There were few surprises at the recent Marana Town Council meeting when Finance Manager Erik Montague reported on revenues and expenditures half way through the fiscal year.
Montague said most of the numbers aligned with projections and those that did not, were either expected or easily explained. Sales tax revenues are at 50 percent of the projected amount, perfectly in line with the projections. Through the second quarter the town has collected $12.2 million, which is an increase of 3.2 percent from 2016 and a nearly $2 million increase since 2014.
Similarly, intergovernmental revenues are at 49 percent, having collected $5.2 million. That is an increase of 17.6 percent from 2016.
However, revenues collected from licenses, permits and fees are down. This is still at 46 percent of the projected total for the year, but they are down 13.2 percent from 2016 and are off from the total collected at this point in 2015 as well. Overall, Montague is not worried.
“We are expecting that to catch up based on the economy and the new population estimates under the new calculation,” said Montague.
Single family housing permits for January were strong and the town is expecting the same for February, which contributes to this category.
Overall the town has collected just under
$20.3 million in general fund revenues, which is 49 percent of the budgeted total of $41.2 million.
Expenditures from the general fund are currently running well under projections, where the town has spent just 36 percent of the planed budget, but most of that will be made up in the second half of the year when some big projects get underway.
Capital outlay for projects was budgeted at $1.1 million but through December just $172,000 had been spent. The town was well under budget in terms of spending on operating supplies and equipment. Personnel costs and contracted services were much more in line with the projections, coming in at 46 and 42 percent of the budgeted total for the year.
The revenues for the Bed Tax Fund, HURF and the Wastewater Operating Fund were all slightly under 50 percent, but expected to meet projections. The Water Operating Fund’s revenues were on target at over 50 percent.
“Revenues are within expectations,” Montague said.
The only real outlier is the half-cent sales tax dedicated to the construction of the public safety facility. The town budgeted $6 million for the year, but only about $2.4 million has been collected thus far, 40 percent of the total projection.
“There is some seasonality associated with that, but this is one we will need to watch,” Montague said.
The town’s projections had the tax in effect for 42 months to fully fund the facility and once it is funded the tax will be rescinded. The town is about 17 months into the tax.