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BACKGROUND
<br /> Annually staff recommends City Council approval of a year -end financial report
<br /> (Report). The Report summarizes the actual results of the financial activities for the
<br /> fiscal year; summarizes the budget activity and details any carryovers of outstanding
<br /> purchase orders, contracts and obligations (Carryovers); and details the changes in
<br /> reserves, required budget amendments or adjustments. The City's Comprehensive
<br /> Annual Financial Report (CAFR) is still in progress; therefore, the financial information
<br /> included in this Report is based on unaudited figures. The audited information will be
<br /> presented to City Council in the CAFR once the City's independent auditor has issued
<br /> its opinion and the CAFR has been accepted by the Audit Committee. All of this is
<br /> expected to occur in January 2011. Any changes in the information presented in this
<br /> Report as a result of the audit will be brought to Council's attention at the time the audit
<br /> is presented to Council for their acceptance in January.
<br /> DISCUSSION
<br /> General Fund
<br /> In 2009/10FY actual revenues received were greater than the Amended Budget. The
<br /> Amended Budget is the original budget plus all budget amendments approved by
<br /> Council through the Third Quarter Report (approved May 4, 2010) and the Midterm
<br /> Budget Review (approved June 1, 2010) and the budget amendments to be approved
<br /> as presented in this Report. Net transfers, expenditures and Carryovers were less than
<br /> the Amended Budget resulting in an ending fund balance of $25,897,267, or a variance
<br /> of $2,622,604 as shown in Table 1.
<br /> Table 1. General Fund Amended Budget to Actual Revenues, Expenditures & Transfers
<br /> Amended % Actual vs
<br /> Budget Actual Variance Budget
<br /> Beginning Fund Balance $ 25,288,896 $ 25,288,896 $ -
<br /> Plus Revenues $ 83,171,517 $ 85,232,868 $ 2,061,351 2.5%
<br /> Transfers In $ 1,714,156 $ 1,714,156
<br /> Transfers Out $ 1,103,269 $ 1,826,680 $ 723,411 65.6%
<br /> Less Expenditures $ 85,796,637 $ 84,511,973 $ 1,284,664 -1.5%
<br /> Ending Fund Balance $ 23,274,663 $ 25,897,267 $ 2,622,604 11.3%
<br /> Table 2 presents the proposed changes to the General Fund Reserves.
<br /> Table 2. General Fund — Fund Balance Reserve Designations
<br /> General Fund - Fund Balance Fund Balance Recommended Recommended
<br /> Reserve Designations Reserves Changes to Reserves Fund Balance Reserves
<br /> Reserve for Carryovers $ 2,014,233 $ 641,229 $ 2,655,462
<br /> 10% Reserve for Economic Uncertainties $ 8,320,000 $ 203,287 $ 8,523,287
<br /> Reserve for Golf Debt Service $ 2,000,000 $ 2,000,000
<br /> Temporary Recession Reserve $ 10,940,430 $ 1,778,088 $ 12,718,518
<br /> Total $ 23,274,663 $ 2,622,604 $ 25,897,267
<br /> General Fund Revenues. Actual General Fund revenues were greater than the budget
<br /> estimates by $2,061,351 for a variance of 2.5 %. Table 3 presents the major revenue
<br /> categories with a comparison of the Amended Budget versus actual revenues and the
<br /> variance to the Amended Budget both in terms of dollars and percentage.
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