Quarterly Financial Statements Presented to Council
Quarterly financial statements were presented to the Village Council on April 24, 2018. These statements were for the third quarter of the fiscal year ending March 31, 2018.
At the end of the third quarter, the Village’s revenue forecast is right on target. In addition, operating expenditures are running below expected levels and our capital outlays are within budget. 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 $2.2 million in income for the first nine months of the year, which is considerably lower than the $3.3 million the prior year. In terms of fund balance, the Village’s fund balance is currently 67% of budgeted expenditures, which is the same level seen the previous year at March 31.
General fund revenues are $211,000, or 1.4%, above the year-to-date budget projections. Most of this variance was due to property tax revenues, which are $177,000, or 1.8%, above the quarterly revenue estimate. The real and personal property tax collection rate of 99.8% is similar to this time last year. The real and personal base grew by 1.35%, compared to the same period last year, which is also slightly ahead of the 1% budget forecast. The motor vehicle tax base grew by 1.44%.
For local option sales taxes, the adopted budget forecasted a 3.5% increase over the previous year. So far, the actual collections for the first seven months of the year received are running 3.8% ahead of the previous year’s collections. Overall, however, unrestricted intergovernmental revenues are near even with budget, due to utility sales taxes trending below our forecast.
The Village issued 103 single-family residential building permits valued at $25,970,000 during the first three quarters compared to 112 the previous year. Although the number of homes permitted is lower than the previous year, it is slightly ahead of our forecast. Based on this, we have revised our originally forecasted number of homes to be constructed this year from 130 to 140. Despite the increase in the projection, we will still end the year lower than the 161 constructed in the prior year.
General fund operating expenditures are $1,466,000, or 11%, below the quarterly budget. This variance is significantly larger than the expected year-end expenditure variance of 5% and is the primary factor in our overall quarterly budget variance. The largest portion 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. As we prepare to present the budget for the upcoming year, the Village remains 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.