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BACKGROUND
<br /> Annually staff recommends City Council approval of a year -end financial report
<br /> summarizing budget activity and detailing any carryovers, changes in reserves, required
<br /> budget amendments or adjustments, etc. Because the City's financial audit is still in
<br /> progress, financial information included in this report is based on un- audited figures.
<br /> The audited information will be presented to City Council in the Comprehensive Annual
<br /> Financial Report (CAFR) once the City's independent auditor has issued its opinion on
<br /> the report and it has been accepted by the Audit Committee.
<br /> DISCUSSION
<br /> GENERAL FUND
<br /> General Fund Financial Condition. Actual 2008 -09 revenues were less than adjusted
<br /> budget estimates by $143,752 (0.16% variance), net transfers were $8,329 higher than
<br /> the budget estimates, and expenditures were $3,473,626 less than budget estimates
<br /> resulting in a positive net variance of $3,321,545. The results of General Fund financial
<br /> operations for the 2008 -09 fiscal year were that actual revenues exceeded actual
<br /> expenditures producing a surplus of $1,169.
<br /> Table 1. General Fund Bud !et to Actual Revenues, Ex enditures Transfers
<br /> '/o Actual vs
<br /> General Fund Budget Actual Variance Budget
<br /> Beginning Fund Balance 25,287,727 25,287,727
<br /> Plus Revenues 90,078,825 89,935,073 (143,752) -0.16%
<br /> Less Net Transfers (4,679,871) (4,688,200) (8,329) 0.18%
<br /> Less Expenditures (88,719,330) (85,245,704 3,473,626 -3.92%
<br /> Endin• Fund Balance 21,967,351 25,288,896 3,321,545
<br /> Change in Fund Balance (3,320,376) 1,169 3,321,545
<br /> Staff is recommending that the variance $3,321,545 be used as reflected in the
<br /> following table in the column labeled Recommended Changes to Reserves. The change
<br /> to reserves involves the addition of $3,398,894 to the Reserve for Carryovers by
<br /> utilizing the $3,321,545 overall positive budget variance, the $10,000 reduction in the
<br /> 10% Reserve for Economic Uncertainties, and $67,349 gained from an accounting
<br /> change in the Reserve for Inventories.
<br /> Table 2. General Fund Fund Balance Reserve Desi• nations
<br /> General Fund Fund Balance Reserve Beginning Fund Changes Approved in Recommended
<br /> Designations Balance Budget Changes to Reserves Ending Fund Balance
<br /> Reserve for Carryovers 2,910,377 (2,910,377) 3,398,894 3,398,894
<br /> 10% Reserve for Economic
<br /> Uncertainties 9,410,000 (410,000) (10,000) 8,990,000
<br /> Capital Projects Reserve 3,000,000 (3,000,000)
<br /> Reserve for Golf Debt Service 2,000,000 2,000,000
<br /> Temporary Recession Reserve 7,900,000 3,000,000 10,900,000
<br /> Reserve for Inventories 67,349 (67,349)
<br /> Total 25,287,726 (3,320,377) 3,321,545 25,288,894
<br /> Based on the above, staff is recommending the reserve for carryover be designated for
<br /> the following purposes:
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