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History, Charm and Southern Hospitality

Financial Statements - September 30, 2015

Quarterly financial statements were presented to the Village Council on October 27, 2015. These statements were for the first quarter of the fiscal year ending September 30, 2015.
The statements show that the Village is in a very good financial position as we begin the fiscal year. Revenues exceeded expenditures by a larger margin than anticipated in our forecast for the first quarter. In addition, our operating expenditures are under budget and our revenue outlook is stable. These results should position us well to carry out the objectives outlined in the FY 2016 Strategic Operating Plan.

The Village’s General Fund is showing $4.5 million in income for the first three months of the year compared to $4.3 million the prior year. In terms of fund balance, the Village’s fund balance is currently 69% of expenditures, which is slightly higher than the 67% level seen the previous year at September 30.

General fund revenues were $953,000, or 13% above the quarterly budget projections. Property tax revenues were $752,000 above the quarterly revenue estimate. When the quarterly budgets were prepared, it was estimated that 69% of property tax revenues would be collected in the first quarter based on historical trends. Actual collections for the first quarter were 73% of the annual budget. These quarterly timing differences are usually diminished as the year progresses.
Also, after the budget was adopted, Moore County lowered the Village’s tax base estimate due to pending commercial valuation appeals. Based on our estimates this would reduce property tax revenues by approximately $100,000. That does not seem to be reflected in the first quarter’s collections. The Village’s real and personal property tax collection rate is 75% through the first quarter which is 1% higher than this time last year.

Local option sales tax revenues were 1.9% higher than same period the previous year. The budget, when adopted forecast a 3% increase over the previous year.
General fund operating expenditures were $775,000 or 18% below the quarterly budget overall. This variance is well outside the expected expenditure variance of 5%. Compared to the previous year, operating expenditures were also down $410,000 for the quarter. One large item, the DFI study of Village Place, was budgeted at $50,000 in the first quarter but will not be completed this year. This item will be removed from the budget at the mid-year adjustment.

The $1,827,000 in fund balance appropriated this fiscal year is slightly lower than the $1,944,000 appropriated last year. When the budget was adopted, it was anticipated that the Village’s fund balance would decrease by $891,000 by the end of FY 2016. This planned reduction would reduce fund balance from the current level of 45% of budgeted expenditures to 40%. Since the $0.29 tax rate adopted in FY 2016 was below the revenue neutral rate of $0.30, the fund balance should decline gradually over the next few years as planned. At this point in the fiscal year, there are many variables that will affect the final fund balance level.

At the end of the first quarter, our financial results have exceeded our expectations. Most variances in revenues, expenditures, and capital outlay timing will work their way out as the fiscal year progresses.

To read the quarterly financial statements in their entirety, click here.

The Village of Pinehurst

is a charming, vibrant community which reflects our rich history and traditions.

Village of Pinehurst
395 Magnolia Road
Pinehurst, NC 28374
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