#5 Financial statements for January & February, 2011ACCOUNTING DIVISION MEMORANDUM
March 18, 2011
TO: City Council
FROM: Patty Lynch, Comptroller
SUBJECT: Financial Statement for the Months of January and February 2011
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 that the General Fund, Water Utility, and Wastewater Utility
expenditures are being made according to budget.
Year-To-Date February ExpendituresCompared to Three-Year Average
Current YTD
3 Yr. Avg.
30%
Percent of Total Budget
25%
20%
15%
10%
5%
0%
General FundWater -Wastewater -
OperatingOperatingSanitation
REVENUE SUMMARY
The graph below indicates revenue has been earned as anticipated.
January and February 2011 Financial Statements
March 17, 2011 Page 2
Year-To-Date February 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 Water Utility has a deficit operating cash balance of $1,697,672 at February 28,
2011. This is partly due to the timing of debt service payments. Principal and interest
totaling $2,310,795 was paid in February. Water sales being 14% below projections is
also a major factor. A simplified water rate increase is proposed to help fund the cash
deficit.
The Stormwater Utility has a deficit operating cash balance of $248,682 at February
28, 2011. This is because revenue is billed on a quarterly basis after expenditures
have been made.
Transit reports a negative cash balance of $429,205 due to the timing of grant
reimbursements after expenditure are made.
Special Revenue Fund Balance (page 5)
The Hedberg Public Library recognized property tax revenue of $3,207,919 in January.
TIF 3 has a positive balance of $162,529. The positive balance will be used to repay
the general fund advance plus accrued interest.
Landfill long-term care of site #3023 ($211,869) 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 ($186,800). These costs will be funded with future special
assessments or General Obligation note issue.
January and February 2011 Financial Statements
March 17, 2011 Page 3
General Fund (page 7)
Property tax revenue of $15,045,757 has been recognized for tax collections received
through January 31, 2011.
State Highway Aids of $657,142 were received in January.
A representative of the Administrative Services Department will be available at the Council
Meeting on March 28, 2011 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