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Item 6C Fiscal Year 2002-2003 Year End Financial Reoort (Ooerafin~ Budeet only). (SR 03:289) Ms. McKeehan informed Council that the City had received an Award of Excellence for the City's Comprehensive Annual Financial Report (CAFR). She pointed out that the City is in compliance with GASBY 34, which is a new method of detailing the assets of the City. Sue Rossi, Finance Director, presented the staffreport. In response to an inquiry by Councilmember Campbell, Ms. Rossi clarified that actual revenues exceeded projections by about $700,000, but included in that were one time revenues of about a million and a half dollars. So in essence, if there had been no one-time revenues, the revenues would have come in under the pwjections by about $800,000. In response to an inquiry by Councilmamber Ayala, Ms. Rossi noted that these particular one-time revenues received would not be repeated. One is an accounting adjuslment that reflects a change in the timing of when the last quarter sales tax was recognized and the another adjustment was money that was misallocated by the sales tax auditor over a ten-year period, which resulted in a lump sum of about $800,000. Councilmember Brozosky asked if the one-time adjustments were placed in the General Fund or the CIP reserve. Ms. Rossi noted that the one-time adjustments were General Fund revenues. She pointed out that staff tries to be careful in not counting on these revenues being ongoing, and noted that we are using them for one-time things, such as a recommendation that the surplus go into the Temporary Recession Reserve. In response to an inquiry by Mr. Bmzosky, Ms. Rossi stated that the amount of growth for sales tax m'mns the one-time adjustment would have been flat. She noted that there has been little growth for the past several years. Staffhas not analyzed the results for the current quarter, but it looks like the City has realized a growth that has not been seen in awhile, which is about five percent. Since these were one-time adjustments, Couneilmember Bmzosky wondered if the sales tax that was projected on the previous year had incorrectly been given to the City. For the large adjustment that spans 10 years, Ms. Rossi noted that the amount was reflected under prior years and is not currently reflected, as she did not know how to distribute this over the 10 years. The accounting adjustment is reflected in this year, Pleasant City Council 7 10/21/03 Minutes