Cherokee County Board of Commissioners FINANCIAL UPDATE Q2 2014 (Oct - PowerPoint PPT Presentation

Cherokee County Board of Commissioners FINANCIAL UPDATE Q2 2014 (Oct 2013 – Mar 2014) Presented May 6, 2014

Cherokee County Board of Commissioners EXECUTIVE SUMMARY Q2 2014 (Oct 2013 – Mar 2014)

Status Summary – Q2 2014 Metric Status Comments/Action Plan • In total – the County is able to meet commitments Cash Position – • Most non ‐ capital funds improved cash position over prior year All Funds • EMS Fund still cash negative as transition with TPA continues • Improved from negative cash in Nov 2010 to ~ $7.0M low point in Dec 2013 Cash Position – • $7.0M ~ 11% of General Fund Annual Budget General Fund • Still need to correct Unincorporated County Services Fund cash balance • Full Year Forecast for Externally Generated Recurring Revenues on track • Property tax collections on track • Combined total of motor vehicle taxes/TAVT on budget Revenue • SPLOST on budget • Other Financing Sources – Sale of Old Admin Building $1.6M at risk – although only budgeted to improve UnCS cash, not needed for General Fund operations, and can also be partially offset by other property sales • In comparison to percentage of year elapsed, expenditures on track • In comparison to prior year spending, expenditures on track Expenditures • While healthcare claims are over ‐ budget, the Insurance & Benefits Fund has an adequate reserve to cover the overage in FY2014 • Personnel costs on target Headcount • Headcount below budget 3

Cash Executive Summary March 2014 Summary Statement: Property taxes are primarily collected in December 2013 and January 2014. Almost every month after, expenses > revenues. Therefore the cash balance will decrease throughout the year. This is expected and budgeted accordingly. All Funds General Fund $40.0 $150.0 $31.3 $28.9 $28.7 $27.3 $96.3 $30.0 $92.8 $91.7 $100.0 $58.4 $54.6 $20.0 $48.8 $50.0 $10.0 $0.0 $0.0 All Funds All Funds w/o Capital Feb 2014 Mar 2014 Mar 2014 Proj Mar 2013 Feb 2014 Mar 2014 Mar 2013 Highlights for YOY: All Funds +$1.1M, Non Capital Funds +$5.8M, General Fund +$1.4M Of the County’s 30 Funds, 20 have improved cash position over 2013. Most significant changes include: • SPLOST Funds + $7.2M SPLOST 2012 tax receipts have significantly exceeded SPLOST 2012 spending (related to multi ‐ year project spending plan). • Parks Bond Fund ‐ $13.0M Our last bond issue was Jan 2012. Funds have been spent on planned projects (e.g., Aquatic Center, Canton Park along the Etowah, Hobgood Renovations, Woodstock Greenprintings, Blankets Creek, etc. ). • Unincorporated County Services Fund +$2.6M Insurance Premium Tax revenue and building permits revenue has been higher than budget, and the fund receives a budgeted transfer from the General Fund to build reserves in FY2014. • General Fund + $1.4M Reserves built from increased FY2013 revenues (primarily TAVT, court fines, mortgage related taxes). • Fire Fund + $0.9M Variance primarily driven by revenues exceeding expenditures. • EMS Fund ‐ $0.5M The County has been pushing the TPA for their action plan to increase collections. Bottom Line: Cash balances are improving or decreases are explainable/expected. 4

EMS Fund – Cash Collections & Balances • Due to performance issues the County moved the EMS administration business from ADPI/Intermedix to LifeQuest on May 1, 2013. • We continue to work through transition issues with our cash collections. EMS Fund Cash Balances FY2014 EMS Monthly Cash 300,000 Collections 200,000 400,000 100,000 ‐ 350,000 (100,000) 300,000 (200,000) (300,000) 250,000 (400,000) (500,000) 200,000 (600,000) Oct Nov Dec Jan Feb Mar Oct Nov Dec Jan Feb Mar Budget Actual 2012 2014 Bottom Line: Monthly collections are below the FY2014 Monthly Budget. While March collections improved, we need monthly collections in the $425k range for six months in order to recover short collections dating back to May 2013. 5

EMS Fund – Net Collection Report • LifeQuest still believes a 70% collection rate is achievable. Net # of Collections Net Collections Time Period Transports Gross Charge Net Charge Receipts to Date @ 70% May 2013 515 $ 429,777 $ 268,530 $ 159,196 59.28 % $ 187,971 June 2013 377 $ 316,545 $ 217,746 $ 114,949 52.79 % $ 138,447 July 2013 1262 $ 1,032,469 $ 758,115 $ 421,740 55.63 % $ 451,569 Aug 2013 729 $ 614,094 $ 482,439 $ 231,525 47.99 % $ 268,585 Sept 2013 541 $ 436,706 $ 344,900 $ 179,302 51.99 % $ 191,001 2013 3,424 $ 2,829,591 $ 2,071,730 $ 1,106,712 53.42 % $ 1,237,572 Oct 2013 1040 $ 839,575 $ 693,786 $ 271,724 39.17 % $ 367,203 Nov 2013 731 $ 578,883 $ 501,491 $ 168,690 33.64 % $ 253,185 Dec 2013 875 $ 714,156 $ 630,788 $ 171,006 27.11 % $ 312,349 Jan 2014 1,057 $ 861,591 $ 763,756 $ 163,371 21.39 % $ 376,832 Feb 2014 749 $ 606,442 $ 570,437 $ 69,842 12.24 % $ 265,238 Mar 2014 907 $ 736,265 $ 731,879 $ 8,727 1.19 % $ 322,019 2014 YTD 5,359 $ 4,336,912 $ 3,892,137 $ 853,360 21.93 % $ 1,896,827 TOTAL 8,783 $ 7,166,503 $ 5,963,867 $ 1,960,072 32.87 % $ 3,134,399 Bottom Line: If 70% is achievable, the average monthly collections Oct ‐ March ~ $316k which is our monthly budget. If 70% is achievable, we have $1,174,327 “in the pipeline” to collect. 6

EMS Collections – What is the Status of Amounts Yet to be Collected? Net Collections at 70% $3,134,399 Amounts Already Received $1,960,072 Potential Collections Yet to Be Received $1,174,327 Net Collection % 70.0% Breakdown of Collections to be Received Low Estimate High Estimate Medicare/Medicaid $331,537 $388,510 No Signature $121,855 $121,855 Commercial Insurance $308,633 $329,398 Other Issues $235,439 $392,398 Established Private Payment Schedules $64,770 $64,770 Total $1,062,234 $1,296,931 Net Collection % 67.5% 72.7% Bottom Line: We need outstanding EMS billing to complete the processing/cashflow cycle. 7

EMS Collections – What if 70% Is Not Achievable? Required General Fund Transfer At Various Net Collection Rates 70% 65% 60% General Fund Would Provide $809,143 $1,079,143 $1,349,143 Increase in GF Transfer $270,000 $540,000 Bottom Line: If 70% is not achievable, the General Fund Transfer would need to increase significantly. 8

Revenue Executive Summary All Funds – Q2 2014 Summary Statement: When comparing externally generated recurring revenue that is expected to fund operations, without requiring reserves, the County’s YTD Results are $1.0M better than the YTD Budget. We are also forecasting the full year to be $1.0M better than budget. All Recurring External Revenues Q2 Actual $1.0M Better than Budget • More significant variances: $160.0 $146.2 $145.2 • SPLOST Reimbursement from State for Sheriff Training Center $140.0 +$0.7M $120.0 • TAVT/Motor Vehicle Net +$225K $95.2 $94.2 $93.1 $100.0 • Mortgage Related Taxes +$155K • Court Fines ‐ $121K $80.0 • Building Permits +$160K $60.0 • CDBG Grants ‐ $316K – timing $40.0 • DUI Court +$100K • Impact Fees +$171K $20.0 $0.0 Full Year Forecast $1.0M > Budget 2014 Q2 2013 Q2 2014 Q2 2014 2014 Budget Actual Budget Actual Forecast 9 Bottom Line: Revenue is on track to slightly exceed the FY2014 Budget. 9

TAVT & Motor Vehicle “Birthday Tax” Collections Q2 2014 TAVT Motor Vehicle Ad Valorem ("Birthday Tax") $2,708,385 $3,000,000 $2,708,286 $2,282,405 $3,000,000 $2,500,000 $2,239,138 $2,041,660 $2,500,000 $2,000,000 $2,000,000 $1,500,000 $1,500,000 $1,000,000 $1,000,000 $0 $500,000 $500,000 $0 $0 Q2 2013 Q2 Budget Q2 Actual Q2 2013 Q2 Budget Q2 Actual Combined TAVT & Birthday Tax General Fund TAVT Receipts 650,000 $4,521,543 $4,750,045 600,000 $5,000,000 550,000 $4,000,000 $3,000,000 500,000 Budget $2,000,000 450,000 $1,000,000 400,000 Q2 Budget Q2 Actual May June July Aug Sept Oct Nov Dec Jan Feb Mar Bottom Line: On a combined basis we are exceeding budget, but TAVT revenue is inconsistent/unpredictable. 10

Revenue Executive Summary General Fund – Q2 2014 Summary Statement: When comparing externally generated recurring revenue that is expected to fund operations, without requiring reserves, the General Fund YTD Results are $0.2M more than budgeted. We are also forecasting the full year to be equal to budget. General Fund Recurring External Q2 Actual $0.2M Better than Budget Revenue More significant variances: $59.4 $59.4 $60.0 • TAVT Tax +300K $46.6 $46.4 $45.0 $50.0 • Mortgage Related Taxes +$121K $40.0 • Court Fees ‐ $150K $30.0 $20.0 Full Year Forecast $0 variance to Budget due to offsetting factors $10.0 $0.0 2014 Q2 2013 Q2 2014 Q2 2014 2014 Budget Actual Budget Actual Forecast Note: While not a “recurring revenue,” the Sale of the Old Admin Building was assumed in the 2014 Budget for $1.6M. If this sale is at risk, we could be forced to delay building the Unincorporated County Services Fund cash balance. Bottom Line: Recurring revenues are on track, but the Sale of the Old Admin Building is at risk. 11