Agenda - 05-04-2021;12-6 - Information Item - Memorandum - Financial Report - Third Quarter FY 2020-21

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1 ORANGE COUNTY NORTH CAROLINA FINANCE and ADMINISTRATIVE SERVICES Gary Donaldson, CTP,Chief Financial Officer I gdonaldson@orangecountync.gov I PO Box 8181, Hillsborough, NC 27278 919.245.2453 MEMORANDUM To: Board of County Commissioners From: Gary Donaldson, Chief Financial Officer Date: May 4, 2021 Re: Financial Report-Third Quarter FY 2020-21 This Third Quarter Financial Report provides an updated status of Revenue and Expenditure of the County's Operating Funds as compared with the prior fiscal year. Following a review of the first nine months of FY 2020- 21 General Fund, Sportsplex and Visitors Bureau revenues are projected to be lower than budgeted (Tables 1 and 2). Table 1: FY 2020-21 General Fund Revenue Losses COVID-19 Recession Impacted Revenues Notes Federal Detention Fees $ (1,000,000) Potential to be larger revenue declines Motor Vehicle Tax $ (700,000) Lower motor vehicle sales Investment Earnings $ (500,000) Lower interest rate environment Planning/Inspection Fees $ (400,000) Decreased inspections due to permittee closures DEAPR Fees $ (400,000) Facility closures Estimated Revenue Loss $ (3,000,000) Table 2: FY 2020-21 Sportsplex and Visitors Bureau Revenue Losses COVID-19 Recession Impacted Revenues Notes Sportsplex Fees $ (1,400,000) Closures due to health protocols Visitors Bureau Occupancy Tax $ (600,000) Decreased travel and lodging Estimated Revenue Loss $ (2,000,000) The estimated revenue losses are consistent with the First Quarter and Second Quarter report estimates. The revenue declines are expected to stabilize as this fiscal year ends. The attached UNC-Charlotte Economic Forecast points to increasingly improved economic outlook as vaccinations expand and Executive Order 204 continues easing North Carolina public health restrictions. 1