HomeMy WebLinkAbout20100216 - VI-11This report is a preliminary summary of the governmental and enterprise
funds for 2009. The Comprehensive Annual Financial Report (CAFR) will
be presented in June along with the audit report prepared by the City’s audit
firm. I have also included the debt management ratios for the end of January
2010.
Summary of Governmental Funds-Revenues
The above chart breaks down revenues the city receives. Tax levy does not
meet budget due to uncollected delinquent taxes. Charges for Service did
not meet budget expectations for the second year. This revenue source
includes building permit and planning service revenues. Investment income
is also down due to the downturn in the economy. These areas of revenue
sources for the City are most volatile during an economic downturn.
Summary of Governmental Funds-Expenditures:
The following chart compares the expenditures and budget for the fourth
st
quarter ending December 31.
Expenditures are below the budget for all line items. Spending was kept
under control for 2009.
The general fund in particular has an estimated increase to fund balance of
$660,000, which should result in a working capital fund balance of 33%. In
2008 the city had a decline in fund balance which resulted in drawing down
the fund balance to 26% of the working capital. In 2009 a two year plan was
implemented to get the fund balance back up to the target rage of 40 percent.
The next couple of graphs depict the revenues and expenses of the enterprise
fund which include the utility funds, TRAC and the hydro fund.
Revenues for 2009 are compared here to the 2008 actual and the 09 amended
budget. Actual revenues for the water and hydro fund for 2009 are slightly
lower then in 2008. This is most likely caused by the lower investment
income earned in 2009. Sewer and TRAC are on target for 2009.
Below is a summary of the Enterprise fund expenses for 2009.
The difference in the transfer out expense when compared to the 2009
budget is for the transfers to pay for the water and sewer work done during
the annual road construction projects. The transfer outs are not part of the
operation budget
.
Investment Portfolio
The next following three graphs show the City’s Investment portfolio
diversification in length of maturity, types of investment vehicles, and
brokers. The portfolio value is $26,323,450. The City’s portfolio is
structured to have investment mature in varying length to maximize revenue
and maintain appropriate cash flows to pay expenses. For 2009 I have
invested a larger portion of the money in money market accounts to meet the
debt payment on 1/31/2010. Money market accounts offer the highest yield
and yet are liquid enough to cover cash flow needs.
The City’s portfolio is diversified out to 8 broker dealers/banks in order to
ensure the portfolios safety and to allow for competition among the brokers
for the trades.
It is the practice of this city to diversify the portfolio by not keeping more
then 40% with any one broker. The City manages this with 8 different
brokerage firms and no brokerage firm has more then 30% of the total
portfolio.
In the chart below the investments are diversified by the types of investment
vehicles. The CD market has become the investment vehicle that provides
the highest yield and is a safe investment. I have 42% in the money market
at year end in anticipation of paying the bond payments in January.
The final graph below shows the debt ratios the city monitors on its
outstanding issued debt.