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#5 Financial Statement for March 2010ACCOUNTING DIVISION MEMORANDUM April 16, 2010 TO: City Council FROM: Patty Lynch, Comptroller SUBJECT: Financial Statement for the Month of March 2010 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. Year-To-Date March ExpendituresCompared to Three-Year Average Current YTD 3 Yr. Avg. 35% 30% Percent of Total Budget 25% 20% 15% 10% 5% 0% General FundWater -Wastewater - OperatingOperatingSanitation March 2010 Financial Statement April 16, 2010 Page 2 REVENUE SUMMARY The graph below indicates revenue has been earned as anticipated, although the Sanitation fund continues to lag compared to it’s budgeted revenue. Year-To-Date March RevenuesCompared to Three-Year Average Current YTD 3 Yr. Avg. 45% 40% Percent of Total Budget 35% 30% 25% 20% 15% 10% 5% 0% General FundWaterWastewaterSanitation Other items of interest in the Financial Statement are as follows: Proprietary Funds (page 4) ? The Stormwater Utility has a deficit operating cash balance of $502,916 at March 31, 2010. This is because revenue is billed on a quarterly basis (approximately $518,000) after expenditures have been made. ? Transit reports a negative cash balance of $534,924 due to the timing of grant reimbursements. Special Revenue Fund Balance (page 5) ? The Golf Courses fund has a negative fund balance of $69,982. This is due to the January transfer of its debt service payment ($53,803) to the debt service fund. ? TIF 3 has a positive balance of $244,631. The positive balance will be used to repay the general fund advance plus accrued interest. ? At March 31, 2010, the TIF districts have a combined deficit fund balance of $694,909. However, TIF projections indicate the districts will reach a positive fund balance before they expire. ? Landfill long-term care of site #3023 ($79,249) will be reimbursed by an insurance March 2010 Financial Statement April 16, 2010 Page 3 policy we have in place for post closure care. Capital Projects Fund (page 6) ? 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. General Fund (page 7-10) ? Snow removal budget has an unexpended balance of $404,339 at March 31, 2010 compared to an unexpended balance of $191,662 at March 31, 2009. A representative of the Administrative Services Department will be available at the Council Meeting on April 26, 2010 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/Assistant City Manager Eric J. Levitt, City Manager