Finance Committee - 4/4/2018 Page 4
sheet and that $28.3 represents approximately 10.8% - is a 10.8% of your General Fund Expenditures which is
a little bit more than the fund balance policy requires. Over on Page 37, you see the General Fund, | will call it
the Operating Statement that first column of numbers on Page 37. The key number here is also the third
number up from the bottom. Again, Page 37 shows a positive $2.6 million dollars, very simply inflows of
revenues exceeded the outflows of expenditures by about $2.6 million dollars. Now to understand the why of
how that happened really the best place to focus on is over two more pages into the document on Page 39,
which represents your General Fund Budget and Actual Statement. This isn’t going to tie out exactly to the
number we saw on Page 37, but it is going to get pretty close and the differences represent timing issues that
are all disclosed in the footnotes to your financial statements.
On Page 39 your General Fund Budget & Actual Comparative Schedule the column on the right, the variance
with the final budget, shows some positive and negative variances. About half-way down the page you see
total revenues and other sources with a positive balance of $5.3 million dollars. That essentially means your
revenue collections exceeded the budget by $5.3 the majority of that in the auto permits category. That $5.3 is
very consistent with the prior year as well. About two-thirds of the way down the page you see Total
Expenditures & Other Uses of about $1.4 million fairly consistent amongst the general government, public
safety, those types of categories. But overall, that $1.4 million in unspent appropriations that is significantly
higher than the prior year. The prior year that number was $42,000.00 and for FY17 it jumped up to about $1.4
million dollars. Now collectively those two add up to the number in the lower right hand corner of about $6.7 or
$6.8 million dollars. On my copy here right above that $6.7 | have the Use of Assigned Fund Balance of $3.6
million highlighted and that is because for Fiscal Year 17 the City chose to that $3.6 million from its fund
balance and apply it towards the FY17 Operating Budget. So it really is as if you planned on the outflows of
resources exceeding the inflows by that $3.6 million.
On this page to sort of tie it back in a little bit with your Operating Page which was Page 37, if one takes that
$6.8 million dollars and subtracts the use of your Unassigned Fund Balance of $3.6 you get a total of about
$3.1 million in positive operating results which is a lot closer to the $2.7 that you have on Page 37. The
footnotes to this and the reason for the differences really represents the timing of when encumbrances are
actually disbursed and when escrows are actually disbursed. They are considered the equivalent of
expenditure on Page 39 but not on Page 37. There are all sorts of note disclosures in your footnotes that tie
those things together. What | tried to do was take the budget and actual comparative schedule which is
probably one of the most readable financial pages in this entire document and reconcile it back to the GAAP or
Generally Accepted Accounting Principles Operating Statement.
Following that there are pages on your Enterprise Funds, both balance sheets, income statements and cash
flow schedules, a wealth of footnotes disclosures on basically every account balance that you would see on
these balance sheets is going to be disclosed. The cash position, the long-term debt position, the
amortization, how rapidly you are paying out your long-term debt as well as more pages than most readers
want to see on note disclosures on Net Pension Liability and some of the related accounts that go along with
the Net Pension Liability.
| failed to mention when we were talking about that | talked about how the liability went up significantly, well,
another asset also if that liability went up significantly an asset went up pretty much the same amount and the
impact of that will be amortized over a number of years. | can explain that a little bit more if the committee
would like. What | will do at this point in time, | Know there is a busy agenda, | will step back, sort of remind
about the Governance Letter where | indicated that our audit that went well, did not need to propose any
significant audit entries. There are no disagreements on how to apply Generally Accepted Accounting
Principles and of course we have talked a little about the estimates. With that, I’ll turn it back to the Mayor and
try to answer any question that the committee may have.
Mayor Donchess
Alright, are there any questions for Mr. Mclntire?
