[ Council Communication ]  [ Quarterly Report ]

Council Communication

Title:	Quarterly financial report: July - September, 2002
Dept:	Finance
Date:	November 5, 2002
Submitted By:	Lee Tuneberg, Finance Director
Reviewed By: ........................	Brian Almquist, Interim City Administrator

Synopsis:	Attached is the City of Ashland financial report for the quarter ended September 30, 2002. The report includes revenues and expenditures of all departments and funds of the City and the Parks and Recreation Commission. It represents information from the internal accounting system, includes staff's best estimates where necessary and is unaudited and unadjusted. The report includes the following presentations: 1. A Summary of Cash and Investments comparing September 30 current year to prior year. 2. An Investment report with graphs from the City Recorder/Treasurer 3. A Combined Statement of Financial Position 4. A Schedule of Expenditures by Fund 5. A Schedule of Expenditures by Department (not available at this time) 6. A Schedule of Budgetary Compliance per Resolution #2002-14 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 $3.5 million dollars between years. The City Recorder/Treasurer's report updates 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. 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. Resources: Revenues and Budgetary Resources at September 30, 2002 total $21,033,3987, as compared to total year-to-date requirements of $25,155,903 results in a $4.1 million decrease to Unappropriated Ending Fund Balance. Working Capital Carryover is estimated at $25.2 million or 6.25% above the budgeted amount. Taxes and 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. Requirements: All categories of expenditures and transfers are in keeping with first quarter activities and requirements. Debt Service, Interfund Loans and Operating Transfers have schedules of their own that do not adhere to a straight pro-rata (25%) measurement. The other two formats are consistent with the departmental and fund presentations included in the adopted FY 2002-2003 budget document. The Schedule of Expenditures by Fund provides a fund by fund comparison that includes all expenditures for operations including debt service. All fund expenditures exceeding 25% (1/4th year) can be traced to capital project or debt service requirements. 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. Since this is the first report for FY 2002-2003 and the audit of the prior year is not complete the information provided herewith is only an indication of this year's financial position. However, some assumptions can be applied providing a measure of compliance on a budget basis. All things being equal, a 25% level of revenue and 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. Unaudited, detailed balance sheets, revenues and expenditure reports are available for your review in the Finance Department office should you require any additional information. Investment activity is available from the City Recorder office.
Recommendation:	Staff recommends acceptance of this report.
Fiscal Impact:	No impact. This is an update on FY 2002-2003 operational activity as compared to budget.
Background:	There are three ways in which to change appropriations after the Budget is adopted. 1. A transfer of appropriations decreases an appropriation and increases another. This is the simplest budget change allowed under Oregon Budget law. This does not increase the overall budget. This is approved by a City council resolution. 2. A supplemental budget of less than 10 percent of total appropriations within an individual fund follows a process similar to the transfer of appropriations. 3. A supplemental budget in excess of 10 percent of total appropriations requires a longer process. This process includes a notice in the paper and a public hearing. Only the first type of budget change is necessary and is incorporated into a single resolution for your approval. The recommended changes in the budget are explained after each request. Staff is reviewing the need for a supplemental budget adjustment necessary by end of year per either item 2 or 3, above.

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The Quarterly Financial Report is available as a PDF file:

Quarterly_Report.pdf (461KB)

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