Consent #5 Financial Statement
Su SUMMARY
ADMINISTRATIVE SERVICES MEMORANDUM
ADMINISTRATIVE SERVICES MEMORANDUM
May 25, 2007
TO: Steven E. Sheiffer, City Manager
FROM: Herb Stinski, Assistant City Manager/Director of Administrative Services
SUBJECT: Financial Statement for the Month of April 2007
The City prepares its Financial Statements in accordance with generally accepted accounting
principals using the modified accrual method of accounting and is audited annually by Virchow,
Krause & Company, LLP. We prepare interim financial statements for the Council’s review on a
monthly basis. Division and Department Heads are responsible for monetary expenditures to ensure
budget compliance. Revenues and expenditures are projected to year-end in June and September.
Key operating funds include the General Fund, Water and Wastewater Utilities, and Sanitation. A
summary of their performance to budget, as compared a three-year average, is presented in the
following graphs.
EXPENDITURE SUMMARY
The graph below indicates expenditures are being made according to budget.
Year-To-Date April Expenditures Compared to Three-Year Average
Current YTD
3 Yr. Avg.
45%
Percent of Total Budget
40%
35%
30%
25%
20%
15%
10%
5%
0%
WaterWastewater
General- Operating- OperatingSanitation
Fund
April 2007 Financial Statement
May 23, 2007 Page 2
REVENUE SUMMARY
The graph below indicates revenue has been earned as anticipated. Landfill revenue is exceeding
budget due to increased tonnage received at the Landfill.
Year-To-Date April Revenues Compared to Three-Year Average
Current YTD
3 Yr. Avg.
50%
45%
Percent of Total Budget
40%
35%
30%
25%
20%
15%
10%
5%
0%
GeneralWaterWastewaterSanitation
Fund
Other items of interest in the Financial Statement are as follows:
Balance Sheet (pages 1 & 2)
?
Storm Water utility has a negative operating cash balance of $191,247 at April 30, 2007. This is
because revenue is billed on a quarterly basis (approx. $335,000), after expenditures have been
made.
?
Transit reports a negative cash balance of $819,640 at April 30, 2007. This is caused by grant
requirements that we expend funds before we can request reimbursement. There was an additional
one-month delay by the State in the calculation of the 2007 Operating Assistance, and the first
quarter funding of $164,894 was not received until May 7, 2007.
?
Governmental fund capital assets reported on the balance sheet include the City’s infrastructure
(such as streets, sidewalks, bridges) and accumulated depreciation.
?
The proprietary funds show net assets instead of retained earnings. Net assets are simply assets
less liabilities. Net assets have three main categories. The largest category represents the sizable
investment the city has is its capital assets. This portion is shown as invested in capital assets, net
of related debt to indicate that this amount is really not available for other purposes. The second
category is restricted for legal purposes (grants or debt proceeds), any remaining balance is
unrestricted.
April 2007 Financial Statement
May 23, 2007 Page 3
Proprietary Funds (page 4)
?
Water Utility reports a loss before Capital Contributions of $109,759 at April 30, 2007. In the
first four months of 2007, there were an unprecedented number of main breaks (75 compared to a
3-year average of 35). In addition, the revenue trend is also below the budgeted level. This is
caused by the timing of revenue recognition in conjunction with the water rate increase. A 12%
rate increase implemented on February 15, 2007, but the meter reads and billings lag behind.
?
The Insurance fund net operating loss at 4/30/07 results from timing of insurance premium
payments and the recovery of these charges from other funds during the course of the year.
Special Revenue Fund Balance (page 5)
?
The Golf Courses fund has a negative fund balance of $95,984 at 4/30/07. This is due to the
January transfer of its debt service payment ($97,675) to the debt service fund.
?
TIF 3 has a positive balance of $363,035 at 4/30/07. The positive balance will be used to repay
the general fund advance of $1.3 million. This advance will be repaid over the next 5 years from
increment generated from TIF #3 as well as shared increments.
?
At April 30, 2007, the TIF districts have a combined deficit fund balance of $1,150,293.
However, the TIF projections indicate they will reach a positive fund balance before the TIF
districts expire.
?
Brownfield-Riverside account has a negative balance of $87,526. These costs are for the
demolition and site clean up of the Riverside Plating at 1623 Beloit Avenue. These costs will be
reimbursed by a WI DNR Brownfield Grant.
Construction Fund Balance (page 6)
?
The Reuther Way project has a deficit balance of $87,307 at 04/30/07. It is anticipated funding
will be provided with the sale of the former Casey property.
?
The City had incurred expenditures in conjunction with road projects on Highway 11 from Wright
Road to Hwy 14 ($180,041). These costs will be funded with future special assessments.
?
The road project on Centerway-Court St to Parker Dr shows a negative balance of $111,801.
These costs are for land/right-of-way acquisitions that will be reimbursed by the State of
Wisconsin.
?
New Landfill construction has a negative balance of $50,294. Proposed funding will be provided
by general obligation note issues in 2007.
?
East Court Street reconstruction ($52,304) is the local share of this State road project. Funding
will be provided with the 2007 general obligation note issue.
General Fund (pages 7 & 8)
?
The Snow Removal Budget is over expended by $101,790 at 04/30/07.
A representative of the Administration Department will be available at the Council Meeting on May
29th to respond to any questions Council may have relative to these reports. Once Council is
satisfied, approval of the Financial Statement by consent and placing them on file would be in order.
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