|
Council Minutes of 1/21/2003
<br />~~,, 5) The budget is almost complete, with only some final checks and balances that need to
<br />`~+~'' be done. She received an update for estate tax collections through Friday, January 17, of
<br />$239,076. This half closes on February 28 and will be distributed the end of April or
<br />early May. She was reminded by the person at the Estate Tax Department that, at no cost
<br />to the city, the city could receive an advance. She plans to ask for the advance in order to
<br />invest the monies and earn a little interest on it.
<br />6) Read a review of the 2002 unaudited cash basis financial statements: The year 2002
<br />was a concern from day one. The country's economic uncertainty lingered through the
<br />entire year and the county and state governments struggled financially. These
<br />circumstances still exist today for 2003. In 2002 through six months, the city's revenues
<br />were behind plan in certain areas requiring a reduction of estimated resources by
<br />$417,576. Certain expenditures were coming in over plan, necessitating a $470,000 in
<br />additional expenditures being appropriated. Through a combination of increases in
<br />estimated resources of $360,000 and cutting expenses in other areas by $523,16?, the
<br />budget was balanced. The net affect on estimated resources was $57,976 decrease, and a
<br />net expenditure appropriation reduction was $53,167. This was the result of what was
<br />debated and discussed from July through September. At year end, as a result of revenues
<br />exceeding estimates by $634,600 and uncommon spending trends leaving $693,000
<br />unspent, the General Fund ended with a $1,328,579 unencumbered fund balance,
<br />commonly referred to as a carry-over. In 2002, General Fund revenues ended at a total of
<br />$18,197,047 net of the budget stabilization transfer of $200,000, which is considered
<br />revenue but it's really between the same fund. This was $634,600 ahead of plan. A
<br />listing of the major areas that made up that difference include income taxes, $277,000
<br />over plan; building, planning, permit fees and related fees were over $180,000; interest
<br />earnings were $60,000 over; real estate and personal property taxes were $50,000 over;
<br />estate taxes were $48,000 over; cable franchise fees were $27,000 over; liquor permits
<br />were $20,000 over; DARE grant was $14,500, which is actually for calendar year 2003; a
<br />net of various miscellaneous items which totaled $40,000 over. The EMS charges, which
<br />are 75% of the resident billing of EMS charges, were $62,000 under plan. The EMS
<br />paperwork process took some time to be worked out--it can take 60 days to remit the
<br />monies to the city-so it was a longer start-up process than anticipated. However, the
<br />revenues are coming in at a fairly good clip now. Local government was $20,000 under
<br />plan. The total is $634,000. This was only $98,600 over 2001's actual revenues after
<br />consideration of the $200,000 recorded as budget stabilization transfers into the General
<br />Fund in 2002. The fourth quarter, as previously reported, brought RITA income tax
<br />collections from flat, as compared to last year, up to 3.49% over the last year with a net
<br />profit of almost $300,000 over last year. Withholding at $129,000 over and a $55,000
<br />decline in individual remittances. Only 32 of the 96 cities RITA collects for ended ahead
<br />of last year's collections. The General Fund is the recipient of 70% of that income tax
<br />collections. She believes the 1.67% increase in the withholding portion from the prior
<br />year will remain constant because it's not attributable to any one large taxpayer or a new
<br />significant taxpayer in the community. It appears to be spread across many. The net
<br />profit taxes, as previously reported, are sporadic and appear to fluctuate from year to
<br />year. Therefore, she cannot anticipate a similar amount for 2003. The building permits,
<br />Planning Commission fees, inspection fees, etc., ended $180,000 over plan, with 69
<br />~ additional building permits issued in 2002 and an additional $30,660,000 in assessed
<br />3
<br />
|