TOWN OF FAIRFAX
FY22 MIDYEAR BUDGET REPORT
PRESENTED BY MICHAEL VIVRETTE, DIRECTOR OF FINANCE
MIDYEAR BUDGET – STAFF REPORT
SUMMARY:
• Revenues are projected to exceed budget by $499,000 (4.4%) • Expenses are projected to exceed budget by $378,000 (3.2%) primarily from the addition of transfers to cover expenditures for the SFD sinkhole and additional CIP.
• The adopted FY22 budget projected a General Fund deficit of ($615,230). This will likely be $120,000 less ($494,000).
MIDYEAR BUDGET - REVENUES
• Revenues will be higher primarily due
to property and sales tax revenues.
• Property taxes +$67,800 (2% )
• VLF Prop tax in Lieu +$55,700
• Sales Taxes 15.8% higher +258,800
• These categories comprise 89% of the
Town’s budgeted revenues.
MIDYEAR BUDGET - REVENUES
• Revenues in other General Funds
are expected to bring in higher
revenues including:
• Fund 04 Building & Planning fees
• Estimated to exceed budget by
$100,000.
• Fund 06 Retirement Fund
• Additional tax received (+$20,000)
MIDYEAR BUDGET - REVENUES
Some revenues are under budget:
• Fines and Licenses (-$36,700)
• Better citizen behavior…
• Business License revenue down… Covid?
• Interest revenue (-$5,000) (25%)
• LAIF Interest rates have fallen over 3 years
• Jan 2019 2.355%
• Jan 2020 1.967% -16.5%
• Jan 2021 .458% -76.7%
• Jan 2022 .234% -48.9%
• Rental facility rents (-$12,000)
• extended lockdown
• closure of facilities for repairs.
MIDYEAR BUDGET - EXPENDITURES
• General Funds expenses are projected to exceed budget by about $378,500 (+3.2%)
• Primarily due to additional transfers from General Fund for anticipated CIP and Emergency repairs
• $440,000 +/-for the SFD sinkhole
• may be reimbursable up to 100% by state at some point • $ 60,000 for transition of the Community Center
• Departmental expenses are projected to be under budget by $111,000 (.9% )
MIDYEAR BUDGET - EXPENDITURES
Department Expenses
• Most departments are projected to be under budget at June 30th
MIDYEAR BUDGET - EXPENDITURES
Department Expenses
• Some departments are projected to be over budget at June 30th • Projected overages can be covered by inter-department transfers rather than by additional appropriation.
MIDYEAR BUDGET - EXPENDITURES
• Personnel costs – largest budgeted cost – 44.8% of total budget • At January 31st 57.6% spent (within 1% of expected).
• Costs will likely increase in the last five months with the addition of staff positions after January 31st
• The “sideletter payment” in August added higher personnel costs to each department.
• Health insurance costs will have some savings. We budgeted an increase of 6% in January, which ended up only increasing 5.3% on Kaiser which 92.8% of the employees are participating in.
MIDYEAR BUDGET - EXPENDITURES
Capital Improvement Project (CIP) Expenses
• Projected to be under budget at June 30th
• No mid-year budget adjustments are required
• Through January 2022, the Town has spent approximately $485,400 on CIP projects. The adopted FY21-22 CIP is approximately $5.4 million for Funds 51, 52 and 53.
• CIP projects that are not completed in FY21-22 are carried over and rebudgeted in the following fiscal year.
MIDYEAR BUDGET– CONCLUSION
RECOMMENDATIONS:
• Receive report and presentation.
• No additional appropriation is requested. Any department budget adjustments can come from expense savings in other General Fund departments and projected increased revenues at the discretion of the Town Manager at year end.
MIDYEAR BUDGET – CONCLUSION