7/9/2010 - RTT FY2010

From: Milowicki, Edward

Please find attached FY 2010 RTT for the year along with a detailed break down below. Noteworthy is that for transactions under $500,000 we saw an increase of 4.4% in the number of transactions compared to last fiscal year however the $$$  value of these transactions dropped 3.2%  

6/20/2010 - Updated Checkbook and Projections

From: Milowicki, Edward

FY 2010 - view pdf

General Fund is projected to end the year with revenues estimates matching our projected expenditures. The original budget estimate was to use $7.0 million of reserves to balance the budget. We are projected to use 98% of expenditure budget resulting in savings along with revenues derived from five large RTT transactions (including Valero), one time large subdivision activity (Barley Mill) , commercial building permits (DuPont and Christiana Mall) along with continued activity in Sheriff sales.

Sewer Fund is projected to use $0.9 million in reserves. We continue to see decrease sewer usage by industrials, apartments and contract users. Noteworthy was that we received from the federal government $1.0 million reimbursement associated with prior years cost associated with Landfill clean up.

CHECKBOOK - view pdf

GENERAL FUND: FY 2011 budget was approved using $7.0 million in reserves. Based on all salary rollbacks returning in FY 2012 along with expenditure growth we are projecting to run out of reserves during FY 2014.  For the period FY 2011 to FY 2015 there is a $85.2 million shortfall projected for that period.

SEWER FUND: FY 2011 budget was approved with a balance budget. Based on all salary rollbacks returning in FY 2012 along with expenditure growth we we projecting to run out of reserves sometime in FY 2013. For the period FY 2012 to FY 2015 there is a $30.4 million shortfall projected for that period.  

6/4/2010 - RTT Update - May 2010

From: Milowicki, Edward

Here is an update on RTT collections through May. Attached is a monthly collection schedule and below is a comparison by category. Updated projections show that we will receive $17.3 million in RTT compared to  the original budget estimate of $14.9 million. The variance is due to activity from first time home buyers federal incentive program (NCC receives the seller RTT) , federal home buyer credit and also six large transactions this year that generated extraordinary RTT.

However, the average value (sales price) of each transaction under $500,000 is 4.3% below last year for the same time period so we continue not to see appreciation in home values.

5/27/2010 - Updated FY 2010 Projections and Checkbook

From: Milowicki, Edward

Please find attached updated FY 2010 projections with actual activity through 4/30 along with the checkbooks for the general and sewer fund.

5/5/2010 - RTT Activity Through April

From: Milowicki, Edward

Attached is RTT Activity Though April.  Sale price for  homes under $500,000 are 4.8% below last year. We are projecting $16.4 million compared to original estimate of $14.9 million at year end due to activity of first time buyers and several large transactions.

5/4/2010 - Checkbook Update and Projections

From: Milowicki, Edward

Attached you will find updated projections for FY 2010 along with general and sewer fund checkbooks. At the 4/20 NCCFAC meeting the committee approved the FY 2010 Revenue and Expenditure estimates along with FY 2011 Revenue Estimates that were certified by the County Executive and submitted to County Council.

4/8/2010 - NCCFAC Meeting -- April 20

From: Ewbank, Joanna

The New Castle County Financial Advisory Council meeting will be held on April 20, 2010 at 3:30 p.m. in the Large Executive Conference Room at the New Castle County Government Center.  NCCFAC members, please reply to this email to confirm your attendance.  

Attached, please find the minutes from the meeting on February 16, 2010, the agenda for the upcoming meeting and the FY2011 Revenue Summary.

4/6/2010 - RTT Activity Through March

From: Milowicki, Edward

Attached you will find schedules of RTT activity through March.

For the month of March we collected $1,386,235 in RTT. The NUCAR Dealership on DuPont Highway was sold generating $318,000 in RTT fees for March. For the fiscal year we have collected $12,372,481 which is 5.34% below last year to date.

For transactions under $500,000 for the fiscal year we have seen 1,768 transactions compared to 1,786 for the same time period which is a 1% drop in the number of transactions. However, the average value of those transactions have dropped $14,812 or 5.9%.

We continue to estimate $15.9 million for this fiscal year compared to the original budget estimate of $14.9 million.

For FY 2009 we collected $16.8 million.

3/17/2010 - Updated General and Sewer Fund Checkbooks

From: Milowicki, Edward

Please find attached the latest checkbook & projections for both the general and sewer fund for your review. I will review at the 3/23 Council Finance meeting.

3/2/2010 - February RTT Update

From: Milowicki, Edward

Summary:

Feb. 2010 is officially the worst month since we have been keeping track of RTT, $751,980.53

Feb 2010 down 3.09% ($23,951.50) from Feb 2009, not too bad considering the record snowfall.

YTD FY2010 down 8.59% ($1,031,972.38) from FY2009 through Feb.

Good news, we are at 73.54% ($10,986,247.65) of this year's goal ($14,940,000.00) with 4 months to go.


Also, the article below is in the News Journal Business section today concerning the future of home sales activity.

Repeat buyer credit not spurring home sales
Unemployment, low house values reduce appeal of $6,500 incentive
By ADRIAN SAINZ • Associated Press • March 2, 2010

It sounded like a great idea three months ago: Hand homeowners a $6,500 tax credit to find a new place to live, giving a thrust of energy to the housing market's recovery.

So far, people are staying put.

In November, the federal government, seeking to build on momentum from a first-time buyer credit, added a new credit of up to $6,500 for current homeowners, hoping it would transform them into "move-up" house-hunters this winter and spring.

But real estate agents around the country say the credit is doing little to elevate sales. Reasons vary.

The unemployment rate is still near 10 percent and home prices, while stabilizing, are still a third below their 2006 peak. Droves of people who want to sell are stuck because their home is worth less than they paid for it.

"No one is saying, 'I need to buy something before it expires,' " said Tim Surratt, an agent with Greenwood King Properties in Houston.

Sales of new and previously occupied homes dropped in January, and the Mortgage Bankers Association's index of loan applications recently hit a 12 1/2-year low.

Also, the percentage of current homeowners looking to buy was nearly flat from January to February, according to a poll of 1,500 real estate agents by Campbell Communications and Inside Mortgage Finance.

"You've got a really big problem that requires big guns, and the tax credit is just not big enough," said Roberton Williams, senior fellow at the Tax Policy Center in Washington.

Agents believe the credit's true test will come in the spring, but concerns about high unemployment could keep buyers on the fence.

"If you don't have a job, you're not going to be able to buy a new house," said Deborah Farmer, owner of StarLight Realty in Tampa, Fla.

Another problem is that homeowners, in many cases, will need to sell their current home to afford a new one and claim the credit on tax returns. That's a major issue for borrowers who owe more than their home is worth. Nearly one in three homeowners with a mortgage is currently in that situation, according to Moody's Economy.com.

Also, $6,500 may not mean much to a buyer with enough equity to sell a property and afford another home. The savings will hardly dent down payments or moving costs. Most sellers employ real estate agents who typically receive 6 percent of the sales price.

Economists argue that a tax credit is rarely the sole motivation for a home purchase. Many believe tax credits just accelerate sales that would have happened anyway, leading to a drop-off once that demand is exhausted.

So far, the credit "is hardly registering on the economic Richter scale," said Patrick Newport, an economist with IHS Global Insight.

Real estate agents hope the tax credit will attract more buyers as it approaches its April deadline. Both tax breaks are expected to create an estimated 600,000 additional home sales this year, the Realtors group said. The group hasn't broken down an estimate for first-time buyers and existing homeowners.

To qualify for the $6,500 credit, buyers must have owned and lived in the same home for five consecutive years out of the past eight. They must sign a contract by April 30 and close before June 30. Lawmakers can extend both tax credits, but it's not clear if they will.

The home's purchase price can't exceed $800,000, and it must be used as a main residence. The income limit for single taxpayers is $125,000; for a married couple, it's $225,000

2/24/20 - NCCFAC Minutes -- February 16, 2010

From: Ewbank, Joanna

Attached are the minutes from the NCCFAC meeting on February 16, 2010.  The next meeting will be held at 3:30 p.m. on April 20, 2010 in the Large Executive Conference Room at the New Castle County Government Center.  Thank you.

2/13/2010 - Checkbook Update and 2010 Activity Projections

From: Milowicki, Edward

Attach is updated FY 2010 activity projections through January 2010 actuals along with an updated checkbooks .  I would be glad to answer any follow up questions at the 2/16 Council Finance meeting. 

FY 2010

General Fund Projected Shortfall of $2.8 million for the fiscal year.   
Sewer Fund Projected Shortfall of $1.9 million for the fiscal year.

FY 2011-FY 2015

General Fund projected shortfall of $11.8 million for FY 2011. Reserves will be exhausted during FY 2013 without revenue increases or budget reductions.

Sewer Fund  projected shortfall of $3.2 million for FY 2011.  Reserves will be exhausted during FY 2012 without revenue increases or budget reductions.

2/4/2010 - RTT Activity Update

From: Milowicki, Edward

Attached you will find RTT activity through January.

RTT for the month of January was $796,654. For the year we are 8.97% below last year for the same time period. We have collected $10.2 million for the first seven months of the fiscal year compared to $11.2 for the same time period last year. Projections indicate RTT to be $15.9 million which is $1.0 over original budget estimate.

Overall transactions processed for the month of January was 227 transactions which is the lowest number of transactions over the last five months. We saw a drop in all categories in January. January and February are normally slow months however January 2010 revenue from RTT was 14.9% below last January.

We will continue to monitor the RTT activity closely.

1/10/10 - Checkbook and FY 2010 Activity Update

From: Milowicki, Edward

Attached is the summary of FY 2010 General and Sewer Fund activity through 12/31 as well as an updated checkbook through FY 2015.

General Fund

As of 12/31 the FY 2010 estimated year end budget shortfall is $3.1 million compared to original budget shortfall of $6.9 million. The change is primarily due to projected budget savings of $2.7 million primarily due to savings from vacant positions and revenues over original estimates due to rtt, wills and sheriff office activity.

The checkbook for FY 2011 budget projects a budget shortfall of $13.0 million. A total shortfall of $92.4 million is projected for the period FY 2011 through FY 2015. Budget shortfalls for that period will range from $13.0 million to $21.3 million annually with operating reserves exhausted during FY 2013.

Revenue estimates assumes all current revenue sources and fees remain the same. 

Sewer Fund

As of 12/31 the FY 2010 estimated year end budget shortfall is $1.9 million. Revenues from sewer service are estimated to be $2.2 million below our original budget estimate. This is due to decrease usage by industrials, contract users and residential users.

The checkbook for FY 2011 budget projects a $4.7 million budget shortfall. A total shortfall of $54.0 million is projected for the period FY 2011 through FY 2015. Budget shortfalls for that period will range from $4.7 million to $14.5 million annually with operating reserves exhausted in FY 2012.

Revenue estimates assumes all current revenue sources and fees remain the same.  

I would be glad to discuss both these schedules with you further.

1/9/10 - RTT Activity Update

From: Milowicki, Edward

Through December we have collected $9.4 million which  is 8.43% below last year for the same time period. We are estimating to receive $15.9 million compared to our original budget estimate of $14,9 million. The $1.0 million over budget estimate can be attributed to the Federal first time home buyer incentive program and 4 large transactions (Greenville Overlook, Chestnut Crossing Apts, 2 separate transactions for units of the Helen Graham Cancer Center).   

For transaction under $500,000(excludes 1st time home buyers) the number of transactions are down 4.6% and the value of each transaction on average is down to 5%.

According to the latest real estate report I receive from the Board of Realtors sellers are receiving 93% of their asking price.

Usually the next 3 months are slow activity however the Federal exemption has been extended to April 1 which may generate more sales.

We will continue to monitor daily as we have done in the past and provide updates.

12/6/09 - RTT Activity through November

From: Milowicki, Edward

Attached are schedules showing RTT activity through November. Through November we have collected $7,648,988 in RTT revenues which is 11.33% below last YTD. For transactions under $500,000 we are 6.3% below last year and 3.6% below the average $$ value of transactions.

November had the most RTT transaction (490) for this current fiscal year. This was due to the large number of first time home buyer transactions (258) as a result of the federal home buyer program.  Last November has 100 first time home buyer transactions.  First time home buyers represent 47% of all transaction this fiscal year.

We are estimating RTT to earn $15.4 million this fiscal year compared to $16.8 million last fiscal year.

11/9/09 - NCCFAC Meeting -- November 17

From: Ewbank, Joanna

The New Castle County Financial Advisory Council meeting will be held on November 17 at 3:30 p.m. in the Large Executive Conference Room at the New Castle County Government Center.  NCCFAC members, please reply to this email to confirm your attendance.

Attached, please find the minutes from the September 15 meeting and the agenda for the upcoming meeting.

11/5/09 - RTT Update

From: Milowicki, Edward

FYI. The Senate voted yesterday by a 98-0 margin to extend the First-Time Homebuyer Tax Credit end date while also expanding the credit to existing homeowners who want to move to another residence . The extension is to April 30, 2010. 

NCC RTT for the month of October was $1,795,710 which was 10.56% higher then last October. We have seen three straight months of increased RTT fees collected. Since July we have had 12 transactions in the $1.0 to $5.0 range and 4 transactions over $5.0 million.    

However, YTD fees are 12.9% below last year for the period July through October and the number of transactions for under $500,000 transactions are down 13%.   Also, we continue to see decline in the value of each transaction in the under $500,000 group.

We have revised the RTT estimate for the year to reach $15.4 million vs. our budget estimate of $14.9 million.

I would be glad to answer any follow up questions.

10/17/09 - Updated Checkbooks and September Activity

From: Milowicki, Edward

Attached are schedules showing activity through September and also updated Checkbooks.

The General Fund budget is projected to end FY 2010 with a deficit of $4.4 million. Currently there are no issues with the general fund budget that would require additional funding. Transfer tax is projected to be at $15.4 million which is $0.5 million over the budget estimate of $14.9 million. First quarter rtt activity included increased first time home buyer activity and three real estate transactions valued over $5.0 million. Activity in building permits continues to be slow. General Fund Checkbook continues to show annual operating shortfalls with reserves being exhausted during FY 2013. 

The Sewer Fund budget is projected to end FY 2010 with a deficit of $1.3 million. The annual residential sewer bill will be mailed out in January/February.  The FY 2010 Sewer Fund expenditure activity will include retroactive payments to the City of Wilmington for sewer treatment and the settlement payment to DNREC for Fox Point settlement. Sewer Fund continues with operating shortfalls with reserves being exhausted during FY 2012.

10/7/09 - NCCFAC Minutes -- September 15, 2009

From: Ewbank, Joanna

Attached are the minutes and all handouts from the NCCFAC meeting on September 15, 2009.  The next meeting will be held at 3:30 p.m. on November 17, 2009 in the New Castle County Government Center in the Large Executive Conference Room.  Thank you.

10/6/09 - September RTT

From: Milowicki, Edward

Attached are updated RTT schedules through September. September collections were $1,690,041 which was 13.17% above last September collections of $1,493,391.   Year to date collections through September of $4,540,644 are 19.71% below last September year to date of $5,655,208.  Current Year estimate is $14.9 million. 

September saw an increase in overall transactions from 396 in August to 459 transactions for the month. First Time homebuyer transactions represent 45% of September activity.

Noteworthy was that we had three over $5.0 million real estate transactions .  They generated $263,477 in RTT for the month.

We continue to monitor RTT transactions on a daily basis and will update you in November on the activity for October.

9/16/2009 - FY 2010 Activity and August Checkbook

From: Milowicki, Edward

Attached is revenue and expenditure activity through August and the latest updated General and Sewer Funds checkbook.

General Fund salaries are currently projected to  be $1.0 million under budget due primarily to vacancies. On the revenue side Building Permits continue to suffer and may result in being $0.4 million under budget. However, the Register of Wills recorded a large estate that generated $0.4 million in one time revenues.  The RTT estimate of $14.9 million is not estimated to change at this time . The majority of RTT activity is by first time homebuyers. Year  End General Fund shortfall is currently projected to be between $5.0 to 7.0 million.

Sewer Fund Salaries are projected to be $0.3 under budget due primarily to vacancies. Not included in the FY 2010 budget was the retroactive payment to the City of Wilmington  for wastewater treatment which is estimated to be in the $2.0 million  range  and  in addition a $0.5 million payout for the Fox Point Settlement  with DNREC  will be paid out during FY 2010.    Overall, the Sewer Fund shortfall is estimated to be between $ 2.0 to $3.0 million.

I would be glad to answer any follow up questions

9/15/2009 - RTT Update for FY 2010

From: Milowicki, Edward

Attached you will find RTT activity through August. After four straight months (April-July) of increased transactions the month of August showed a decline. Both the number of overall transactions and the number of first time home buyer transactions showed a decline. We continue to see steady activity in the $1 million to $5 million range which represents commercial activity.

Compared to last year we are 31% below last year but that was prior to downturn in the real estate market. With only two months of activity and the uncertainty in the economy it is too early to tell if we will make our estimate of $14.9 million.

I will continue to provide you with monthly updates.

9/1/2009 - NCCFAC Meeting -- September 15

The New Castle County Financial Advisory Council meeting will be held on September 15 at 3:30 p.m. in the Large Executive Conference Room at the New Castle County Government Center.  NCCFAC members, please reply to this email to confirm your attendance.

Attached, please find the minutes from the April 21 meeting and the agenda for the upcoming meeting.

8/5/2009 - RTT Activity April- July 2009

From: Milowicki, Edward

The attached RTT schedule shows a comparison of June 2009 activity to June 2008 activity and July 2009 activity to July 2008 activity by categories. Both months show decreased activity compared to the same months as last fiscal year.

Also, shown is the activity for the last four months of April through July  of this year .  Noteworthy,  is that we have stabilized as far as decreased activity and are showing  some  increased activity over the last four months. As was noted in the media there is a lot of activity in the first time homebuyer arena but remember that NCC exempts the first time home buyer from paying an RTT. The seller does pay his share.   

Would be glad to answer any follow up questions.

8/3/2009 - FY 2009 General and Sewer Fund Year End Results

From: Milowicki, Edward

Attached are the FY 2009 unaudited year end results of operations for both the General and Sewer Fund.  I will review with Council Members at the 8/25 Finance Meeting along with RTT for July.

Attachment 1 - Projections
Attachment 2 - Checkbooks

GENERAL FUND

-The General Fund Expenditures achieved budget savings of $10.2 million or 6% budget savings. Major savings are as follows:

Salaries- Total Savings of $4.0 million. Full Time savings of $4.9 million, Overtime savings of $0.4 million and Part Time savings of $0.3  for a total salary savings of $5.6 million.  These savings were partially offset by $1.6 million in Severance payouts.  Total of 96% of salary budget was expended. 

Communications/Utilities- Savings of $0.6 million attributable to phones, electric and heating oil.

Materials- Savings of $1.0 million from library book  purchases ($0.4) and also office supplies,construction supplies and gasoline.

Contractual Services-Savings of $2.4 million from reduced spending for service contracts and outside professional services usage.

Fixed Charges- Savings of $0.4 from insurance savings and contribution reduction.

Contingency- Savings of $0.8 from Council ($0.1),Executive ($0.1) and Salary Contingencies ($0.6)  usage . 

-The General Fund Revenues were $17.8 million under original budget estimates as follows:

Transfer Tax- $15.0 million under original estimates due to decrease transactions and values. Very few commercial and apartment transactions.

Licenses/Permits-$2.0 million under original estimates due to Building Permits decline  ($1.4),Contractor Licenses ($0.4) and Plumbing Permits ( $0.1)

Intergovernmental- $1.0 million under original estimates due to Paramedic Reimbursement ($0.5), State air card card reimbursement (0.3) and RTT fees ($0.2).

Interest Earnings-$0.8 million due to rates.

Service Charges-$1.2 million over budget due to increased Sheriff Office  ($2.1) activity, Wills ($0.2), Instant Ticketing ($0.2) and Traffic Fines (0.1)  which are offset by Deeds Office decreased activity ($1.5 under budget).   

SUMMARY-General Fund use of reserves for the year was $27.3 million   ($25.2) which leaves available cash balances of 46.2  ($48.4)  million at 6/30/2009 (FY 2010 is budget using $6.9 million of the available cash balances). This excludes Rainy Day Reserve of $31.6 million.  

SEWER FUND

-The Sewer Fund Expenditures achieved budget savings of $4.0 million or 6% budget savings. Major savings are as follows:

Salaries- Total Savings of $1.4 million. Full Time savings of $1.4 million, Overtime savings of $0.4 million. These savings were partially offset by $0.4 million in severance payouts. 89% of budget used.

Communications/Utilities- Savings of $0.7 million attributable to electric usage.

Contractual Services-Savings of $0.9 million from service contracts and outside professional services usage.

-The Sewer Fund Revenues were $0.4 million under original budget estimates as follows:

Sewer Current- was $2.2 million under original estimate due to decline usage by commercial and industrial usage and residential billing.

Sewer Delinquent- was $1.0 million over original estimate due to collection efforts.

Septic Haulers- was $0.6 million over budget due to septic hauler activity.

SUMMARY-Sewer Fund use of reserves for the year were $3.1 million which leaves available cash balances of 11.5 million at 6/30/2009 excluding Rainy Day Reserve of $11.5 million.  Excludes consideration for City of Wilmington sewer payment based on arbitration decision.  

7/2/09 - RTT-FY 2009 Summary

From: Milowicki, Edward

Attached is RTT detail through June 2009. The amount collected for June was $1,413,954 ,  which was 50.49% below last year. For FY 2009 the RTT total collected of $16.6 million was 47.45% below the FY 2008 amount collected of $32.0 million.

For individual transactions under $500,000 (homes) for the year there was a 34.1% drop in the number of transactions and the average value of each dropped $15,871 or 6.1%. However, we have had three straight months (April-June) where the number of transactions increased (163-199-218). Also, in June we saw only a 25% drop in the number of these transactions compared to 28% in May and 36% in April.

For individual transactions over $5.0 million (commercial) we saw the number of these type of transactions drop from 28 to 13. The total value also dropped from $525 million to only $137 million. We did have one large commercial transaction in June of $5.5 million which was the sale of the Circuit City store on Concord Pike.

The budget estimate for RTT for FY 2010 is $14.9 million.

I would be glad to answer any follow up questions.

6/21/09 - FY 2009 Projections and Updated Checkbook

From: Milowicki, Edward

Attached you will find the FY 2009 budget projections with actual through 5/31 and updated General and Sewer Fund checkbooks. 

For the FY 2009 General Fund budget we are projecting to end the year with a $27.9 million shortfall largely attributable to RTT being $15.3 million below the original budget estimate of $31.9 million and License/Permits being $2.0 below the original budget estimate of $6.6 million. Other shortfalls are in tax assessment growth ($0.2) and interest earnings ($0.5). Shortfalls in the Recorder of Deeds fees have been offset by Sheriff Office activity.

The FY 2009 Sewer Fund will end with a $3.3 million shortfall primarily due to the current sewer billings being $1.7 million below original budget estimate of $51.9 million, This is due to decline in industrial and commercial billings.

I would be glad to answer any follow up questions.

6/16/09 - Councilman Weiner Requests Voluntary Deduction

Here is the letter to Ed Milowicki requesting that Councilman Weiner's voluntary 5% pay cut be be transmitted to County Pride to purchase books for the Brandywine Library.

6/4/09 - Real Estate Transfer Tax Update through May 2009

From: Milowicki, Edward

Attached is updated RTT through May. 

We collected $1,451,406 for the month of  May. This was the best month of collections since December.  

YTD collections through May are down $13.8 million or 47.15% compared to the same time period as last year.

For transactions under $500,000 we have seen for the year a 35% (1,155) decrease in the number of transactions and a 7% ($18,534) decrease in the average home sale value when compared to last year.

For year-end we should reach our estimate of $16.6 million.

5/29/2009 - Updated FY 2009 Projections and Checkbook

From: Milowicki, Edward

Attached you will find updated FY 2009  General and Sewer fund projections with actuals through April and an updated checkbook based on the Approved FY 2010 Budget. I would be glad to answer any follow up questions.

5/1/09 - 4/21/09 New Castle County Financial Advisory Committee Minutes

From: Cook, Shelley

Please find minutes from the NCC FAC meeting on April 21, 2009. The next meeting will be held at 3:30 p.m. on September 15, 2009 in the New Castle County Government Center in the Executive Conference Room.

5/1/09 - FY 2010-2015 Capital Program & Budget Joint Recommendation / FY 2010-2015 Proposed Capital Budget

From: Milowicki, Edward

1.Letter from the Planning Board and Department of Land Use approving the proposed Fiscal Year 2010-2015 Capital Program and Budget.

2.Summary schedule of activity for the Fiscal Year 2010-2015 which will be reviewed at the Council Capital Budget Hearing on Monday 5/4.

5/1/09 - Real Estate Transfer Tax Update through April 2009

From: Milowicki, Edward

RTT collected for the month of April was $903,134 or 63.2% below last April.  YTD collections are $13,973,326 which are 48.5% below last year for the same time period.

For the first four months of this calendar year we have averaged $916,845 monthly. In order to reach the FY 2009 current estimate of $16.6 we would need to average $1.3 million for May and June which tend to be better months for rtt collections .

For transaction under $500,000 through April the number of those transactions are down 35.4% and the value of each are down 7.8% 

We have estimated $14.9 million in the FY 2010 Budget.

4/27/09 - Special Services Budget Presenation

From: Svaby, Michael

Thank you for the opportunity to present the County's Special Services Budget this afternoon.

4/21/2009 - Updated Checkbooks and Activity

From: Milowicki, Edward

Attached you will find an updated  General and Sewer Fund Checkbook and FY 2009 budget activity.

In the General Fund we have  changed revenue estimates for FY 2009 by $400,000 due to refinancing activity in the deeds office ($0.2) and also one time return to the general fund of unused  prior years grant match ($0.2).  For RTT we maintain the estimate at $16.6 million for this current fiscal year. Due to the $400,000 revenue change the FY 2009 general fund shortfall is estimated at $26.9 million which was previously $27.3 million last month ($17 million in the original budget).  On a budgetary basis expenditures will be $8.7 million below budget  primarily due to cost saving initiatives undertaken while revenues will be $18.8 million under original revenue projections  primarily due to decline in rtt and building permit revenues.

In the Sewer Fund we are projecting a FY 2009 budget shortfall of $3.1 million primarily due to decline in commercial and industrial usage.   Outcome of the Wilmington Sewer will result in expenditures being  adjusted.

I would be glad to answer any follow up questions.

4/19/09 - 2007 County Property Tax Rankings on Owner-occupied Houses, by County, Ranked by Property Taxes Paid- From U.S. Census Bureau supplied by www.TaxFoundation.org

http://www.taxfoundation.org/files/proptax_owner-occ_bycounty2005-2007-20080923.swf

This table includes all 788 counties in our country with populations greater than 65,000 as of July, 2007 and considers owner occupied residential homes only. There are 3077 counties in the United States. Considering the referenced 788 counties’ median property taxes paid on homes, New Castle County, Delaware is ranked 502 out of 788; which places New Castle County on the low end of the chart. New Castle County’s median combined State school tax and property tax is $1296. The national median average is $1838.

The national median home value was $194,300 in 2007. In New Castle County, the median home value was $252,200 in 2007.

2007 county taxes as a percentage of home value is 0.5% in New Castle County. This ranks New Castle County on the low end of the chart at 667.

The national median income for home owners was $63,059 in 2007. In New Castle County, the median income was $75,121 in 2007.

2007 county taxes as a percentage of income was 2.9%. In New Castle County, the percentage was 1.7%. This ranks New Castle County on the low end of the chart at 625.

4/7/09 - Local Service Function Property Tax Credits

From: Milowicki, Edward

Per Council request from the Revenue Budget Hearing I have attached the Local Service Function Budget Matrix which denotes those municipalities that receive a credit for providing those services that are specifically annotated by State Code to receive credit.

4/7/09 - FY 2010 Revenue Summary Link

From: Milowicki, Edward

FY 2010 Revenue Summary which was presented to Council at the Revenue Budget Hearing.

4/2/09 - Real Estate Transfer Tax Collections for March 2009

From: Milowicki, Edward

Attached is the actual  New Castle County  RTT collected through March 31st. The amount collected  for this March was $1,051,972 which was 43% below last March ($1.9 million). Included in the  March FY 2010 collections of  $1,051,972 was $138,000 from the Hercules Golf Course Transaction .

YTD collections through March are running 47% below last year.  $24.7 vs. $13.1 collected ytd. 

The number of transactions under $500,000 for the year are 35% below last year while the average value of those transactions have dropped 7.5% from last year.

3/24/09 - FY 2010 Proposed Tax Rate Adjustment by Council District

The attached schedule reflects the average tax bill by Council district and dollar change with the FY 2010 proposed tax rate adjustment. This schedule includes both the municipalities and unincorporated areas within each Council District. I would be glad to answer any follow up questions.

3/20/09 - FY 2010 County Executive Coons Proposed Budget Summary

Summary of the 2010 proposed budget.

3/20/09 - Checkbook Update - March 2009

From: Milowicki, Edward

Attached is the updated general and sewer fund checkbook presentation for 2010 through 2014. The projections are based on the 2010 recommended budget. I will review these at the 3/24 Council Finance Meeting.

3/16/09 - RTT Activity Update

From: Milowicki, Edward

Based on RTT year to date activity, consumer confidence reports and real estate activity I have lowered the estimated RTT for this current fiscal year (2009) to a total of $16.6 million. In addition, the estimated FY 2010 RTT is $14.9 million.

At the New Castle County Financial Advisory Committee meeting last Thursday 3/12 the RTT activity was reviewed. In addition they were made aware of  the revised RTT projections for FY 2009 and FY 2010.

3/19/09 - NCC Reserves and Bond Rating

From: Majeski, Nicole

Hi Everyone,

We have recently received several questions from Council members regarding the County's reserves and bond rating.  Attached please find a memo from David Paul, the County's outside financial advisor, on the County's reserves and bond rating.  This memo provides background information on the County's bond rating, the importance the reserves have on the rating and it's overall value to the County.

I hope this memo is helpful and answer questions previously raised.

If you have any questions, please contact me or Ed Milowicki. 

Thanks,
Nicole

2/19/09 - Checkbook Update-February 2009

Attached are updated FY 2009 General and Sewer Fund activity worksheets with actual through 1/31 /2009  along with the General and Sewer Fund Checkbook Presentation. 

In the General Fund we continue to see  down activity in  assessment growth, rtt transactions, recordation  fees  and building permit activity.   Single Family Building Permits issued are down 60% from last year and Residential Addition/Alteration permits issued are down 15%.  Commercial Permit activity has also slowed down considerably.  In addition, we continue to monitor RTT transactions daily. Year end RTT is estimated to be in the $16.0 to $18.6 million range.  Both 2009 and 2010 RTT estimates may require downward revisions. 

In the Sewer Fund we still continue to see decline in the commercial/industrial area usage. Residential sewer bills are due on 3/2.  On the sewer fund expenditure side the City of Wilmington treatment arbitration outcome is still an outstanding issue  with potential fiscal impact .   

I would be glad to answer any follow up questions. 

Ed Milowicki

2/18/09 - Why County Police Take Home Their Police Cars & Why This Is Fiscally Prudent

To all,

As per your request from the Council Meeting on February 17, 2009 you will find the attached document.  Thank you for the opportunity to speak with all of you and let me know if you have any additional questions.

Very respectfully,
Captain Elmer M. Setting
Special Operations Commander
(302) 395-8027

2/7/09 - RTT activity through January

Attached you will find the RTT schedule through January activity.

RTT $$$ received for January was the lowest RTT for any month since February 2001.  January was 36.82% below last January and ytd activity is 47.95% below last year.

For transactions under $500,000 the number of transactions are 36.2% below last year and average sale price has dropped 6% below last year.

With five months left in the fiscal year the year total is estimated to be in the range of $16 million to $18 million. For FY 2006 the RTT collected was $40 million. Comparing FY 2006 vs FY 2009 that represents a 55% to 60% lost in the General Fund's second Largest Revenue Source.

Ed Milowicki

12/30/08 - Letter to Organizations Regards NCC Financial Situation

Hi Everyone,

Throughout the year, the County Executive's office receives numerous requests for funding from various organizations for things such as tickets/sponsorships for events, program advertisements, grants for programs, etc.  I know County Council receives similar requests.  Given the state of New Castle County's finances, we are sending a letter to organizations who have received financial assistance from the Executive Office in the amount of $1,000 or more over the past year.  The letter outlines the county's current financial situation and states that the county is no longer in the position to continue funding organizations at past levels. 

Attached is the letter that will be sent.

Please let me know if you have any questions.

Thanks
Nicole Majeski

12/18/08 - New Castle County Additional Budget Reductions for FY09

Hi Everyone,

Today the County Executive announced the next round of budget reductions for this fiscal year.  New Castle County revenue estimates continue to decline. The County’s projected revenue for the year has fallen by another $2 million, increasing the deficit for the current fiscal year to $32 million.  The size of the County’s deficit in relation to its budget is now nearly 19%, almost identical to the State of Delaware’s deficit in relation to its budget.

Some of the reductions to be announced today include:
-  Mandatory unpaid furlough time for the County Executive, Department General Managers, Chief Administrative Officer, Deputy Chief Administrative Officer, and Chief of Staff
-  Reducing Special Services part time and seasonal staffing by 18 positions
-  County libraries will be closed Sundays and Thursday evenings beginning in January. 
-  Beginning January 2, the Activity Centers at Garfield Park and Hockessin will close on Fridays and overall hours will decrease 
-  Cost-cutting in the Mounted Patrol Unit
-  Operating reductions in maintenance and engineering contracts 
-  Sewer connections provided to residents at significantly discounted rates will discontinue
-  Some county parks will see the elimination of grass cutting in meadow areas and the county will institute a carry-in carry-out policy for trash similar to that in state parks 

The complete list of reductions in attached.

The cuts across all areas of government will help the County save nearly $2.5 million over the final six months of the FY2009 budget and $5 million in future budget years.

Attached are the complete list of reductions, the letter sent to all county employees and the press release.   

Please let me know if you have any questions.

Thanks,
Bob Weiner, your County Councilman

12/18/08 - Final Audit Report: Change Orders and Contractor Payments - Construction Projects

Attached is the final audit report for "Change Orders and Contractor Payments - Construction Projects."  I have also attached an executive summary of the report.  The Audit Committee formally reviewed and approved the report and executive summary at last Tuesday's Audit Committee meeting.  The report opinion is "unqualified" although we do have five "Other Reportable Items", which are opportunities to improve the system of internal control.

I'd again like to thank the management and staff of the Special Services and Administrative Services Departments for their cooperation and courtesy during the course of the audit.

Please let me know if you have any comments and/or questions about anything in the audit report or executive summary. 
Thank you.

Bob Wasserbach
County Auditor

12/17/08 - Reassessment Report for HJR 22

Attached you will find the Reassessment Report that was produced from the committee that was formed from HJR 22.

The report was issued in November 2008.

Ed Milowicki

12/17/08 - UPDATED--- NCC Checkbook and FY 2009 Projections

Files: NCC Checkbook and FY 2009 Projections

After meeting with budget staff this week to review November revenue activity I have again lowered the  FY 2009 revenue estimates for the current  fiscal year.

General Fund revenues are now projected to be $16.3 million ($14.2 prior) below the original revenue estimate for the fiscal year of $159.4 million.  This represents a 10.2% revenue loss.     

We see little activity in the building permit and deeds related activity and rtt is now down close to 50% through November.  

RTT is now estimated at $18.6 million for the year or $13.3 below  original budget estimate of $31.9.

The current year general budget shortfall is now estimated to be $32 million.  The original approved budget started with a shortfall of $17 million. We now have a 18.8% budget shortfall.

I would be glad to answer any follow up questions or concerns.

Ed Milowicki

12/6/08 - 2007 Task Force Report with Status of Recommendation

I wanted to give you this report before hand to review due to the large Finance Agenda.

I will review and discuss at the meeting. Attached is the 2007 Final Task Force Report.

I have annotated each recommendation within the report in YELLOW as follows:

COMPLETED
IN PROGRESS
UNDER REVIEW

Ed Milowicki

12/6/08 - RTT for November Update

Attached you will find RTT updated through November. At this time I will be leaving the year end RTT estimate at a maximum amount of $20 million. Range will be in the $18 to $20 million estimate for the year.

Through November RTT transactions under $500,000 are down 656 transactions or 36.3% and the average value has dropped $25,495 or 9.2%.

The only noteworthy transaction was the sale of one of the anchor stores at Christiana Mall to TARGET for which NCC realized $110,840.  

Department of Land Use is now projecting their building permit revenues to be $1.0 under the budget estimate of $6.6 million for building permits.  Previous estimate was $0.6 million below budget estimate.

Ed Milowicki

11/20/08 - Updated Checkbook and Projections

Attached you will find the latest checkbook (excludes proposed reductions) and projections for the general and sewer fund.

The downturn in the economy has also had impact on the sewer fund. With the most recent industrial/commercial/contractual sewer billing we continue to see decreases in usage thus resulting in revenues now estimated to be $1.3 million below budget estimates. Water date for the residential billing will not be received until December for the annual bill.

Through mid-November RTT is running $660,000 below last November for the same time period. 

Ed Milowicki

11/13/08 - Message from the County Executive: Cost Cutting Measures

Hi Everyone,

Over the past several months, the economy has taken an unprecedented downturn.  As you have seen through Finance's checkbook presentations, New Castle County has significantly felt the impact.Our estimated revenues for the current fiscal year have dropped $14.2 million, primarily due to the drop in real estate transfer tax, Deeds office transactions and residential building permits and additions.  Even more disturbing, those revenues continue to decline. 

With no improvement in our situation on the horizon, we have no choice but to adjust how we do business to meet our current fiscal reality. 

Tomorrow, Thursday, November 13th, the County Executive will be discussing our financial situation and publicly announcing cost cutting measure. 

The following measures will be announced tomorrow and will immediately be put into place:

-         Hiring freeze for non-essential positions
-         Overtime spending only for approved critical needs
-         Reductions in capital spending projects
-         Limits on all travel and training
-         Prior approval for all contractual services requests for spending
-         Reductions in all new major equipment purchases/replacement including public safety fleet
 
These measures could help save as much as $5 million during our current fiscal year, but that is only a fraction of the revenues we have already lost in the last 5 months.  Further action will be necessary to address our bleak financial picture.  The County's current year general fund projected budget shortfall has risen from $17 million to nearly $30 million at year-end.  This represents a budget deficit of 17% of our general operating budget.  We are now using up our operating reserves so quickly that at our current rate of spending, we will exhaust those reserves before the end of the next fiscal year.

In the weeks ahead, we anticipate that additional actions will be necessary, including the reduction or elimination of some non-essential services.  Also, as we prepare next year’s budget, general managers and the Department of Finance will work to further reduce spending.  We will continue to follow our approach of the last four years – seeking to both increase revenues and cut expenses to ensure longer-term financial stability for the County.

Chris would like to invite you to join him tomorrow as he makes this public announcement. The press announcement will take place tomorrow, Thursday, November 13th at 1:30pm in the lobby of the Government Center. 

Attached is the letter that will be sent out to all county employees tomorrow morning.

Please let me know if you have any questions.

11/12/08 - False Alarm Reduction Program - Status Report

Attached is the current status report and update on the "False-Alarm Reduction Program."

Lieutenant Craig Weldon continues to manage this program, and has done an excellent job keep it moving.  Year to date we have collected  $25,970. 

Should you have questions or need any additional information, please contact us.

Sincerely,
Colonel Rick S. Gregory
Chief
New Castle County Police Department

11/12/08 - Library Master Plan

Dear Council Members
As a follow-up to my presentation at the Community Services meeting, I wanted to send you the final document. Thank you for your input on the Master Plan for Libraries and your recommendations. We were fortunate to receive a grant from the State for a consultant services so that this process will not require any county funds. I attached the design and timeline with the names of members of the subcommittees. If you have any additional recommendations, please forward them to me.
Sincerely,
Anne

Anne Farley
General Manager DCS
395-560

11/5/08 - New Castle County Real Estate Transfer Tax Receipts Plummits [fiscal year update through October]

This is a report from Ed Milowicki, Acting General Manager, New Castle County Finance Department to New Castle County Council.

Attached you find the actual RTT collections through October.  This October dollar activity was 48.05% below last October while year to date is 47.25% for the same time period as last year.

For the category of transactions under $500,000 we have seen a year to date drop of 33.3% in the number of transactions while the average value of those transactions have dropped $32,305 or 11.3%.

As stated previously, in the General Fund Checkbook we currently have for FY 2009 estimated $23 million in RTT.  Looking at October activity and forward the $23 million is on the high side unless some large transactions process over the next eight months.  Barring large transaction the RTT estimate may fall to $20 million for the Fiscal Year.  We will continue to analyze and provide an updated checkbook at Council Finance meeting.

11/2/08 - Revised  Reserve Account Distribution

This is a report from Ed Milowicki, Acting General Manager, New Castle County Finance Department to New Castle County Council.

Per request from Councilmember McClellan I have revised the schedule of the history of the spend down of the general fund and sewer fund reserve accounts to break out the purpose of each years transfers out. The detail of those allocations were taken directly from the County's audited Comprehensive Annual Financial Statements.

In addition, I have included a detailed list of Sewer Fund projects that allocations were made in FY 2006 to account for the $66.4 million transfer. These projects are reimbursed on a quarterly basis on actual expenses as the projects move forward.

I would be glad to answer any follow up questions.

10/29/08 - Final NCC Task Force Report

This is a report from Ed Milowicki, Acting General Manager, New Castle County Finance Department to New Castle County Council.

Per request of Council members attached is the 2007 Final NCC Task Force report that was issued.  This report and all related documents and information can be found on the Finance Office Web page under the Financial Task Force TAB

10/29/08 - Council Finance Meeting HANDOUTS 10/28

This is a report from Ed Milowicki, Acting General Manager, New Castle County Finance Department to New Castle County Council.

Attached are the other two handouts I presented at the Council Finance meeting in case you would like to have in your files or distribute.

The first showing that nearly 50% of our FY 2009 debt service goes to recently completed general fund projects throughout the County.

10/29/08 - Local Government Reactions to the Economy & Tax Rate vs. CPI

This is a report from Ed Milowicki, Acting General Manager, New Castle County Finance Department to New Castle County Council.

Attached for your information are various articles as to what local governments are either doing or anticipating actions due to the downturn in the economy. I thought based on discussion at the Council Finance meeting yesterday that you would be interested in seeing these articles.

In addition, I have attached the schedule showing what the County tax rate would be if it was increased by CPI vs. the current county tax rate.  I also had discussed this issue at the Council Finance meeting.

10/24/08 - FY 2009 Sewer Fund Budget Update and Checkbook and General Fund Revenue Chart

This is a report from Ed Milowicki, Acting General Manager, New Castle County Finance Department to New Castle County Council. It is a report from the County Finance Dept regarding Fiscal Year 2009 Sewer Fund Budget Update and Checkbook and General Fund Revenue Chart

Please find attached an update on the FY 2009 Sewer Fund budget and also the Sewer Fund checkbook. The first quarter sewer billings for commercials, industrials and contract users showed decrease usage in all areas. Based on this first quarter activity the current sewer fee budget estimate could be $1.0 million below original budget of $51.9 million. The residential sewer bills will go out in early January so we will see then how the residential compare to budget estimates as we receive water data to base the residential bills in late December.

Overall, the Sewer fund is anticipated to have a $ 4.8 million budget shortfall at this time. Expenditure projections may be impacted depending on the Wilmington Treatment negotiations.

In addition, I have attached a General Fund chart (1996-2009) for your review that shows back in 2006 the real estate transfer tax provided 26% of all revenues to the general fund. For FY 2009 that percentage is now at 16%.

Ed Milowicki, Acting General Manager, New Castle County Finance Department
emilowicki@nccde.org    302-395-5153

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