#7 Financial statement for the month of September, 2011ACCOUNTING DIVISION MEMORANDUM
October 18, 2011
TO: City Council
FROM: Patty Lynch, Comptroller
SUBJECT: Financial Statement for the Month of September 2011
The City prepares its Financial Statements in accordance with generally accepted
accounting principles 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 expenditures are being made according to budget.
Year-To-Date September ExpendituresCompared to Three-Year Average
Current YTD
3 Yr. Avg.
90%
80%
Percent of Total Budget
70%
60%
50%
40%
30%
20%
10%
0%
General FundWater -Wastewater -
OperatingOperatingSanitation
September 2011 Financial Statements
October 18, 2011 Page 2
REVENUE SUMMARY
The graph below indicates revenue for the General Fund, Water Utility, and Wastewater
Utility has been earned as anticipated. Santiation revenue is below trend due to less
tonnage received at the landfill.
Year-To-Date September 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 Water Utility has a deficit operating cash balance of $1,851,240 at September
30, 2011. Water sales are 14% below projections. The 3% increase in water rates
effective May 11, 2011 was intended to partially address the cash deficit.
Transit reports a negative cash balance of $445,337 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 $163,948. 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.
Landfill long-term care of site #3023 ($70,804) will be reimbursed by an insurance
policy we have in place for post closure care.
Capital Projects Fund (page 6)
September 2011 Financial Statements
October 18, 2011 Page 3
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.
Many Capital Project accounts have deficit cash balance. The note proceeds from
the fall note sale will fund these projects.
General Fund (page 7 & 8)
Sale of City Property is over budget due to sale of land $523,800.
Miscellaneous revenue is over budget due to the dissolution of TIF 14 $427,121.
A representative of the Administrative Services Department will be available at the
Council Meeting on October 24, 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