2018 TAX ANTICIPATION NOTE UPDATE November 7, 2018 Purpose Tax - PowerPoint PPT Presentation

2018 TAX ANTICIPATION NOTE UPDATE November 7, 2018

Purpose Tax Anticipation Note is basically short‐term financing in anticipation of tax revenue. Common Fund Gap Causes • Slow or Delayed Tax Collections • Decline in Property Values • Delay in Property Assessments and Billing • Substantial Increase in Monthly Expenditures • Emergency Use of Fund Balance • Lack of Fund Balance Growth 2

Contributing Factor Substantial increase in Salaries & Benefits Monthly Salaries & Benefits 30,000,000 25,000,000 20,000,000 15,000,000 10,000,000 5,000,000 ‐ 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 Actuals 18,661,867 19,684,444 19,993,622 20,119,268 20,884,315 21,886,702 23,462,965 25,969,326 27,107,705 29,475,602 3

Contributing Factor Lack of Fund Balance Growth Note: Ending Fund Balances includes ending Cash Reserves 4

Contributing Factor FY18‐19 Projected Revenue vs Expenditures 120,000,000 100,000,000 80,000,000 60,000,000 40,000,000 20,000,000 0 Jul 2018 Aug 2018 Sep 2018 Oct 2018 Nov 2018 Dec 2018 Jan 2019 Feb 2019 Mar 2019 Apr 2019 May 2019 Jun 2019 Projected Revenue 25,154,293 13,296,165 14,228,692 21,485,352 39,128,443 112,919,123 21,505,178 19,414,146 21,653,227 20,398,194 27,791,008 79,650,329 Projected Monthly Expenditures 31,920,616 33,799,614 34,006,446 35,876,801 33,186,412 35,417,367 34,243,716 37,201,437 34,690,666 33,002,571 34,751,183 38,136,101 5

Outcome FY18‐19 Projected Cash Balances 70,000,000 62,609,861 60,000,000 49,871,323 50,000,000 40,996,269 40,000,000 33,838,726 32,084,032 30,000,000 19,046,593 20,000,000 13,335,277 10,000,000 6,442,216 0 JUL 2018 AUG 2018 SEP 2018 OCT 2018 NOV 2018 DEC 2018 JAN 2019 FEB 2019 MAR 2019 APR 2019 MAY 2019 (517,959) JUN 2019 (10,000,000) (6,442,477) (14,891,895) (20,000,000) (20,833,926) (30,000,000) 6

2018 Tax Anticipation Note  T.A.N. ‐ $21,000,000  Interest ‐ $138,337  Closing & Legal Fees ‐ $11,333 7

Moving Forward  Increase Fund Balance (Cash Reserve Portion) in General Fund  Continue current portion of Mill that adds revenue in future budgets  Increase target range in Board Policy from 7 to 10% to 12 to 15% 8

QUESTIONS 9