HomeMy WebLinkAbout2012-04-04 PACKET 04.D.REQUEST OF CITY COUNCIL ACTION COUNCIL AGENDA
MEETING ITEM #
DATE 4/4/12
PREPARED BY Finance Robin Roland
ORIGINATING DEPARTMENT DEPARTMENT HEAD
COUNCIL ACTION REQUEST
Review status of Fund Balance in the General Fund subsequent to December 31, 2011 year
end. The Fund Balance policy as amended under GASB 54 was adopted by City Council on
December 16, 2041.
STAFF RECOMMENDATION
No action is required by the Council.
BUDGET IMPLICATION N/A
BUDGETED AMOUNT
ADVISORY COMMISSION ACTION
❑ PLANNING
❑ PUBLIC SAFETY
❑ PUBLIC WORKS
❑ PARKS AND RECREATION
❑ HUMAN SERVICES /RIGHTS
❑ ECONOMIC DEV. AUTHORITY
DATE
REVIEWED
El
El
El
SUPPORTING DOCUMENTS
® MEMO /LETTER: Roland 3/27/12
❑ RESOLUTION:
❑ ORDINANCE:
❑ ENGINEERING RECOMMENDATION:
❑ LEGAL RECOMMENDATION:
® OTHER: Fund Balance computation.
ADMINISTRATORS COMMENTS
N/A
ACTUAL AMOUNT
APPROVED
DENIED
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❑
❑
❑
❑
❑
❑
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COUNCIL ACTION TAKEN: ❑ APPROVED ❑ DENIED ❑ OTHER
H: \Council items \City Council Action Form.doc
CITY OF COTTAGE GROVE
J MINNESOTA
To: Honorable Mayor and City Council
Ryan Schroeder, City Administrator
From: Robin Roland, Finance Director
Date: March 27, 2012
Subject: Fund Balance — General Fund at December 31, 2011
Background
Historically, the City Council has been provided with a resolution to formally designate the
Fund Balance of the General Fund at year end in accordance with the Fund Balance Policy.
The Fund Balance Policy was amended for year end 2011 in accordance with Government
Accounting Standards Board Statement 54 (GASB 54). Resolution 2011 -165 was approved by
the City Council on December 16, 2011; further Council action is no longer necessary.
However, a report to the Council is required as soon as is practical after the close of the fiscal
year, in the event that amounts in excess of the unassigned fund balance are available for
transfer.
Discussion
Attached is a calculation of the assigned and unassigned General Fund Balance for the year
ended December 31, 2011. This calculation is presented in a somewhat different format from
previous years in that it reflects the fund balance under the new policy, with a comparison to
the former policy.
The 2011 adopted budget anticipated a decrease to the fund balance of $295,751. As of
December 31, 2011, the fund balance in the General Fund will decrease by $278,693. Of this
use of fund balance, $27,575 is due to operations and $251,118 is due to the use of fund
balance previously designated by the Fund Balance Policy for park shelters and playground
equipment.
The adopted 2011 budget showed the entire $295,751 as use of fund balance due to
operations. In fact, General Fund operating revenues are projected to be 0.7% greater than
the adopted budget and operating expenditures are projected at 1.4% less than the adopted
budget. A preliminary recap is attached with this memo. (Please note that this information is
still subject to audit and is not finalized.)
Due to the use of Fund Balance in conformance with budget, no excess funds are available for
transfer or commitment to other funds.
Under the fund balance policy, the General Fund — Fund Balance at December 31, 2011 is as
follows:
Non - spendable Fund Balance:
Prepaid Items
Compensated absences
Assigned Fund Balance:
Park Shelter /Playground equipment
MVHC Aid set aside 2009 & 2010
Emerald Ash Borer program
Public Safety Equipment
School Bus safety
Unassigned Fund Balance (working capital)
$ 24,382
725,863
217,091
648,053
40,200
23,000
3,750
7,178,108
$8,860,447
Assignment of Fund Balance for Specific Purposes
The City Administrator and Finance Director have assigned the following balances for specific
purposes under the policy.
There was $100,000 budgeted per year from 2003 - 2008 for park equipment and
shelter replacement. If the $100,000 was not spent in each of those years, a carryover
was done for the unspent dollars. This program was started to replace playground
equipment and then to begin to save for larger building expenditures. In 2010, $35,600
was used for improvements in Pine Tree Valley Park leaving $468,209. In 2011,
$154,214 was used for the Highland Park Shelter improvements, $46,904 for Pine
Coulee park improvements and $50,000 for playground equipment at Hemingway Park
leaving $217,091 assigned for future projects.
Since 2009, the City Council has designated a set aside in the Fund Balance for the
MVHC unallotted by the State legislature. This set aside has been considered in the
three successive budgeting processes, as an amount to balance revenues and
expenditures in the General Fund if necessary. Therefore, $648,053 is assigned for
future budget use.
The Emerald Ash Borer project was begun in 2010 with budgeted funds and grant
funding received. This initial three year span of the program has a carryover of $40,200
funding which is assigned for use by the Forestry division.
Certain Public Safety vehicles and equipment were budgeted for in 2011. Due to
manufacturing delays, delivery was not received this year. $23,000 of fund balance is
assigned for this purpose in 2012.
Fine revenue that is received from drivers who violate the school bus stop sign law is
restricted to education programs related to traffic safety. The amount that is unspent is
$3,750.
The remaining $7,178,108 is the 55% of annual expenditures set aside for working capital as
provided by the amended Fund Balance Policy. Under GASB 54, this amount is described as
"Unassigned ".
Action Requested
No action is required by the Council.
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CITY OF COTTAGE GROVE
PRELIMINARY
GENERALFUND
FUND SUMMARY
31-Dec-11
2010
2011
ACTUAL
BUDGET'
AL
from bud et
gl
Is
$
REVENUES
Property Taxes
10,195,797
10,345,100
10,332,996
-0.1%
Othertaxes
5,156
3,500
14,984
328.1%
Licenses & permits
753,468
661,100
593,272
-10.3%
Intergovernmental
675,033
582,950
593,209
1.8%
Charges for services
1,158,858
815,850
934,644
14.6%
Fines
201,559
226,000
193,677
-14.3%
Interest
65,279
67,500
84,706
25,5%
Miscellaneous
46,331
49,750
91,103
83.1%
Total Operating Revenue
13,101,481
12,751,750
12,838,591
0.7%
EXPENDITURES
Mayor & Council
136,828
118,150
180,783
53.0%
Administration
263,652
219,940
236,552
7.6%
Clerk/Elections
169,837
174,825
146,062
-16.5%
Finance
421,897
444,385
429,863
-3.3%
Personnel
93,969
111,100
91,132
-18.0%
MIS
208,256
210,425
205,515
-2.3%
Professional Services
310,536
327,200
323,345
-1.2%
Community Programs
47,644
77,600
60,612
-21.9%
City Hall (building)
197,387
225,346
200,980
-10.8%
Planning
705,667
441,900
437,804
-0.9%
Inspections
426,460
414,800
448,800
8,2%
Historic preservation
3,846
11,100
4,944
-55.5%
Emergency Preparedness
40,068
39,170
65,885
68.2%
Police Protection
4,690,985
4,996,200
4,932,210
-1.3%
Animal Control
70,049
80,250
62,315
-22,3%
Fire
632,311
692,665
745,323
7.6%
Fire relief
130,351
123,000
125,671
2.2%
Engineering
110,900
145,800
138,182
-5.2%
Street Maintenance
916,249
1,024,020
1,025,982
0.2%
Street signs
165,192
186,320
168,993
-9.3%
Snow removal
523,938
479,800
470,230
-2.0%
Public Works Admin
385,989
387,800
385,051
-0.7%
Forestry
389,857
348,020
307,951
-11.5%
Parks maintenance
993,960
991,320
999,393
0.8%
Recreation
303,621
337,450
299,238
-11,3%
Pool
69,482
64,700
62,435
-3.5%
Contingency
55,000
Transfers out per budget
437,045
319,215
1 310,915
-2.6%
Total Expenditures
12,845,976
13,047,501
12,866,166
-1A%
Net Revenues over Expenditures
255,505
(295,751)
(27,575)
-110,8%
Other sources & uses
Transfers per fund balance policy
(247,950)
Park Shelters & Playground Eq.
(251,118)
Total other
(247,950)1
-
(251,118)
1.3%
Beginning Fund Balance
9,131,585
9,139,140
9,139,140
Ending Fund Balance
9,139,140
8
8,860,447