Revenue Status
Through the second quarter, the County has realized 28.5% of the total revenue es mate for the year. Note that most property tax revenue will be received in the 4th quarter, and sales tax revenue received during January and February of 2024 will be accrued back to the 2023 budget1
Revenue though the second quarter of 2023 were $7.9 million or 6.4% higher than the 2022 level. Notable items include:
o Property Tax: revenue received during the first 2 quarters are almost all from the payment of prior years’ (delinquent) taxes. Year-over-year revenue in this category was down $1.7 million or 12.0%. Most property tax revenue is received in the fourth quarter and the lapse period.
o Sales Tax: base sales tax growth through the second quarter (4 months of data) was 3.5%. Total growth through the second quarter was 7.6% is due to the pos ng of an adjustment related to the 1% countywide sales tax.
o U lity Gross Receipts: revenue through the second quarter of 2023 was $4.2 million or 45.4% higher than the same period in 2022 due to the recording of $4.5 million in revenue related to a judgment against Charter Spectrum.
o Fines & Forfeitures: growth in this category was mostly due to a 128% ($225,481) increase in revenue collected by the Municipal Court. Increased revenue received by the
2023-Q2 PMB Quarterly Report 9/5/2023 Page 2
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2022 Q22023 Q2 ActualActual$% Property Tax16,475,012 $ 14,526,668 $ (1,948,344) $ -11.8% Sales Tax38,491,317 41,429,481 2,938,164 7.6% Utility Gross Receipts Tax9,236,516 13,433,634 4,197,118 45.4% Gaming Tax3,797,602 4,013,225 215,623 5.7% Subtotal: Tax Revenue68,000,447 73,403,008 5,402,561 7.9% Licenses & Permits9,870,991 9,807,149 (63,842) -0.6% Tax Collection Fees7,393,268 7,828,948 435,680 5.9% Fines & Forfeitures242,839 466,910 224,071 92.3% Investment Earnings670,146 5,777,453 5,107,308 762.1% Rents & Concess1,675,205 1,512,730 (162,475) -9.7% Intergovernmental5,714,883 7,215,250 1,500,367 26.3% Charges for Services23,501,222 22,239,319 (1,261,903) -5.4% Fees3,644,187 914,139 (2,730,047) -74.9% Other Revenue3,078,675 2,539,244 (539,432) -17.5% Subtotal: Non-Tax Revenue55,791,416 58,301,142 2,509,726 4.5% Allocations- -Total Revenue123,791,863 $ 131,704,150 $ 7,912,287 $ 6.4% Variance
The County uses the modified accrual basis of accoun ng which recognizes revenues when they become available and measurable.
Court are a result of increased filings, an increase in the percentage of cases being disposed, and improvements in accessibility and equity.
o Investment Earnings: increase in interest earned on the County’s fund balances.
o Intergovernmental: growth is primarily due to an increase in revenue received through the County Aid Road Tax ($862,619 or 18.3%).
o Charges for Services: the decrease is due to recording ac vity (-26.3%) and law enforcement contract revenue (-8.7%). The decrease in recording fee revenue corresponds with a 20% decrease in the volume of documents recorded in 2023 vs. 2022. The decrease in law enforcement contract revenue is due to the ming of payments and will be corrected in future quarters.
o Fees: decrease due to the elimina on of charges to telecommunica on companies for annual linear foot fees to telecommunica on companies with facili es in the County’s right-of-way.
o Other Revenue: decrease is primarily due to a lack of revenue in 2023 from the sale of fixed assets and a decrease in grant reimbursements to the general funds. These revenues are not rou ne and do not lend themselves to a year-over-year comparison.
Appropria on Status2
During the second quarter, the Council adopted $8.5 million of supplemental appropria ons. These include:
o $5,540,000 for a contract with WSP USA Inc. for on-call architecture and engineering project management services (Ord. 28,739).
o $1,585,305 for salary and fringe benefit costs of the Department of Jus ce Services (Ord. 28,747).
2 “Expenditures” include both actual spending and encumbrance balances unless otherwise noted.
2023-Q2 PMB Quarterly Report 9/5/2023 Page 3
0% 10% 20% 30% 40% 50% 60% % OF APPROPRIATIONS EXPENDED FY 23 General Funds Expenditures: 6/30/23 (Excludes Emergency Fund) Expend % Encumber % Phase (49.6%)* Avg (41.9%)
*"Phase" refers to the percentage of the12‐month fiscal year that is complete.
o A reduc on of $50,000 in the Health Fund to correct an error in the 2023 reappropria on ordinance (Ord. 28,753).
o $449,000 for staff costs related to the development of a sales tax distribu on system (Ord. 28,772).
o $130,000 for a consultant with exper se in the Accela system (Ord. 28,773)
o $578,843 for support of seven Code Enforcement posi ons (Ord. 28,776)
o $262,027 for support of Clerk posi ons and salary increases in the Municipal Court (Ord. 28,787).
Expenditures through the second quarter total $244.6 million which is equal to 41.9% of the amount appropriated as of 6/30/2023 (excluding the Emergency Fund appropria on).
The two areas that exceed the straight line phase benchmark of 49.6% (Informa on Technology and Revenue) are due the encumbrance of large contracts that will spend throughout the year.
Areas of spending significantly below the benchmark include:
o Board of Elec ons - due to vacancies (25.8% of posi ons were vacant on June 30th) and the ming of computer hardware (poll pad) and so ware maintenance (vo ng equipment/poll-book) payments.
o Public Administrator – due to vacancies (22.2% of posi ons were vacant on June 30th)
o Miscellaneous Offices:
Only interest is paid on outstanding bonds during the first and second quarter.
$6 million for the demoli on of the Jamestown Mall has not been encumbered.
o Department of Planning – the $1 million for the Comprehensive Plan update has not been encumbered.
Prior to adop ng the budget, the County Council reduced funding for salary and fringe benefits for thirteen departments by an amount equal to the value of 75% of vacant posi ons. Many departments will be able to achieve these reduc ons through normally occurring vacancy savings. Other departments may require supplemental appropria ons later this fiscal year to fund salary and fringe benefit costs.
The table below summarizes the salary and fringe benefit status for departments funded through the General Revenue and Health funds (subject to Council budget amendments): will not need a supplemental appropria on to support their workforce throughout the fiscal year may need a supplemental appropria on (PMB will con nue to monitor) will likely require a supplemental appropria on
2023-Q2 PMB Quarterly Report 9/5/2023 Page 4
2023 Salary and Fringe Benefit Budget Status
2023-Q2 PMB Quarterly Report 9/5/2023 Page 5
General Revenue & Health Funds 6/30/2023 Council CutCurrentEstimated DepartmentAmountApprop.Expenditures$% 1010 ‐ General Revenue Fund 0100 - County Council(738,931) $ 1,993,742 $ 2,042,606 $ (48,864) $ -2.5% 0200 - Municipal Court(262,027) 1,259,033 1,164,478 94,555 7.5% 0400 - Board of Elections(887,434) 4,864,458 4,015,300 849,158 17.5% 0600 - Public Administrator- 890,661 708,525 182,136 20.4% 0700 - Judicial Administration- 26,966,596 21,941,083 5,025,513 18.6% 1000 - Prosecuting Attorney(1,075,431) 13,283,120 13,670,653 (387,533) -2.9% 1100 - County Executive(429,548) 5,862,366 5,975,688 (113,322) -1.9% 1200 - County Counselor- 5,042,854 4,870,745 172,109 3.4% 1300 - Misc. Offices- 193,143 193,507 (364) -0.2% 2000 - Information Technology(1,060,448) 5,510,711 5,827,322 (316,611) -5.7% 2100 - Administration(779,777) 10,797,955 10,795,017 2,938 0.0% 2300 - Police(7,690,568) 139,502,286 145,528,185 (6,025,899) -4.3% 2500 - Planning- 842,233 765,305 76,928 9.1% 2600 - Public Works(1,821,490) 19,615,607 17,537,459 2,078,148 10.6% 2700 - Revenue(434,782) 4,540,368 4,577,943 (37,575) -0.8% 2800 - Justice Services(3,259,991) 24,547,191 25,500,000 (952,809) -3.9% 3100 - Garage Operations- 361,428 325,634 35,794 9.9% 5000 - Human Services(681,065) 3,474,850 3,460,897 13,953 0.4% 1030 ‐ Health Fund 4600 - Public Health(5,421,195) 40,093,143 37,235,525 2,857,618 7.1% Surplus/(Deficit)
