| Attached is the City of Ashland financial report for the
quarter ended December 31, 2003. This 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 Revenues by Fund (page 3)
4. Schedule of Budgetary Compliance per Resolution #2003-42 (pages 4-7) This
resolution amended the adopting Resolution #2003-21
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 second quarter are more telling than those of the
first quarter and are the basis for preliminary estimates of the current
budget year and for the creation of the proposed budget for the following
year. At this time departments are reviewing operations and capital projects
to remain within budget, prepare for the construction season and projecting
how changes will impact the following budget.
Increased health care costs joined with overtime and other premium pay
requirements (such as employees temporarily working above normal pay grades)
and a near-full-staff level results in city personal service categories being
at or just above the 50% mark.
Some expenses like debt service, capital outlay, construction costs and
annualized expenses such as dues, grants and insurances do not follow an
even distribution of costs throughout the year. Thus, certain categories
that include such items may exceed 50% as of December 31 and not necessarily
represent a problem area.
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 $2.4 million dollars between
years, however cash balances increased $4.5 million in this quarter, primarily
due to receipt of property tax revenues.
Several funds reflect a negative balance and that is due to their "reimbursement"
nature where there is a length of time between billings for actual costs
and receipt of money from the agency billed. The Electric Fund is at a low
point in cash flow having moved through a period of higher costs for power
purchased and a lag in the receipt of related revenues.
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 $20.9 million, over $9.2 million more than budgeted,
$4.1 million over last quarter but $0.9 million less than existed last year
at this time.
Revenues and Budgetary Resources at December 31, 2003 total $43,407,539
as compared to total year-to-date requirements of $40,751,874 which results
in a $2.7 million increase to Unappropriated Ending Fund Balance. This is
$10.5 million better than the City's annual budget which included a $7.9
million reduction in ending fund balance. The increased amount is due to
the receipt of property tax revenue yet we still should come close to the
budgeted reduction by June 30.
On a city-wide basis Taxes, Systems Development Charges, Fines & Forfeitures,
Assessment Payments and Miscellaneous Revenues exceed the prorated 50% mark
for 1/2 year of activity. Small but acceptable shortfalls below the 50% mark
can be seen in Intergovernmental Revenues and Charges for Services. Larger
reductions are in Licenses & Permits and Interest earnings yet received
amounts are well ahead of the prior year amounts.
Miscellaneous Revenues are $906,012 as compared to a budget of $392,260
and is primarily due to receiving unbudgeted donations and proceeds from
property sales. Included in the actual amount is $299,370 paid into the Insurance
Fund from other funds to reserve added amounts due to the State of Oregon
for PERS liabilities. These reserves will be used in future periods to reduce
the amount owed.
Budgetary Resources including operational loans and transfers have
been recorded as necessary.
Total Requirements are above budget showing a 54% level. Personal
Services is 50% indicating nearly full employment per the budget but actually
representing slightly higher health benefit costs and over time work eating
into what little monies have been saved due to vacant positions.
Materials & Services and Capital Outlay are well below the 50%
mark. Budgetary Requirements follow Budgetary Resources at over 98% for Loans
and 79% for Transfers completed in the first half of year.
Contingency has been reduced $5,000 by budgetary transfer to $1,713,000.
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 as soon as possible in this year.
Funds relying on tax revenues or reimbursements from state or federal programs
show revenue percentages well above the 50% mark due to significant receipts
in November. Of all the enterprises, the Electric Fund is the only one below
50% and that is partially due to the unseasonably warm weather we are
experiencing.
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. This report reflects
the budget adjustments that have occurred to date.
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 47% with only $5,000 of the
original amount of Contingency used.
CDBG Fund - Expenditures are only 3.6% of budget but Personal Services
slightly ahead of 50%. A reimbursement request has been prepared.
Street Fund - Public Works - Street Operations and Local Improvement
Districts expenses exceed the 50% mark and reflect project costs that have
been incurred with the fund total at 51%.
Airport Fund - Material & Services expenditures are at 63% which
includes some annual payments for the year yet Capital Outlay has had no
expenditures leaving the fund at 12% expended.
Capital Improvements Fund - Expenditures are at 63% with Materials
& Services over budget due to costs related to the sale of property which
will require a supplemental budget based upon the revenues generated by the
transaction.
Debt Service Fund - Expenditures are consistent with timing of payments
and budgeted activity at 50%.
Water Fund - Total fund expenditures are at 53%. Most divisions are
below the half way mark of 50% but Interfund Loans are complete for the year
raising the overall average. Also, the budgeted amount for Debt Service will
have to be amended reflecting the principal and interest payments necessary
this year for revenue bonds issued in June of the prior fiscal year.
Wastewater Fund - Similar to the Water Fund, the Wastewater Fund overall
percentage expended is high at 68% with most divisions below 50% but Interfund
Loans being complete at 100% raising the average. Treatment Division is at
55% and may require adjusting.
Electric Fund - Total expenditures are at 52% with Supply, Distribution,
Debt Service and Interfund Loan above the 50% mark. Staff is reviewing costs,
especially Supply's purchased power, to identify any changes necessary.
Telecommunications Fund - Expenditures are at 81% due to Debt Service
for the year being near completion. Operations is slightly above the ½
mark for the year due to additional staff for sales and service installation
.
Central Services Fund - Total expenditures is at 45% with only the
City Recorder office above 50% and contingency unused at $140,000.
Insurance Services Fund - Material & Services are 62% of budget,
consistent with activity given the annual premiums and claims paid in the
first two quarters.
Equipment Fund - Personal Services are a little high at this point
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 44% 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. |
