Whatcom County Financial Report - 2011 4th Qtr

8/2/2019 Whatcom County Financial Report - 2011 4th Qtr

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2011

Fourth

QuarterFinancial

ReportWH

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N Jack Louws, County Executive

Compiled and Presented by theAdministrative Services Department

Finance Division

Brad Bennett, Finance Manager

February 14, 2012


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Whatcom County Fourth Quarter 2011 Financial ReportFor the Quarter Ended December 31, 2011

Whatcom County 2011 Fourth Quarter Financial Report - Page 1

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Executive Summary

The following information presents Whatcom Countys fourth quarter 2011 financial report. At year-end Whatcom Countys General Fund collected 95.8% of its budgeted revenues. Whatcom Countys

General Fund spent 91.8% of its budgeted expenditures.

The estimated 2011 General Fund ending fund balance is projected to be approximately $10 million.This is an increase of $800,000 from the 2010 ending fund balance. The increase is primarily dueto collection of delinquent taxes together with the associated penalties and interest. The spikes incollections of delinquent taxes were received from mortgage companies and new owners of foreclosedproperties. These payments are not considered to be a new source of ongoing revenues.


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General Fund Revenue - Budget vs. Actual

$0

$5,000

,000

$10,00

0,00

0

$15,00

0,00

0

$20,00

0,00

0

$25,00

0,00

0

$30,00

0,00

0

$35,00

0,00

0

$40,00

0,00

0

$45,00

0,00

0

Other Sources

Miscellaneous Revenue

Fines and Forfeits

Charges For Services

Intergovernmental

Licenses and Permits

Taxes

2011 BUDGET

2011 ACTUAL

2011Budget

Adopted

2011BudgetSuppls

2011Budget

Amended

Actualas of

12/31/2011

% Collected ToDate

Taxes 40,083,325 0 40,083,325 41,144,488 102.65%

Licenses and Permits 2,221,177 0 2,221,177 2,021,851 91.03%

Intergovernmental 15,636,981 2,071,539 17,708,520 14,802,570 83.59%

Charges For Services 6,537,754 0 6,537,754 6,109,739 93.45%

Fines and Forfeits 2,028,741 0 2,028,741 1,907,261 94.01%Miscellaneous Revenue 2,314,880 36,465 2,351,345 2,313,410 98.39%

Other Sources 2,700,346 359,405 3,059,751 2,556,744 83.56%

Total Revenue 71,523,204 2,467,409 73,990,613 70,856,063 95.76%

See pages 4 and 5 for General Fund Revenue Notes.


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General Fund Revenue to Date - Compared to Prior Years

$0

$5

,000

,000

$10

,000

,000

$15

,000

,000

$20

,000

,000

$25

,000

,000

$30

,000

,000

$35

,000

,000

$40

,000

,000

$45

,000

,000

Other Financing Sources

Miscellaneous

Fines and Forfeits

Charges For Services

Intergov. Revenue

Licenses and Permits

Taxes

2009

2010

2011

2009 2010 2011

Taxes 38,114,068 39,539,733 41,144,488

Licenses and Permits 2,193,021 2,196,297 2,021,851

Intergov. Revenue 15,398,586 15,587,895 14,802,570

Charges For Services 6,826,350 6,510,452 6,109,739

Fines and Forfeits 1,810,481 1,810,630 1,907,261

Miscellaneous 1,845,244 2,418,623 2,313,410

Other Financing Sources 6,386,598 5,393,504 2,556,744

Total Revenue 72,574,348 73,457,134 70,856,063

See pages 4 and 5 for General Fund Revenue Notes.


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General Fund Revenue Notes

Taxes

Property tax and retail sales tax make up 95% of Whatcom Countys tax revenue budget.

Tax revenues are $1,604,756 greater than 2010 and $1,061,166 greater than budget. Current yearproperty tax collections are up $1,021,343 over last year resulting from an increase in the general fundlevy of $457,000 (neutral shift), tax on new construction of $326,000 and an increase in the collectionrate of the current year taxes. Collections of delinquent taxes, interest and penalties are $1,377,754over budget due to large payments received from mortgage companies and new owners of foreclosedproperties. Sales taxes totaled $11,858,889 and are $522,657 under budget. Sales taxes are up$72,000 from 2010 however they are $800,000 less than the pre-economic downturn year of 2008.

Licenses & Permits

Building permits account for 52.5% of Licenses & Permits budgets. Health Department, marriage andfire control licenses and permits account for the remaining 47.5%.

License and Permit Fees are $174,447 less than collected in 2010 and $199,326 less than budget.Building permit revenues are down 11.2%, or $130,960, from last year. The numbers of permits issuedare 22% less than 2010 but permit valuations are up 22% from 2010 levels. Two large commercialprojects at BP Refinery and Meridian High School account for the valuation increases. On Site Sewagepermit revenues are down $132,233, or 37%, as a result of low construction activity levels. Restaurantand food handling permits are up $59,623 from 2010 amounts. At the end of the year we have collected91% of budget.

Intergovernmental Revenue

Intergovernmental Revenue comes from a variety of sources including grant revenue, stateentitlements and payment for intergovernmental services rendered.

Revenues collected as of year end were $2,905,953 less than budget, which is 83.6% of budget. Dueto state funding cuts and project delays, the Health Department is not expected to receive $1,145,000of grant revenues budgeted for 2011. Year-end grant adjustments will result in additional revenuessignificantly closer to budget targets. Whatcom Countys Payment in Lieu of Taxes (PILT) revenue fromthe federal government is $141,000 more than budget.

Charges for Services

Charges for Services include document recording fees (Auditor), motor vehicle license fees (Auditor),

plan check fees (Planning & Development Services), adult probation fees (District Court Probation),immunizations (Health Department) and several other miscellaneous service fees that help cover thecosts of providing specific services used by individual customers.

Overall, Charges for Services are approximately $400,000 below 2010 amounts and 2011 budget.Planning and development fees decreased $247,000, or 14.2% below 2010 revenues. HealthDepartment fees are down $181,000, or 29%, due to decreases in H1N1 immunization fees andconstruction related fees. Adult probation fees are up $27,735 and rifle range revenues are up $34,139over 2010.


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General Fund Revenue Notes, continued

Fines and Forfeits

Fines and Forfeits consist principally of traffic infraction revenue and criminal traffic misdemeanorpenalties, which include driving while intoxicated penalties. It also includes bail/bond forfeitures, codeenforcement fines, public defense recoupment and other miscellaneous criminal costs and penalties.

Fines and Forfeits revenues are $96,630 greater than 2010 levels but are $121,000 less than budgetedamounts. 2011 budgets were increased $200,000 for bail/bond forfeiture revenues and traffic infractionrevenues from contested calendars. The actual revenues from those items came in below budget at$66,000.

Miscellaneous

Miscellaneous revenues are made up of interest earnings, rents, contributions, refunds, and various

small, otherwise unclassified, amounts.After year end adjustments are made, miscellaneous revenues should end up about $23,000 ahead ofbudget and about $45,000 less than 2010 amounts. Investment interest earnings continue to decreaseand are approximately $260,000 or 21% less than 2010 amounts. The average annual yield earned in2011 was .88%, this is down from 1.35% earned in 2010. Rents and royalties income has increased$176,000 over 2010 amounts due to increases in cable franchise fees and moving parking spacerentals from Administrative Services to the General Fund in 2011.

Other Financing Sources

The Other Financing Sources revenue budget is composed of state timber revenues (14%) and 86%from transfers from other Whatcom County funds.

After year end adjustments, Other Financing Sources will have decreased about $730,000 under 2010and $56,000 under budget. State timber sales revenue is up $182,000 over 2010 and $43,000 overbudget. State timber revenues fluctuate based on harvest plans and market conditions. Transfers aredown about $950,000 under 2010 amounts. Transfers in 2010 included residual equity transfers fromother funds utilized to stabilize the General Fund balance due to the economic downturn. Transfers in2011 have fluctuated based on one-time project needs. In addition, operational transfers in support ofpositions in the Sheriffs and Prosecuting Attorneys Office are $168,000 below budget. Revenues in theDrug Fund were inadequate to fund budgeted transfers.


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$0

$2,000

,000

$4,000

,000

$6,000

,000

$8,000

,000

$10,00

0,000

$12,00

0,000

$14,00

0,000

$16,00

0,000

Non - Departmental

Public Health

Parks

Extension

Superior Court

Public Defender

Prosecuting Attorney

Juvenile

Hearing Examiner

District Ct Probation

District Court

Sheriff

Treasurer

Planning/Development

County Executive

County Council

Auditor

Assessor

2011 BUDGET

2011 ACTUAL

See page 7 for chart detail and page 9 for General Fund Expenditure Notes.

General Fund Expenditures - Budget vs. Actual


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General Fund Expenditures - Budget vs. Actual

Adopted2011

Budget

Budget

Supplementals

Amended

Budget

Actualas of

12/31/11

% Expended

To Date

Assessor 2,748,664 0 2,748,664 2,663,618 96.91%

Auditor 1,226,126 0 1,226,126 1,206,900 98.43%

County Council 933,765 63,420 997,185 930,228 93.29%

County Executive 589,255 0 589,255 576,345 97.81%

Planning & Development 5,087,269 0 5,087,269 4,498,195 88.42%

Treasurer 1,299,323 0 1,299,323 1,235,718 95.10%

Sheriff 13,450,232 1,889,284 15,339,516 14,760,893 96.23%

District Court 1,960,280 1,100 1,961,380 1,899,955 96.87%

District Court Probation 1,623,160 0 1,623,160 1,457,880 89.82%

Hearing Examiner 176,351 515 176,866 174,457 98.64%

Juvenile 4,157,043 0 4,157,043 3,935,606 94.67%

Prosecuting Attorney 5,618,377 0 5,618,377 5,483,723 97.60%

Public Defender 3,409,730 11,917 3,421,647 3,235,462 94.56%

Superior Court/Clerk 4,918,361 0 4,918,361 4,758,301 96.75%

Extension 325,644 0 325,644 308,427 94.71%

Parks 3,400,349 29,900 3,430,249 3,154,514 91.96%

Public Health 12,349,647 0 12,349,647 10,592,186 85.77%

Non - Departmental 11,663,978 1,047,217 12,711,195 10,705,028 84.22%Total General Fund Exp 74,937,554 3,043,353 77,980,907 71,577,436 91.79%

See page 9 for General Fund Expenditure Notes.


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General Fund Expenditures - Compared to Prior Years

2009 2010 2011

Assessor 2,439,927 2,453,606 2,663,618

Auditor 1,205,370 1,222,041 1,206,900

County Council 981,986 901,330 930,228

County Executive 581,908 606,412 576,345

Planning & Development 5,874,976 5,321,579 4,498,195

Treasurer 1,295,185 1,260,005 1,235,718

Sheriff 12,788,162 13,464,898 14,760,893

District Court 1,839,738 1,859,278 1,899,955

District Ct Probation 1,527,340 1,489,734 1,457,880

Hearing Examiner 169,919 172,740 174,457Juvenile 4,078,099 3,971,479 3,935,606

Prosecuting Attorney 5,437,849 5,462,738 5,483,723

Public Defender 3,354,449 3,252,643 3,235,462

Superior Court Administration 5,049,719 4,941,228 4,758,301

Extension 311,429 308,482 308,427

Parks 3,530,845 3,365,823 3,154,514

Public Health 11,644,845 11,144,574 10,592,186

Non-Departmental 13,721,680 12,252,159 10,705,028

TOTAL 75,833,426 73,450,749 71,577,436

Overall expenditures for the General Fund were at 91.8% of the approved budget at year end.

Approximately $1,350,000 of spending authority will be continued or reappropriated in 2012 in orderto complete projects and contract obligations that span fiscal reporting periods. All departmentshad expenditures within their budgeted authority. Planning & Development Services had significantbudget lapse due to not refilling vacant positions as a result of decreased permit activity. The HealthDepartment also had significant lapse due to delays in the implementation of the on-site sewageloan program and cuts in grant-funded activities. Non-Departmental lapsed over $900,000 on theAssessor Treasurer System project which has been reallocated in 2012. In addition, two CommunityDevelopment Block Grant projects will be carried over to next year.

General Fund Expenditure Notes


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General Fund Conclusion

Amended Budget Projected

Beginning Fund Balance 1/1/2011 9,188,595 9,188,595

Revenues

Budgeted/Actual Revenues 2011 71,523,204 70,856,063

Unrecorded Year End Revenue Estimates - 1,500,000

Decreased Revenue Estimates (1,200,000) -

Continuing Appropriations from 2010 577,521 -

Supplemental Budgets 2011 1,889,888 -

Total Revenue 72,790,613 72,356,063

Expenditures

Budgeted Expenditures 2011 74,937,554 71,577,436

Decrease Expenditure Estimates (2,100,000) -

Continuing Appropriations from 2010 786,304 -

Supplemental Budgets 2011 2,257,049 -

Total Expenditures 75,880,907 71,577,436

Adjusted Surplus (Deficit) (3,090,294) 778,627

Other Considerations

Estimated Budget Lapse 4,173,450

Preliminary Ending Fund Balance 10,271,751 9,967,222

Interfund Loan Adjustment 2,320,977 2,320,977

Adjusted Fund Balance 12/31/2011 12,592,728 12,288,199

1 Accounting for interfund loans used to finance the Central Plaza Building purchase and the Assessor-Treasurer System in accordance with generally accepted accounting principles has the effect of artificiallyreducing the fund balance. This happens because the capital purchases are shown as expenditures but theloan proceeds are not presented as revenues in the income statement but only as a liability on the balancesheet. The interfund loan adjustment presented above reflects a positive impact on the cash balance of theCounty General Fund.

1


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Special Revenue Funds and Other Funds - Revenues

2010 ActualAs of 12/31/2010

2011 ActualAs of 12/31/2011

2011Budget

% Collectedof 2011 Budget

County Road Fund 27,051,004 24,708,561 24,686,342 100.09%Election Reserve Fund 1,117,819 1,319,195 1,265,573 104.24%

Veterans Relief 296,347 277,667 309,396 89.74%

Jail Fund 11,880,098 12,328,659 12,065,471 102.18%

Low Income Housing Projects 208,763 192,785 170,000 113.40%

Homeless Housing 1,341,978 1,265,395 1,407,099 89.93%

Stormwater Fund 1,442,939 1,488,463 2,432,159 61.20%

Chemical Dependency/Mental Hlth 3,341,671 3,298,033 3,407,590 96.78%

County Wide Emergency Medical 2,540,602 2,551,347 2,583,211 98.77%

Trial Court Improvement Fund 49,008 47,300 48,000 98.54%

Solid Waste Fund 1,046,247 809,460 990,750 81.70%

WC Convention Center Fund 496,035 498,660 460,000 108.40%

Victim/Witness Assistance Fund 132,399 124,405 135,550 91.78%

Whatcom Co Drug Fund 484,487 274,156 610,000 44.94%

Auditors O&M Fund 187,694 177,942 166,900 106.62%

Emergency Management 1,493,442 870,459 1,861,466 46.76%

Flood Control Zone Dist Fund 5,957,330 4,243,996 5,214,279 81.39%

Pt Roberts Fuel Tax Fund 54,938 79,298 50,000 158.60%

Conservation Futures Fund 448,974 1,344,877 988,758 136.02%

Sub-Flood Zones 960,062 939,608 1,054,961 89.07%

Real Estate Excise Tax Fund II 1,025,029 1,042,783 1,688,365 61.76%

Real Estate Excise Tax Fund I 1,760,206 1,042,783 1,037,401 100.52%Civic Center Bldg Improvement 1,524,325 1,404,036 1,404,036 100.00%

Public Utilities Improvement 2,833,906 2,928,904 2,917,871 100.38%

East Cnty Regional Resource Ctr 1,055,279 3,203,014 3,202,814 100.01%

Yew St Road Construction 1,562,427 37,533 665,573 5.64%

Lincoln Road Construction 1,954,084 1,962,241 1,961,916 100.02%

Jail Improvement Fund 3,008,115 120,767 104,860 115.17%

Lummi Nation Lease Fund - 2,000,000 2,000,000 100.00%

Ferry System Fund 2,312,407 2,896,253 2,506,616 115.54%

Equipment Rental & Revolving 8,735,603 9,445,809 9,297,219 101.60%

Administrative Services Fund 19,417,286 18,799,074 19,803,355 94.93%

Note: Road Improvement Districts, Capital Project Funds and Debt Service Funds are not shown on this list.


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Special Revenue Funds and Other Funds - Expenditures

2010 Actual

As of 12/31/20102011 Actual

As of 12/31/20112011

Budget% Expended

of 2011 Budget

County Road Fund 23,028,828 21,411,638 28,346,026 75.54%Election Reserve Fund 1,332,606 1,082,792 1,311,910 82.54%

Veterans Relief 166,765 341,246 457,534 74.58%

Jail Fund 12,044,768 12,212,366 12,806,632 95.36%

Low Income Housing 227,374 413,470 415,000 99.63%

Homeless Housing 1,556,224 1,506,510 1,738,456 86.66%

Stormwater Fund 1,224,885 1,879,174 2,724,687 68.97%

Chemical Depend/Mental Hlth 1,560,704 2,455,928 3,544,447 69.29%

County Wide Emergency Medical 2,422,058 2,423,055 2,566,466 94.41%

Trial Court Improvement Fund 31,055 7,495 43,235 17.34%

LEOFF I Healthcare Fund 1,088,647 337,285 550,000 61.32%

Solid Waste Fund 1,026,958 834,743 1,159,494 71.99%

WC Convention Center Fund 336,197 395,678 425,280 93.04%

Victim/Witness Assistance Fund 142,027 125,684 142,874 87.97%

Whatcom Co Drug Fund 600,138 407,284 608,967 66.88%

Auditors O&M Fund 209,512 198,589 223,412 88.89%

Emergency Management 1,482,799 1,195,008 1,861,466 64.20%

Flood Control Zone Dist Fund 4,751,205 3,306,101 5,589,577 59.15%

Conservation Futures Fund 1,653,036 763,586 335,517 227.58%

Sub-Flood Zones 252,572 682,728 1,323,968 51.57%

Real Estate Excise Tax Fund II 900,445 1,286,713 3,469,621 37.09%

Real Estate Excise Tax Fund I 2,979,625 1,459,318 1,501,438 97.19%Civic Center Bldg Improvement - - 1,404,036 0.00%

Public Utilities Improvement 1,760,585 3,602,570 4,288,596 84.00%

East Cnty Regional Resource Ctr 295,810 4,161,798 4,211,697 98.82%

Yew St Road Construction 1,923,114 72,794 1,604,815 4.54%

Lincoln Rd Construction 442,814 2,698,265 3,457,188 78.05%

Jail Improvement Fund - 12,381 3,117,700 0.40%

Ferry System Fund 2,593,833 2,434,693 2,674,125 91.05%

Equipment Rental & Revolving 8,776,922 9,276,737 9,894,455 93.76%

Administrative Services Fund 18,378,675 17,886,267 20,227,165 88.43%

Note: Expenditures in most of the funds presented are project-driven and do not follow regular spending patterns.Road Improvement Districts and Debt Service Funds are not shown on this list.

1 Conservation Futures Fund is over budget as a result of a State Auditor directed adjustment to account for apurchase of development rights transaction that was budgeted and paid into escrow in 2010 but did not closeuntil 2011.

1

Documents

Whatcom County Financial Report - 2011 4th Qtr