• Investment Revenue: Although investment revenue has actually been received, the allocation of these earnings to the individual funds has only been minimally posted. In future quarterly reports these revenues will be updated. While the annual budget was revised, in response to lower investment earnings since the onset of the pandemic, actual collections are potentially still going to be lower than in recent years.

• Local Occupancy Tax (NCMLS): Funds from this portion of Occupancy Tax are used to offset debt service related to NCMLS capital projects. The pandemic affected all Occupancy Tax including the portion dedicated to NCMLS. While in FY 2020-21, no funds were collected for this dedicated revenue, it is anticipated that the budget will be met and possibly surpassed to include the full $500,000 as the hotel industry continues to recover.

• Transfer from Other Funds: The majority of transfers from other funds does not occur until Finance completes the end of fiscal year processes as a part of the fourth quarter of a fiscal year. All transfers will occur by the end of the fiscal year.

 Agency specific revenue items with red indicator include: 

EXPENDITURE SUMMARY 

• Register of Deeds: The Register of Deeds Office is in the process of installing a new computer system and is paying for it out of its Automation cost center budget. The department purchased cash drawers, label printers and receipt printers in the second quarter. The new system has a “Go-Live” date of May 16, 2022. Otherwise, overall ROD actual spending is on pace with budget.

• Human Resources: Due to the Covid-19 pandemic, all individuals who enter County facilities must pass through a screening process. The cost for the screening is in Human Resources’ budget leading to a higher-than-normal percentage expenditure over the four-year average. Other operating expenditures in Human Resources are trending normal and end of year projections are expected to be within or under budget.

• Other Transportation: The entire annual amount of GoTriangle grant funding ($196,100) used to support ACCESS transit services was encumbered in the first quarter. That encumbrance will be expended over the course of the FY 2021-22 fiscal year to pay Durham City invoices. Also, the area may appear to be trending higher in current year spending because the ACCESS fund center and one FTE were moved to “Other Transportation” beginning in FY 2021-22, and thus the previous four-year comparison is no longer valid. There is no concern for overspending in this area.

• Engineering & Environmental Services: More than $161K of Stormwater personnel expenditures were incorrectly charged to Engineering & Environmental Services department. The Stormwater fund center was originally created under the umbrella of the Engineering & Environmental Services Department, but currently has its own separate fund (5005500000) and fund center. Budget is working with Finance to journal voucher the charges to their correct location, and there is no concern that the Engineering & Environmental Services department will over-expend its budget this fiscal year.

• Cooperative Extension Service: The Covid-19 Pandemic exacerbated food security issues in Durham County. To combat the rise in food insecurity, the County has contracted out with local businesses such as Beyu Café and Farmer Foodshare to prepare fresh cooked meals or produce boxes that are delivered to food insecure families in Durham County. These Covid related contracts account for the increase in overall expenditures for Cooperative Extension in the second quarter by roughly $500,000. This in addition to an increase in food security expenditures in the first quarter by $700,000+. Expenditures for Cooperative Extension will likely remain higher than average as emergency food security funding continues to be approved for Durham County residents, but the overall budget is not expected to be exceeded.

• Soil and Water Conservation: Soil and Water exceeded its second quarter Contracted Services budget of roughly $108K because there was a delay rolling FY 2020-21 unspent Southern Sustainability Community Grant funding into the FY 2021-22 budget, and the department used available Contracted Services budget to meet first and second quarter grant deliverables. The FY 2020-21 grant funding was eventually rolled over and budgeted in Soil and Water in early January, and the department should not exceed its FY 2021-22 Contracted Services budget.

• Economic Development: The office this year has instituted process improvements that have resulted in more timely invoicing, standardized document submission, and payment issuances that are closer to the annual invoice date than previous fiscal years. Consequently, some payments are occurring earlier in the fiscal year than the past. As this schedule of payment becomes more routine, spending deviations are anticipated to even out. Additionally, a one-time, pass-through payment was processed in the first quarter, as well as a payment issuance that was initially budgeted in FY 2020-21 but rendered in FY 2021-22.

• Social Services: The Emergency Rental Assistance Program, assisting Durham County residents with monthly rent payments and preventing evictions caused by the Covid-19 pandemic, has increased Social Services expenditures by over $10 million and the entirety of the ERAP budget has been spent by the second quarter of the fiscal year. Social Services expenditures are likely to continue to be higher than average as more ERAP funding will be recognized in the 3rd quarter of the fiscal year. DSS is not expected to overspend by the end of the fiscal year.

• Other Human Services: Due to the Covid-19 Pandemic the County has funded emergency shelters to prevent and stop the spread of Covid within the unhoused population. Both an encumbrance and actual payments within the second quarter have been processed to pay for this endeavor, making the current year spending percentage higher than normal. Additionally, Durham Access Transportation was moved from this business area to the Transportation business area, and inadvertently charges meant for the transportation business area have been charged to this business area. The business area will not be overspent at the end of FY 2021-22.

• Other Education: Pre-K fund center expenditures are higher than the 4-year average as both first and second quarter monthly payments were processed in the second quarter of the fiscal year. The increased expenditures are only temporarily skewed as third quarter payments have been processed in a timely manner. Additionally, the Early Childhood fund center began planning the Early Childhood Action Plan (ECAP) in the first quarter of the fiscal year. The majority of the one-time expenditures for ECAP were processed in the second quarter temporarily skewing the expenditures for the business area. This business area is not expected to overspend by the end of FY 2021-22.