#6 Financial Statement for May, 2011ACCOUNTING DIVISION MEMORANDUM
June 20, 2011
TO: City Council
FROM: Patty Lynch, Comptroller
SUBJECT: Financial Statement for the Month of May 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, are 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 May ExpendituresCompared to Three-Year Average
Current YTD
3 Yr. Avg.
50%
45%
Percent of Total Budget
40%
35%
30%
25%
20%
15%
10%
5%
0%
General FundWater -Wastewater -
OperatingOperatingSanitation
May 2011 Financial Statements
June 20, 2011 Page 2
REVENUE SUMMARY
The graph below indicates revenue for the General Fund and Wastewater Utility has been
earned as anticipated. The Water Utility revenue is below trend due to declining water
sales and the Santiation revenue is below trend due to less tonnage received at the
landfill.
Year-To-Date May RevenuesCompared to Three-Year Average
Current YTD
3 Yr. Avg.
50%
45%
Percent of Total Budget
40%
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 $1,743,038 at May 31, 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 14% below projections are also a major
factor. The 3% increase in water rates effective May 11, 2011 is intended to help fund
the cash deficit.
The Stormwater Utility has a deficit operating cash balance of $296,907 at May 31,
2011. This is because revenue is billed on a quarterly basis after expenditures have
been made.
Transit reports a negative cash balance of $900,979 due to the timing of grant
reimbursements after expenditures have been made.
Special Revenue Fund Balance (page 5)
TIF 3 has a positive balance of $162,379. The positive balance will be used to repay
the general fund advance plus accrued interest.
Many TIF funds have deficit cash balance, however TIF projections indicate that the
districts will reach a positive fund balance before the districts expire.
May 2011 Financial Statements
June 20, 2011 Page 3
Landfill long-term care of site #3023 ($144,788) 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 either future
special assessments or General Obligation note issue.
A representative of the Administrative Services Department will be available at the Council
Meeting on June 27, 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