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Financial Projections and Tax Collections Review

Review of department projections, sales tax collections, and general fund balance. Discussion on interest earnings, tax collections, and future financial strategies.

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Financial Projections and Tax Collections Review

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  1. Committee of the Whole Presentation Controller July 16, 2009

  2. Agenda • Department Projections • Sales Tax Collections • General Fund Balance • Savings Measures Instituted

  3. First Quarter Projections

  4. Sales Tax Collections

  5. General Fund Balance

  6. Savings Measures

  7. 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.

  8. 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 Request • Talk about Revenue shortfalls • Treasurer’s role as Investor • Treasurer’s role as Tax Collector • Both of these directly related to the current economy

  11. Interest Earnings • Investment Policy • Safety • Liquidity • Earnings

  12. Interest on Investments • Income from investments • Local Government Investment Pool (LGIP) • Bank CD’s • Other managed investment accounts • Dependant upon: • Cash balances • Interest rates

  13. Interest on Investments

  14. Federal Interest Rates

  15. LGIP Interest Rates

  16. LGIP Monthly Interest

  17. Other Contributing Factors • Amounts available to invest has decreased • Increased Liquidity concerns • Allocation of interest • Impact of mark to market on bonds

  18. 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.

  19. Tax Collections • County Role in tax collections • Calculate and create bills, assist municipalities in first installment collections, and assume collection of the second installment • Importance of Settlement • All other taxing jurisdictions paid in full • County responsible for delinquencies

  20. Year End Outstanding Property Tax Delinquencies Source - 2008 CAFR and includes penalty and interest

  21. Current Year • Collections continue to lag behind prior year. • Have made efforts to collect delinquencies • Spring effort • Planning joint effort • Will increase penalties and interest collections.

  22. 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.

  23. 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.

  24. Reminder • Second installment of property taxes are due July 31. • Penalty and interest accrue if you are late.

  25. Questions and Answers

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