Agenda - 05-03-1993 - VII-D - Laserfiche WebLink

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2 MEMORANDUM TO: John Link County Manager FROM: Sally Kost, Budget Director SUBJECT: To report on the Status of the Current Year Budget and Changes being Considered by the General Assembly Concerning the Distribution of Intangible Taxes DATE: April 29, 1993 I am pleased to report to you that the overall revenue and expenditure picture for 1992-93 looks very solid as we reach the end of April . We expect that final expenditures for the year will be comfortably within the approved budget, probably in the range of 98 . 5 to 98 . 75 percent of authorized appropriations . The revenue picture is complicated by likely changes by the General Assembly that will affect State collected and State-shared revenues, most notably intangibles taxes . I will address this point in a little more detail later in this memorandum. That change notwithstanding, we think that our 1992-93 revenues would exceed expenditures by several hundred thousand dollars, without using any of the nearly $1 million of fund balance that has been appropriated. In recent months, we have monitored the budget very closely as it has become apparent that we would be facing revenue shortages in two areas - property taxes and investment earnings . However, we are optimistic that these shortages will be offset by expenditure controls and by other revenue sources which are projected to exceed the budgeted amounts . Property Tax Base Over the past several months an ad hoc committee consisting of the Tax Assessor, Revenue Collector, Budget Director, Finance Director and Assistant County Manager has met several times to study the tax base issue . The 1992-93 budget was based on a tax base of $3 . 875 billion, with revenue from this tax base budgeted to generate nearly $32 million. The actual tax base is projected to fall short by approximately $50 million of the budgeted base . It appears that the final audited property tax base for 1992-93 will be in the range of $3 . 82 to $3 . 825 billion.