HomeMy WebLinkAbout2008-12-23 CC Agenda Item No.15 CITY OF
LAKE r LSI
K OF�E
DREAM EXTREME,,,
REPORT TO CITY COUNCIL
TO: HONORABLE MAYOR
AND MEMBERS OF THE CITY COUNCIL
FROM: ROBERT A. BRADY
CITY MANAGER
DATE: DECEMBER 23, 2008
SUBJECT: ANNUAL FINANCIAL REPORTS FOR THE FISCAL YEAR ENDING
JUNE 30, 2008
Background
The City's auditors completed their audit field work on November 21, 2008 for the fiscal
year ending June 30, 2008. This is the fourth 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 following annual reports are being presented:
• Comprehensive Annual Financial Report (CAFR)
• Lake Elsinore Redevelopment Agency Financial Statements
• Lake Elsinore Public Financing Authority Financial Statements
• Lake Elsinore Recreation Authority Financial Statements
• Audit Information 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 attached to this agenda separately.
Separate staff reports were prepared for the Redevelopment Agency, Public Financing
Authority and Recreation Authority financial statements.
Agenda Item No. 15
Page 1 of 3
Annual Financial Reports
December 23, 2008
Page 2
Discussion
Comprehensive Annual Financial Report (CAFR)
The "Management's Discussion and Analysis" section on pages 3 to 14 of the attached
Comprehensive Annual Financial Report provides a narrative overview and analysis of
the financial activities of the City of Lake Elsinore for the fiscal year ended June 30,
2008. The top financial highlights are as follows:
• The City's total net assets increased by $3,063,486. The increase is
attributable to a variety of cost controlling measures.
• At the end of the current fiscal year, unreserved fund balance for the General
Fund was $9,285,492 or 28.8 percent of total General Fund expenditures. City
Council has designated $5,000,000 of the $9,285,492 for future contingencies,
which includes a $3,500,000 reserve and $1,500,000 designation for potential
future budget shortfalls.
• The City of Lake Elsinore's total debt had a net decrease of $980,081 during
the current fiscal year. The net decrease includes $908,058 of payments on
Tong -term bonds, developer agreements, loans and capital leases.
• Some key facts related to the General Fund compared to the prior fiscal year
are listed below:
✓ Public safety had the largest expenditure increase of $2,607,111 or 22%
✓ Property taxes increased by $1,250,594 or 22%
✓ Other taxes revenue increased by $238,255 or 2%
o Sales tax revenue increased by $312,021 or 4%
o Franchise tax increased by $80,168 or 5%
✓ Miscellaneous revenue increased by $372,350 or 10%
✓ General government expenditures increased by $225,690 or 4%
✓ Public services expenditures decreased by $588,076 or -14%
✓ Capital outlay decreased by $214,035 or -65%
✓ Transfers out decreased by $1,174,639 or -32%
Audit Information Letter
No exceptions were noted.
Agenda Item No. 15
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Annual Financial Reports
December 23, 2008
Page 3
Report on Internal Controls
No exceptions were noted.
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.
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 XIIIB
of the California Constitution and adopted by City Council. No exceptions were noted.
Fiscal Impact
There is no fiscal impact.
Recommendations
1. It is recommended that City Council receive and file these reports
Prepared by: James R. Riley ��
Acting Director o - dministrative Services
Approved by: Robert A. Bradyi Ilfr
City Manager I' I
Agenda Item No. 15
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