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The next major event on the Windsor fiscal year 2025 budget calendar took place at the Windsor Town Council’s Feb. 11 meeting when Town Manager William Saunders briefed council members on the FY25 year-to-date (six-month) revenues and expenses for the town.

The Windsor Financial Report of the first six months of FY 2024-25 first addressed the General Fund, then the Water Fund.

GENERAL FUND

“Total revenues are expected to meet or exceed the budgeted amounts,” Saunders said.

He and his slideshow presentation noted that personal property taxes were due on Dec. 5, and as of Jan. 1, approximately 72% have been collected.

He noted that real estate taxes are due on June 5, and bills paid late in July and August will roll back into FY25.

He highlighted how meals taxes are due quarterly. The fourth quarter meals taxes were due on Jan. 20; second quarter meals taxes are due on July 20, and those will roll back to FY25.

Then Saunders addressed data associated with different taxes.

He noted that the utility tax includes taxes on the electrical utilities of Dominion Power and the rural electric cooperative.

“The six-month mark for utility tax is actually five months of revenue as there is a one-month lag on (utility) tax revenue,” he said. “So funds received in July of this fiscal year will roll back.”

Referring to a chart that was part of his presentation, Saunders said, “You can see we’re just under 45% (received) right now with five months of revenue, so that should be on track to meet that budgeted amount.”

This percentage represents slightly more than $40,000 received of the approximately $95,000 budgeted, according to the chart.

Saunders noted that personal property taxes include taxes on motor vehicles, commercial equipment, boats, machinery and tools. 

Again referring to a chart, he said, “You can see there, as we mentioned on the opening slides, we are just over 70% in revenue collection so far on personal property tax as of Jan. 1, which is a little bit lower than the prior year, percentage-wise.”

This percentage represents around $120,000 received of the approximately $165,000 budgeted, according to the chart.

Saunders noted that the real estate tax due date changed from Dec. 5 to June 5 in FY 2021.

The chart in his presentation showed only about 2.5% of the budgeted amount received.

“Funds received here in July and August ’25 will roll back into this fiscal year,” he said.

Saunders noted that what is labeled as six-month revenue on the sales tax chart is actually four months of revenue because there is a two-month lag on sales tax.

He said sales tax revenue generated in July and August of 2025 will roll back.

“This chart shows what was budgeted to be received but was not actually received by Jan. (1) as for some reason the Isle of Wight County treasurer did not distribute four months worth of revenue to the town until the end of January,” he said. “So for your illustrative purposes, I’ve shown here what the chart says we should have received by Jan. 1. We have received those funds now, but it didn’t come in until the end of January.”

The chart appears to put the percentage of sales tax received at a little more than 45% of the budgeted amount.

This percentage represents around $75,000 received of the approximately $160,000 budgeted, according to the chart.

Saunders noted again that meals tax revenue is received quarterly, and he indicated that multiple years on the chart in his presentation — including the current fiscal year — show only one quarter of revenue, “as those funds received in July are rolled back into the previous fiscal year, which was the guidance of our auditors.”

Saunders also said, “The numbers for this first quarter seem to show us on track to meet or exceed the estimate for FY25 as we’re almost at 30% … with only one quarter of revenue in.”

This percentage represents around $190,000 received of the around $600,000 budgeted, according to the chart.

Saunders noted that the six-month numbers for the cigarette tax are even with those of last year.

“These are typically large tax stamp purchases by wholesalers of either $6,000 or $12,000 at a time, so one purchase can make a large difference,” he said. “However, the increase in the rate in ’22-’23 could have resulted in some customers making their purchases in localities with other rates. So I’m not sure if we’re going to make the budgeted amount for that one.”

The chart in his presentation stated that about 42% of the budgeted revenue has been received.

This percentage represents around $43,000 received of the approximately $100,000 budgeted, according to the chart.

On a chart depicting the first six months of Windsor expenditures for FY25 as compared to a year-end total, about 33% has been expended in relation to the budgeted amount.

This percentage represents a little less than $1.25 million of the slightly more than $3.63 million budgeted, according to the chart.

Referring to a graph depicting the first six months of Windsor expenditures as compared to the budget, Saunders said the graph included the largest expense categories in the budget. 

“Most categories are at or below the 50% mark for the mid-point of the fiscal year, showing us to be on track to meet the budgeted amounts,” he said.

WATER FUND

In reference to the Water Fund, Saunders said, “Total revenues should meet or exceed the amount budgeted.”

He noted that six-month water sales revenues are at 54% of the budgeted amount.

This percentage represents around $360,000 collected of the approximately $670,000 budgeted, according to the chart.

“This data excludes ARPA funds,” Saunders said. “It only relates to current revenue.”

He noted that six-month water expenditures are at 40% of the budgeted amount.

This percentage represents slightly more than $275,000 of the around $688,000 budgeted, according to the chart.

“Overall expenditures are well below the 50% mark, which is encouraging as we have had to contract more projects that would normally have been done in-house due to staffing challenges,” Saunders said. “Of note is that the ARPA projects are excluded from this data to better illustrate operational trends.”

He noted that for FY25, water system depreciation is $70,279.67, approximately 85%. 

“By the end of the fiscal year, we should have collected enough revenue to cover operating, maintenance and debt service but may show a ‘loss’ due to depreciation,” Saunders said. “Continuing to fund depreciation allows us to reinvest in our water system infrastructure as it continues to age and hold a strong fiscal position.”

In the conclusion to his report, Saunders said, “The town’s overall financial condition remains sound. And revenues and expenditures will be monitored closely throughout the fiscal year.”

The full Windsor Financial Report for the first six months of fiscal year 2024-25 is available online at www.windsor-va.gov/page/2025-town-council-agendas-and-minutes/ under the “February 11, 2025 Meeting” heading at the link titled “FY25 Six Month Budget Review.”