Honorable Mayor and City Council
Interim City Manager
Marty K. Lawing
August 22, 2022
The accompanying report reflects the City’s overall financial position through June 30, 2022.
To view Funds click on the titles: Other Items:
The General Fund Revenues and Expenditures are shown below.
*Please note: Due to rounding, some totals in the narrative may be off in comparison to the graphs.
General Fund Revenues
General Fund Revenues for the nine months ended June 30, 2022, total $127.07 million and are 87% of the $145.32 million dollar budget compared to prior year revenues at $108.35 million, and 81% of the $134.21 million dollar budget. This amounts to an increase in total revenues over prior year of $18.72 million dollars, or 17.3%.
The main drivers to this result consist of the following:
- Ad valorem tax collections increase by $3.10 million dollars due to increases in property valuations and newly added properties to the tax roll;
- Utility service taxes increase by $.68 million dollars, driven by electricity and water purchases;
- Franchise fees increase by $.77 million dollars, mainly the franchise fee from FPL;
- The Fire assessment fee revenue increases $7.36 million dollars due to an increase in the rate structure among all property categories once realigned to reflect an updated calls for service study completed in 2021;
- Other licenses, fees and permits increase by $1.92 million dollars, seeing increases in collections from plan review fees, as well as engineering and fire permits fees;
- State shared revenues increase by $1.91 million dollars driven by collections from the half cent sales tax;
- Charges for services increase in total by $.40 million driven by the Recreation Division; and
- Other miscellaneous revenues increase by $2.69 million due to capital lease proceeds received during the 2nd quarter for new fire apparatus.
Overall, for the nine months, General Fund revenues are coming in better than anticipated.
General Fund Expenditures
Total expenditures of $104.14 million are 72% of the $145.29 million dollar budget compared to the prior year expenditures of $98.94 million at 74% of the $134.21 million dollar budget.
Operating expenditures are $85.80 million and 69% of the $124.39 million budget compared to prior year of $82.28 million at 72% of the $114.52 million dollar budget. Operating expenditures increase over the prior year by $3.52 million dollars or 4.3%, due to the net effect of the following:
- Fire Department expenditures increase $4.17 million dollars due to the addition of 32 positions, operating supplies for bunker gear and uniforms, and equipment due to the replacement and addition of fire apparatus.
- Police Department expenditures increase $969,774 due to the net effect of increases in overtime, workers’ compensation, transfer of 9 officers from the COPS grant as well as an increase in ITS charges partially offset by decreases due to the timing of the payments for body cameras and the Animal Control Interlocal Agreement with Lee County and Fleet charges from moving lease payments on the police vehicles to to a debt service, Lease Fund.
- City Manager expenditures decrease $1.07 million dollars due to the FY2021 compensation paid to the former City Manager upon his retirement and a decrease in professional services for special projects.
Some of the favorable execution of the expenditure budget is a result of no salary increases paid to General Union and Non-Union employees during the first nine months of the fiscal year. Applicable increases to salaries will be paid to those employees by the end of September, 2022.
Other expenditures increase over the prior year by $1.69 million due to the net effect of the following:
- Debt service transfers increase by $1.64 million due to the addition of a debt service fund for lease payments previously reported in the respective division’s Fleet Charges;
- Transfer to the Capital Improvement Budget decreases by ($59,453);
- Insurance decreases ($90,375);
- Operating transfers increase $197,340 due to the following:
o $438,217 increase in transfers to the CRA Tax Increment Funds;
o $220,725 increase in the transfer to the Skatium;
o ($147,952) decrease in the transfer to the Street Maintenance Fund;
o ($313,650) decrease in the transfer to the Golf Courses.
General Fund spending is within the budget parameters for this reporting period. Overall, for the nine months ended June 30, 2022, General Fund revenues exceed expenditures by $22.93 million.
Review and analysis of the City’s financial statements for the nine months ended June 30, 2022 indicate that revenue collections are coming in as planned and spending is within the budget parameters for the major operating funds. Favorability in spending is due to no salary increases provided for General Union and Non-Union employees as a contract was not in place before the end of the third quarter. Monitoring of the City’s finances will continue as the fiscal year progresses.
As a reminder, the FY 2022 General Fund budget was adopted with expenditures exceeding revenues by $5.0 million. This unstructured budget position uses available reserves to fill in the gap. Budget execution trends makes it unlikely that planned use of reserves will be necessary. However, sustainability into the future will require preservation of reserves and a structurally balanced budget. This is the focus as the development of the FY2023 budget continues.
This report is designed as an informative document for internal use only. It does not include all funds and accounts included in the City of Fort Myers operations. All audited funds and accounts are included in the City’s Annual Comprehensive Financial Report.