To: Honorable Mayor and Members of Town Council
From: Trish Muller, Finance Director
Title
Update: 2015 Third Quarter Financial Review, Period Ending September 30, 2015
Body
________________________________________________________________________________
Executive Summary
Financial reporting is critical to the Town’s fiscal and asset management as well as transparency regarding Town finances. The following pages include discussion and financial summaries by major category for each fund. At the end of the third quarter of 2015, Castle Rock continues to experience strong revenue collections on an overall basis combined with responsible expense management.
As of the third quarter, total revenues for the Town are about 1% higher and expenditures are 17% under the year to date budget through September. Discussion regarding third quarter financial status for major revenue sources and each individual fund is included in the following pages. However, notable items contributing to the status of Town finances at the end of the third quarter are identified below.
• Sales Tax revenue is expected to be $2.1 million, or 8.2%, more than the first nine months of 2014. This increase includes $485 thousand in audit revenue received in 2015. When excluding this audit revenue, the sales tax increase over 2014 is 6.6% through September. Although sales tax revenue has increased over 2014, it is expected to be under budget for the year.
• When compared to the first two quarters, growth related revenue has slowed during the third quarter of the year, but is anticipated to exceed budgeted revenue. When combined, impact fee and building use tax revenue is 4% higher when compared to the same period in 2014 and are projected to finish the year about 14% higher.
• General Fund operational expenditures are about 8% lower than the year to date budget for the third quarter. The status of key expenditure categories compared to the year to date budget is as follows:
o Personnel: under budget by 4%
o Services & Other: under budget by 16%
o Supplies: under budget by 30%
• At the mid-year point, higher than usual precipitation had resulted in reduced revenue forecasts for the Utilities funds. However, due to dry weather in September and October, much of the revenue shortfall anticipated earlier in the year is projected to be remedied by the end of 2015.
The financial information in this report includes:
• Third quarter year to date actual information for revenues and expenditures - please note that estimates have been incorporated for September sales tax revenue since that data is not yet available.
• Adjusted year to date budget information for departments which are more significantly affected by seasonality including Parks & Recreation, Public Works, Utilities and other funds as appropriate.
• Incorporation of all approved budget amendments.
Updated 2015 year-end estimates for revenues and expenditures developed in coordination with departments.
Proposed Motion
This memo is intended to be for discussion purposes only.
Attachments
Attachment A: 2015 Third Quarter Financial Reports
1. Schedule A - General Fund
2. Schedule B - Transportation Fund
3. Schedule C - Parks and Recreation Capital Fund
4. Schedule D - Municipal Facilities Capital Fund
5. Schedule E - Fire Capital Fund
6. Schedule F - Police Capital Fund
7. Schedule G - Transportation Capital Projects Fund
8. Schedule H - General Long Term Planning Fund
9. Schedule I - Water Fund
10. Schedule J - Water Resources Fund
11. Schedule K - Stormwater Fund
12. Schedule L - Wastewater Fund
13. Schedule M - Golf Course Fund
14. Schedule N - Community Center Fund
15. Schedule O - Development Services Fund
16. Schedule P - Employee Benefits Fund
17. Schedule Q - Fleet Services Fund
18. Schedule R - Conservation Trust Fund
19. Schedule S - Philip S. Miller Trust Fund
20. Schedule T - Public Art Fund
21. Schedule U - Economic Development Fund
22. Schedule V - Police Forfeiture Fund
23. Schedule W - Downtown Development TIF Fund
Attachment B: Sales Tax Collections by Category and Geographical Area