| Attached is the City of Ashland financial report for the
nine-month period ended March 31, 2004. The report includes:
1. Summary of Cash and Investments as of March 31 for the last two years
(page 1)
2. Combined Statement of Financial Position City-wide(page 2)
3. Schedule of Resources by Fund comparison for the last two years (page
3)
4. Schedule of Budgetary Compliance per Resolution #2003-42 (pages 4 - 7)
The reports are intended to present interim information in summary formats
consistent with the information provided in the adopted FY 2003-2004 budget
document as amended by Council action and the manner in which it will be
shown in the end of year financial report.
Financial numbers for the third quarter are the basis for more accurate estimates
of the current budget year and necessary adjustments to remain in compliance
with Oregon Budget Law. At this time departments are reviewing operations
and capital projects to recommend to Finance what changes they think will
be necessary by June 30.
Despite increased health care costs joined with overtime and other premium
pay requirements (such as employees temporarily working above normal pay
grades) the over-all Personal Services budget is just under the budget at
the 75% mark. Savings from the delay in filling vacant positions helps in
this area.
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 75% as of March 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 increased $1.4 million dollars between
years but decreased $774,000 during the last quarter. During the year the
City Recorder/Treasurer maintains reports on investment activities, the
distribution of investments and trends that are available upon request.
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 three-quarter mark, Ending Fund Balance is $8.1 million over budget.
Last quarter the amount over budget was $9.3 million indicating a trend toward
the targeted fund balances. 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 March 31, 2004 total $55,639,926,
as compared to total year-to-date requirements of $54,311,675 which results
in a $1.3 million increase to Unappropriated Ending Fund Balance. The City
budgeted $8.1 million more in requirements than resources and that would
reduce overall reserves for the ensuing year however, year-to-date Revenues
are 2% ahead of budget and Expenses (especially Materials & Services)
are less than projected for the first nine months. This trend will help the
City to make up for the smaller carry forward from FY 2002-03 than was
anticipated.
Taxes, Systems Development Charges, Fines and Forfeitures and Miscellaneous
Revenues are ahead of the budget at the three-quarter mark due to their increased
related activity to date.
Licenses & Permits, Intergovernmental Revenues and Charges for Services
are slightly off the three-quarter mark but should meet target by end of
year due to normal end-of-year activity.
Assessment Payments are less than budgeted due to pay-offs by land owners
of the lien on their property as favorable refinancing was done last 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 nine months of activities
and requirements showing a 70.52% level. Personal Services is less than 75%
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
(75%) measurement but are consistent with the budget. Necessary transfers
from Contingency will occur in the next few months but a substantial portion
of Contingency will be carried forward into the next year as part of Resources.
The Schedule of Revenues 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 2003 however, variations due to construction and related
financing and transfers can affect these percentages and consistency between
years. Fund Balances carried forward into FY 2003-04 and recognized in July
account for many funds' resources posting a percentage above 75%.
The 136% of budget posted in the Insurance Services Fund was caused by the
receipt of contributions from all other funds related to payroll in anticipation
of larger payments to PERS becoming necessary in coming fiscal years. The
amount set aside here will minimize the impact of court cases requiring PERS
to higher amounts to retirees.
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.
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 75% or lower level of
expenditure can be used to assess budget compliance 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 67% with Grants and Transfers
exceeding 75% as normal due to required activity. Necessary changes will
be dealt with via a transfer of appropriations or supplemental budget by
June 30.
CDBG Fund - Expenditures are consistent with activity.
Street Fund - Expenditures at 79% and a review and adjustment for
SDC construction is scheduled. Operations will require a transfer of
appropriation from Contingency for project costs.
Airport Fund - Expenditures are consistent with activity.
Capital Improvements Fund - Expenditures are at 50% of budget reflecting
limited capital project costs. Materials & Services may require a transfer
by year end.
Debt Service Fund - Expenditures are consistent with activity.
Water Fund - Expenditures are within budget at 61% but re-budgeting
of some projects is required for FY 2004-05. Interfund loan is at 100%.
Wastewater Fund - Expenditures are within budget at 73% with some
projects completed early or deferred. Interfund loan is at 100%.
Electric Fund - Total expenditures are slightly above 75% and the
department is scaling back on some expenses to stay within the budget.
Telecommunications Fund - Expenses are consistent with the business
plan but not the budget. Excluding Debt Service, operational costs are at
72.8% of budget and the department is watching its expenses closely. A
budget adjustment may be prudent to protect against a budget law violation
being realized in July when accruals are completed.
Central Services Fund - All departments are below 75% except the City
Recorder that has added bank charges due to increased credit card activities
to absorb. This will require a transfer from Contingency.
Insurance Services Fund - Costs are within the 75% mark and consistent
with activity.
Equipment Fund - Expenditures are consistent with activity. A correction
is needed in allocating personnel costs.
Cemetery Trust Fund - Expenditures are consistent with activity.
Parks and Recreation Fund - Expenditures are consistent with activity
and well below the 75% mark.
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. |
