#6 Financial statement for July 2009ACCOUNTING DIVISION MEMORANDUM
August 17, 2009
TO: City Council
FROM: Patty Lynch, Comptroller
SUBJECT: Financial Statement for the Month of July 2009
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 Baker Tilly Virchow Krause, 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 Fund. 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. Sanitation is
under budget trends due to the reduced volume of refuse at the landfill.
Year-To-Date July ExpendituresCompared to Three-Year Average
Current YTD3 Yr. Avg.
70%
60%
Percent of Total Budget
50%
40%
30%
20%
10%
0%
General FundWater -Wastewater -
OperatingOperatingSanitation
July 2009 Financial Statement
August 17, 2009 Page 2
REVENUE SUMMARY
The graph below indicates General Fund and Wastewater revenue has been earned as
anticipated. Water is under trend due to the delayed implementation of the rate increase.
Sanitation fund is below trend due to decreased tonnage of waste collected at the landfill.
Year-To-Date July RevenuesCompared to Three-Year Average
Current YTD3 Yr. Avg.
90%
80%
Percent of Total Budget
70%
60%
50%
40%
30%
20%
10%
0%
General FundWaterWastewaterSanitation
Other items of interest in the Financial Statement are as follows:
Proprietary Funds (page 4)
?
Stormwater Utility—The Stormwater Utility has a deficit operating cash balance of
$396,073 at July 31, 2009. This is because revenue is billed on a quarterly basis
(Approximately $483,450) after expenditures have been made.
?
Transit System—Transit reports a negative cash balance of $620,285 due to the timing
of grant reimbursements.
Special Revenue Fund Balance (page 5)
?
The Golf Courses fund has a negative fund balance of $32,390. This is due to the
January transfer of its debt service payment ($96,764) to the debt service fund.
?
TIF 3 has a positive balance of $285,977. The positive balance will be used to repay
the general fund advance (plus accrued interest.)
?
At June 30, 2009, the TIF districts have a combined deficit fund balance of $1,010,985.
However, TIF projections indicate the districts will reach a positive fund balance before
they expire. TIF districts received revenue from State computer value reimbursement of
July 2009 Financial Statement
August 17, 2009 Page 3
$183,791 in July.
?
Landfill long-term care of site #3023 ($125,334) will be reimbursed by an insurance
policy we have in place for post closure care.
Capital Projects Fund (page 6)
?
The Riverfront Property Acquisition account has a deficit balance of $249,487 primarily
due to the purchase of the Westphal and Energetics properties. Funding will be
provided by a Janesville Foundation Riverfront Reclamation Grant.
?
The Reuther Way Project has a deficit balance of $51,820 at July 31, 2009. It is
anticipated funding will be provided with 2009 General Obligation note issue.
?
The City incurred expenditures in conjunction with road projects on Highway 11 from
Wright Road to Highway 14 ($186,799). These costs will be funded with future special
assessments or General Obligation note issue.
?
Landfill Construction- Phase 2 has a negative balance of $290,319. This project will be
funded with the 2009 General Obligation note issue.
General Fund Capital Projects Fund (pages 7-10)
?
A portion of State shared revenue, $1,606,246, was received in July.
?
State highway aids of $653,538 were received in July.
?
State aid for computer value reimbursement of $121,776 was received for the general
fund in July.
A representative of the Administrative Services Department will be available at the Council
Meeting on August 24 to respond to any questions Council may have relative to these
reports. Once Council is satisfied, acceptance of the Financial Statement by consent and
placing them on file would be in order.
/Attachments
cc: Jacob J, Winzenz, Director of Administrative Services
Eric J. Levitt, City Manager