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Cemetery Fund As shown in Table 10 below, the Cemetery Fund ended the year with a fund balance of $708,374 which is $23,277 less than anticipated in the Mid -year budget due to actual revenues less than the budget by $4,858 and actual expenditures more than the budget by $18,419. Revenues are derived from burial plot sales and expenditures are primarily related to burials, both of which are challenging to predict. The General Fund budget includes a transfer -out of $50,000 to the Cemetery Fund. Table 10. Cemetery Fund— Amended Budget vs. Actual Internal Service Funds Internal Service Funds account for the financing of goods or services provided by a department to other departments on a cost -reimbursement basis. Three examples of this are the Retirees Medical Reserve Fund, the Repair and Replacement Fund and the Self Insurance Fund. These funds not only account for current year expenditures but also long-term liabilities of the City. These liabilities may not result in actual expenditures in the short term but will result in future expenditures for the replacement of equipment or the payment in the future of employee retirement, medical benefits and unused vacation. In accordance with the City's adopted financial policies and the City's General Plan, the City recognizes costs as they accrue, and sets money aside to fund the future expenditures, rather than allowing these costs to accumulate and become a future financial burden. Retirees Medical Reserve Fund. The FY 2020/21 actual revenues and expenditures reflect the 2019 OPEB actuarial study recommendations and actual retiree medical payments. As shown in Table 11 below, actual revenues are $2.5 million less than budget due to reduced actual expenses and to reduce the fund balance to zero. The Retirees Medical Reserve Fund does not require a fund balance. Actual expenditures are $1.2 million less than budgeted, which is related to unused retiree medical benefits that occur when eligible retirees have their medical benefits provided through another means such as a spouse or another job. Page 11 of 14 FY 2020121 FY 2020121 Cemetery Operations Revised Actual Variance Variance % Beginning Balance, July 1 $677,444 $677,444 $0 0.0% Revenues 243,500 238,642 (4,858) -2.0% Expenses (239,293) (257,713) (18,419) 7.7% Net 4,207 (19,070) (23,277) -553.3% Transfer In - General Fund subsidy 50,000 50,000 0 0.0% Net Income $54,207 $30,930 ($23,277) -42.9% Ending Balance, June 30 $731,651 1 $708,374 ($23,277) -3.2% Internal Service Funds Internal Service Funds account for the financing of goods or services provided by a department to other departments on a cost -reimbursement basis. Three examples of this are the Retirees Medical Reserve Fund, the Repair and Replacement Fund and the Self Insurance Fund. These funds not only account for current year expenditures but also long-term liabilities of the City. These liabilities may not result in actual expenditures in the short term but will result in future expenditures for the replacement of equipment or the payment in the future of employee retirement, medical benefits and unused vacation. In accordance with the City's adopted financial policies and the City's General Plan, the City recognizes costs as they accrue, and sets money aside to fund the future expenditures, rather than allowing these costs to accumulate and become a future financial burden. Retirees Medical Reserve Fund. The FY 2020/21 actual revenues and expenditures reflect the 2019 OPEB actuarial study recommendations and actual retiree medical payments. As shown in Table 11 below, actual revenues are $2.5 million less than budget due to reduced actual expenses and to reduce the fund balance to zero. The Retirees Medical Reserve Fund does not require a fund balance. Actual expenditures are $1.2 million less than budgeted, which is related to unused retiree medical benefits that occur when eligible retirees have their medical benefits provided through another means such as a spouse or another job. Page 11 of 14