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Third-quarter report: Jacksonville revenues outpace spending; capital projects remain in early stages
Summary
Finance Director Roxanne Bryant told council the city collected about $36.6 million through June 30 (82.6% of budget) while expenditures totaled about $21.9 million (40.5%). Bond-funded capital projects and reimbursements account for timing differences.
Finance Director Roxanne Bryant presented the city’s third-quarter financial report to the Jacksonville City Council on Aug. 12, saying the city had collected approximately $36,600,000 in revenue through June 30, representing about 82.6 percent of the fiscal-year revenue budget.
"As of June 30, we've collected approximately $36,600,000 in revenue, representing 82.6 of the total budget revenue of 44,300,000," Bryant told the council. She said year-to-date spending totaled about $21,900,000, or 40.5 percent of the $54.1 million expenditure budget; she attributed the lower spending percentage largely to the timing of major capital projects and conservative operating expenditures.
Top-line revenues: Bryant said ad valorem-tax collections were strong at about $6,580,000 (97.7 percent of budget), sales tax year-to-date was $2,680,000 (about 75.3 percent of budget) and water and sewer revenues showed year-over-year increases. She reported sales tax growth of roughly 9.19 percent over the prior year, water sales up about 5.46 percent and sewer sales up about 13.96 percent.
On the sewer increase, Bryant said the city’s rate study found the sewer side had been under-recovering costs and that rate adjustments primarily drove the jump in sewer revenue.
Capital projects: Bryant said capital spending stood at about $4,340,000, or 15.8 percent of the $27.4 million capital budget. She listed major bond-funded projects still in early phases, including a $4.8 million sanitary-sewer trunk/main/manhole/force-main project and an $11.5 million Double Creek Wastewater Treatment Plant update and expansion. Bryant said the city will change budgeting practices to match multi-year project spend patterns more closely.
Grants and reimbursements: Council members asked about a negative balance in one grant fund; Bryant explained the fund timing is driven by reimbursement grants and that the city expects to receive funds after submitting required documentation.
Cash and investments: Bryant said cash and investments totaled about $34,770,000 on June 30, down slightly from March 31, and that the city began working with Deep Blue investment advisers in mid-June to invest in U.S. Treasuries, commercial paper and certificates of deposit.
Bryant concluded that the city remains in a strong financial position for the quarter, with revenues outpacing expenditures and healthy fund balances meeting policy benchmarks.
Questions from council focused on sales-tax drivers, sewer-rate adjustments and grant reimbursement timing; Bryant offered to provide more granular category-level sales-tax analysis in the full report.
