Sep 30 2016
$2.42 Million in Available Funds at End of Piedmont Fiscal Year
Revenue trends combined with savings from departments resulted in FY 2015-16 unexpected net income of approximately $2.42 million (unaudited) in the General Fund.
Specific revenue categories that exceeded the budget projections include:
- “Supplemental property taxes – are realized with a change in assessed valuation of a property sold during the year.”
- “Real Property Transfer Tax and building permits – are subject to fluctuations in economic conditions”
- “Ambulance service charges are dependent on calls for service during the fiscal year.”
The recommended allocations of the $2.42 million are listed below:
Facilities Maintenance Fund (45%) = $1 million
Equipment Replacement Fund (35%) = $800,000
Other Post-Employment Benefits (OPEB) Fund (20%) = $450,000
- “This proposal for transfer of General Fund net income over $100,000 is consistent with past practice. In FY 2014-15, we ended the year with net income of $2.4 million in the General Fund. The City Council took a similar action in June 2015 to distribute net income in excess of $100,000 equally amongst four funds – OPEB Fund, the Equipment Replacement Fund, the Facilities Maintenance Fund, and the Workers Compensation Fund, which amounted to $2.3 million in one-time General Fund revenues, with $575,647 in each of four funds.” Staff report
Read the full staff report here.
The City Council will consider the allocation of funds at their October 3, 2016 meeting starting at 7:30 p.m. in City Hall. The meeting will be broadcast live on Channel 27 and from the City website.
Also, on the agenda are:
QUICK,QUICK! Find a way to spend (waste) this before someone figures out that maybe the taxpayers have been gouged!
I opposed the recent 30% parcel tax increase. I stated that revenues were robust, healthy and growing. Local print media refused to give us any space so the message didn’t get out. The 30% increased parcel tax, the increase not indicated on the ballot statement, easily passed.
City Council constantly promises accountability and transparency. We shall see next May-June when the Parcel Tax is again levied when there is no requirement that it be levied if finances are healthy, robust and growing.
But as George indicated, if the extra money is there, it will all of a sudden be urgently needed. And spent.
These are not made up expenses but the claim that this excess revenue is “volatile” income is. It’s three years running now that Council has transferred over $2M end of year funds and that’s not counting mid-year transfers. The recent parcel tax increase was predicated on insufficient funds for facility maintenance yet here is $1M in funds before the tax is levied. Council needs to do a better job of forecasting city revenue by accounting for true transfer tax trends and property reassessment. And implement the cafeteria plan as recommended by the Budget Advisory Committee to address OPEB.