1. Revenue Projections Fiscal Year 2012 Hampton City Council February 23, 2011 Revenue Projections 2012

2. Finance Dept. 02/23/11City Council Presentation Revenues - Review of Projections for FY2012 Total General Fund Revenues  The overall projected decrease in General Fund revenues is $985,000 or.3%.  Staff has consulted with the Commissioner of Revenue, Treasurer and other staff in developing the revised revenue projections.  The state revenues have been updated based on the budget submitted by the Governor. Slide 2

3. Finance Dept. 02/23/11City Council Presentation Revenues - Review of Projections for FY2012 Reconciliation From FY11 to FY12 Revenues Slide 3

4. Finance Dept. 02/23/11City Council Presentation Revenues - Review of Projections for FY2012 Reconciliation From FY11 to FY12 Revenues Slide 4

5. Finance Dept. 02/23/11City Council Presentation General Property Taxes Real Estate Taxes  The Assessor is projecting that total taxable assessments will decline by 1.7% (weighted average).  By category: Residential (decline 2.7%); Commercial (increase 1.7%); Apartments (decline.27%)  Translates to a $1.8 million reduction in revenues - from $114M to $112.2M  No change in collection rate - 98.4% Continued Revenues - Review of Projections for FY2012 Slide 5

6. Finance Dept. 02/23/11City Council Presentation General Property Taxes Real Estate Taxes – Continued  Each penny = $1,079,170  Other cities are expecting: (1.44%) Portsmouth (4.5%) Norfolk (5% to 7%) Suffolk (2.9%) Virginia Beach Revenues - Review of Projections for FY2012 Slide 6

7. Finance Dept. 02/23/11City Council Presentation General Property Taxes Personal Property Taxes  FY11 actual personal property tax revenues are estimated to be $1M over the FY11 budget  Factors impacting FY12 - New car registrations declined by 2% from CY09 to CY10. Industry experts expect this to rebound some starting the second half of 2011 - Used car values increased from 2009 to 2010 - especially for compact and midsize cars - Robust used car sales in 2011 Continued Revenues - Review of Projections for FY2012 Slide 7

8. Finance Dept. 02/23/11City Council Presentation General Property Taxes, Concluded Personal Property Taxes  Projecting FY12 personal property taxes to be 2% more than the revised projection for FY11 - A $1.7 million increase over the original budget estimate of $31.7 million  Current personal property tax revenues are expected to be $33.4 million.  Maintain collection rate at 96% Revenues - Review of Projections for FY2012 Slide 8

9. Finance Dept. 02/23/11City Council Presentation Other Local Taxes  For now, will maintain business license taxes projection at $12.1 million.  Sales taxes are expected to increase from $14.2 million to $14.3 million, an increase of $100,000 or 1%.  Meal taxes are projected to increase by $228,000 to $15.1 million.  Lodging taxes are expected to remain flat at $3.2 million.  Recordation taxes are expected to decline from $1.37 million to $1.12 million, a decrease of $248,000 or 18%. Revenues - Review of Projections for FY2012 Slide 9

10. Finance Dept. 02/23/11City Council Presentation License, Permits and Privileged Fees  Expected to remain flat for the fiscal year. Revenues - Review of Projections for FY2012 Slide 10

11. Finance Dept. 02/23/11City Council Presentation Fines and Forfeitures  Expected to remain flat for the fiscal year. Revenues - Review of Projections for FY2012 Slide 11

12. Finance Dept. 02/23/11City Council Presentation Revenues - Review of Projections for FY2012 Revenues from Use of Money & Property  Interest income is expected to decline from $552,000 million to $251,000, a decrease of $301,000. Slide 12

13. Finance Dept. 02/23/11City Council Presentation Revenues - Review of Projections for FY2012 Charges for Services  Added $2.4 million in new fees for services that will be provided to the Fort Monroe Authority.  Reduced School Age Program revenues by $420,000 for 30% decline in enrollments for the before and after school programs.  Increased EMS fees by $351,000 based on current trend for FY10 and FY11. Slide 13

14. Finance Dept. 02/23/11City Council Presentation Revenues - Review of Projections for FY2012 Miscellaneous Revenue  A slight reduction is expected in reimbursements from Hampton City Schools. Slide 14

15. Finance Dept. 02/23/11City Council Presentation State/Federal Revenues  A reduction in 599 Funds from $6.8 million to $6.1 million, a decrease of $706,000 or 10%.  Anticipated decline in state revenues of $131,874 for Constitutional Officers.  $1.3 million increase in state/federal revenues for Social Services programs. This is based on a projected reimbursement rate of 85%.  An increase of $490,502 in State & Highway Maintenance Funds. Revenues - Review of Projections for FY2012 Slide 15

16. Finance Dept. 02/23/11City Council Presentation Transfers and Fund Balance  For now, we have assumed no use of fund balance for FY12 Revenues - Review Projections for FY2012 Slide 16

17. Finance Dept. 02/23/11City Council Presentation Revenues - Review of Projections for FY2012 Total General Fund Revenues  The overall projected decrease in General Fund revenues is $985,000 or.3%.  Staff has consulted with the Commissioner of Revenue, Treasurer and other staff in developing the revised revenue projections.  The state revenues have been updated based on the budget submitted by the Governor. Slide 17