Q3 Financial Reports

For the Nine Months Ended June 30, 2021

Prepared for:

Honorable Mayor and City Council


City Manager

Marty K. Lawing


Department Directors


Prepared by:

Budget Office

August 11, 2021

The accompanying report reflects the City’s overall financial position through June 30, 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 nine months ended June 30, 2021, total $108.03 million and are 80% of the $134.21 million dollar budget compared to prior year revenues at $105.13 million, also 80% of the $131.64 million dollar budget. This amounts to an increase in total revenues over prior year of $2.9 million, or 2.8%.


The main drivers to this result consist of the following:


Increases Decreases

Ad valorem taxes $2,248,045 Business tax ($444,336)

State shared revenues $1,409,610 Licenses and permit fees ($469,108)

Payment In Lieu of Taxes $832,200 Contributions-Enterprise fund ($750,000)

Other Misc. revenues $182,248 Impact Admin. fees ($390,478)

Utility service taxes $297,711 Interest and Other Earnings ($237,174)

Franchise fees $193,598

Total Increases $5,163,412 Total Decreases ($2,291,096)


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, operating revenue collections in total, are at 76%, just slightly over the 75% target.

It is important to note that some major funds, including the half-cent sales tax, communications service tax and the FPL franchise fee, reflect eight months of actual collections and one month estimates for this nine-month reporting period.


General Fund Expenditures

Total expenditures of $98.88 million are 74% of the $134.21 million dollar budget compared to the prior year expenditures of $95.17 million at 72% of the $131.64 million dollar budget.


Operating expenditures increase over the prior year by $4.71 million or 6.1%, due to the net effect of the following:

  • City Manager expenditures increase $898,846 due to compensation paid to the former City Manager upon his retirement, the filling of the Business and Economic Development Administrator position and an increase in professional services for special projects
  • Fire Department expenditures increase $1,891,027 due to contract salary adjustments, the filling of vacant positions, and increases in overtime, workers’ compensation and equipment
  • Parks expenditures increase $428,077 due to compensation paid to the former Parks Manager upon his retirement, the filling of vacant positions, increases in workers’ compensation, contract services and utilities
  • Facilities Maintenance expenditures increase $580,700 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 operating supplies for special projects
  • Economic Development expenditures increase $222,866 due to the “Building Corridors of Opportunity” project conducted by Florida International University

Other expenditures decrease from the prior year by ($998,183) due to the following:

  • Debt service transfers decrease by ($776,060) due to the final payment on the 2014B Bonds made in December, 2019
  • Operating transfers decrease ($125,763) due to the net effect of the following:

o ($1,000,000) decrease in a transfer to Risk Management for the one-time Fire cancer unfunded mandate

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

o $326,250 increase in the transfer to the Street Maintenance Fund due to lower collections from fuel taxes


Overall, for the nine months ended June 30, 2021, General Fund revenues exceed expenditures by $9.15 million.

CONCLUSION

Review and analysis of the City’s financial statements for the nine months ended June 30, 2021 indicate that spending is within the budget parameters for all major operating funds. Revenue streams of concern include business tax receipts, permit-related fees and recreation fees, especially those from the Skatium programs.



As a reminder, the FY2021 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 as well as the FY2021 Forecast indicate a use of reserves in the estimated amount of $7 million by September 30, 2021. Sustainability into the future will require preservation of reserves and a structurally balanced budget which is the focus with the development of the FY2022 budget.


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.