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Staff: FY2010 revenues to fall $9.3 million; Peninsula Town Center could change outlook
Summary
City finance staff told the council that FY2010 general fund revenues are projected at $287.8 million, a $9.3 million (3%) drop from FY2009, driven mainly by a $3.5 million decline in personal property taxes and lower consumer-driven taxes; staff said the Peninsula Town Center impact is pending analysis.
Finance director Carl Daughtry told the Hampton City Council that staff’s first draft of revenue estimates projects total general fund receipts of $287.8 million for fiscal 2010, a reduction of $9.3 million or about 3% from the prior year.
Daughtry highlighted two large shifts: personal property collections are expected to fall by about $3.5 million (roughly a 10% decline in assessments) because of weaker vehicle sales and falling values for SUVs and trucks, while real estate tax receipts are up modestly — roughly $417,000 — based on slightly stronger-than-expected assessments. “Overall, there's a net decrease in revenues of $9,300,000,” Daughtry said.
He told council members staff is treating the revenue picture conservatively and is continuing to refine estimates. The presentation flagged sales and business license taxes as down roughly 5% and forecast a marked fall in interest income tied to market rates under 2%, which trims use-of-money receipts by roughly $760,000.
Councilors asked whether the Peninsula Town Center — a large private development — is reflected in the numbers. Daughtry said it is not yet included and staff is meeting with the Town Center developers and the Commission of Revenue to assess the likely impact on business license and sales taxes before updating the estimates.
The revenue presentation underpins the remainder of staff’s budget work this year; Daughtry said collection-rate assumptions (98.44% for real estate and 96% for personal property) reflect recent history but are under review as conditions change.
