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Finance director: March revenues mixed, reserves likely to fall to about 206 days if trends continue
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Summary
Finance Director Steve Marriott told the council that March showed front-loaded property-tax receipts but declines in hotel-occupancy tax, ambulance billings and building-permit revenue; he said the city currently has reserves covering about 269 days but anticipates that could fall to roughly 206 days by year end.
Finance Director Steve Marriott presented the March financial report to the Paris City Council on April 27, flagging revenue variances and a possible decline in reserve days if trends persist.
Marriott said general-fund year-to-date revenues were about 61 percent of budget, noting property taxes are front-loaded and were 91.7 percent of budget at March 31. "On March 31, property tax and tax collections were 91.7 of the budget," Marriott said. Sales-tax collections were 53.8 percent of budget year to date, with the presenter cautioning that the most recent three months trailed the prior year and could signal a trend.
Marriott identified several specific reductions: hotel-occupancy tax collections were about 45.6 percent of budget and down by roughly $146,000 year to date; ambulance billings were about 48.1 percent of budget and down by approximately $540,000 (attributed in part to staffing shortages that constrained ambulance transfers); and building-permit revenues were about 27 percent of budget, down about $268,000 year to date.
On expenditures, general-fund spending totaled about $16.6 million through March, or 44 percent of the annual budget; Marriott said salary-and-benefit increases accounted for much of the year-over-year rise. He reported the city has cash and investments sufficient to cover roughly 269 days of expenditures under the fund-balance policy but projected that number could fall to about 206 days by year end if revenues and expenditures follow current patterns. "We have cash and investments to cover about 269 days of expenditures," Marriott said.
Councilors asked clarifying questions about timing, transfers and whether medical-claims experience affects the budget; staff explained the city participates in a pooled insurance arrangement and that some transfers currently net against revenue, affecting apparent percentages. Members also discussed airport fund results; airport fuel sales drove much of a $143,000 reduction in airport revenues compared with the prior year.
Marriott invited council guidance on what parts of the monthly report the council wants emphasized in future presentations. Councilors praised the presentation and requested staff continue to provide details that will help the council and incoming members understand the city's finances.
Next steps: staff will continue presenting monthly results and provide any supplemental detail requested by council members, and will monitor revenue lines (ambulance billing, hotel occupancy and sales tax) and reserve projections.
