#5 Financial Statement for August, 2010ACCOUNTING DIVISION MEMORANDUM
September 17, 2010
TO: City Council
FROM: Patty Lynch, Comptroller
SUBJECT: Financial Statement for the Month of August 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 to 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 August ExpendituresCompared to Three-Year Average
Current YTD
3 Yr. Avg.
80%
70%
Percent of Total Budget
60%
50%
40%
30%
20%
10%
0%
General FundWater -Wastewater -
OperatingOperatingSanitation
REVENUE SUMMARY
The graph below indicates revenue has been earned as anticipated for the General Fund
and Wastewater Utility. The Water Utility sales revenue is under the budgeted level and
the Sanitation fund continues to lag compared to the budget trends.
August 2010 Financial Statement
September 17, 2010 Page 2
Year-To-Date August RevenuesCompared to Three-Year Average
Current YTD
3 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)
?
The Stormwater Utility has a deficit operating cash balance of $337,592 at August 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 $705,271 due to the timing of grant
reimbursements.
Special Revenue Fund Balance (page 5)
?
The Golf Courses fund has a negative fund balance of $28,723. This is due to the
January transfer of its debt service payment ($53,803) to the debt service fund, and
Riverside Golf Course tree damage ($43,938).
?
TIF 3 has a positive balance of $246,684. The positive balance will be used to repay
the general fund advance plus accrued interest.
?
At August 31, 2010, the TIF districts have a combined deficit fund balance of $838,975.
However, TIF projections indicate the districts will reach a positive fund balance before
they expire.
?
Landfill long-term care of site #3023 ($101,466) will be reimbursed by an insurance
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.
August 2010 Financial Statement
September 17, 2010 Page 3
A representative of the Administrative Services Department will be available at the Council
Meeting on September 27, 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