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HomeMy Public PortalAbout1990_11_14_R293LccsBurg in ~v'irginia RESOLUTION NO. A RESOLUTION: PRESENTED November 14, 1990 90-293 ADOPTED November 14, 1990 AUTHORIZING THEAMENDMENT OF THEGENERALFLrNDBUDGET FOR THEFISCALYEARENDINGJ~FNES0, 1991 WHEREAS, the town recently concluded operations for the fn-st quarter of fatal year 1991; and WHEREAS, an evaluation of the town's fmancial performance has been made in a memorandum to Council dated October 15, 1990, for the conclusion of the fmcal year and a copy of which is attached and made a part of this resolution; and WHEREAS, due to the present economic climate facing Leesburg today as well as a continuance of this economic condition into the future, it is recommended that the General Fund budget be amended to eliminate the projects and amounts identified in Schedule 3, Proposed General Fund 1991 Budget Adjustments of the attached memorandum; and WHEREAS, if in the event Leesburg's economy should recover from its present condition and additional funds become available during the course of this fmcal year, the projects identified for elimination from the budget will be re-evaluated and funding restored: THEREFORE, RESOLVED by the Council of the Town of Leesburg in Virginia as follows: SECTION I. The budget for the General Fund is hereby amended to provide for the elimination of the items in the amounts identified on the attached Schedule 3 of the quarterly budget update report. SECTION II. In the event additional funds should become available through the course of this t'meal year which could be used to fund item 19 ~_ _ _ of the attached list, this project, will be re- evaluated for eligible funding for construction during this t'mcal year. PASSED this 14th day of ATTEST: Clerk of Co~ R:Gen-Fund-Bud Novembe~ ~1990 Robert E. Sevila, Mayor Town of Leesburg L ,~£ ccs~urg ~n CVirgin~a TO MAYOR AND COUNCIL RE QUARTERLY BUDGET UPDATE October 15, 1990 The town recently concluded operations for the first quarter of fiscal year 1991. This, therefore, represents the first opportunity to evaluate the town's financial performance, using meaningful data. This is critical considering the present economic climate facing Leesburg today. Attached to this report are financial schedules detailing the operations of our General, Utility and Airport funds during this period. The information contained in the attached schedules is as follows: 1. Schedule 1: Comparative Statement of General Fund Revenues and Expenditures July 1, 1990 to September 30, 1990. 2. Schedule 2: General Fund Fund Balance projections for fiscal year 1991. 3. Schedule 3: Proposed General Fund Budget adjustments for fiscal year 1991. 4. Schedule 4: Comparative Statement of Utility Fund Revenues and Expenditures (cash basis) July 1, 1990 to September 30, 1990. 5. Schedule 5: Comparative Statement of Airport Fund Revenues and Expenditures (cash basis) July 1, 1990 to September 30, 1990. Schedule 1 This schedule provides a comparison of General Fund revenues and expenditures for the quarter ending September 30, 1990 as compared to the same period for the previous fiscal year. During this period revenues have increased 14.26% compared to last year while expenditures have increased 34.67%. The increase in revenues is principally due to the opening of the Ida Lee Park recreation center and the collection of an additional $107,880 in recreation fees. Higher expenditures in the Police, Public Works and Engineering, and Parks and Recreation Departments and Debt Service payments are responsible for the increased expenditures. Increases in Police are related to higher personnel costs and automotive equipment. Increases in Public Works and Engineering are related to increased personnel costs and higher tipping fees at the landfill. Parks and Recreation increases are due to the opening of the Ida Lee Park recreation center. Debt Service increases are due to payments on new bonded debt issued to finance major capital projects. It should also be noted that during this quarter the General Fund posted Mayor and Council Quarterly Budget Update October 15, 1990 Page 2 This situation will reverse itself once our real estate and personal a negative fund balance of $1,375,650· property taxes are billed which will generate $3.3 million in revenues. Schedule 2 This schedule projects the anticipated General Fund balance through this fiscal year· Revenues from the leases for both the Liberty Street property and Loudoun Street infill project are included· The revenues projected do reflect reductions in state funding previously reported to the Council· Revenue reductions generated by a slowing regional economy include a projected $50,000 decrease in business licenses, $85,000 in meals and transient occupancy taxes and a local sales tax decline of $46,000. The expenditures projected reflect proposed budget adjustments contained in schedule 3 as well as expected increases in refuse collection costs associated with County landfill fee increases. The proposed revenue adjustments and expenditure decreases will leave an ending fund balance of $253,605 in the general fund which is very close to our budgeted fund balance. The Loudoun and Liberty leases are valued at $675,000 for this year· A further economic decline could affect consumer utility taxes, property tax collections and b~nk franchise taxes. Schedule 3 This is a list of proposed adjustments that are recommended to be made to our current year's General Fund budget. The budget adjustments are being proposed after a careful evaluation of each department's budget and the effect these reductions could have on department operations and services. These adjustments can be made with minimal impact on operations or services to our citizens. Several important capital projects, however, are delayed 3-6 months· The items marked with an asterisk were "B listed" items endorsed by the Council when the current budget was approved. We recommend the Council authorize the adjustment of the 1991 budget for the items noted. We are also willing to discuss other possible cuts with the Council at a special mid-year budget workshop. Mayor and Council Quarterly Budget Update October 15, 1990 Page 3 Schedule 4 This is a comparative statement of Utility Fund revenues and expenditures on a cash basis for the quarter ending September 30, 1990. During this period revenues increased 9.15% compared to the same period last year and expenditures decreased 13.87%. The increase in revenues is due largely to increased availability fee collections, connection fees and investment interest earnings. The decrease in expenditures is attributed to a reduction on capital projects in the Utility Lines division. Utility Fund working capital decreased $3.5 million from the previous year due to extensive capital investments that took place in the previous fiscal year as well as the reduction in availability fee collections. Schedule 5 This schedule compares the operations of the Airport fund for the first quarter of 1991 with the same period last year. The reduction in both revenues and expenditures is due to capital projects associated with the south runway and instrument landing system projects. The Airport continues to operate on a negative cash flow with an ending working capital of a negative $415,574, pending an infusion of expected grant proceeds for the I.L.S. Overall, the attached schedules confirm that the economic downturn affecting our region will leave its mark on the town. In order to preserve a positive ending fund balance in the general fund we propose to decrease expenditures now by $426,400. We will continue to closely monitor our financial operations throughout the course of this year with detailed quarterly analysis, such as these, to address the Council's commitment to exercise proper fiscal control over the town's financial operations. Director of Finance nf quarterly Schedule 3 PROPOSED GENERAL FUND 1991 BUDGET ADJUSTMENTS 1. Public Works Administration Equipment 2. Police Radios 3. Street Department Materials and Supplies 4. Engineering Computer Equipment 5. Inspectors Truck 6. Shop Improvements 7. Lamplighter Issue 8. Parks and Recreation Part-Time Salaries 9. Planimetric Map 10. Planning Department Equipment 11. Planner I Position, January 1 12. Personnel Contractual Services 13. Finance Secretarial Position 14. Eliminate Gordon Contract 15. Planning Contractual Services 16. Planning Computer Equipment 17. EDAC Contractual Services 18. Gordon Contract 19. Design Country Club turn lane and defer construction to Fall 1991 20. Defer design of East Market and Battlefield/Rt 15 traffic signals to 1992 21. Design Dry Mill sidewalk and split construction finish early Fall 91 Total * B List Items $ 8,500 * 10,000 * 5,000 * 4,500 13,000 10,000 * 6,000 4,400 15,000 3,000 15,000 - 25,000 * 15,000 70,000 * 5,000 * 6,000 * 5,000 * 60,000 * 75,000 * 19,000 52,000 ~;426,400