City Starts Issuing Quarterly Reports

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Shelbyville's council will begin receiving quarterly reports on the city's budget

Shelbyville's council will begin receiving quarterly reports on the city's budget, hearing the first report of the year during this week's study session.

City treasurer Jamey Owen briefed council members on what funds were coming in to the city, what was being spent and how the taxpayers' money was used.

As of Dec. 31, 2011, Shelbyville had a total cash balance of $4,338,207 -- with an unrestricted balance of $2,134,951 and a restricted figure of $2,203,255.

Restricted funds are those which are held for a specific purpose, while unrestricted moneys are available for use as needed.

City manager Jay Johnson stressed that the December cash balance "was what it was on that day," noting that new checks goes out and come in each day.

Owen also presented a series of charts to the council showing the month to month variations of both the restricted and unrestricted balances, also detailing where the money was being spent.

Expenses

A total of $1,447,662 was unappropriated in the unrestricted fund, which is where revenue from tax money comes straight into, and are divvied out to the different funds and to cover expenses. Owen said that $357,823 was in the general fund, $117,775 devoted to stormwater, $200,000 into the budget reserve and $11,691 going to solid waste.

"When you see unappropriated on your report, that's the tax revenue section," Owen explained.

As for restricted cash balances, those funds were split into a dozen categories -- with the largest being the city's fixed asset group, totalling $1,084,992.

Major repairs for Shelbyville take up $448,283, a total of $208,092 is earmarked for state street aid, and $204,701 is put aside for capital. Long term debt and hotel/motel is at zero, with state road projects having $90,593 earmarked, and $31,334 for road improvement.

The city's drug fund had $26,252 set aside, with funds for police equipment at $49,007, and $30,000 each for the city's greenway and city TV.

Revenue and taxes

The city received $477,215 in property tax revenue for January, with the largest month expected in February. There is 63 percent of Shelbyville's property tax that have yet to be received, but Owen believes the rest of that should be in by the end of this month when the majority of it is taken in. She also said that many people came in to pay their taxes in December during this fiscal year rather than in January, which was the case in times past.

Shelbyville gets its revenue from a numbers of sources, such as property tax, local sales tax, state shared taxes and in lieu of taxes.

Owen explained that there are four classes of business taxes, with the city's largest category being class 2 -- made up of retail, car dealers and restaurants. Those taxes are due on May 31 of each year.

Taxes for class 1, containing gas stations and convenience stores are due Feb. 28, service businesses such as mechanics, realty agencies and day care have their taxes due on Aug. 31 and class 4, made up of contractors, who have tax payments due on Nov. 30.

Delayed receipts

Owen also explained that business taxes now go to the state and that the city would not see those funds back for several months after they are turned in. The city also receives revenue from tax relief, as well as from permits and fines such as court costs, beer tax, penalties and building permits.

She also said that the year to date fund summary shows for the past six months that the city is "flat on revenue and a lot lower on expenses." Payroll expenses are also down, she said, as well as being $47,860 under in fuel expenses so far this year.

They city is also anticipating two airport grants -- one for taxiway engineering at the city's airport, totalling $58,000, which was announced this week, and a grant totalling $890,000 for an Airport Capital Improvement Project.

Local sales taxes are also up from last year and the city is improving its grant process, using the research tools of eCivis' grants management system, and is also working to centralize its grant activity.

About eCivis
eCivis is the nation's leading grants management software solution and the ideal platform for improving local governments' and community-based organizations' grants performance. For more information about eCivis, visit http://www.ecivis.com.

For media inquiries, contact media@ecivis.com.

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