Annual Financial Report

For the Fiscal Year Ended September 30, 2022

Prepared for:

Honorable Mayor and City Council


City Manager

Marty K. Lawing


Department Directors


Prepared by:

Budget Office

February 8, 2023

The accompanying report reflects the City’s overall financial position for the Fiscal Year Ended September 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 year ended September 30, 2022, total $149.38 million and are 101% of the $147.44 million dollar budget compared to prior year revenues at $127.58 million, and 94% of the $136.02 million dollar budget. This amounts to an increase in total revenues over prior year of $21.80 million dollars, or 17.1%.


The main drivers to this result consist of the following:


Increases Decreases

Ad valorem taxes $2,932,068 Payment In Lieu of Taxes ($468,200)

Utility service taxes $1,029,868 Interest & other earnings ($76,218)

Franchise fees $1,349,597 Interfund transfers ($277,211)

Fire Assessment fee $7,563,276 Total Decreases ($821,629)

Licenses and permit fees $3,288,265

State shared revenues $2,591,793

Other Misc. revenues $2,538,253

Charges for services $253,934

Rents and royalties $353,452

Admin. charge $255,720

Communication Tax $89,063

Business Tax $214,934

Total Increases $22,460,223


  • Ad valorem tax collections increase by $2.93 million dollars due to increases in property valuations and newly added properties to the tax roll, even with levying the rolled back millage rate
  • The Fire assessment fee revenue increases $7.56 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
  • Charges for services increase in total by $.25 million driven by the Recreation Division
  • Other miscellaneous revenues increase by $2.54 million due to capital lease proceeds received for new fire apparatus

All other revenue increases are due to growth. Overall, General Fund revenues came in better than anticipated, exceeding the budget.

General Fund Expenditures

Total expenditures of $137.46 million are 93% of the $147.40 million dollar budget compared to the prior year expenditures of $131.76 million at 97% of the $136.02 million dollar budget.


Operating expenditures are $117.55 million and 93% of the $126.55 million budget compared to prior year of $113.17 million at 97% of the $116.12 million dollar budget.


Operating expenditures increase over the prior year by $4.39 million dollars or 3.9%, due to the net effect of the following:

  • Fire Department expenditures increase $4.68 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 $1.29 million 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 a decrease from moving lease payments on the police vehicles to a Debt Service Fund
  • City Manager expenditures decrease ($1.03) 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
  • Expenditures were added in FY2023 subsequent to budget adoption, with taking over the City of Palms stadium from the County (cost of $217,000 for utilities and maintenance) as well as making an investment of $371,166 in the Police Athletic League (PAL) programs.

Other expenditures increase over the prior year by $1.32 million due to the net effect of the following:

  • Debt service transfers increase by $1.57 million due to the creation of a debt service fund for lease payments previously reported in the respective division’s operating budgets
  • Transfer to the Capital Improvement Budget decreases by ($170,229)
  • Insurance (Risk Management Fund allocation for property and liability insurance and administration costs) decreases ($120,500)
  • Operating transfers increase $37,138 due to the following:

o $438,217 increase in transfers to the CRA Tax Increment Funds

o $279,300 increase in the transfer to the Skatium

o ($197,269) decrease in the transfer to the Street Maintenance Fund

o ($418,200) decrease in the transfer to the Golf Courses

o ($64,910) decrease in the transfer to ITS


General Fund spending is within the budget parameters for this reporting period. Overall, for the year ended September 30, 2022, General Fund revenues exceed expenditures by $11.91 million.


The Unassigned General Fund Reserve balance is now $33.3 million, or 25.7% of the total General Fund budgeted appropriations combined with other funds in the General Fund Group in accordance with the Annual Comprehensive Financial Report. This places the City above the target of 20% per the Fund Balance Policy. Please note that results for fiscal year 2022 are currently being audited and therefore any audit adjustments may also impact this reserve balance amount.

CONCLUSION

Review and analysis of the City’s financial statements for the year ended September 30, 2022 indicate strong revenue collections in fiscal year 2022 for most revenue streams, surpassing the budget and forecasted projections. For the funds reported in this document, all with the only exception of the Stormwater Fund, revenues exceeded expenses, adding to the respective fund reserves. While encouraging, the City continues to address pressures of inflation driving cost increases as well as high demand for services, all in the midst of recovery efforts from Hurricane Ian. Monitoring the City finances has never been more important as the 2023 fiscal year progresses. Preservation of reserves and financial resiliency and sustainability will be the focus as the development of the fiscal year 2024 budget commences.


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.