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BACKGROUND
<br />Annually staff recommends City Council approval of a year-end financial report summarizing
<br />budget activity and detailing any carryovers, changes in reserves, required budget amendments
<br />or adjustments, etc. Because the City's financial audit is still in progress, financial information
<br />included in this report is based on un-audited figures. The audited information will be presented
<br />to City Council in the Comprehensive Annual Financial Report (CAFR) once the City's
<br />independent auditor has issued its opinion on the report and it has been accepted by the Audit
<br />Committee.
<br />DISCUSSION
<br />GENERAL FUND
<br />General Fund Financial Condition. Revenues were below revised budget estimates by
<br />$25,907 (0.03% variance), net transfers were $404 higher than the budget estimate, and
<br />expenditures were $3.1 million less than the budget estimate. The combination of these factors
<br />produced a $736,050 decrease in fund balance, as opposed to reducing fund balance by $3.8
<br />million as contemplated in the adjusted budget, resulting in an overall variance of $3.1 million.
<br />Table 7. General Fund Budget to Actual Revenues. Expenditures & Transfers
<br />
<br />Beginning Fund Balance 26,023,778 26,023,778 -
<br />Plus Revenues 94,170,703 94,144,796 (25,907)
<br />Less Net Transfers (7,323,230) (7,322,826) 404
<br />Less Expenditures (90,706,106) (87,558,020) 3,148,086
<br />Ending Fund Balance 22,165,145 25,287,728 3,122,583
<br />Change in Fund Balance (3,858,633) (736,050) 3,122,583
<br />Staff is recommending that the variance ($3.1 million) be used as reflected in the table below as
<br />Recommended Additions to Reserves.
<br />Table 2. General Fund -Fund Balance Reserve
<br />;rve for Carryovers 3,608,633 (2,008,633) 1,310,377 2,910,377
<br />Reserve for Economic
<br />~rtainties 9,260,000 150,000 - 9,410,000
<br />tal Projects Reserve 5,000,000 (2,000,000) - 3,000,000
<br />~rve for Golf Debt Service 2,000,000 - - 2,000,000
<br />porary Recession Reserve 6,100,000 - 1,800,000 7,900,000
<br />~rve for Inventories 55,144 - 12,205 67,349
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