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Town finances remain steady

Julie Ghetti, the deputy town manager and finance director for the Town of Fountain Hills presented her report on the fourth quarter finances for the town at the Aug. 1, council meeting.

This is an unofficial version of the report for the 2012/2013 fiscal year. They will become official following an annual audit to be completed by October.

For the year that ended June 30 the town collected about $18.5 million in revenues, with the town’s General Fund receiving 74 percent of that.

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Town finances remain steady

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Julie Ghetti, the deputy town manager and finance director for the Town of Fountain Hills presented her report on the fourth quarter finances for the town at the Aug. 1, council meeting.

This is an unofficial version of the report for the 2012/2013 fiscal year. They will become official following an annual audit to be completed by October.

For the year that ended June 30 the town collected about $18.5 million in revenues, with the town’s General Fund receiving 74 percent of that.

Local sales taxes and State Shared Revenues accounted for 98 percent of the $13.3 million of the town’s General Fund income. Local sales tax generated 55 percent, or about $7.5 million.

There was an overall increase in local sales tax for just about one percent for the year. That was led by healthy 12 percent increase from the restaurant and bar sector.

Wholesale and resale activity generated the most in dollars at $3.7 million, nearly unchanged from the previous year.

State Shared Revenues, those funds collected by the state that are proportioned out to cities and towns, brought Fountain Hills about $5.1 million.

The funds come from state sales tax, state income tax and vehicle license tax. All of those revenue sources were up over the previous year, with sales tax six percent higher than anticipated in the budget.

The town spent $13.6 million of the General Fund during the year ending June 30, slightly higher than budgeted. That was mostly due to adjustments to initiate the town’s newly adopted pavement management plan prior to the end of the year.

Ghetti said all of the General Fund departments finished the year under budget leaving overall expenditures $1.5 million less than the previous fiscal year. That is in spite of implementing the ambitious pavement management program.

Public safety services continue to use the largest portion of the General Fund, accounting for 51 percent of the budget. Law enforcement accounts for 24 percent and fire and emergency medical is 27 percent of the General Fund.

Community Services, which includes parks and recreation and Community Center operations accounts for 16 percent of the General Fund, Administration was 17 percent and Development Services was 12 percent.

Ghetti noted that while General Fund revenues were higher than the previous fiscal year, they were 3.6 percent lower than budgeted.

About $200,000 is available in surplus funds at the end of the year to transfer to the Capital Projects Fund.

Ghetti said the town’s fund balances are quite healthy and total more than $22 million. These are funds that are designated reserves by town policy and law and are not available for appropriation for ongoing expenses.

The fund balances include the Rainy Day Fund, Special Revenue Fund, Public Art Fund, Capital Projects Fund, Downtown Strategy Fund, HURF and the accumulated General Fund Balance.

The final audited financial report for this past fiscal year will be presented later this fall.

ghetti, fourth quater, 2012/2013, sales taxes

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