| Attached is the City of Ashland financial report
for the six-month period ended December 31, 2002. The report includes:
1. Summary of Cash and Investments as of December 31 for the last
two years (page 1)
2. Combined Statement of Financial Position (page 2)
3. Schedule of Resources by Fund comparison for the last two years
(page 3)
4. Schedule of Budgetary Compliance per Resolution #2002-14 (pages
4 - 6)
The reports are intended to present interim information in summary
formats consistent with the information provided in the adopted FY 2002-2003
budget document and the manner in which it will be shown in the end of year
financial report.
Summary of Cash and Investments provides an understanding of changes
in the city's cash position across funds and investment types. Please note
that the city-wide cash balance has decreased $6.8 million dollars between
years. Several times during the year the City Recorder/Treasurer reports
to Council on investment activities, the distribution of investments and
trends.
The Combined Statement of Financial Position is similar to presentations
provided in the annual financial report. It is intended to provide the reader
an overall sense of the City's financial position at the present time. At
the half-way mark, Ending Fund Balance is $9.0 million over budget. Changes
in fund balance may not be a good indicator of where the City will be at
year's end due to seasonal influences on operations and revenue as well as
construction timelines.
Revenues and Budgetary Resources at December 31, 2002 total $38,301,889,
as compared to total year-to-date requirements of $41,750,361 which results
in a $3.4 million decrease to Unappropriated Ending Fund Balance. The City
budgeted $10.9 million more in requirements than resources and that would
reduce overall reserves for the ensuing year. Working Capital Carryover from
FY 2001-2002 was $25.2 million or 6.25% above the budgeted amount.
Taxes, Licenses and Permits and Assessment Payments are ahead of the
50% mark due to their increased collection activity in the first half of
the year.
Intergovernmental Revenues are low at this point since those revenues
are received later in the year. Interest earnings continue to be a smaller
portion of total revenue as compared to prior years. Budgetary Resources
including operational loans and transfers have been recorded as
necessary.
Total Requirements are in keeping with the first six months of activities
and requirements showing a 52.86% level. Personal Services is close to 50%
and staff will watch closely for overruns due to benefits and changes in
personnel for necessary adjustments. Debt Service, Interfund Loans and Operating
Transfers have schedules of their own that do not adhere to a straight pro-rata
(50%) measurement but are consistent with the budget. Necessary transfers
from Contingency will occur in the last half of the year but a substantial
portion of Contingency will be carried forward into the next year as part
of Resources.
The Schedule of Resources by Fund provides an overview of all resources
year-to-date as compared to the prior fiscal year. In most cases, collections
are ahead of FY 2002 however, variations due to construction and related
financing and transfers can affect these percentages and consistency between
years. Fund Balances carried forward into FY 2002-03 and recognized in July
account for most funds' resources posting a percentage above 50%.
The Schedule of Budgetary Compliance is intended to present expenditures
on a budget basis by fund consistent with the resolution adopting appropriation
levels in the budget compliance section of the document. It is presented
with a comparison to the prior year in an effort to help the reader to gage
consistency.
Seasonal and construction changes will affect the percentage spent
year-to-date but some assumptions can be applied providing a measure of
compliance on a budget basis. All things being equal, a 50% or lower level
of expenditure can be used to assess performance year-to-date. This information
helps to identify areas requiring further review and provides the basis for
projecting necessary transfers of appropriation or supplemental budgets prior
to June 30.
General Fund - Total expenditures are 46.75% with Grants, Band and
Transfers exceeding 50% as normal due to required activity.
CDBG Fund - Expenditures are consistent with activity.
Street Fund - Expenditures at 30% but a review and adjustment for
LID construction is scheduled.
Airport Fund - Expenditures are consistent with activity.
Capital Improvements Fund - Expenditures are at 69% of budget reflecting
significant capital project progress. An supplemental budget will be needed
to recognize the expedited construction schedule for the fire station.
Debt Service Fund - Expenditures are consistent with activity.
Water Fund - An expenditure adjustment is necessary for SDC Treatment
project costs not anticipated for this year. Debt service and Interfund Loans
cause the total expenditures to be at 60% of expenditures.
Wastewater Fund - Debt service and Interfund Loans cause the total
expenditures to be at 61% of expenditures.
Electric Fund - Division expenditures at or below 50% except Debt
service being compete for this year.
Telecommunications Fund - Expenses are consistent with the business
plan but budget will require an adjustment (supplemental) recognizing loan
proceeds from late last June that supports construction.
Central Services Fund - The Transfer to Parks for school grounds
maintenance is 100% complete. All departments are below 50% except Administration
that had added costs for the City Administrator recruitment. This will require
a transfer from Contingency.
Insurance Services Fund - Costs are ahead of the 50% mark but are
expected to end the year within budget.
Equipment Fund - Expenditures are consistent with activity.
Cemetery Trust Fund - Expenditures are consistent with activity. No
interfund loan this year.
Parks and Recreation Fund - Expenditures are consistent with
activity.
Ashland Youth activities Levy Fund - Expenditures are consistent with
activity.
Parks Capital Improvements Fund - Recorded Capital outlay well under
budget but consistent with activity.
Unaudited, detailed balance sheets, revenues and expenditure reports
and fund statements are available for your review in the Finance Department
office should you require any additional information.
This information, updated for preliminary December data and projections
to year end, are the basis for the supplemental budget and transfer of
appropriations currently under consideration for the March 4 meeting. |
