Town of Dewey Beach
Financial Overview
(Based on Financial Data through December 2010)
Operating Revenues
Transfer Tax:
Transfer tax income for the fiscal year ended March 31, 2011 was budgeted in the amount of $ 260,000. To date, through December, 2010, transfer tax income receipts totaled $ 292,097. Through December, 2010 transfer tax receipts have exceeded the annual budgeted amount by $ 32,097.
Accommodations Tax:
Accommodations Tax income for the fiscal year was budgeted in the amount of $ 315,000. To date, through December, 2010, accommodations tax receipts totaled $ 333,236, an excess over the budget estimate of $ 18,236. It is not anticipated that additional material amounts of accommodations taxes will be collected during the balance of the fiscal year ending March, 2011.
Business Licenses:
Business License fees for the fiscal year were budgeted in the amount of $ 295,931. To date, through December, 2010 business license fees totaled $ 129,716. The Town of Dewey Beach changed its financial reporting activities from a calendar year to a fiscal year ended March 31. Since Business License fees are paid prior to opening the businesses each season, it is difficult to determine if the budgeted amount will be fully realized prior to the end of the fiscal year, depending upon when the fees are actually paid to the Town of Dewey Beach.
Franchise Fees, Concessions Fees, etc.:
These fees were budgeted in the amount of $ 104,768. Collections to date, through December, 2010 totaled $ 91,592. Actual income for the fiscal year is projected to be approximately $ 95,000, or about $ 10,000 short of the budgeted amount.
Parking Permits:
Parking Permits incomeof $ 520,637 through December, 2010 exceeded the fiscal year budgeted amount of $ 519,000 by $ 1,637. It is not anticipated that any additional parking permit income will be received through the balance of the fiscal year.
Page 1 of 2
Financial Overview
Parking Meters:
The amount budgeted for Parking Meter income for the fiscal year was $ 120,906. Actual income through December, 2010 totaled $ 107,625, short of the budgeted amount by $13,281. It is not anticipated that any additional Parking Meter income will be received during the balance of the fiscal year.
Parking Fines:
The amount budgeted for Parking Fine income for the fiscal year was $ 431,000. Through December, 2010 Parking Fine income totaled $ 274,386, short of the budgeted amount by
$ 156,614.It is anticipated that only small amounts of delinquent parking fines, if any, will be collected during the balance of the fiscal year ending March 31, 2011.
Ordinance Fines, Building Permits, etc.
The amount budgeted for Ordinance Fines, Building Permits, etc. for the fiscal year was $ 358,700. Actual revenues through December, 2010 totaled 313,323. It is anticipated that revenues will meet budget expectations for the current fiscal year.
Other Fines and Revenue:
The budgeted amount for Other Fines and Revenue for the fiscal year was $ 119,700. Actual income received through December, 2010 was $ 77,653. Based on actual receipts from the prior year period (January-March) it is not anticipated that revenues will meet budget expectations for the current fiscal year.
Qualifications: The operating income projections could be impacted by the housing market between now and the end of the fiscal year, particularly the projections applicable to transfer taxes and building permits. Also, the change in the reporting period from the calendar year to the fiscal year ending March could impact the projections for business licenses.
Conclusion
Based on the foregoing noted qualifications and any actions the Town Commissioners may undertake to generate additional income this fiscal year, the financial results of operations could range from a modest profit to a fairly significant loss.
Page 2 of 2