Financial Statements for the Year Ended 6/30/17 Presented to Council
Quarterly financial statements were presented to the Village Council on September 12, 2017. These unaudited financial statements are for the fiscal year ended June 30, 2017. Overall, the Village ended FY 2017 better than expected and is well positioned to carry out the initiatives outlined in the FY 2018 Strategic Operating Plan (SOP).
The Village’s General Fund revenues exceeded expenditures by $1,307,758, increasing the Village’s fund balance to $10,633,102. Even if the $871,000 in projects reappropriated from last fiscal year had been completed, the addition to fund balance still would have been approximately $437,000.
The Village’s fund balance policy requires us to maintain unassigned fund balance of at least 15% of actual expenditures and total fund balance of 30%-40% of budgeted expenditures. At June 30, the General Fund has unassigned fund balance of $7,110,976, or 43%, of actual expenditures. The total fund balance of $10,633,102 represents 56% of budgeted expenditures. The statewide average for total fund balance in the Village’s population peer group is 54%.
General fund revenues were $585,000, or 3.4%, above budget projections. This is above the normal range of variance of around 1%. Property taxes exceeded our budget estimate by approximately $73,000, mostly due to unexpectedly strong growth in motor vehicle taxes. Property tax collections for the year were also strong with 99.91% of the 2017 levy collected at year end. Sales taxes were $207,000, or 6.7%, higher than budgeted. Permits and fees revenues were $118,000 above budget due to robust construction activity. Unplanned FEMA revenues, related to Hurricane Matthew and the Party Rock Fire, contributed $84,000 to the year’s revenue variance. Finally, sales and services revenues were $48,000 above estimated levels. This is due to better than expected facility rental income at the Village’s Fair Barn and Harness Track and increased recreation event sponsorships.
The larger portion of the year-end variance can be attributed to expenditures being below budget. General fund expenditures were $2,332,000, or 12.2%, below budget overall. Expenditures were less than budgeted amounts for the following significant items: (1) contracted and professional services were $367,000 lower than expected due to lower costs for legal fees and street maintenance, (2) salaries and benefits were $486,000 lower due to employee retirements, turnover, and the related vacancies, (3) IT, Fleet, and Buildings and Grounds operating expenditures were $209,000 below budget combined; and (4) capital expenditures were $917,000 below budget. Overall operating expenditures represented 82% of operating revenues, the same level recorded in the previous year.
For capital outlay, only 68% of the budget was expended at year’s end. The majority of this variance was due to the fire engine, street sealing, and sidewalk projects that were carried over to the next fiscal year. Compared to the previous fiscal year, capital expenditures were down by $79,000 or 4%.
To read the quarterly financial statements in their entirety, click here.