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1 <br /> ORANGE COUNTY <br /> NORTH CAROLINA <br /> FINANCE and ADMINISTRATIVE SERVICES <br /> Gary Donaldson, CTP,Chief Financial Officer I gdonaldson@orangecountync.gov I PO Box 8181, Hillsborough, NC 27278 1 919.245.2453 <br /> MEMORANDUM <br /> To: Board of County Commissioners <br /> From: Gary Donaldson, Chief Financial Officer <br /> Date: February 16, 2021 <br /> Re: Financial Report- Second Quarter FY 2020-21 <br /> The COVID-19 induced recession resulted in County measures as part of the FY 2020-21 Adopted Budget. This <br /> second quarter report provides an updated status of Revenue and Expenditure of the County's Operating Funds <br /> as compared with the prior fiscal year. National Revenue Outlook reports by both Moody's Analytics and S&P <br /> Global reports project 2021 revenue declines for State and Local Governments due to the COVID-19 induced <br /> recession. Following a review of the first six months of FY 2020-21 General Fund, Sportsplex and Visitors Bureau <br /> revenues are projected to be lower than budgeted. Below is the General Fund revenue impact. <br /> Table 1: FY 2020-21 General Fund Revenues <br /> COVID-19 Impacted Revenues Notes <br /> Federal Detention Fees $ (1,000,000) Potential to be larger revenue declines <br /> Motor Vehicle $ (700,000) Lower motor vehicle sales <br /> Investment Earnings $ (400,000) Lower interest rate environment <br /> Planning/Inspection Fees $ (220,000) Decreased inspections due to permittee closures <br /> DEAPR Fees $ (200,000) Public health restrictions and County facility closures <br /> Estimated Loss $ (2,520,000) <br /> As noted, Property Tax and Sales Tax are not included above for recession fiscal impact for FY 2020-21; the <br /> rationale for property tax is further gleaned in the table below for the S&P Core Logic/Case-Shiller Index of <br /> National Home Price Index which increased 9.49% from November 2019 through November 2020. This is an <br /> underlying difference between the Great Recession which was induced by the sub-prime real estate market <br /> crisis and this public health induced recession. As noted in Table 2 below, current economic declines have not <br /> impacted the real estate tax base as compared to the revenue streams listed above. The Orange County <br /> housing market sector is consistent with the Case-Shiller Index increases below. <br /> 1 <br />