Quarterly Financial Report

First Quarter of FY 2021-2022

General Fund Current Financial Condition

The General Fund first quarter financial report reflects an ending undesignated fund balance of $17.5 million, which represents approximately 3.6 months of the General Fund 2022 budgeted operating expenditures ($3.1 million in excess reserve – above the 3-month minimum fund balance reserve policy). The projected ending fund balance is 16 percent or $2.3 million higher than the amended year-end fund balance of $15.2 million.


At the end of the first quarter, revenues exceed expenditures by $1.98 million, mainly due to sales tax coming in higher; and, personnel expenses, county jail contract, electricity, and 2022 Seal Coat Project coming in under budget, while software, drainage mowing, and storm sewer maintenance are coming in over budget.

Deleon Plaza



General Fund - Revenues vs Expenditures

  • Taxes and Franchise Fees are projected to come in over budget primarily due to sales tax revenue.
  • Intergovernmental is projected to come in under budget due to the transfer from Victoria Sales Tax Development Corporation. This is due to the Economic Development Director position being vacant during the first quarter. The related personnel expenses in the General Fund will also be under budget, therefore, resulting in a net variance of zero.
  • Charges for Services are projected to come in over budget due to Emergicon revenues.
  • Interest income is projected to come in under budget due to interest rates rising more slowly than anticipated. Rates have since rebounded in the second quarter of FY 2022.
  • Personnel Services are projected to come in under budget, due to vacancies.
  • Supplies are projected to come in under budget, mainly due to office supplies, small tools, and traffic maker supplies expenditure accounts.
  • Maintenance is projected to come in over budget, mainly due to the street & roadway maintenance account.
  • Contractual Services are projected to come in under budget, mainly due to County Jail Contract, lights & power expense, and professional services accounts.
  • Other Charges are projected to come in under budget primarily due to education and advertising expenditure accounts.
  • Interdepartmental is projected to come in $ over budget due to capital replacement charges for vehicle purchases.
  • Transfers are projected to come inunder budget due to the FY 2022 Seal Coat Project contract coming in under budget.
  • Capital is projected to come in under budget, due to the office equipment expenditure account.
  • Taxes and Franchise Fees are coming in over budget due to Property Taxes (which are paid primarily in December and January) and Sales Tax line items.
  • Licenses and Permits are coming in over budget due to building, electricial, and plumbing permits line items.
  • Intergovernmental is coming in under budget due to contracts with Victoria County and Victoria Sales Tax Development Corporation who make payments later in the fiscal year.
  • Charges for Services are coming in over budget due to ambulance revenues.
  • Fines and Forfeitures are coming in under budget due to the Crime and Traffic Violations line item.
  • Other Financing Sources are coming in under budget due to the Salvage & Material Sales line item.
  • Interest income is coming in under budget due to historically low interest rates. Rates have since rebounded in the second quarter of FY 2022.
  • Personnel Costs are coming in under budget due to vacancies.
  • Supplies are coming in under budget due to fuel, botanical, uniforms, ammunition, and SWAT expenditure line items.
  • Maintenance is coming in over budget due to software, drainage mowing, and storm sewer maintenance due to encumbering funds for these contracts at the beginning of the fiscal year.
  • Contractual Services are coming in under budget due to the Lights & Power expenditure line item.
  • Other Charges is coming in over budget due to Subscriptions & Memberships and Other Employee Relations line items.
  • Interdepartmental is coming in over budget due to annual insurance charges being posted in the first quarter.
  • Transfers are coming in under budget due to timing of posting. These will occur after the first quarter.
  • Capital Outlay is coming in under budget due to the timing of expenditures. These purchases are made irregularly throughout the fiscal year.

Deleon Plaza

Budget Amendments

As of the first quarter of FY 2021-22, the General Fund Budget has been amended in the amount of $777K for the FY 2020-21 carryover encumbrances (these encumbrances were not included in this financial report since the funding for the FY 2020-21 encumbrances came from the prior year reserved fund balance of $777K).


As of the first quarter of FY 2022, the General Fund had 49 vacancies out of 475 approved full-time positions.


Tax Rate History

Tax Rate History
  • The total tax rate for FY2022 is $2.3976.

One of the largest revenue sources for the City of Victoria, 30 percent of the revenue budget, is sales tax collections. A valuable way to understand sales tax trends is to look at the rolling 12-month (R12) collections over a long period of time. Recessions can easily be spotted with the dip in sales tax. In fact, the R12 percentage is an earlier indicator than the absolute dollars. The City’s R12 percentage has been on a upward trend over the past year, which would indicate growth in sales tax receipts. Some of this growth can be attributed to recovery from the decline in sales tax receipts during FY2020 as well as stimulus programs for households over the past 15 months.


Sales tax receipts have surpassed pre-COVID levels; Finance will monitor receipts as the economy continues to experience hurdles due to supply chain and inflation issues.