TOWN OF FAIRFAX
FY23 MIDYEAR BUDGET REPORT
PRESENTED BY MICHAEL VIVRETTE, CPA DIRECTOR OF FINANCE
MIDYEAR BUDGET – STAFF REPORT
SUMMARY:
• GF Revenues are projected to exceed budget by $475,000 Transfers from Building & Planning will add $100,000 to the GF Total from revenues & transfers-in will be $575,000 (4.9%) • GF Expenses are projected to be under budget by $265,000 (-1.9%) Current budget includes council approved adjustments for Police MOU and Planning
• The Adopted FY23 budget originally projected a General Fund drawdown from reserves of $1.39 M. This will likely be reduced to $549,000 bringing reserves from 30% up to 36%.
MIDYEAR BUDGET - REVENUES
Revenues will be higher primarily due to
property and sales tax revenues.
• Property taxes +$250,000 (+ 4.7%)
• Sales Taxes +$280,000 (+ 15.5%)
• Interest +$ 80,000 (+325.0%)
LAIF interest rates have significantly increased due
to inflation and hikes in the Fed Funds Rate
These categories comprise 89% of the Town’s
budgeted revenues.
MIDYEAR BUDGET - REVENUES
Some revenues are under budget:
• Fines and Licenses (-$70,000)
• Business License down slightly … some closed
businesses, timing of license collection
• Fines are difficult to project (building code, etc.)
• Grants from other Agencies
• Was estimated to be $40,000 – most was collected
prior to beginning of the fiscal year and is revenue
in prior year
• All other revenue categories show a net
estimated decrease of -$25,000 (-2.0%)
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 + $100,000 (+16%)
MIDYEAR BUDGET - EXPENDITURES
• General Funds expenses are
projected to be under budget by
$265,000 (+1.9%)
• Most departments are projected to
be under budget on June 30th
MIDYEAR BUDGET - EXPENDITURES
Department Expenses
• Some departments are projected to be over budget at June 30th • Those which are projected to be over by more than $10,000 or 4% are:
• Projected overages can be covered by inter-department transfers rather than by additional appropriation.
MIDYEAR BUDGET - EXPENDITURES
• Personnel costs are at budgeted projections – 44.8% of total budget • Health insurance costs are at budgeted projections also • We budgeted for an increase of 6% in January
• Health care actually went up an average of 6.5%
• Delta Dental rates did not increase this year which helps offset other increases. • Capital Improvement Project (CIP) Expenses
• The Adopted FY22-23 CIP is approximately $5.8 million for Funds 51, 52 and 53. • Projected to be under budget at June 30th - No mid-year budget adj are required • Through January 2023, the Town has spent approximately $1,168,000 on CIP projects (compared with $485,400 for the same period last year)
• CIP projects that are not completed in FY22-23 are carried over and re-budgeted 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.