2,985,725 100.0% 0

Shared Expenses 3,467,660 1,439,654 41.5% 3,496,164 100.8% 28,504 3,670,193 1,355,493 36.9% 3,670,193 100.0% 0Categorical Aid 617,489 208,395 33.7% 611,317 99.0% (6,172) 588,831 293,935 49.9% 588,831 100.0% 0

Total State Revenue 7,065,789 3,935,203 55.7% 7,102,667 100.5% 36,878 7,244,749 3,942,672 54.4% 7,244,749 100.0% 0

Federal RevenueOther 219,336 (349) -0.2% 200,729 91.5% (18,607) 189,599 (7,618) -4.0% 189,599 100.0% 0

Total Federal Revenue 219,336 (349) -0.2% 200,729 91.5% (18,607) 189,599 (7,618) -4.0% 189,599 100.0% 0

Subtotal Before Fund Balance 55,492,919 26,111,701 47.1% 57,011,816 102.7% 1,518,897 56,487,628 26,545,652 47.0% 57,791,688 102.3% 1,304,060

Restricted Fund Balance 124,288 0 0.0% 0 0.0% (124,288) 143,916 0 0.0% 0 0.0% (143,916)From Fund Balance - Adoption 288,333 0 0.0% 0 0.0% (288,333) 1,352,467 0 0.0% 0 0.0% (1,352,467)

From Fund Balance - After Adoption 669,808 0 0.0% 0 0.0% (669,808) 277,266 0 0.0% 0 0.0% (277,266)Total Fund Balance 1,082,429 0 0.0% 0 0.0% (1,082,429) 1,773,649 0 0.0% 0 0.0% (1,773,649)

Total General Fund 56,575,348 26,111,701 46.2% 57,011,816 100.8% 436,468 58,261,277 26,545,652 45.6% 57,791,688 99.2% (469,589)

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Estimated EstimatedFY 13 Expenditures to Expenditures to 6/30/2013 FY 14 Expenditures to Expenditures to 6/30/2014

Department Adjusted Budget 12/31/2012 % Spent 6/30/2013 % Spent Over/(Under) Adjusted Budget 12/31/2013 % Spent 6/30/2014 % Spent Over/(Under)

Administration 5,344,364 2,742,831 51.3% 4,619,018 86.4% (725,346) ` 5,782,173 2,774,063 48.0% 5,782,173 100.0% - Transfers Out 31,189,152 15,567,470 49.9% 31,098,527 99.7% (90,625) 31,798,458 15,836,225 49.8% 31,798,458 100.0% -

Judicial 1,759,944 816,045 46.4% 1,634,575 92.9% (125,369) 1,789,421 840,395 47.0% 1,789,421 100.0% - Public Safety 11,632,157 5,701,959 49.0% 11,388,577 97.9% (243,580) 11,735,292 5,777,675 49.2% 11,735,292 100.0% - Public Works 2,218,747 1,024,043 46.2% 2,119,356 95.5% (99,391) 2,273,479 1,030,225 45.3% 2,273,479 100.0% -

Health and Welfare 600,299 304,116 50.7% 600,299 100.0% - 604,961 278,572 46.0% 604,961 100.0% - Education 573,517 245,794 42.9% 518,712 90.4% (54,805) 589,119 271,533 46.1% 589,119 100.0% -

Cultural 2,136,933 991,469 46.4% 2,067,452 96.7% (69,481) 2,228,679 1,016,398 45.6% 2,228,679 100.0% - Community Development 994,241 377,823 38.0% 901,444 90.7% (92,797) 1,098,029 527,174 48.0% 1,098,029 100.0% -

Contributions & Suspense 325,995 332,266 101.9% 312,185 95.8% (13,810) 361,666 388,734 107.5% 361,666 100.0% - Total General Fund 56,775,348 28,103,816 49.5% 55,260,145 97.3% (1,515,203) 58,261,277 28,740,994 49.3% 58,261,277 100.0% -

General Fund Expenditure SummaryThrough December 31, 2013Projected to June 30, 2014

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FY 12 Collections to FY 13 Collections to FY 14 Collections toAdjusted Budget 12/31/2011 % Collected Adjusted Budget 12/31/2012 % Collected Adjusted Budget 12/31/2013 % Collected

Use of Money & Property 72,000 2,440 3.4% 15,500 1,131 7.3% 11,000 649 5.9%

Water Service 3,643,000 1,585,933 43.5% 3,786,900 1,584,160 41.8% 3,300,000 1,659,571 50.3%Sewer Service 695,000 288,774 41.6% 730,000 307,384 42.1% 625,000 329,890 52.8%

Connection Fees-Water 225,000 49,000 21.8% 165,000 112,000 67.9% 260,000 101,500 39.0%Connection Fees-Sewer 200,000 42,900 21.5% 132,000 105,600 80.0% 200,000 92,400 46.2%

Development Fees-Water 37,500 7,000 18.7% 17,500 16,000 91.4% 37,000 14,500 39.2%Development Fees-Sewer 72,000 14,400 20.0% 48,000 38,400 80.0% 85,000 33,600 39.5%

All Other Charges for Services 95,750 84,881 88.6% 141,820 118,043 83.2% 148,400 65,735 44.3%

Miscellaneous 9,200 5,001 54.4% 9,200 8,320 90.4% 11,200 9,383 83.8%

DSR Fund Interest 115,000 44,856 39.0% 100,000 25,490 25.5% 90,000 34,524 38.4%Development Fund Balance 0 0 0.0% 0 0 0.0% 0 0 0.0%

Debt Proceeds 0 0 0.0% 850,000 0 0.0% 1,990,000 0 0.0%Transfer from General Fund 480,000 480,000 100.0% 673,758 673,758 100.0% 673,758 673,758 100.0%Transfer from Other Funds 0 0 0.0% 55,000 55,000 100.0% 0 0 100.0%

Total Utility Fund Revenues 5,644,450 2,605,184 46.2% 6,724,678 3,045,286 45.3% 7,431,358 3,015,510 40.6%

FY 12 Expenses to FY 13 Expenses to FY 14 Expenses toAdjusted Budget 12/31/2011 % Spent Adjusted Budget 12/31/2012 % Spent Adjusted Budget 12/31/2013 % Spent

Personnel Costs 1,359,787 627,767 46.2% 1,414,379 712,173 50.4% 1,473,911 718,074 48.7%

Operating Costs 1,326,798 594,704 44.8% 1,568,162 551,433 35.2% 1,206,688 489,374 40.6%

Capital Outlay 24,000 10,168 42.4% 504,000 2,150 0.4% 1,848,000 17,007 0.9%

Debt Service 2,611,865 492,838 18.9% 2,905,387 1,114,995 38.4% 2,780,759 1,862,698 67.0%

To Development Fund Balance 322,000 21,400 6.6% 332,750 54,400 16.3% 122,000 48,100 39.4%

Total Utility Fund Expenses 5,644,450 1,746,877 30.9% 6,724,678 2,435,151 36.2% 7,431,358 3,135,252 42.2%

Utility Fund SummaryThrough December 31, 2013

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FY 2014 Adopted Budget Amount 287,892$ Tactical ballistic vests and tasers (22,250) Personalized ID Printer - Emergency Services (1,727) Disposition of Unclaimed Body (850) Debris removal not FEMA reimburseable (450) Courthouse Security (23,471) Courthouse AV Equipment (placeholder) (33,000) Britton settlement (FEMA) (placeholder) (2,200) Harris settlement (FEMA) (placeholder) (1,250) Village Implementation Ordinance work (from June 4, 2013 BOS) (5,000) Volunteer and Donations Plan Consulting (9,000) Reassessment Computer (1,000) MPPDC All Hazards Plan (4,464) Annex General Construction (FEMA demolition - grant timing issue) (3,148)

Balance Remaining 180,082$

FY 2014 County Administrator's Contingency Fund

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1

Financial Report at 12-31-2013

Presented to Board of Supervisors

On February 4, 2014

General Fund Results at Dec 31st

FY 14 Budget Est at 12-31-14 Percent

Local Revenue 49,053,280$ 22,610,599$ 46.1%Local Revenue 49,053,280$ 22,610,599$ 46.1%

State Revenue 7,244,749 3,942,672 54.4%

Federal Revenue 189,599 (7,618) -4.0%

Total Non-Revenue 1,773,649 - 0.0%

Total Revenue 58,261,277$ 26,545,653$ 45.6%

Total Expenditures 58,261,277$ 28,740,994$ 49.3%

Revenue Over Expenditure (2,195,341)$

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2

General Fund Results at June 30th

FY 14 Budget Est at 6-30-14 Over/(Under)

Local Revenue 49,053,280$ 50,314,340$ 1,261,060$ , ,$ , ,$ , ,$

State Revenue 7,244,749 7,244,749 -

Federal Revenue 189,599 189,599 -

Total Non-Revenue 1,773,649 - (1,773,649)

Total Revenue 58,261,277$ 57,748,688$ (512,589)$

Total Expenditures 58,261,277$ 58,261,277$ -

Revenue Over Expenditure (512,589)$

Real Estate Tax at June 30th

Actual FY 12 Actual FY 13 Budget FY 14 Expect FY 14

Current 24 372 430$ 25 912 895$ 26 340 000$ 26 340 000$Current 24,372,430$ 25,912,895$ 26,340,000$ 26,340,000$ Delinquent 794,183$ 977,383$ 600,000$ 600,000$ Total 25,166,613$ 26,890,278$ 26,940,000$ 26,940,000$

Tax Rate $.58/$.65 $0.65 $0.65

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Real Estate Tax Tax Relief for the Elderly and Disabled Tax Relief for Disabled Veterans Refunds for taxes erroneously paid Changes for assessment corrections Supplements for new building

Personal Property Tax at June 30th

Actual FY 12 Actual FY 13 Budget FY 14 Expect FY 14

C t 7 391 652$ 8 242 151$ 7 916 325$ 8 316 326$Current 7,391,652$ 8,242,151$ 7,916,325$ 8,316,326$ Delinquent 802,047$ 907,528$ 675,660$ 883,674$ Total 8,193,699$ 9,149,679$ 8,591,985$ 9,200,000$

Tax Rate $2.60/$2.95 $2.95 $2.95

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Personal Property Tax Availability of values Refunds for taxes erroneously paid Corrections for erroneous assessments Difficulty in collecting

Public Service Tax

Actual FY 12 Actual FY 13 Budget FY 14 Expect FY 14

P bli S 565 341$ 752 581$ 594 000$ 1 100 000$Public Ser 565,341$ 752,581$ 594,000$ 1,100,000$

Tax Rate $.58/$.65 $0.65 $0.65

►Assessments provided by State Corporation Commission►Receive in September-October for that year►Receive in September October for that year►Budget projection is based on prior year

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Other Local Taxes at June 30th

FY 14 Budget FY 14 Expected Over/(Under)

Local Sales Tax 3 785 144$ 3 785 144$ -$Local Sales Tax 3,785,144$ 3,785,144$ $

Communication Sales Tax 1,214,000$ 1,214,000$ -$

Utility Taxes 834,112 834,112$ -$

Business License 1,546,400 1,546,400$ -$

Cable TV Franchise Fees 404,000 404,000$ -$

Meals Tax 1,851,000 1,851,000$ -$

Lodging Tax 120,000 120,000$ -$

Bank Stock Tax 170 000 170 000$ $Bank Stock Tax 170,000 170,000$ -$

Recordation Tax 385,000 385,000$ -$

Deeds of Conveyance Tax 72,000 72,000 -$

Total Other Local Taxes 10,381,656$ 10,381,656$ -$

Local Sales Taxes

$4,000,000

$3,200,000

$3,400,000

$3,600,000

$3,800,000

$2,800,000

$3,000,000

FY 04 FY 05 FY 06 FY 07 FY 08 FY 09 FY 10 FY 11 FY 12 FY 13

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Local Sales Tax Per Capita

Sales Tax Population Per Capitap pFY 06-07 3,916,265$ 36,361 108$ FY 07-08 3,944,336$ 36,203 109$ FY 08-09 3,622,137$ 36,438 99$ FY 09-10 3,547,316$ 36,776 96$ FY 10-11 3,537,753$ 36,858 96$ FY 11-12 3,729,206$ 36,987 101$ FY 12-13 3,777,449$ 36,976 102$

Communications Sales Tax Effective January 1, 2007 Eliminated Local Consumer Utility &

E-911 taxes on telephones Added a 5% sales tax on landline & wireless telephones,

satellite TV & radio, pagers, and other communication services

FY 2013 actual receipts = $1,158,469 FY 2014 b d t = $1 214 000 FY 2014 budget = $1,214,000

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Communications Sales Tax

$1,600,000

$600,000

$800,000

$1,000,000

$1,200,000

$1,400,000

$-

$200,000

$400,000

FY 07 FY 08 FY 09 FY 10 FY 11 FY 12 FY 13

Meals Tax

$1 800 000

$2,000,000

$600,000

$800,000

$1,000,000

$1,200,000

$1,400,000

$1,600,000

$1,800,000

$-

$200,000

$400,000

,

FY 04 FY 05 FY 06 FY 07 FY 08 FY 09 FY 10 FY 11 FY 12 FY 13

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Recordation Tax

$700,000

$200,000

$300,000

$400,000

$500,000

$600,000

$-

$100,000

$200,000

FY 04FY 05FY 06FY 07FY 08FY 09FY 10FY 11 FY 12FY 13

Building Permit Fees

400 000

100,000

150,000

200,000

250,000

300,000

350,000

400,000

0

50,000

FY 07 FY 08 FY 09 FY 10 FY 11 FY 12 FY 13

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Business License Tax

$1 600 000

$1,800,000

$400 000

$600,000

$800,000

$1,000,000

$1,200,000

$1,400,000

$1,600,000

$-

$200,000

$400,000

FY 04

FY 05

FY 06

FY 07

FY 08

FY 09

FY 10

FY 11

FY 12

FY 13

Utility Fund

FY 14 Budget Y-T-D Percent

Use of Money 11 000$ 649$ 5 9%Use of Money 11,000$ 649$ 5.9%Water Service 3,300,000$ 1,659,571$ 50.3%Sewer Service 625,000$ 329,890$ 52.8%Other Charges 741,600$ 307,735$ 41.5%Other Revenue 2,080,000$ 43,907$ 2.1%Transfer from GF 673,758$ 673,758$ 0.0%

7,431,358$ 3,015,510$ 40.6%

Total Expenses 7,431,358$ 3,135,252$ 42.2%

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Other Funds

Final Budget Actual % Spent

School Fund 52 747 047$ 21 484 698$ 40 7%School Fund 52,747,047$ 21,484,698$ 40.7%Cafeteria Fund 2,392,135 806,536 33.7%Social Services Fund 3,608,835 1,533,665 42.5%CSA Fund 1,503,000 433,111 28.8%Capital Fund 14,063,844 3,360,055 23.9%School Construction Fund 25,636,428 1,681,788 6.6%Debt Service Fund 4,549,182 3,638,447 80.0%Gloucester Sanitary #1 Fund 23,950 8,113 33.9%Gloucester Point Sanitary Fund 20 150 7 329 36 4%Gloucester Point Sanitary Fund 20,150 7,329 36.4%Mosquito Control Fund 98,890 12,774 12.9%

Questions?

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