Q2 Financial Reports

For the Six Months Ended March 31, 2021

Prepared for:

Honorable Mayor and City Council


Interim City Manager

Phyllis R. L. Calloway, J.D.


Department Directors


Prepared by:

Budget Office

May 6, 2021

The accompanying report reflects the City’s overall financial position through March 31, 2021.


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 six months ended March 31, 2021, total $89.01 million and are 66% of the $134.06 million dollar budget compared to prior year revenues at $87.68 million, and 67% of the $131.63 million dollar budget. This amounts to an increase in total revenues over prior year of $1.34 million, or 1.5%.


The main drivers to this result consist of the following:


Increases Decreases

Ad valorem taxes $2,596,871 Business tax ($483,526)

Fire assessment fee $190,934 Licenses and permit fees ($861,565)

Payment In Lieu of Taxes $554,800 Contributions-Enterprise fund ($500,000)

½ cent sales tax $206,369 Charges for services ($211,038)

Total Increases $3,730,073 Total Decreases ($2,237,072)


Removing certain revenues including Ad valorem taxes, business tax receipts and the fire assessment fee that are received heavily in the first half of the fiscal year, all remaining operating revenue collections in total, are slightly below the 50% target for this point in the fiscal year.

General Fund Expenditures

Total expenditures of $68.16 million are 51% of the $134.06 million dollar budget compared to the prior year expenditures of $64.64 million at 49% of the $131.63 million dollar budget.


Operating expenditures increase over the prior year by $3.32 million or 6.6%, due mainly to the timing of the payroll periods, there were 13 pay periods expensed through March 31, 2021 versus 12 in prior year as well as the net effect of the following:

  • City Manager expenditures increase $335,652 due to the filling of the Business and Economic Development Administrator position and an increase in professional services for special projects;
  • Police Department expenditures increase $1,133,156 due mainly to contract salary adjustments and the filling of vacant positions
  • Fire Department expenditures increase $739,421 due to contract salary adjustments, the filling of vacant positions and workers’ compensation partially offset by a decrease from the timing of the South Trail payment
  • Parks expenditures increase $366,845 due to increases in workers’ compensation, contract services and utilities
  • Facilities Maintenance expenditures increase $327,113 due to increases in personal services as 20% of the Superintendent of Public Works is now allocated to Facilities Maintenance as well as increases in utilities and repairs/maintenance
  • City Attorney and Administrative Attorney offices were combined with a net effect of a decrease in expenditures of ($226,920) driven by a reduction in positions
  • Recreation expenditures decrease ($137,615) due to the cancellation of the Celtic Festival, the elimination of temporary labor and a reduction in taxes/assessments partially offset by an increase in utilities
  • Contribution expenditures decrease ($175,027) due to a reduction in subsidy to the Imaginarium and a one-time FY2020 contribution to Good Wheels

Other expenditures increase over the prior year by $206,627 due to the following:

  • Debt service transfers decrease by ($551,580) due to the final payment on the 2014B Bonds made in December, 2019
  • Operating transfers increase $731,287 driven by the following:

o $520,387 increase in transfers to the CRA Tax Increment Funds

o $217,500 increase in the transfer to the Street Maintenance Fund due to lower collections from fuel taxes


Overall, for the six months ended March 31, 2021, General Fund revenues exceed expenditures by $20.85 million. This result is normal since the majority of property tax revenue, business tax receipts and fire assessment fess are collected in the first half of the year.

CONCLUSION

Review and analysis of the City’s financial statements for the six months ended March 31, 2021 indicate that spending is within the budget parameters for all major operating funds. Unfortunately, not all revenues are coming in as planned. Revenue streams of concern include business tax receipts, permit-related fees and fuel taxes. The revenue budgets for fiscal year 2021 were developed very conservatively given the uncertainty with the pandemic.


As a reminder, the FY 2021 General Fund budget was adopted with expenditures exceeding revenues by $8.5 million. This unstructured budget position uses available reserves to fill in the gap. Budget execution trends makes it unlikely that all planned use of reserves will be necessary. However, sustainability into the future will require preservation of reserves and a structurally balanced budget. This will be the focus as the development of the FY2022 budget begins over the course of the next few months.

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 Comprehensive Annual Financial Report.