| Attached is the City of Ashland financial report for the
fiscal year ended September 30, 2003. This report includes:
1. Summary of Cash and Investments as of September 30 for the last two years
(page 1)
2. Combined Statement of Financial Position (page 2)
3. Schedule of Revenues by Fund (page 3)
4. Schedule of Budgetary Compliance per Resolution #2003-21 (pages 4-7)
The reports are intended to present information in formats consistent with
the department, fund and business activity presentations included in the
adopted FY 2003-2004 budget document and the manner in which it will be shown
in the end of year report.
Financial numbers for the first quarter are always difficult to present and
subject to change as the Finance Department is busy completing the prior
year audit and report. Additionally, with only 3 months to report on, it
becomes difficult to evaluate our current financial position as compared
to budget or to project our position at year end. The first quarter numbers
can be confusing due to the receipt or payment of annualized amounts and
seasonal activities like construction or utility consumption. Staff cannot
adjust these reports for all such deviations.
A pervasive issue is the health care premium for FY 2003-04 coming in at
a 24% increase rather than 20% as budgeted. This will result in total Personal
Services costing an additional 0.5% this year. We will watch this closely,
looking for savings in vacant positions or other line items coming in under
budget as an offset.
The numbers presented are unaudited and unadjusted.
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 $5.8 million dollars between
years. Half of that amount was recorded in the first three months of this
year representing project costs and initial payments on some annual contracts.
Note that Water Fund cash has grown due to summer sales while Electric Fund
cash has lagged awaiting colder weather and higher bills with winter.
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. The
Ending Fund Balance is $16.6 million, nearly $5.0 million more than budgeted
but $4.5 million less than existed last year at this time.
Revenues and Budgetary Resources at September 30, 2003 total $24,949,355
as compared to total year-to-date requirements of $26,369,622 which results
in a $1.4 million decrease to Unappropriated Ending Fund Balance. This is
$6.5 million better than the City's budget which included a $7.9 million
reduction in ending fund balance.
On a city-wide basis Licenses and Permits, Charges for Services, Systems
Development Charges, Assessment Payments and Miscellaneous Revenues exceed
the prorated 25% mark for ¼ year of activity. Shortfalls can be seen
in Taxes, Intergovernmental Revenues and interest related to a difference
in the timing of those revenues or less earning opportunities on monies to
invest.
Budgetary Resources including operational loans and transfers have been recorded
as necessary.
Total Requirements are above budget showing a 35% level. Personal
Services is 24% indicating nearly full employment per the budget but actually
representing slightly higher health benefit costs and over time work eating
into monies being saved due to vacant positions.
Materials & Services and Capital Outlay are below the 25% mark but Budgetary
Requirements follow Budgetary Resources at being over 90% for Loans and 78%
for Transfers completed in the first quarter.
Total Contingency of $1,718,000 remains unused.
The Schedule of Revenues by Fund provides an overview of all resources
year-to-date. In most cases, collections exceeded budget however, variations
due to construction and related financing and transfers can affect these
percentages and consistency between years. Adjustments related to end-of-year
entries account for some "negative' revenues that will be researched and
resolved by the next quarterly report.
Funds relying on tax revenues or reimbursements from state or federal programs
show revenue percentages well below the 25% mark.
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. At this point, no
budget adjustments have occurred.
With each report, Staff attempts to include all material transactions possible
that have occurred through the cut off date to provide accurate information.
Throughout the year, Staff reviews accounts and transactions on varying schedules
to ensure proper coding and activity as it compares to what is budgeted.
This can cause adjustments to the listed accounts before the year's end and
what is included in comprehensive annual report.
General Fund - Total expenditures are 23% with no Contingency used.
CDBG Fund - Expenditures are only 1.8% of budget but Personal Services
slightly ahead of 25%. A reimbursement request has been prepared to resolve
the negative numbers.
Street Fund - All expenditures categories below budget with a total
expended of 18%.
Airport Fund - Material & Services expenditures are at 30% which
includes premium payments for the year.
Capital Improvements Fund - Expenditures are at 59% with Materials
& Services over budget. Staff is reviewing to see what corrections or
budget adjustments are required for the projects still in process. A supplemental
budget will be needed for revenues generated by sale of two parcels.
Debt Service Fund - Expenditures are consistent with timing of payments
and budgeted activity at 10%.
Water Fund - Total fund expenditures are 42% Most divisions are below
the quarter mark of 25% but Debt Serve and Interfund Loans are near complete
for the year raising the overall average.
Wastewater Fund - Similar to the Water Fund, the Wastewater Fund overall
percentage expended is high at 51% with most divisions below 25% but Interfund
Loans being nearly complete at 98% raising the average. Treatment Division
is at 30% and may require adjusting.
Electric Fund - Total expenditures are near the 25% average with Debt
Service nearly complete for the year and the Supply Division at 29%.
Telecommunications Fund - Expenditures are at 74% due to Debt Service
for the year being near completion. Operations is slightly above the ¼
mark for the year due to additional staff for sales and service installation
.
Central Services Fund - Expenditures for all divisions are below the
25% mark.
Insurance Services Fund - Material & Services are 50% of budget,
consistent with activity given the annual premiums paid in the first quarter.
Equipment Fund - Personal Services and Material & Services are
a little high at the quarter but consistent with operations and costs to
date.
Cemetery Trust Fund - Transfers are consistent with activity and below
budget.
Parks and Recreation Fund - Expenditures are consistent with activity
at 23% and no Contingency used.
Ashland Youth activities Levy Fund - Expenditures are consistent with
budget.
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. |
