Agenda -02-20-2018 12-2 - Information Item - Memorandum - Second Quarter FY2017-18 Financial Report

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approximately 50% of the human services budget, and its expenditures has decreased $2.1 million due to the State assuming direct payments to child care providers in FY2017-18. The Health Department expenditures and/or encumbrances increased $430,000 mainly due to additional contract services, including Family Success Alliance; Child Support Enforcement expenditures increased $80,000 due to a significantly lower attrition rate, and an increase to OPC Mental Health due to a payment timing variance when compared to FY2016-17. Support Services - Asset Management Services, Community Relations, Finance, Human Resources, and Information Technology 2Q FY2017-18 Support Services expenditures total $6.6 million or 46.2% of budgeted expenditures, as compared with 2Q FY2016-17 total of $6.3 million or 43.7% of budgeted expenditures. The increase spending is mostly attributed to an increase in expenditures of $210,000 in the Department of Information Technology related to an increase in maintenance support for IT contracted services. Education 2Q FY2017-18 Education expenditures total $43.8 million or 48.7% of budgeted expenditures, as compared with 2Q FY2016-17 total of $41.2 million or 48.9% of budgeted expenditures. The FY2017-18 Education budget was increased by $5.7 million over the prior year related to an increase of $3.5 million in Current Expenses, as well as an additional $2.1 million in one-time discretionary funding to the Chapel Hill-Carrboro City School District and Orange County School District. Current Expenses of $40.7 million or 50% of budgeted expenditures was remitted to the school districts through the second quarter; this was $1.75 million more than the same period in FY2016-17. The remaining Education budget pertains to the Health and Safety Contracts for Nurses and School Resource Officers, Recurring Capital, and Other Related County Support, specifically support to Durham Technical College (Orange County campus). Non-Departmental 2Q FY2017-18 Non-Departmental expenditures total $10.6 million or 37.0% of budgeted expenditures, as compared with 2Q FY2016-17 total of $8.9 million or 27.7% of budgeted expenditures. The Non-Departmental category includes Debt Service and Transfers to Other Funds. The second quarter expenditures are 9.3% higher than the same period in 2Q FY2016-17 due to an increase in School and County debt service payments. In summary, 2Q FY2017-18 General Fund Revenues and Expenditures are in line with the adopted FY2017-18 General Fund Budget; and the General Fund is estimated to end with break-even results at the close of the fiscal year. Enterprise Funds Solid Waste Fund 2Q FY2017-18 Solid Waste Fund performance is in line with the adopted FY2017-18 budget. Second quarter revenues are $8.1 million or 49.8% of budgeted revenues and expenditures and/or encumbrances are $9.4 million or 58.2% of budgeted expenses. The increase of expenditures over revenues is due to a large encumbered amount at December 2017 related to the Eubanks Road Convenience Center construction project. This compares with FY2016-17 second quarter revenues of $7.0 million or 43.3% of budgeted revenues and expenses of $6.6 million or 40.7% of budgeted expenses. 5