08-October 2010 Financial Report

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City of Paris October 2010 Financial Report Comments Net to Date Comparison of Revenues: 1. The large difference in tax collections from last October and this October is not a collection issue but a timing issue of when those collections were forwarded to the City by the appraisal district. Collections made on the last few days of the month may not be transferred to the City until the following month. This October, the last day of the month was on Sunday. This required the LCAD to accept October payments through November 1St. The LCAD October 2010 collection report indicates that $207,324 in overall City tax collections were made in October 2010. The comparable number from the October 2009 LCAD report is $203,433. In the heavy collection months of October, November, December, and January this type of distortion can easily occur. 2. Sales taxes are up a modest 2.01% ($9,222) over last year. 3. Hotel occupancy taxes are down 12.21%. La Quinta and Ramada Inn are delinquent in taxes for the quarter ending September 30, 2010. La Quinta also owes a penalty from the quarter ending 6-30-2010. Both hotels have been sent demand for payment letters. 4. Franchise fees are down 25.28% ($16,149). This difference is connected to the timing of payments from both TXU Energy and the Solid Waste Street Use Fees. 5. The bulk of the decrease in interest and lease revenue is on the interest side. The annual tower rental payment from Suddenlink accounts for the balance of the difference. The tower rental was received in October but credited to the wrong account. Correction was made in November. 6. Regarding the Fire Department related revenue, the County discontinued their $150 monthly ($1800 annually) support payments last year after making a single payment. The County had made such payments to the City for fire protection services provided to County residents living inside the City limits. They make similar payments to rural fire departments. These payments have been made for well over 30 years. The only explanation given for stopping the payments was that there was no legal requirement to make them. 7. Sanitation fees are up 12.72% ($13,803). This reflects the rate change approved by the Council last July. 8. EMS fees were unusually strong posting a 14.03%jump from last year. 9. Miscellaneous fees/revenues are unpredictable in nature and amount but do occur each year. Variances from one year to the next are not unusual. The primary difference in this month's report was caused by the fact that in October 2009 the City received reimbursement from the State for repairs made at the airport. Those repairs had been made in a previous fiscal year. 10. Total General Fund revenues are 8.42% below last year due to slow transfer of collections from the LCAD. General Fund revenues to date are 5.5% of the budget while the City is 8.33% through the budget year. 11. Total General Fund expenditures are 15.37% less than last year for this month. General Fund expenditures to date equal 6.64% of budget with the City being 8.33% through the budget year. - - 1_ U