092606 Unaudited ResultsPreliminary Status –Unaudited Results
Preliminary Status –Unaudited Results
For Fiscal Year Ended June 30, 2006
Status of Three Major Funds
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General fund
–
School Operating Fund
–
Water and Sewer
–
Status of General Fund Balance
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City Manager Recommendations for Fund Balance
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Schedule to Address Other Post Employment Benefits
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General Fund Statement of Revenues, Expenses &
Changes in Fund Balance -Unaudited
For the Fiscal Year Ended June 30, 2006 (in millions)
(Unaudited)
% of
BudgetActualVarianceBudget
Revenues
$873.5$908.5$35.04.0
Expenses
914.3875.139.24.3
Excess Revenues Over
(Under) Expenses
(40.8)33.4$74.2
Fund Balance –July 1
139.4139.4
Fund Balance –June 30
$ 98.6$172.8
Less: Reservations
49.7
Undesignated Fund Balance
$ 123.1
Fund Balance as a percent of Revenues is 12.8%
Fund Balance as a percent of Revenues is 12.8%
Undesignated General Fund Balance
% of General Fund Revenues
20016.0%
12.82%
11.05%
Dollars (Millions)
15012.0%
9.50%
8.98%9.31%
8.79%
1008.0%
504.0%
$123.1
$65.3$96.6
$76.2
$63.5$62.0
00.0%
200120022003200420052006
Undesignated GF BalancePercentage of GF Revenue
GENERAL FUND
FUNDBALANCE POLICY
June 30, 2006
(Unaudited)
(millions)
PolicyFundAmount
LevelBalanceExcess
12%$ 115.2$ 7.9
11%105.617.5
10%96.027.1
City Council Policy -Maintain at least 8-12% of
Revenues in Fund Balance
GENERAL FUND
SIGNIFICANT REVENUES COMPARED TO
BUDGET -$35.3M
(unaudited)
Real Estate$(0.4)
Personal Property Taxes17.4
Utility Taxes(1.2)
Business Licenses3.5
General Sales0.5
City Tax on Deeds4.3
Hotel Tax1.0
Restaurant Meal Taxes2.4
Cigarette(0.2)
Interest and Rent7.8
Other Local Revenues0.2
GENERAL FUND
Expenditures Less Than Budget by $ 30.6 Million
(Unaudited)
Schools$ 5.4
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City25.2
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Police$ 1.6
–
Human Services3.7
–
Public Works2.0
–
Planning.9
–
Libraries.9
–
Debt Service2.7
–
Reserve for SandbridgeTransfer 9.0
–
Other4.4
–
Includes encumbrances of $8.6 million
Includes encumbrances of $8.6 million
School Operating Fund-Statement of Revenues,
Expenses & Encumbrances
For the Fiscal Year Ended June 30, 2006 (in millions)
(Unaudited)
RevenuesBudgetActualVariance
City$272.3$266.9$(5.4)*
Local2.73.40.7
From Commonwealth316.6314.6(2.0)
From Federal Government14.416.01.6
Total Revenues$606.0$600.9$ (5.1)
EXPENDITURES AND
ENCUMBRANCES$616.2$611.1$ 5.1
*In addition, there is $11.8 million in revenue sharing and debtservice,
*In addition, there is $11.8 million in revenue sharing and debtservice,
for a total Reservation in the General Fund of $17.2M.
for a total Reservation in the General Fund of $17.2M.
WATER & SEWER ENTERPRISE FUND
Statement of Revenues, Expenses, and Encumbrances
For the Fiscal Year Ended June 30, 2006
(in millions)
(Uuaudited)
BudgetActualVariance
Revenue:
Sale of Water$ 42.5$ 43.6$ 1.1
Charges for Services39.440.1.7
Miscellaneous Revenue5.914.99.0
Total Revenues$ 87.8$ 98.6$ 10.8
Expenses (incl. encumbrances)$ 90.8$ 84.3$ 6.5
?Difference is from Cash
CITY MANAGER
CRITICAL ITEMS TO FUND
1.Site Acquisition Fund$5.5m
2.1Installment –Retiree Health Care$4.7m
st
3.Shore Drive –Design, ROW,
Utility Relocation $2.5m
After funding these items, the General Fund Balance
will be $110.4m, or 11.5%
GASB 45 -
Accounting for Post Employment Benefits
Other Than Pensions
Other Post-Employment Benefits (OPEB) are benefits the
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employee receives in retirement –like health insurance.
Will need to record a liability for the difference between
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PayGoand the calculated amortization (ARC)/June 30,
2008. This liability reduces “Unrestricted Net Assets.”
The existence of a large liability will adversely impact most
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governments’credit ratings and ability to issue debt if
there is no plan to address.
Address now and in planning for 2007-08 budget.
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SUMMARY OF CITY AND SCHOOLS OPEB LIABILITY
(in millions)
CitySchoolsTotal
Actuarial Liability$170.2$191.3$361.5
Annual Required
Contribution
18.324.242.5
Pay-Go4.26.210.4
Net Contribution
Increase
$14.1$18.0$32.1
PROJECTION OF UNRESTRICTED ASSETS*
Entity Wide Statements
(in millions)
CitySchoolsCity & Schools
2005$96.1$22.6$118.7
200696.122.6118.7
200796.122.6118.7
200882.04.686.6
200967.9(13.4)54.5
201053.8(31.4)22.4
201139.7(49.4)(9.7)
Projected from Statement of Net Assets required by GASB.
Projected from Statement of Net Assets required by GASB.
FUNDING PLAN
Unfunded Liability –GASB 45
(in millions)
FY06FY07*
NetYear EndYear EndFY08
ARCFund BalanceFund BalanceBudgetTotal
43.9% City$14.1$ 4.7$ 4.7$ 4.7$14.1
56.1% Schools18.06.06.06.018.0
$32.1$10.7$10.7$10.7$32.1
*Assumes Use of Fund Balance if Available
*Assumes Use of Fund Balance if Available
OTHER POST EMPLOYMENT BENEFITS
FUNDING PLAN
If this plan is followed, no liability will be
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shown on 6-30-08 “Statement of Net Assets.”
Credit markets will view favorably a pro-active
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approach to meeting long-term liabilities.
Earnings generated by invested funds
•
represent true resources for future use.
GENERAL FUND
FUNDBALANCE POLICY
June 30, 2006
(Unaudited)
(millions)
$123.1$110.4
PolicyFundAmount Amount
LevelBalanceExcessExcess
12%$ 115.2$ 7.9N/A
11%105.617.54.8
10%96.027.1$14.4
City Council Policy -Maintain at least 8-12% of Revenues in Fund Balance