The Village of Pinehurst released their quarterly financial statement below:
Quarterly financial statements were presented to the Village Council on October 24, 2017. These statements were for the first quarter of the fiscal year ending September 30, 2017.
At the end of the first quarter, revenues exceeded expenditures by a larger margin than anticipated in our forecast. In addition, our operating expenditures are below expected levels. These results should position us well to carry out the objectives outlined in the FY 2018 Strategic Operating Plan.
The Village’s General Fund is showing $4.9 million in income for the first three months of the year compared to $4.8 million the prior year. In terms of fund balance, the Village’s fund balance is currently 79% of expenditures, which is higher than the 75% level seen the previous year at September 30.
General fund revenues were $678,000, or 8% above the quarterly budget projections. Almost all of this positive variance was due to property tax revenues which were $678,000 above the quarterly revenue estimate. Part of this variance was due to the Village’s real and personal property tax collection rate of 77% through the first quarter that was 2.75% higher than last year’s rate of 74%. It is also worth noting that the valuation of real and personal taxable property increased by approximately 1.84%, which also exceeded the budget forecast. This is a positive sign since property taxes make up 56% of operating revenues. So far this year, the Village has issued 36 residential building permits valued at $7,025,000. This is $503,000, or 8%, higher than the same period last year.
Local option sales tax revenues were 4.0% higher than the quarterly budget, and are slightly above our revenue forecast of 3.5%. This should be viewed cautiously, however, since most of the revenue for the quarter is based upon estimated revenues.
General fund operating expenditures were $662,000, or 15%, below the quarterly budget overall. This variance is well outside the expected expenditure variance of 5%. Operating expenditures were, however, comparable to the previous year.
At this point in the fiscal year, our financial results are better than expected. Our financial position is solid with higher levels of fund balance and cash due to the positive results of the prior fiscal year. However, with only one quarter completed, I am cautious to try and predict how the year will end. The country is now approaching 10 years of economic expansion since the Great Recession of 2008. Eventually, there will be another downturn in the national economy, which will affect our economically sensitive revenues. We should be vigilant to stay prepared with adequate reserves to support operations when that time comes.
