Council Retreat Mid-Year

Financial Review and FY17 Budget

Planning
January 30, 2016
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Agenda
Budget Process and Calendar
Mid-Year Review
Revenue Forecast

Key Expenditure Changes

Strategies to Close the Gap

Budget Process and Calendar

Budget Process and Calendar

Budget Developed, Proposed

and Adopted
January June of each year

Creation

Implementation
Adopted Budget executed by
Manager & staff
Adapted for changing needs
with recommendations to
Council for Amendments, if
necessary
July June of each year

Audit and preparation of CAFR

to present actual results
July December of each year

Reporting

Budget Process and Calendar

October:

FY17 Budget instructions to Departments & Outside Agencies

December 31: Departmental Requests Due

January 31:

Requests Compiled and Formatted by Finance and Submitted to

Manager

Feb. & March: Manager and Management Team Develop Recommended

Budget

April:

Manager Submits Recommended FY17 Budget to Council

April & May:

Budget Work Sessions

May 10:

Public Hearing on Proposed FY17 Budget

June 14:

Council Adopts FY17 Budget

July 1:

FY17 Begins
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Mid-Year Review: GF Revenues

FY16 Revenue Total (as amended)

$13,663,989

Collected as of 12/31/15 34.5%

$4,689,918

42.0% FY15 collected as of 12/31/14

$4,168,133 (of total $9,918,646, as amended)

Key FY15 & FY16 Mid-Year Comparisons FY15/FY16 FY15

Sales Tax
Utility Tax
Meals Tax
Cigarette Tax
Lodging Tax
Permits & Fees
Court Fines
WARF Charges
State + Federal Aid
BPOL, Bank Stock, Vehicle Licenses

FY16

40% / 38% $210,455/$228,428 (4 months)

42% / 38% $197,967/$189,575 (5 months)
46% / 44% $921,235/$957,038 (5 months)
48% / 45% $90,324/$85,311
49% / 54% $90,695/$102,813 (5 months)
67% / 79% $97,905/$108,763
37% / 31% $70,719/$58,390
39% / 38% $557,627/$543,711
62% / 53% $1,758,617/$1,753,922
collected in Q4

Mid-Year Review: GF Expenditures

FY16 Exp. Total (as amended)

$13,663,989

Spent as of 12/31/15 45.3%

$6,192,529

44.5% FY15 spent as of 12/31/14

No Significant FY16 actual/budget expenditure

variances
No use of Fund Balance appropriation to date

Mid-Year Review: W&S Fund Revenues

FY16 Revenue Total (as amended)

$5,519,140

Collected as of 12/31/15 40%

33% FY15 collected as of 12/31/14

$2,188,763
$1,657,008 ($4,960,517)

Key FY15 & FY16 Mid-Year Comparisons

Charges for Services 41%/49%
$1,503,766/$1,802,139
Connect./Avail. Fees 7%/83%
$55,750/$296,719

Mid-Year Review: W&S Fund Expenses

FY16 Exp. Total (as amended)

$5,519,140

Spent as of 12/31/15 39.2%

43.6% FY15 spent as of 12/31/14

$2,164,018
$2,164,767 ($4,960,517)

No Significant FY16 actual/budget expense variances

No use of Reserves/Retained Earnings appropriation to date

GF Revenue Forecast: RE & PP Tax

$800,000

Property Taxes

$700,000

$600,000

$500,000

$400,000

$300,000

$200,000

$100,000

$0
Series1

FY13

FY14

FY15

FY16

FY17

FY18

FY19

FY20

$539,313

$605,047

$678,228

$683,100

$687,972

$692,844

$697,716

$702,588
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GF Revenue Forecast: Sales Tax

$800,000

Sales Tax

$700,000

$600,000

$500,000

$400,000

$300,000

$200,000

$100,000

$0
Series1

FY13

FY14

FY15

FY16

FY17

FY18

FY19

FY20

$530,836

$561,074

$595,653

$625,000

$640,625

$656,641

$673,057

$673,057

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GF Revenue Forecast: Meals Tax

$3,000,000

Meals Tax

$2,500,000

$2,000,000

$1,500,000

$1,000,000

$500,000

$0
Series1

FY13

FY14

FY15

FY16

FY17

FY18

FY19

FY20

$2,152,237

$2,191,572

$2,265,639

$2,290,000

$2,346,701

$2,395,437

$2,444,172

$2,492,908

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GF Revenue Forecast: Lodging Tax

$250,000

Lodging Tax

$200,000

$150,000

$100,000

$50,000

$0
Series1

FY13

FY14

FY15

FY16

FY17

FY18

FY19

FY20

$187,263

$190,233

$190,005

$202,500

$203,871

$208,419

$212,968

$217,516

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GF Revenue Forecast: BPOL

$2,500,000

BPOL
$2,000,000

$1,500,000

$1,000,000

$500,000

$0
Series1

FY13

FY14

FY15

FY16

FY17

FY18

FY19

FY20

$1,366,360

$1,914,525

$1,656,923

$1,700,000

$1,742,500

$1,786,063

$1,785,000

$1,800,000
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GF Revenue Forecast: Permits & Fees

$300,000

Permits & Fees

$250,000

$200,000

$150,000

$100,000

$50,000

$0
Series1

FY13

FY14

FY15

FY16

FY17

FY18

FY19

FY20

$182,847

$128,220

$203,476

$217,526

$227,841

$238,093

$244,046

$246,486

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GF Revenue Forecast: Parks &

Recreation Revenues
$1,600,000

WARF Revenues

$1,400,000

$1,200,000

$1,000,000

$800,000

$600,000

$400,000

$200,000

$0
Series1

FY13

FY14

FY15

FY16

FY17

FY18

FY19

FY20

$1,165,101

$1,211,656

$1,197,725

$1,200,000

$1,260,000

$1,266,300

$1,329,615

$1,336,263
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W&S Fund Revenue Forecast:

Consumption Charges
$6,000,000

Water & Sewer Charges

$5,000,000

$4,000,000

$3,000,000

$2,000,000

$1,000,000

$0
Series1

FY13

FY14

FY15

FY16

FY17

FY18

FY19

FY20

$3,570,606

$3,608,609

$3,527,588

$3,848,595

$5,073,691

$5,225,902

$5,382,679

$5,544,159
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W&S Fund Revenue Forecast:

Availability Fees
$400,000

W&S Availability Fees

$350,000

$300,000

$250,000

$200,000

$150,000

$100,000

$50,000

$0
Series1

FY13

FY14

FY15

FY16

FY17

FY18

FY19

FY20

$333,225

$123,913

$175,350

$355,250

$276,313

$288,064

$299,815

$311,566
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Key Expenditure Changes: GF*

Cost of Merit-Based Pay Increases

General Fund =

$159,3599

Cost of VRS Increases

$0

Cost of Health Insurance Increases

General Fund =

38,568

Requested Additional Positions:

Police (1 officer, sal. & benefits) $67,604
Recreation (3 positions, sal. & benefits) $174,563

242,167

Warrenton Volunteer Fire Department requested increase

150,000

Comprehensive Plan

220,000

Public Works Equipment

(513,500)

Eliminate Appropriation of Fund Balance to Revenue

713,430

Net Key GF Expenditure Increases:

$1,016,625

* Includes internal service funds (IT and Motor Pool)

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Key Expense Changes: W&S Fund

Cost of Merit-Based Pay Increases
Utility Fund =

$51,839

Cost of VRS Increases

Cost of Health Insurance Increases

Utility Fund =

12,312

Eliminate Appropriation of Reserves to Revenue

952,474

Requested Operating Increases:

Net Key Utility Fund Expense Increases:

$1,016,625

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Strategies for Closing the Gap

Possible Sources for Increased Revenue Rate Increases
RE Tax: 1 = $147,000
PP Tax: $1.00/$100 valuation = $450,000
Utility Consumption Tax = $495,000
Electric Monthly Max: $3/$20 (Resid./Bus.)
Gas Monthly Max: $3/$20 (Resid./Bus.)

Vehicle Licenses (Stickers): = $101,000

Cars - $15; Motorcycles - $10
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Strategies for Closing the Gap

More Possible Options for Tax Rate Increases
Meals Tax: 4% = $2,170,000
Each % = $135,000

Cigarette Tax: 15/pack = $190,000

Fauquier Co. = $0

Lodging Tax: 4% = $190,000

Each 1% = $47,500

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Strategies for Closing the Gap

Options for Increased Revenue Rate Increases
WARF Charges = $1,405,538
Memberships & Passes = $800,000
5% Increase = $40,000
Lane Rentals = $145,000
5% Increase = $7,250
Lessons, Classes = $320,000
5% Increase = $16,000

Conservatively, estimate + $50,000 over FY16 actual

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Strategies for Closing the Gap

Planned Water & Sewer Rate Increase As Part II of
Phased Increase
Category Average Increase of 20% = $1,225,096
Adopt in Conjunction with FY17 Budget
Effective July 1, 2016
Eliminates appropriation of reserves ($952,474)

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Strategies for Closing the Gap

No new positions
Prioritize existing services for reductions
Grow our Tax Base!

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Final slide Enjoy the rest of your

Saturday!

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