TOWN OF FAIRFAX
FY24 MIDYEAR BUDGET REPORT
PRESENTED MARCH 6, 2024 BY MICHAEL VIVRETTE, CPA DIRECTOR OF FINANCE FAIRFAX FY2023-2024 BUDGET
FY24 ANTICIPATED REVENUES
FY24 APPROPRIATION (EXPENSES)
MIDYEAR BUDGET - SUMMARY
• GF Revenues are projected to exceed budget by $838,000 (6.7%)
• GF Expenses are projected to be under budget by $512,000 (-3.5%)
• The Adopted FY24 budget originally projected a General Fund drawdown from reserves of $2,171,000 because of additional funding for CIP projects . This will likely be reduced to $822,000 bringing reserves higher from 26.3% up to 37.5%.
MIDYEAR BUDGET - REVENUES
Revenues will be higher primarily due to
property and sales tax revenues.
• Property taxes +$ 351,000 (+ 6.7%)
• Sales Taxes +$ 70,000 (+ 3.5%)
• Interest +$ 139,000
LAIF interest rates have significantly increased
due to inflation and hikes in the Fed Funds Rate
These categories comprise 85% of the
Town’s budgeted revenues.
MIDYEAR BUDGET - REVENUES
Some revenues are under budget:
• Fines and Licenses (-31.25%)
• Business License are better than anticipated,
but
• Vehicle code fines and parking ticket are 69%
of projected revenue.
• Grants from other Agencies (-40.8%) • Was estimated to be $48,000 – some was collected prior to beginning of the fiscal year and is revenue
in prior year… other programs haven’t happened
• Charges for Current Services (-5.9%) • Primarily down in projected “Miscellaneous Revenue”
MIDYEAR BUDGET - REVENUES
Revenues in some other General
Funds are expected to bring in
higher revenues including:
Fund 04 Building & Planning
fees Estimated to exceed
budget + $880,000 (+14.1%)
MIDYEAR BUDGET - EXPENDITURES
• General Funds expenses
are projected to be under
budget by $512,300
(-3.5%)
• Most departments are
projected to be under
budget as of 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 budget 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).
Higher-than-normal turnover and timing of hiring positions may affect projections at June 30.
• Health insurance costs are slightly higher than budgeted. • We budgeted for an increase of 6% in January
• Health care actually went up an average of 9.4%
• Delta Dental rates decreased this year which helps offset other increases. • Capital Improvement Project (CIP) Expenses
• The Adopted FY23-24 CIP is approximately $4.2 million for Funds 51, 52 and 53. • Projected to be under budget at June 30th - No mid-year budget adj are required • Through January 2024, the Town has spent approximately $1.63 million on CIP projects (compared with $1.17 million for the same period last 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