Quarterly Financial Statements Presented to Council
Quarterly financial statements were presented to the Village Council on February 13, 2018. These statements were for the second quarter of the fiscal year ending December 31, 2017.
At the end of the second quarter, revenues exceeded expenditures by a larger margin than anticipated in our forecast. In addition, our operating expenditures are below expected levels. These results should position us well to carry out the objectives outlined in the FY 2018 Strategic Operating Plan.
The Village’s General Fund is showing $3.6 million in income for the first six months of the year, which is lower than the $4.7 million the prior year. In terms of fund balance, the Village’s fund balance is currently 74% of expenditures, which is the same level seen the previous year at December 31.
General fund revenues were $318,000, or 2.5%, above the year-to-date budget projections. Property tax revenues were $323,000, or 3.7%, above the quarterly revenue estimate. This increase is primarily due to higher collection levels than anticipated through December 31. The real and personal property tax collection rate of 91% is 1.6% higher than this time last year. The real and personal base grew by 1.3%, compared to the same period last year, which is also slightly ahead of the 1% budget forecast. The motor vehicle tax base is relatively flat, compared to the prior year.
For local option sales taxes, the adopted budget forecast a 3.5% increase over the previous year. So far, the actual collections for the first four months of the year received are running exactly 3.8% ahead of the previous year’s collections.
The Village issued 60 single-family residential building permits valued at $16,275,000 during the first two quarters compared to 69 the previous year. Although the number of homes permitted was lower, it is in line with our forecast.
General fund operating expenditures were $590,000, or 7%, below the quarterly budget. This variance is slightly above the expected expenditure variance of 5%. The majority of the operating expenditure variance is due to lapsed salaries. A number of positions across the Village were vacant during the first half of the fiscal year due to employee turnover.
At this point in the fiscal year, our financial results are better than expected. Our financial position is solid with higher levels of fund balance and cash. This is due to the positive results of the prior fiscal year and lower operating and capital expenditures this fiscal year. As we begin preparing our budget for the upcoming year, we should continue to maintain operating expenditure growth that is in line with operating revenues. As I have said before, the Village continues to remain in a solid financial position as a result of our conservative financial policies, good financial planning, and diligent budget oversight.
To read the quarterly financial statements in their entirety, click here.