Committee of the Whole Presentation
Controller
July 16, 2009
2
Agenda
Department Projections
Sales Tax Collections
General Fund Balance
Savings Measures Instituted
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First Quarter Projections2009 1st Q Est
under/(over) GPR
Sales Tax (2,255,272)$ Robertson Rd. Land Sale (1,100,000)$ County Board 14,217$ County Executive 43,548$ County Clerk 15,884$ Dept. of Adm. (incl. Fac. Mgt.) (348,391)$ County Treasurer (1,678,822)$ Corp. Counsel 117,402$ Reg. Of Deeds (463,470)$ Clk. Of Cts. (296,063)$ Fam. Ct. Counseling 3,970$ Coroner 56,929$ Dist. Attorney (291,306)$ Sheriff (2,057,990)$ Pub. Safety Com. (167,818)$ Emergency Mgt. 71,115$ Juvenile Court (69,584)$ Veterans Services 9,564$ Planning (132,399)$ Zoo (90,177)$ Land & Water Resources 16,497$ Extension 99,271$ Pub. Wks Engineering (35,807)$ Parking Ramp (7,255)$ Human Services & BPHCC -$ Highway Dept. (239,922)$
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Sales Tax Collections2008 2009 Monthly Chg.
Mar 3,820,252$ 3,063,995$ -19.80%Apr 2,963,661$ 2,847,552$ -3.92%May 3,730,476$ 3,428,706$ -8.09%Jun 3,524,022$ 3,269,032$ -7.24%
Total 14,038,410$ 12,609,285$
YTD Cumulative Change -10.18%
Sales Tax Collected in 2008 43,746,346$
Budgeted amount for 2009 45,105,443$
Increase from 2008 to make budget 3.11%
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General Fund Balance
2008Beginning 2008 General Fund Balance 11,833,807$
Net 2008 Activity (8,560,014)$
Ending 2008 General Fund Balance 3,273,793$
2009Beginning GF Balance 2009 3,273,793$
Projected Net of 2009 Activity surplus/(deficit) (10,491,119)$ Savings Measures Initiated 6,400,000$
Projected Ending Balance 2009 (817,326)$
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Savings Measures
Savings Measures Initiated in 2009
Froze Conference and Training 110,000$ Cancel Ag Enterprise Grants 22,000$ Cancel BUILD Grants 37,000$ Land and Water Res. LTE Adjustments 137,000$ Freeze Existing Vacancies 1,900,000$ MG&E Electricity Rate at Landfill 500,000$ Other Misc. LTE and Line Items 85,000$ Staff Salary Savings 3,600,000$ Cultural Affairs Grants 9,000$
Total 6,400,000$
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Next Steps
o DOA will be is beginning preparation of the second quarter projections.
o Departments are preparing and submitting their 2010 budget requests.
o The compilation of budget requests will be available on Wednesday September 9.
Committee of the Whole Presentation
Treasurer’s Office
July 16, 2009
9
Agenda
Introduction
Interest Earnings
Tax Collections
Q’s and A’s
10
Introduction
Chairman’s RequestTalk about Revenue shortfalls
Treasurer’s role as Investor
Treasurer’s role as Tax Collector
Both of these directly related to the current economy
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Interest Earnings
Investment Policy Safety
Liquidity
Earnings
12
Interest on Investments
Income from investmentsLocal Government Investment Pool (LGIP)
Bank CD’s
Other managed investment accounts
Dependant upon:Cash balances
Interest rates
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Interest on Investments
$0
$1,000,000
$2,000,000
$3,000,000
$4,000,000
$5,000,000
$6,000,000
1999 2001 2003 2005 2007 2009(est)
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Federal Interest Rates
0.00%
0.50%
1.00%
1.50%
2.00%
2.50%
3.00%
3.50%
4.00%
4.50%
5.00%
5.50%
6.00%
90 Day T-Bill
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LGIP Interest Rates
0%
1%
2%
3%
4%
5%
6%
Jan Feb Mar Apr May June Jul Aug Sept Oct Nov Dec
2007 Rate
2008 Rate
2009 Rate
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LGIP Monthly Interest
$0
$50,000
$100,000
$150,000
$200,000
$250,000
$300,000
$350,000
$400,000
$450,000
$500,000
$550,000
$600,000
$650,000
Jan Feb Mar Apr May June Jul Aug Sept Oct Nov Dec
2007
2008
2009
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Other Contributing Factors
Amounts available to invest has decreased
Increased Liquidity concerns
Allocation of interest
Impact of mark to market on bonds
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Future Interest Earnings
Economic recovery expected to begin in late 2009, early 2010, but improve slowly.
Federal Reserve is not expected to begin to raise rates till the second quarter of 2010.
Staying liquid due to the uncertainty of revenues.
Bottomline – interest income will not rebound to previous levels for some time to come.
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Tax Collections
County Role in tax collectionsCalculate and create bills, assist municipalities in first installment collections, and assume collection of the second installment
Importance of SettlementAll other taxing jurisdictions paid in full
County responsible for delinquencies
Source - 2008 CAFR and includes penalty and interest
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Year End Outstanding Property Tax Delinquencies
$0
$2,000,000
$4,000,000
$6,000,000
$8,000,000
$10,000,000
$12,000,000
$14,000,000
$16,000,000
$18,000,000
1999 2000 2001 2002 2003 2004 2005 2006 2007 2008
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Current Year
Collections continue to lag behind prior year.
Have made efforts to collect delinquenciesSpring effort
Planning joint effort
Will increase penalties and interest collections.
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Future
Delinquencies are continuing to grow and will likely do so until economy improves.
Recovery in WI employment and personal income not expected until mid 2010 (DOR).
Treasurer’s Office is poorly equipped to aggressively pursue delinquencies.
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Conclusion
Expect interest income to be down significantly for the for the next year and recover slowly with an improving economy.
Expect delinquencies to continue to rise in the near term until housing industry has recovered.
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Reminder
Second installment of property taxes are due July 31.
Penalty and interest accrue if you are late.
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Questions and Answers