Q1 Financial Reports

For the Three Months Ended December 31, 2020

Prepared for:

Honorable Mayor and City Council


City Manager

Saeed Kazemi, P.E.


Department Directors


Prepared by:

Budget Office

April 14, 2021

The accompanying report reflects the City’s overall financial position through December 31, 2020.


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 three months ended December 31, 2020, total $69.52 million and are 52% of the $133.83 million dollar budget compared to prior year revenues at $68.06 million, and 52% of the $131.69 million dollar budget. This amounts to an increase in total revenues over prior year of $1.46 million, or 2.1%.


The main drivers to this result consist of the following:


Increases Decreases

Ad valorem taxes $2,085,882 Business tax ($476,381)

Fire assessment fee $176,819 Licenses and permit fees ($243,912)

Payment In Lieu of Taxes $277,400 Contributions-Enterprise fund ($250,000)

½ cent sales tax $148,738 Charges for services ($127,510)

Total Increases $2,688,839 Total Decreases ($1,097,803)


Except for Contributions from Utilities and Solid Waste, the decreases noted

above were driven by the effects of the COVID-19 pandemic.

General Fund Expenditures

Total expenditures of $38.56 million are 29% of the $133.83 million dollar budget compared to the prior year expenditures of $37.83 million at 29% of the $131.69 million dollar budget.


Operating expenditures increase over the prior year by $659,297 or 2.6%, due to the net effect of the following:

  • City Manager expenditures increase $142,120 due to mainly to the filling of the Business and Economic Development Administrator position
  • Fire Department expenditures increase $270,771 driven by increases in workers’ compensation and medical supplies
  • Parks expenditures increase $177,536 due to increases in workers’ compensation, contract services, utilities and operating supplies
  • Engineering expenditures increase $106,408 due to professional services
  • Facilities Maintenance expenditures increase $173,810 due to increases in personal services as 20% of the Superintendent of Public Works is now allocated to Facilities Maintenance, utilities and repairs/maintenance
  • City Attorney and Administrative Attorney offices were combined with a net effect of a decrease in expenditures of ($168,599) driven by a reduction in positions
  • Recreation expenditures decrease ($127,862) due to the cancellation of the Celtic Festival and no longer using temporary labor.

Other expenditures increase over the prior year by $70,207 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 $613,337 due to the following:

o $520,387 increase in transfers to CRA

o $108,750 increase in the transfer to the Street Maintenance Fund due to a reduction in the county fuel tax allocation


Overall, for the three months ended December 31, 2020, General Fund revenues exceed expenditures by $30.96 million. This result is normal since the majority of property tax revenue is collected in the first half of the year.

CONCLUSION

Review and analysis of the City’s financial statements for the three months ended December 31, 2020 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. Given the few months of activity reported, the seasonality of many revenue streams and economic impacts from COVID-19, it is difficult to accurately assess the City’s financial position at this time. As the year progresses, staff will continue to assess the City’s finances.


The 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.