FY 10 Reports:
DATE: May 27, 2010
TO: Mayor and City Council Members
FROM: Sandra Gallup, Finance Director
SUBJECT: SUMMARY BUDGET REPORT BY DEPARMENT FOR GENERAL FUND AND DETAILED BUDGET STATUS REPORTS FOR GENERAL FUND, WATER FUND, SEWER FUND, CEMETERY FUND, PARKS FUND, PARKING FUND AND SENIOR CENTER FUND FOR A TEN MONTH PERIOD BEGINNING JULY 1, 2009 AND ENDING APRIL 30, 2010..
Enclosed please find budget reports for the above reference funds.
For the General Fund, please note that 104% of revenues budgeted have been received (compared to 102% last fiscal year) and 90% of expenditures budgeted have been expensed for this time period (compared to 89% last year). This represents 83% of the budget year completed.
GENERAL FUND NOTES AND PROJECTIONS:
I am projecting that the General Fund should end the year with a positive financial position.
As we enter the final month of FY10, projected Revenue and Expenditures are close to balancing out. Unanticipated revenue is covering unanticipated expenditures. This projection assumes that most of the budgeted, weather-related expenditures in DPW Streets, DPW Fleet and Heating Fuel will be spent. This may not occur due to the relatively mild winter we experienced in Montpelier. I am working with Todd Law to determine what the “savings” might be. In addition there should be “savings” in employee health insurance but that amount is difficult to project. This year’s financial position will be discussed at the June 9th Council Meeting.
WATER FUND: Usage in FY09 was 3% lower than in FY08. In FY10 usage is down another 3%. In the most recent quarter National Life dramatically reduced their water usage which they believe is the result of conservation improvements. We are checking their meter to make sure it is operating correctly. The Water Fund could have an $171,000 loss in FY10 due to low usage revenue and high legal expenditures but as of mid-May there remains $87,000 unspent in Operating Supplies so there may be some savings in the Water Treatment area of the budget.
SEWER FUND: Sewer Use Revenue may be down as much as $100,000 in FY10. But,the federal stimulus money which provides ½ Loan Forgiveness on the Vactor replacement will save $90,000 in the FY10 budget. Also, there appears to be savings in Wastewater Treatment and Sewer Collection areas of the budget. The Sewer Fund may end the year without adding to the prior year deficit.
Both funds are experiencing declines in revenues, no user growth and substantial debt. City management and the Water and Sewer Fund Rate Committee met this month and is developing long term plans to address the financial issues in these enterprise funds.
The Budget Reports are scheduled for the City Council Consent Agenda for June 9, 2010.
