HomeMy WebLinkAboutCity Council Item No. 08CITY OF
LAKE (~LSINOIJE
DREAM EXTREME.
REPORT TO CITY COUNCIL
TO: HONORABLE MAYOR
AND MEMBERS OF THE CITY COUNCIL
FROM: ROBERT A. BRADY
CITY MANAGER
DATE: FEBRUARY 22, 2011
SUBJECT: ANNUAL FINANCIAL REPORTS FOR THE FISCAL YEAR ENDING
JUNE 30, 2010
Background
The City's auditors completed their audit field work on February 7, 2011 for the fiscal
year ending June 30, 2010. This is the sixth year that the auditors, Diehl, Evans &
Company, have performed the audit services for the City. The audit reports include the
City and its component units. The Lake Elsinore Redevelopment Agency financial
statements were presented to the Redevelopment Agency Board on December 30,
2010 in a special report and as a Redevelopment Agency agenda item at the January
11, 2011 board meeting. The following annual reports are being presented:
• City of Lake Elsinore Comprehensive Annual Financial Report (CAFR)
• Lake Elsinore Public Financing Authority Component Unit Financial Statements
• Lake Elsinore Recreation Authority Component Unit Financial Statements
• Audit Communication Letter
• Report on Internal Controls (Management Letter)
• Appropriations Limit Worksheet No. 6 with Independent Accountant's Report on
Agreed-upon Procedures Applied to Appropriations Limit Worksheets
The above reports are bound and have been included with this agenda separately.
Separate staff reports were prepared for the Public Financing Authority and Recreation
Authority financial statements.
-
ACEIIDA 1710-A NO—
r~s~
Annual Financial Reports
February 22, 2011
Page 2
Discussion
Comprehensive Annual Financial Report (CAFR)
The "Management's Discussion and Analysis" section on pages 3 to 14 of the
Comprehensive Annual Financial Report provides a narrative overview and analysis of
the financial activities of the all the entities and funds of the City of Lake Elsinore
combined for the fiscal year ended June 30, 2010.
A General Fund Budgetary Comparison Schedule in a format similar to the Adopted
Budget is included with this staff report for your review. The schedule includes
explanations of significant variances between the final budget and actual amounts and a
breakdown of the General Fund's fund balance reserves.
The fund balance reserves include the Supplemental Revenue ("Rainy Day") Fund. The
amount actually needed from the "Rainy Day" fund in fiscal year 2009-10 was $1.5
million. This results in a savings of $0.8 million from the $2.3 million budgeted.
Therefore, the "Rainy Day" fund balance at June 30, 2010 was increased from $1.4
million to $2.2 million. The General Fund Reserve remains at $3.5 million and the
Unallocated Revenue has a balance of $650,503. The total "Rainy Day" Reserve,
General Fund Reserve and Unallocated Revenue balance at June 30, 2010 is $6.3
million.
Audit Communication Letter
No significant exceptions were noted.
Report on Internal Controls (Management Letter)
During the audit, the auditors noted certain housekeeping type matters involving the
internal control structure and its operation that are typically communicated in a
"management letter". There were two items noted and the response of staff is included
in the letter.
Appropriations Limit Worksheet No. 6 With Independent Accountant's Report on
Agreed-upon Procedures Applied to Appropriations Limit Worksheet
The auditors performed agreed-upon procedures to ensure that the City's appropriation
limit calculations were correctly calculated and adopted in accordance with Article XI11B
of the California Constitution and adopted by City Council. No exceptions were noted.
AGENDA 6TrEaM NO.-
PAC= CF ~
Annual Financial Reports
February 22, 2011
Page 3
Fiscal Impact
There is no fiscal impact.
Recommendations
It is recommended that City Council receive and file these reports
Prepared by: James R. Riley
Director of Admi i rative services
Approved by: Robert A. Bradyw
City Manager AQ °v-iv~e E'E isu'v! L°cl~o
PAC m3
ti S OF g
CITY OF LAKE ELSINORE
FY 2009-10 General Fund Budgetary Comparison
Schedule of Revenue, Expenditures and Changes in Fund Balance
June 30, 2010
I
Y 2009-2010 FY 2009-2010
Final Budget ! Audited Actuals
Difference vs
2009-10 Final
Budget
Increase/
(Decrease) vs
2009-10 Final
Budget
General Fund General Fund
General Fund
General Fund
Fund 100 Fund 100
Fund 100
Fund 100
Revenues:
Major Revenues:
Sales Tax
-
6,310,437 6,206,126-
1-04-311
( )
-1.65%
(1)
:
Property Tax
5,610,000 5,552,290
(57,710)
-
-
-
1
- 1.03%
Franchise Tax
1,840,000 1,790,699
(49,301)
! -2.68%°
Building Permit Fee _
400,000
665,037
265,037
(2) 66.260/6
Property Transfer Tax -
_
325,000 246,789
(78211)
L-_ _--24.06%0
Other Taxes
196,000 274,203
78,203
-
39.90%
_
Other Licenses & Permits
- -
778,200 998,388
_
220,18
)
(3) 28.29%°
State and County Intergov. Rev.
221,100 195,454
(25,646),
_
-
11.600/6
Fees
d
ii
1,675,880
1,594,774
81 106)
-4.84%°
-
Fines an
and Forfeitures _
486,869 1 432,663
(54,206)I
-
11.13%
Fire Service Tax Credit
1,885,000 1,879,554
. t5446
_
-0.29%
nvestment Earnmgs_ _
450,000 310,722
(139 278_)
(4) -30.95%
4
Reimbursements from RDA -Staff
492,600 492,600
0.00%
RDkLease
Payments (LERA)
676,500 657,562
(18,938)
-2.80%
RDA SB211 Pass Through
83,732 183,867
1001135
(5) 119.59%
Other Miscellaneous Revenue
704,000 630,516
(73,484)
i -10.44%
Total Revenues Before Operating Transfers In
- -
-
-
_
i
& RDA Loan Principal Repayment
- -
22,135,31
8 i 22,111,244
-
(24,074)
- -0.11%
Operating Transfers In
20,000 20,000
0.00%
RDA Loan Principal Repayment-Regular
250,000 252,573
2,573
1.03%
Total Revenues
22,405,318 22,383,817
(21 501)
-0.10%
ACENDA [uE-Lj t'3.
P:ICAFR 09-1012009-10 Gen Fund Budget Comparison Schedule 6-30-10 CAFR.x1s,211712011,jrr
PAGE S _ CF 9
CITY OF LAKE ELSINORE
FY 2009-10 General Fund Budgetary Comparison
Schedule of Revenue, Expenditures and Changes in Fund Balance
June 30, 2010
FY 2009-2010
Final Budget
FY 2009-2010
Audited Actuals
Difference vs
2009-10 Final
Budget
-
% Increase/
(Decrease) vs
2009-10 Final
Budget
General Fund
General Fund
General Fund
General Fund
Fund 100
Fund 100
Fund 100
Fund 100
Expenditures:
1
1 -City Council/ PSAC
276,118
264,573
(11,545)
-4.18%
City Treasurer _
- -
500
_
(500)
-100.00%
City Attorney
-
350,000
364,573
14,573
4.16%
City Manager/- Information Systems/ Econ Dev -
1,427,738
1,378,057
(49,681)1
3.48%
_
City Clerk
222,730
195,858
(26,872)'
-12.06%
Administrative Services _
1,565,823
1,381,277
(184,546) ;
(6)
-11.79%
General Law Enforcement
7,695,696
_ 7,433,837
(261,859)'
(7)
-3.40%
Fire _ _
3,755,116
3,588,694
(166,422)
(8) j
_-4.43%
Community Development _
1,794,155
1,814,893
20,738
_1.16%
Public Works
1,926,232
_ 2,026,901
100,669
Parks and Recreation
2,419,436
2,197,937
(221,499)
(10)
-9.15%
Animal Shelter Operating
90,000 '
90,000
- I
0.00%
Lake Operations and Aquatics
1,095,883
1,025,146
70,737
i
6.45%
Non De partmental Operating
1,761,845
2,136,813
374,968
(11)
- -
21.28%
Total Operating Exp
24,381,2721
'
23,898,559
(482,713li
'
-1.98%
-
4
Revenues Over
(Under) Exp.
_
Prior Period Adjustments
1,975,954
(316,546)
._(1,514,742)
-
461,212
316,546
(12)
-
_
Revenues Over
_(Under) Exp./ incl Prior Period Adjmnts_-
2,292,500)
(1,514,742)
_ 777,758
Reserve ("Rainy Day") Allocation
Supplemental
2,292,500 ~
1,514,742
(777,758)
(13)
(Adjusted Revenue Over (Under) Exp.
P:ICAFR 09-1012009-10 Gen Fund Budget Comparison Schedule 6J0-10 CAFR.xis,211712011,jrr
CITY OF LAKE ELSINORE
FY 2009-10 General Fund Budgetary Comparison
Schedule of Revenue, Expenditures and Changes in Fund Balance
June 30, 2010
_
FY 2009-2010 FY 2009-2010
Final Budget ! Audited Actuals
General Fund General Fund
Fund 100 Fund 100
% Increase/
Difference vs (Decrease) vs
2009-10 Final 1 2009-10 Final
Budget Budget
General Fund General Fund
Fund 100 Fund 100
Fund Balance Activity & Detail:
Beginning Unallocated Revenue
1,574,208 1,574,208
Changes to Various Fund Balance Reserves
Decreases/ (Increases) from Prior Year
Encumbrances
_ 28,749
-
Specific Projects
- ! -
Prepaid expenditures
(290,361)
Fixed assets for resale
(3,795)
TTotal Changes to Various Fund Balance Reserves
(265,407)
Allocations :
- -
(Fund 105)
ansfers but to Gen. Fund CIP
Tr
(16,700) (223,298)
~
- -
Transfers Out to LLMD Ci
tywide (Fund 130)
(445
,000)1 (435,000)
~
I
Allocation to Supplemental Reserve
I
Tot al Allocations
- -
-
(461,700)1 (658,298)
- - -
- -
E
nding Unallocated Revenue
1,112,508 650,503
Designated Reserve Balance:
-
-
_
Reserve Balance
3,500,000 3,500,000
Supplemental Reserve Balance
Beginning Balance--
- 3,688,040 1 _ 3,688,040
Increase in Supplemental Reserve
-
Allocation of Supplemental Reserve
(2,292,500)1 (1,514,742)
-
-
Ending Bal. Supplemental Reserve Avail.
1,395,540 2,173,298
T
otal Designated Reserve Balance
4,895,540 1 I 5,673,298
-
Total General Fund Balance-
Designated & Unallocated
6,008,048 6,323,801
!
P:ICAFR 09-1012009-10 Gen Fund Budget Comparison Schedule 6-30-10 CAFR.xls,211712011,jrr
AGEM1.0111 -'M No.
PAGE -7 OF 3
CITY OF LAKE ELSINORE
FY 2009-10 General Fund Budgetary Comparison
Schedule of Revenue, Expenditures and Changes in Fund Balance
June 30, 2010
FY 2009-2010 FY 2009-2010
Final Budget Audited Actuals
% Increase/
Difference vs (Decrease) vs
2009-10 Final 2009-10 Final
Budget Budget
-
General Fund General Fund
-
General Fund General Fund
-
Fund 100 Fund 100 Fund 100 Fund 100
- -
Notes to explain significant variances:
- -
(1.) Decrease in sales tax is related to the continued effect of the economic downturn on consumer purchases of goods.
+(2.
Lease in building permits is related to existing developers beginning to move forward on approved projects.
T
(3.)
Increase in other licenses & ermits is related to existing developers - -
p g opers begin to move forward on approved projects.
A4.)
-
crease m inv vestment-earnings is a result of continued low interest rates on investments.
5
1 (6.)
(7.)
Increase in RDA SB211 Pass Through is related to funds for both fiscal years 2008-09 and 2009-10 received in fy 2009-10.
-
- - ~
Decrease in Administrative Services expenditures is related to a significant decrease in the general liability insurance deposit.
Decrease in General Law Enforcement expenditures is related to decrease in actual contract costs from 5% to 3.90%
-
r-
and increase in non-general fund related sources to fund police cost.
(8.) 'I
Decrease in Fire Service expenditures is related to decrease in actual contract costs and overhead costs.
(9.)
Increase in Public Works expenditures is primarily related to various personnel costs related to attrition,
Worker's compensation an unemployment insurance.
_ duction in contractual services costs primarily related to parks maintenance
red,
-
and the on lmmunitY ceterea wn is ue to
(11.) Increase in Non-Departmental - Operating expenditures is related to a quarterly reimbursement agreement payment
related to a prior period recorded in fiscal year 2009-10 per our auditors and increase in letter of credit costs related to
the Recreation Authority bond.
Per discussion with our auditors, Diehl, Evans & all prior period adjustments were included as fiscal year
11 2009-10 expenditures or transfers out.
iSupplemental Revenue
I ( )
13 ("Rainy Day") allocation was less than budgeted due to the e variance
s noted above.
P:ICAFR 09-1012009-10 Gen Fund Budget Comparison Schedule 6-30-10 CAFR.xls,2 11 712 0 1 1 frr
AGENDA 979A M, -
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