FY 2008 Comprehensive Annual Financial Report

New Search

Total business-type net assets increased $4.5 million in the current fiscal year. Significant issues regarding proprietary funds are as follows: • The Ambulance Transport Fund reported a $1.4 million decrease in net assets. The decrease was mainly due to a $1.1 million transfer to the Fleet Services Fund for.the purchase of five new ambulances. • The Municipal Airport Fund reported a $6.7 million increase in net assets. The increase was largely due to capital .contributions of $7.7 million for airport projects that were offset by operating losses of $1.1 million. • The Parking Services Fund reported a $3.6 million decrease in net assets. The decrease was primarily the result of $3.3 million in transfers out due to the cancellation of the East Broadway Parking Garage project. • The Stormwater Utility Fund reported a $1.9 million increase in net assets. The increase was principally due to capital contributions of $1.0 million from developers for stormwater improvements, $0.5 million. in operating income, and $0.4 million in interest revenue. • The Wastewater Utility Fund reported a $0.8 million increase in net assets. The increase was mainly due to capital contributions of $3.0 million for wastewater improvements and infrastructure that was offset by operating losses of $2.4 million. Other factors concerning the finances of proprietary funds can be found in the previous discussion of the City's business-type activities. General Fund Budgetary Highlights The City's final budget differs from the original budget in that it contains carry-forward appropriations for various programs and projects, and supplemental appropriations approved during the fiscal year. The final fiscal year 2008 > budget for the General Fund was increased by $8.3 million. The primary reasons for this increase are as follows: • $3.6 million increase to police, including $3.1 million for grant-funded activities. • $1.3 million increase to planning and development, including $0.3 million for a comprehensive land study and $0.2 million for the Neighborhood Initiative program. • $1.0 million increase to fire and emergency medical services, including $0.9 million for grant funded- - activities. • $0.9 million increase in transfers out to the General Capital Projects Fund. • $0.8 million increase to central services, including $0.4 million in carry-forward appropriations, $0.1 for equipment replacement, and $0.1 million for voter pamphlets and materials. These changes were funded primarily by an increase of $4.1 million in intergovernmental revenues and $3.5 million in unspent resources from the prior year. The net decrease of $0.9 million in budget-basis fund balance for the year ended June 30, 2008 was a significant improvement over the projected deficit of $4.0 million in the General Fund final amended budget. Actual revenues were $3.5 million lower than budget, primarily due to tax revenues and intergovernmental revenues that were $1.5 million and $1.1 million, respectively below budget projections. On the expenditure side, departments under-spent their budgets by a total of $6.7 million. The significant changes were in Police ($2.4 million), Planning and Development ($1.2 million), and Central Services ($1.1 million). Economic Factors and Next Year's Budgets and Rates During the preparation of the budget for the ensuing fiscal year, the long-term impacts of the local economy were examined in conjunction with business decisions made by the City. The following are the major assumptions used in developing the FY 2009 budget: • Interest rates on investments will be 4.0%. • Property tax revenue is expected to increase 4.3% in 2009. • Non-represented salaries will increase by 2.8%, collectively bargained agreements will increase between 2.8% - 3.5%. • Health benefit rates will increase by 1.7%. • PERS costs are expected to be 26% of payroll, which is unchanged from the prior year. 23