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

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Sep 02, 2023 246 likes •353 views

2018 TAX ANTICIPATION NOTE UPDATE November 7, 2018 Purpose Tax Anticipation Note is basically shortterm financing in anticipation of tax revenue. Common Fund Gap Causes Slow or Delayed Tax Collections Decline in Property Values

SLIDE 1

2018 TAX ANTICIPATION NOTE UPDATE

November 7, 2018

SLIDE 2

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

Tax Anticipation Note is basically short‐term financing in anticipation of tax revenue.

Purpose Common Fund Gap Causes

SLIDE 3

Contributing Factor

Substantial increase in Salaries & Benefits

‐ 5,000,000 10,000,000 15,000,000 20,000,000 25,000,000 30,000,000

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

Monthly Salaries & Benefits

SLIDE 4

Contributing Factor

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

SLIDE 5

FY18‐19 Projected Revenue vs Expenditures

Contributing Factor

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

20,000,000 40,000,000 60,000,000 80,000,000 100,000,000 120,000,000

SLIDE 6

FY18‐19 Projected Cash Balances

Outcome

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

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 T.A.N. ‐ $21,000,000 Interest ‐ $138,337 Closing & Legal Fees ‐ $11,333

2018 Tax Anticipation Note

SLIDE 8

 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%

Moving Forward

SLIDE 9

2018 TAX ANTICIPATION NOTE UPDATE

November 7, 2018

Tax Anticipation Note is basically short‐term financing in anticipation of tax revenue.

Purpose Common Fund Gap Causes

Contributing Factor

Contributing Factor

FY18‐19 Projected Revenue vs Expenditures

Contributing Factor

FY18‐19 Projected Cash Balances

Outcome

 T.A.N. ‐ $21,000,000 Interest ‐ $138,337 Closing & Legal Fees ‐ $11,333

2018 Tax Anticipation Note

 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%

Moving Forward

QUESTIONS