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HomeMy WebLinkAbout092606 Unaudited ResultsPreliminary Status –Unaudited Results Preliminary Status –Unaudited Results For Fiscal Year Ended June 30, 2006 Status of Three Major Funds ? General fund – School Operating Fund – Water and Sewer – Status of General Fund Balance ? City Manager Recommendations for Fund Balance ? Schedule to Address Other Post Employment Benefits ? 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 ? City25.2 ? 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 ? employee receives in retirement –like health insurance. Will need to record a liability for the difference between ? PayGoand the calculated amortization (ARC)/June 30, 2008. This liability reduces “Unrestricted Net Assets.” The existence of a large liability will adversely impact most ? governments’credit ratings and ability to issue debt if there is no plan to address. Address now and in planning for 2007-08 budget. ? 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 • shown on 6-30-08 “Statement of Net Assets.” Credit markets will view favorably a pro-active • 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