Revenue Projections Fiscal Year 2014 Hampton City Council March 27, 2013 Revenue Projections 2014

Finance Dept. 03/27/13City Council Presentation Revenues - Review of Projections for FY2014 Total General Fund Revenues  The overall projected decrease in the General Fund revenue budget is $2.4 million or -.8%. ($1.3 million reduction in appropriations from fund balance and $1.1 million reduction in recurring revenues)  Staff has consulted with the Commissioner of Revenue, Treasurer and other staff in developing the revised revenue projections.  Potential Impacts from Sequestration. Slide 2

Finance Dept. 03/27/13City Council Presentation General Property Taxes Real Estate Taxes  The Assessor is projecting that total taxable assessments will decline by 2.87% (weighted average).  Translates to a $3.0 million reduction in revenues - from $106.9M to $103.9M (represents 35% of the revenue budget).  No change in collection rate % Continued Revenues - Review of Projections for FY2014 Slide 3

Finance Dept. 03/27/13City Council Presentation General Property Taxes Real Estate Taxes – Continued  Each penny = $999,870  Other cities are expecting: (2.75%) Newport News (.54%) Chesapeake (2.2%) Suffolk (.8%) Virginia Beach Revenues - Review of Projections for FY2014 Slide 4

Finance Dept. 03/27/13City Council Presentation General Property Taxes Personal Property Taxes  Factors impacting FY14 - New car registrations in Hampton increased by 12% from CY11 to CY12. - Used car values experienced a slight decline from 2011 to 2012 Continued Revenues - Review of Projections for FY2014 Slide 5

Finance Dept. 03/27/13City Council Presentation General Property Taxes, Concluded Personal Property Taxes  Projecting FY14 personal property taxes to be 2.8% or $1 million more than the revenue estimate for FY13  Current personal property tax revenues are expected to be $35.9 million ( represents 12% of the revenue budget).  Maintain collection rate at 97.5% Revenues - Review of Projections for FY2014 Slide 6

Finance Dept. 03/27/13City Council Presentation Other Local Taxes  Business license taxes are projected to be $12.3 million, no change from 2013  Meal taxes are expected to be flat at $18 million  Slight increase in sales tax revenue estimate to $14.36 million.  Lodging taxes are projected to be $2.86 million, $140,000 decline  Communication sales and use tax projected to be $9.5 million, $202,000 decline  Recordation tax expected to increase by $124,000 to $1.25 million Revenues - Review of Projections for FY2014 Slide 7

Finance Dept. 03/27/13City Council Presentation License, Permits and Privileged Fees  Expect activity to increase in FY2014. Revenues - Review of Projections for FY2014 Slide 8

Finance Dept. 03/27/13City Council Presentation Fines and Forfeitures Adjusted court fines and fees to current trend. We see the impact of enhanced collection efforts by the Treasurer’s Office. Revenues - Review of Projections for FY2014 Slide 9

Finance Dept. 03/27/13City Council Presentation Revenues - Review of Projections for FY2014 Revenues from Use of Money & Property  Interest income is expected to be flat.  Rental income declined from leases that ended. Slide 10

Finance Dept. 03/27/13City Council Presentation Revenues - Review of Projections for FY2014 Charges for Services  Payment in lieu of taxes (PILOT) for Fort Monroe Authority estimated to be $983,960, a decline of $165,000 from 2013 budget.  Eliminated revenues of $515,000 for Arts Commission/New American Theater as operation will be merged with Coliseum  Fees for School Age program reduced by $200,000  Fees for EMS tacking at $200,000 less than budget Slide 11

Finance Dept. 03/27/13City Council Presentation Revenues - Review of Projections for FY2014 Miscellaneous Revenue  Expected to be flat for Slide 12

Finance Dept. 03/27/13City Council Presentation State/Federal Revenues  State funding for 3% pay increase for Constitutional Officers and their staff effective August 1 st  An increase of $602,408 in State and Highway Maintenance Funds.  State budget eliminates state aid that we paid to the Commonwealth ($1 million) Revenues - Review of Projections for FY2014 Slide 13

Finance Dept. 03/27/13City Council Presentation Transfers and Fund Balance  Plan to use $3.7 million from unassigned fund balance for CIP Revenues - Review Projections for FY2014 Slide 14

Finance Dept. 03/27/13City Council Presentation Revenues - Review of Projections for FY2014 Total General Fund Revenues  The overall projected decrease in the General Fund revenue budget is $2.4 million or -.8%. ($1.3 million reduction in appropriations from fund balance and $1.1 million reduction in recurring revenues)  Staff has consulted with the Commissioner of Revenue, Treasurer and other staff in developing the revised revenue projections.  Potential Impacts from Sequestration Slide 15