Agenda - 01-04-1982 - Laserfiche WebLink

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MEMO TO: Beard Members DATE: December 31, 1981 FROM: County Manager SUBJECT: Communications Update 1. Financial Condition As reported earlier, I have been analyzing the County's revenue and expenditure situation with the assistance of the Finance Depart- ment. This has included review of the 1980-81 audit, current year tax collections as of the end of each month and projecting cash flow for the next twelve months to determine requirements. In the case of the audit and first and second quarter inflow/outflow of cash we are dealing with hard data. Forecasting, on the other hand, must involve assumptions and therefore is subject to error. It is essential to make the best estimates possible and adjust, to forecasting errors as time elapses. Enough information has been drawn to update you. other updates will follow as factors are monitored. The following are observations at this point: 1f Unemployment are affecting collections. End of November figures .lagged 4% behind last year. COUNTY LEVY NOVEMBER, YEAR-TO-DATE % COLLECTED 1980-81 $7,166,345.88 secured 28.56 2,046,963.74 $1,828,656.17 unsecured 16.69 30.5,374.63 1981-82 $8,689,958.48 secured 24,35 2,116,046.87 $1,131,220.65 unsecured 15.49 175,257.99 It is hoped that this is a temporary phenomenon. However, were this to become a pattern through the end of January the County might not realize the 97% collection assumed during the budget process. Interest rates remaining high may be a factor. The penalty for non-payment of taxes falls below what one could derive by having the money invested, this reduces the incentive to pay prior to legal action being mounted which is a full year from the due date on secured property. The legislature has under consideration a bill to raise the penalty. This would help along with earlier mailing of bills and possibly a prepayment discount for bills paid by the end of August.