Agenda - 12-13-2016 - 6-a - Minutes

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23 1 • 5-Page Narrative explaining Major variances (1st Attachment) 2 o Narrative delineating any material variance by either Performance or Timing 3 • Detailed Comparison of FY2016-17 Budget versus Actual and FY2015-16 Budget 4 versus Actual Table (2nd Attachment) 5 • NC State 2016 Economic Outlook (3rd Attachment) 6 7 General Fund Revenue Overview 8 • Solid revenue performance consistent with improving economy and consumer 9 confidence 10 • Property tax revenue performance reflects Tax Administration's Office collection efforts 11 and consistent with forecasted revenue growth; property tax revenues comprise 70% of 12 Budgeted General Fund revenues 13 • Sales tax remittances from NC Department of Revenue normally lag three months in 14 economic activity; these revenues are the next largest revenue source accounting for 15 10% of Budgeted General Fund revenues 16 • Remaining 20% of revenues consists primarily of Intergovernmental and Charges for 17 Services 18 19 General Fund Revenues Budget versus Actual Comparative Analysis (chart) 20 21 General Fund Expenditure Overview 22 • Expenditures are indicated by the Functional Leadership Teams 23 • Department Expenditures remain within Budgeted first quarter appropriations 24 • 1Q Spending accounts for 23.4% of Budgeted Expenditures as compared to 24.9% in 25 the prior year 26 • No significant variances attributed to Performance 27 • Debt Service payments are budgeted in Non-Departmental 28 29 General Fund Expenditures Budget versus Actual Comparative Analysis (chart) 30 31 Economic Summary 32 • NC State 2016 Economic Outlook indicates: 33 - Economic growth in North Carolina forecasted to continue; adding 86,000 payroll 34 employment and another 90,000 forecasted for 2017 35 - By end of 2017, several regions Asheville, Charlotte, Durham, and Raleigh- will have 36 unemployment rates below 4% 37 - Key state-wide economic issues include preparing workforce through training for 38 Technology sector jobs 39 - Public policy question of balancing attracting businesses and employment to regions 40 lagging in economic growth juxtaposed with developing skills of individuals living in 41 lagging regions 42 - Continued widening income inequality between highest average salaried sectors of 43 Financial Services and Information Technology 44 - The lowest average salaries are in Leisure and Hospitality, Trade, Utility, and 45 Transportation sectors 46 47 Commissioner Burroughs thanked Gary Donaldson for his presentation. She referred to 48 page four, and the charges for services. She asked if there is less crime and fewer calls to 49 EMS.