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Committee of the Whole Presentation

Committee of the Whole Presentation. Controller July 16, 2009. Agenda. Department Projections Sales Tax Collections General Fund Balance Savings Measures Instituted. First Quarter Projections. Sales Tax Collections. General Fund Balance. Savings Measures. Next Steps.

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Committee of the Whole Presentation

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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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