December 2014 General Fund Financial Review Summary

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GENERAL FUND FINANCIAL REVIEW SUMMARY

 

December 2014

 

The attached files are the General Fund results year to date through December 2014. The documents include the statement of activities (income statement), full year projection, year-end cash flow/balance position, revenue by line item and contingency usage. Revenue by responsibility is also provided to assist directors and chiefs managing their revenue line items. For comparison purposes, prior year income statement results are also included.

 

OVERVIEW:

 

The full year has been completed. On a cash basis, the year to date surplus/deficit generates a deficit of $91,624.02. During the next few months, adjustments to this result occur to confirm to Government Accepted Standards Board (GASB) requirements. Some of the known adjustments include: added fourth quarter revenues related to SAFER grant,

$428,000 and Library reimbursement, $415,776; added expenses for medical, $320,000 and CD administration employee compensation, $130,000. Including these known adjustments, a projected surplus of $302,152 is forecasted. More changes will occur during the 2014 audit process. The anticipated surplus mitigates the use of the budgeted $1,230,478 fund balance which helps preserve the improved credit rating the City earned in October 2014.

 

Revenues:

 

Please review the revenue summary, detail revenue line items and revenue by responsibility for differences between actual and budget.

Forecasted revenues, $73,950,914, are below plan by 1%, $1, 024,126. As stated, these will change as audit adjustments occur. Noted items are 8% higher Earned Income Tax $1,652,550, impact of Act 32 offset by lower revenue generated from Codes and Fire. 2013 revenues were $74,903,414.

 

Expenditures:

 

As with revenues, please review the attached summary expenditure line items for differences between actual and budget. Total anticipated 2014 full year spending, $79,277,067, is lower than plan by nearly $2.6 million. Non use of contingencies for recycling, $1,118,362 and nonspecific, $365,038 along with $600,000 deferral of dam remediation, are the primary drivers of less spending. Review the summary spending for other specific areas of spending deviations from plan. 2013 expenditures were $75,109,506.

Since Police and Fire 2014 spending budgets consume 68% of General Fund operating budget before debt and fees, these two lines items are significant to monitor.

2014 Full Year Projection:

 

As previously stated, a $302,152 surplus is projected for the full year. This includes using $650,000 of contingency. Without the need of contingency, the surplus would obviously be $952,152. The 2013 surplus was $5,169,092

 

Cash Flow:

 

This month’s ending cash position is $17,525,689 compared to last year’s $14,277,350. Previously this year, the General Fund has provided the following loans: trash $850,000; recycle $550,000 and agency $250,000, totaling $1,650,000.

Reimbursements have occurred for all of these loans by December 31, 2014.

2014 Contingency Usage:

 

The contingency budget is $1,015,038 unspecified and $1,118,362 specified recycling if moved to general fund, totaling

$2,133,400. The use of this budget is strictly prohibited, requiring council’s approval. $650,000 of added spending has been approved by council.

 

City’s Bond Rating by Moody’s:

 

Moody’s Investors Service has reviewed and assigned a rating of Baa1, effective October 23, 2014. This is an upgrade from the previous rating of Baa2. The primary driver of this improvement is the City’s fortitude implementing many of the initiatives recommended by the Act 47 financial advisors; resulting in non use of fund balance. Continuous improvements, such as this year’s surplus projection, could lead to further upgrades.

 

Headcount by Fund:

 

The general fund full time headcount ended 19 below plan, varying among divisions. The reduced part time employees are primarily associated with less number of crossing guards. The mix of headcount between public safety and non uniform exceeds plan, 71.3% actual versus a plan of 69.9%.

 

 

General

Full Time

 

476

Part Time

 

112

vs. Plan FT

 

19 less than plan

vs. Plan PT

 

33 less than plan

Shade

2

0

ok to plan

ok to plan

Sewer

71

1

2 less than plan

4 less than plan

Solid Waste

15

1

4 less than plan

ok to plan

HUD

5

0

2 less than plan

ok to plan

TOTAL

569

114

27 less than plan

37 less than plan

General: Police

Actual FT 195

% of Total GF

41.0 %

Plan FT 194

% of Total of GF 39.2%

Fire

144

30.3 %

152

30.7%

Public Safety

339

71.3%

346

69.9%

Non Safety

137

28.7%

149

30.1%

Total

476

100.0%

495

100.0%

 

 

FIVE YEAR PROJECTION:

 

Page 10 and page 82 of the Amended Act 47 Recovery Plan illustrate the fund balance usage and projected ending balance between 2015 and 2019. This plan is located on the City’s web site.