HomeMy WebLinkAboutAgenda Report - March 1, 2006 K-01AGENDA ITEM V%=A
CITY OF LODI
COUNCIL COMMUNICATION
AGENDA TITLE: Approve Revised 2005-06 Budget document pages
MEETING DATE: March 1,2006
PREPARED BY: James R. Krueger, Deputy City Manager
RECOMMENDED ACTION: That City Council approve Revised 2005-06 Budget document
pages
BACKGROUND INFORMATION: City Council adopted the 2005-06 Budget in June 2005. The budget
document that was prepared to incorporate the approved budget
includes a section showing the Changes to fund balances. Within
that portion of the budget document are inadvertent mathematical
errors. The attached Exhibit shows the revised amounts that
correct the mathematical errors and in addition show the actual
Beginning Fund Balance amounts as stated in the ComprehensiveAnnual Financial Report for June 30,
2005. The pages reflect the corrections for inadvertent mathematical errors on the fund balance pages of
the budget document (pages 188-195). These corrections do not change the estimated ending balances,
but allow for a correct accounting of all of the elements (beginning balances, net revenues less
expenditures and ending balances) comprising the changes in fund balance for all City Funds.
Staff would like to schedule a mid -year budget review for the March 15, 2006 City Council agenda. At
that time we will discuss all of the proposed adjustmentsto budget. At this time we do have the following
adjustments, which will be proposed to City Council on March 15, 2006:
1) General Fund -Total budgeted expenditures should be decreased by $500,000 from the amount
stated in the adopted budget to reflect the reduction in the transfer amountfrom the Electric Utility
Fund for services provided. This budget adjustment will not affect the ending fund balance
because there are sufficient cost savings to offset the reduced revenues. The expected ending
fund balance will be $1,507,000 (a slight decrease from the amount in the adopted budget of
51,565,000).
2) Electric Utility Fund- Budgeted expenditures should be increased by a net amount of $543,000
from the amount stated in the adopted budget. This is a netting of three different items, which
include an estimated bulk power purchase cost increase of $2,867,000, a reduction of the transfer
to the General Fund of $500,000 and a reduction in other operating costs of $1,824,000. The
increased revenuesfrom the rate increase approved by City Council in November2005 will
provide approximately $5,000,000 in additional revenues and the net result is that the Fund
Balance is expected to be $3,340,000 (the ending fund balance in the adopted budget is a deficit
of $2,198,000).
APPROVED: f
Blair King, City Manager
3) Water Fund- Budgeted expenditures should be increased by $52,800 from the amount stated in
the budget to pay for the cost of services transfer from the General Fund Departments (mostly
Public Works) that had been originally scheduled to be paid from the Street Fund. This
adjustment is a reallocation of the cost of services transfer from the Street Fund to the Water,
Wastewater and Capital Outlay funds. This will result in a reduction of the estimated ending fund
balance for this fund.
4) Wastewater Fund- Budgeted expenditures should be increased by $30,800 to pay for the cost of
services transfer from the General Fund Departments (mostly PublicWorks) that had been
originally scheduled to be paid from the Street Fund. This adjustment is a reallocation of the cost
of services transfer from the Street Fund to the Water, Wastewaterand Capital Outlayfunds. This
will result in a reduction of the estimated ending fund balance for this fund.
5) Capital Outlay Fund- Budgeted expenditures should be increased by $139,100 to pay for the
cost of services transferfrom the General Fund Departments (mostly Public Works) that had been
originally scheduled to be paid from the Street Fund. This adjustment is a reallocation of the cost
of services transfer from the Street Fund to the Water, Wastewater and Capital Outlay funds. This
will result in a reduction of the estimated ending fund balance for this fund.
6) Street Fund- Budgeted expenditures should be decreased by $222,700 to reflect the relocation of
the cost of services transfers to the Water, Wastewater and Capital Outlay funds. This will result
in an increase in the estimated ending fund balance for this fund.
The analysis and resulting resolution to be presented on March 1 will include other funds and budget
items as well as the above. In addition to the correction of the mathematical errors, another column has
been added to show the effect of the budget adjustments as per above and to show the actual fund
balances from the City of Lodi Comprehensive Annual Financial Report for June 30, 2005.
FISCAL IMPACT: The fiscal effect of the adjustments is incorporated within the explanations above.
FUNDING: None required.
&e—s—R- Krueger, Deputy City Manager
EXHIBIT A
Budget and FmAncial Plan 2005-06
7,273,756
(6,534,3 10)
Changes 11i Fond Balance-REVISED2-15-06
(212,876)
10,053,928
Fund
3,799,155
General Beginning FVW.Balance Unreserved
Beginning Fund Balancc (Reservcd/Deaigmted)
292,350
Revenues
34,622,979
36,022,164
Expenditures
—6,171,174)
(36,360,624)
Year-end Audit Adjustments/Other
346,442
229,940
N e t Difference
(1,201,753)
(108,520)
Fund Balances (Net Assets) for 6/30103 & 6/39104 Ending Fund Balance (Rcearved(Designated)
292,350
666,832
Stated on GAAP BASIS Ending Fund Balance Unreserved
t",
3`11"A 1'
Electric
Fund Balance Is not stated in accordance
with GAAP, whdch would be ona net asset
basis rather than on 2 cash b asis
BeginningFund Balance! (Cash) Unreserved
..... ... ..
Beginning Fund Balance (Reserved/Designatod)
Revenues
Expen&tMes
Year-end Audit Adjwtrren(,i/Offi-_r
Net Difference
Ending Fund Bil an�v (RvmrvcdVesigna&,d)
Ending Fond Bal2nce (Cash) Unreserved
55,847,482 56,347,148
(56378..751) (58,081,094)
(1,120,318) 7,309,445
(I,651,587) 5,575,499
..........
g
.......... . ..... . .
......... ...
........... .....
Wastewater
Fund Balance is not stated in A ecordance
with GAAP, which would be ona net asset
basis rather thin ona c ash basis
M,
........ .
Water
Fond Balance Is not stated in Q ccnrdqnce
with GAAP, which would b e on R net asset
basis nafhtr thin ona cash basis
Beginning Fund Balance (Cash) Unreserved
Beginning Fund Balance (RcstryediDsignm Led)
Rovmucs
Expenditures
Yearend Audit Adj ustmnWOth cr
Net Dffertnct
Ending Fund Balance (Re--td/Designated)
Ending Fund Bal a net (Cash) Unreserved
7,516,956
7,273,756
(6,534,3 10)
(13,528,529)
(212,876)
10,053,928
769,770
3,799,155
Beginning Fund Balance (Cash) Unreserved
Beginning FundBalance (RrservclDesignated)
Revenues
Expendfilma
Year-end Audit Adjus Lnr-n(,VO ffi er
N e t Difference
Ending Fund Balance (Reserved/Designated)
Ending Fund Balance (Cash) Unreserved
9,147,257
7,436,511
(10,604,441)
(7,658,574)
1,615,637
1,371,993
158.453
1.149.930
Pagel 88 Section III (Fund Balances)
EXHIBIT A
Budget and nn2ncia I PlanZ DO 5-06 Updated with
Actual
Changes In Fimd Balance -REVISED 2.15-06 Regin"Int
Balances
-�S*IIXMI''---p . ...........
•"W'm
General Beginning Fund BalanceUnreserved
BeginningFund Balemce (Reserved/Designated) J 353,578 488,246
Rovonnes
38,312,734
43,824,372
43,824,372
Expenditures
(39,338,957)
(43,824,372)
(43,824,372)
Year-end Audit AdjLm ftmn(s/0 (haT
1,444,340
0
0
Net Difference
418,117
0
0
Fund Balances (Net Assets) for 6/30103 & 6/30/04 Ending Fund Balance (ReseryadfDtsignated)
................................
353,578
488,246
Stated on GAAP BASIS Ending Fund B ala nce Urx es erve d
8,088,756
Mi
. . . . . . . . . . .. .
::;.<:,:..:,:;.:.:;;.,:,:....:..:<::>>s;
X
.. .... ...
xx. . . . . . . . . . . . . . .....
. . . . . . . ..... . . ... . . . . . . .
. . �?, . . . . . . . . . . . .. . x
Electric
BeginningFund Balance (Cash ) Unr"eme-d:MIMM
miamw
ffip~�
Beginning FundBalance (Res6ryed/Designatcd)
2,400,000
2372.434
Revenues
53,831,05
56,754,253
56,754,253
Expenditures
(62,283,101)
(65,040,494)
(65,040,494)
Year-end Audit Adju-atmnLVOthcT
8,088,756
Net Difference
(363,070)
(8,286,241)
(8,286,241)
Fund B;Iau" is not stated in accordance
with GAAPwhichwouldbt ona net a&set
Ending Fund Balance (Reserved/Designated)
2,572,434
basis rather than on ii cash basis
Ending Fund Balance (Cash) Unreserved
,X.
X
....
X..
.....
... ... x—
Wastewater
BeginningFund Balance Cash Unrersemed
"'ONAA
Au 4
s"M
Beginning Fund Balance (RosormVDesigaa ted)
758,660
1,688,947
Revenues
9,425,360
15,242,150
15,242,150
Expenditures
(22,196,564)
(17,057.771)
(17,.057.771),
Year-end Audit A6juatmenWO d%e7r
11,115,564
0
Net Difference
(1,655f640)
(1,815f621)
(1,815,621)
Fond Balance isnot stated in 2ccordame
with GAAP, which would he ona net asset
Ending Fund Balemcc (Rewrved/D4signattd)
2 f 169.,850.
605,160
1,688,947
basis rather than ona cash ha_sis
Ending Fund Balance (Cash) Unreserved
-n
Water
PA.(Cash} U,,m,,,,J
...............
Beginning Fund Balance (Reserved/Designated)
1,196,307
0
Revenues
8,446,385
8,888,019
8,888,019
Expenditures
(9f273,895)
(8,068,069)
(8,068f069)
Year-end Audit AdjuattmnWOther
81,667
Net Difference
(745,843)
819,950
819,950
Fond Balance fq not stated in2ccord4nce
with GAAP, whichwould be ona net asset
Ending Fund Balance (RosurvIod/Designatod)
... 1,165,907
1f165,807
b2M,q nthrrthan ona rashbAsis
Ending Fund Balance (Cash) Unreserved
pagS189 Section III (Fund Balances)
EXHIBIT A
Budget and Financial Plan 2005-06
Changes In Fond Balance -REVISED 2-15-06
.06-000", 1 'E lls'.." 1110.0
M.- 6
Library Beginning Fund Bal Unreserved WNW
Beginning Fund Balance (Reserved/Designated)
Fund Balances (Net Assets) for 6130103 & 6/30/04 Ending Fond Balance (Reserved/Designated)
Stated on GAAP BASIS Ending Fund Balance Unreserved
Community DevelopmentBlock Grant Beginning Fund Balance Unreserved
Beginning Fund Balance (Rracrved/D"gnated)
Revenues
LNvenditures
Year-end AuditAdjustnwnts/Ottker
Net Difference
849,671 1,077,190
(849..671) f815,617)
0 (261,573)
0 0
Fund Balances (Net Assets) for 6/30/03 & 6/30/04 Ending Fund Balance (ReservcdOesignatca)
P BASIS Ending Fund Balance Unreserved
Stated on GAA ... .
Ix...........
Pag919D Section III (Fund Balances)
Revenues
1,487,447
1,567,113
Bxpewditures
(1,216,098)
(1,301,598)
Year-end Audit Adjustments/Other
(163,887)
(270,715)
Net Difference
107,462
27
Fund Balances (Net Assets) for 6/30103 & 6/30/04
Ending Fund Balance (Reserved/Designated)
Stated on GAAP BASIS
Ending Fond Balance, Unreserved
Zx M
Capital Outlay
Beginning Fund Balance Unreserved
Beginning FundBalanc e (Reserved/Designated)
5,244,919
Revenues
4,904,218
3,803,029
Expenditures
(13,509,012)
(9,285,877)
Year-end Audit Adjustments/Other
1,497,051
(575,765)
Net Difference
(7,107,743)
(6,058,613)
Fund Balances (Net Assets) for 6/30/03 & 6/30/04
Ending Fund Balance (Reserved/Designated)
5,244,919
1,187,448
Stated on GAAP BASIS
Ending Fond Balance Unreserved
Communnity Development
Beglinning Fund BalanceUbreserved
........ ...
..... x,..x
Nor fund created as part of 2005-06 proposed
Beginning Fund Balance. (Reserved/Designated)
budget
Revenues
1,239,699
1,617,041
Expenditures
(1,447,381)
(1,471,460)
Year-end AuditAdjustrnents/Other
207,682
Net Difference
0
0
Fund Balances (Net Assets) for 6130103 & 6/30/04 Ending Fond Balance (Reserved/Designated)
Stated on GAAP BASIS Ending Fund Balance Unreserved
Community DevelopmentBlock Grant Beginning Fund Balance Unreserved
Beginning Fund Balance (Rracrved/D"gnated)
Revenues
LNvenditures
Year-end AuditAdjustnwnts/Ottker
Net Difference
849,671 1,077,190
(849..671) f815,617)
0 (261,573)
0 0
Fund Balances (Net Assets) for 6/30/03 & 6/30/04 Ending Fund Balance (ReservcdOesignatca)
P BASIS Ending Fund Balance Unreserved
Stated on GAA ... .
Ix...........
Pag919D Section III (Fund Balances)
EXHIBIT A
Budget and Financial PlanZM-5-06 Updated with
Actual
Changes In Fund Balance -REVISED 2-15-06 Beginning
Balances
. .. ...........
.........
Library
Beginning FundWante UrLreserved
Beginning Fund Balance (Res<,ryd/Designatcd)
0
Revenues
1,483,695
1,455,565
1,455,565
Expenditures
(1,484,540)
(1,594,596)
(1,594,596)
Year-end Audit AdjustnicnWC�the:r
43,051
0
0
Net Difference
42,206
(139,031)
(139,031)
Fund Balances(Net Amseti) for6/30/03 & 6/30/04
Ending Fund B6rroc (RescrvedfDesigna Led)
Stated on GAAPBASIS
Ending Fund Balance Unreserved`'`
......
s -.3
R....
.... .
Cqpfta2 Outlay
Beginning Fund Balance Unreserved
Beginning Fund Balance (R,,serye_d/Darigna ted)
1,679,480
974,842
Revenues
3,523,880
1,443,568
1,443,568
Expenditures
(3,408,101)
(1,192,836)
(1,182,836)
Year-end Audit Adjmbm nW01her
(671,375)
0
0
Net Difference
(555,596)
260,732
260,732
Fund Balances (Net Assets) for 6130/03 & 6/30/04
Ending h o d Balance (Reserved/Designated)
1,679,480
1,679,480
974,842
Stated on GAAP BASIS
X
Ending Fund Balance Unreserved
.. .......... ....
x ... .. ..... .
- .. . .. . ... . ........
L.,..,...,.,. . -
..... .....
. ....
xL
, I
x..
-X,
,
,I
X
.......... X,
I .........
Conimujinl�y Development
............. ....... . ..
.........
. .......
Btgi g Fund B glance e Unreserved
......
.....
.. ... .....
X
New fundereated aspart of200566propost-d
Beginning Fund Balance (Reserved/Designated)
bndgst
Revenues
1,121,230
1,964,680
1,964,680
Expenditures
(1,909,713)
(1,964,680)
(1-964,680)
Ycar-end Audit Adjus tnw nts/Other
688,483
0
0
Net Difference
0
0
0
Fund Balances (N e t Assets) for 6/30/03 & 6/30104
Ending Fund Balance (Rose rved/Designatvd)
Stated onGAAPBASIS
. . .
Ending Fund Balance TJ nr es tryed
..... .
..... ....
x
.....
- ....
..... ...
Cornmunity De'Yelopinent Nock Grant
... .. x
BeginningFund Balance Unreserved
M
Dcgitiuing FQnd Balance (ReservedMesignated)
Revenues
1,089,110
8)5,000
815,000
Expenditures
(2,241,573)
(1$0,000)
(150,006)
Year-end Audit Adjustments/Other
1,152,463
0
0
Net Difference
0
665,000
665,70-0
Fund Balances (N et Assets) for 6/30/03 & 6/30/04
Ending Fund Balance (Rowrytdffiesignated)
Stated on GAAP BASIS
Ending Fund Balance Unreserved
Pagel9l Section 111 (Fund Balances)
EXHIBIT A
Budget and Financial Plan 20[15--06
Change hk Fimd Balance-REVISED 2-15-06
Employee Benefits Beginning Fund Balance Unreserved
Beginning Fund Balance (Reserved/Designated)
Revenues
4,305,895
4,192,434
Expenditures
(3,907,191)
(4,491,086)
Year-ad AuditAdjustments/Other
(398,704)
298,652
Net Difference
0
0
Fund. Balances (Net Assets) for 6130103 & 6130/04
are cunsi)ha2ted with all otherfondsand are Ending Fund Balance (ReservedlDesignated)
not presented in GAAI`basls reports Ending Fund BAAiwe. Unreserved
_*5 -.2 2 k".
Vehicle and Equipment R ep I a c e m t n t Beginning Fund Balance Unreserved
Beginning Fund Balance (Rcscrved/Dcsignated)
94,074
Revenues
50,710
44,203
Expenditures
(605,551)
(172,156)
Year-end Audit Adjustments/Other
0
330,000
Net Difference
(554,841)
202,047
Food Balances (Net Assets) far 6/30/03 & 6/30104 Ending Fund Balance (Peserved/Dcsignated)
94,074
1,284
Stated on GAAP BASIS Ending F -und Balance Unreserved
......... .
X., "I 6M" -i
.. . . . .
f............ .... ... . . ..
M . .... ...
. ......... .... .... ....
Self Insurance Begim-dug Fund Balance Unres erved
Z,
Beginning Fund Balance (Reserved/Designated)
Revenues
1,858,019
3,192,065
Expenditures
(2,194,384)
(2,496,898)
Year-end Audit Adjustments/Other
118,502
107,701
Net Difference
(217,863)
802,868
Ending Fund Balance (ItAwTved/Designated)
Ending F' and Balance Unreserved
.... . ....... .. .. ..... ..... .
...........
. ... . ...
....... _ _2�
..........
Public Safety Special Revenue Beginning Fund Balance Unreserved
w4ow
Beginning Fund Balance (Reserved/Designattd)
ROVMU94
116,1d3
1g9,537
Expenditures
(360,359)
(227,304)
Year-end Audit Adjuq(rnenLVO(Mr
9,892
0
Net Difference
19,677
(38,767)
Fund Balances (Net Assets) for 6/30/03 & 6/30/04 Ending Fund Balance (Reserved/Designa"
Stated on GAAP BASIS Ending Fund Balance Unreserved
......
.......... ...........
. . .... . . ..... ...... .......
......... .... ... .....
............. ...........
.......... ... ...
Streets Beginning Fund Balance Unre,se7ve d
Beginning Fund Balance (Reserviod/Designated)
1,084,660
Revenues
4,869,205
5,0-63,653
ExpcUditims
(4,384,267)
(5,447,143)
Year-end Audit AdjustrnenwOthtu
95,896
91,667
Net Difference
580,834
(291,823)
Fund Bglantei (Net Assets) f6r6/30/03&6/30J04 Ending Fund Balance (Peseryed/Uesignatpd)
1,084,660
2,558,847
Slated on GAAP BASIS Ending FundBalanUnreserytii
Page192 Section Ill (Fund Satances)
EXHIBIT A
Budget and nnancial Plan 2005-96
375,000
193,500
'Updated with
Expenditures
(376,614)
(145,000)
Actual
Changes In Fund Balance-RENISED 2-15-06
21,114
0
Beginning
Net Difference
19,500
48,500
Balances
Fund Balances (Net Assets) for 6/30/03 & 6/30/04 Ending Fund Balance (Reserved/Designated)
(388,566)
....
2,141
Stated t e d on GAAP BASIS Ending Fund Balance Unreserved
Ending Fond Balance (Rcscr-Ycd/Dcsignatod)
............
. .. . ... 'M .... ..;stir ....
....... .
...........
..... . .. .......... .
Sflfnsuraace Beginning Fund Balance Unreserved
Ending Fund Balance Unreserved
.......... .. . .... ................. .........
Employee Benefits Beginning Fund Balance Unreserved
40
... ........ ...
1,565,784
Beginning Fund Balance (Reserved/Designated)
3,261,419
Revenues
Revenues
5,286,463
6,241,794
6,241,794
Expenditures
(5,3.59,150)
(5,993f099)
(5,993,099)
Yoar�enJ AuditAdjusbmn&Qther
0
D
N e t Difference
Net Difference
127,313
248,695
248,695
Fund Balances (Not Assets) for 6/30/03 & 6/30/04
2,564,933
2,906,187
Ending FondBalance Unreserved
are consolidated vvithall. other funds and are Ending Fund Balance (Roserved/Designatrd)
Net Difference
.. ............
... ....
...... ...... ...
. ........ ... .. . . ....
. ....... .... , ......
........ ...... ............ . ....
..........
................. ........
.............. ...
Public Safety Special Revenue Beginning Fund Balance Unreserved
not presented In GAAPbads reports Ending Fund Balance Unreserved
........ .
....
X
......
................ ....
.................. -
Z. X'
. . . . . . . . . ...
. . .... ... ..
...........
V W el e and Equipment Replacement B --ginning Fund[BManct Unreserved .-AW
... ........
Beginning Fund Balance (Rostn7ed/Designa Led) 2,141
Revenues
375,000
193,500
193,500
Expenditures
(376,614)
(145,000)
(145,000)
Year-end Audit Adjust r-ents/Othcr
21,114
0
0
Net Difference
19,500
48,500
48,500
Fund Balances (Net Assets) for 6/30/03 & 6/30/04 Ending Fund Balance (Reserved/Designated)
(388,566)
....
2,141
Stated t e d on GAAP BASIS Ending Fund Balance Unreserved
Ending Fond Balance (Rcscr-Ycd/Dcsignatod)
............
. .. . ... 'M .... ..;stir ....
....... .
...........
..... . .. .......... .
Sflfnsuraace Beginning Fund Balance Unreserved
Ending Fund Balance Unreserved
.......... .. . .... ................. .........
. ..... .....
. . .... .... . .
....... ..... . ..
.....
. . .....
8$1 -M
.........
Beginning Fund Balance (Reserv,-dJDesigna(ed)
1,565,784
2,920,165
3,261,419
Revenues
2,781,480
2,565,905
2,565,905
Exvenditures
(2.732.000)
(2,921,137)
(2921,137)
Year-end Audit AdjustnAenWO(heT
0
0
D
N e t Difference
49,480
(355232)
(355272)
Ending ftud Balance (Reserved/Designated)
.........1,615,264 .
.. ..........
2,564,933
2,906,187
Ending FondBalance Unreserved
Net Difference
.. ............
... ....
...... ...... ...
. ........ ... .. . . ....
. ....... .... , ......
........ ...... ............ . ....
..........
................. ........
.............. ...
Public Safety Special Revenue Beginning Fund Balance Unreserved
x .........
_4
........ .
....
X
......
................ ....
.................. -
Beginning FundRalaciQc (Rcscrvc"esignated)
Revenues
Expenditures
Year-end Audit Adjustments/Other
(388,566)
(276,876)
(276,876)
NetDifftrence
(388,566)
(276,876)
(276,876)
Fund Balances (Net Assets) for 6130103& 6/30/94
Ending Fond Balance (Rcscr-Ycd/Dcsignatod)
Stated o n G AAP BASIS
................................ .. .. .. ... .. ...
Ending Fund Balance Unreserved
.......... .. . .... ................. .........
. ..... .....
. . .... .... . .
....... ..... . ..
.....
. . .....
8$1 -M
.........
.. ..
. ....
. .. ..... . ...
.. .. ...
.. . ....... ...... .. . .. .......... ..
Streets
. ..... ...........
Beginning Fund Balance Unr ts erve d
.... ...
...............
... .....
. ....
W
...... ......
Beginning Fund Balance (Peservcd/Dcsigna(ed)
3,965,554
Revenues
10,723,155
8,087,000
8,087,000
Expenditures
(14,267,002)
(5,545,036)
(5,545,036)
Year-endAuditAdjustrnants/Offie,r
3,058,845
0
0
Net Difference
(485,002)
2,541,964
2,541,76-4
Fund B2J ances (N et Assets) fo r 6/30/03 & 6/30/04
Ending Fund Balance (Reserved/Deffiganted)
3,965,554
Stated on GAAP BASIS
Ending FundBalance Unreserved
....... .. . 0 ...
Page193
Section
III (Fund Balances)
EXHIBIT A
Budget and Mmncial Plan 2005-06
Changeq In Fund Balance -REVISED 2-15-06
:4:" ;;r:rir c�o��xir.: .;;.oKiR:gzv� -;+p;�'{:ggr::,•` :�oR'{
�..�.�L.�:.:.'':44..:..:..
v:...:-. $a.:.: t:�n:}:.sir,:':;
O..i-"' . vro. hent:. 4::;{:'r ..El$,';:c:;' .:. v`iv::o`}_:`•..`.;4i:::`.v
•
ti.; {.Jv: �.vi{.:ii•:Liti ;iiia:{}.wi.:Y}.:v:{.;: �i:i:.�:I..R:::-iiti JY}v:i{.. Y:......n...........0.?{.�fii{.::2A?9:v.:4:.4.?.S:f,.?iJ:�':•i n.}:r.:wi: ii:{v..:.
n.. r.. :n4 vv. '•3
....:.:..nV ...:..n...r. ......
or{:4`�:R:n.nv
::.>.u•ti:::::l.,:>.•1.c:.:ti:`r°:r`ih;;:i; . ro r... .
�.T.......:n:.•.:. .....v: n:4;n.: �..:{:i.v:.•.....:. ^U.}:::. - :.. �nv. : : . : : : : :.
Tranglt Beginning Fund Balance (Cash) TJnreserved .:.,-"_>skac_:.�:�
;i:;;^ti<s.:;;�;•�•�:x
Beginning Fund Balance (Reserved/Designated)
Revenues 3,866,006
4,176,016
Exnenditams (7565 46)
14.001583)
Ycar•endAuditAdjustments/Other 3,699,340
(174,433)
Net Difference 0
0
kundBalance isnotstated inaceordance
wlth GAAP,whichwouldbe onanetassrt Ending Fund Balance(Resetved/Designated)
basis rather than on a cashbasia Ending Fund Balance (Cash)Unreservrd M.,:::{ x?: ->11F
sem;>;ru;ts:m
,�: i`:%:�<r°:�`y;FS'n��$r ::'o' :{:::;:n: �;:.s,fi�:;:i:f'.`.`::ru::oV::S.`:Sw"�:; ' • xx�v:o``.:' ::o. ;;`•:o::::
....:..: $::.: �::::...... nv:.v::: x::..........v:�:4.:s....:.::•::.u.nT.v:....n..:rvrw.n..::.......v.::. :.ry., ........- 1:...:.::.....:.... .v.. 1. .. ....
.... tl.... w.... ....v: ntiv.i.4 i:�.ti::-.v::J:.}:i• J..J-.. v...:...-::.v:.:......:::::..::::�; : V' C
Tra2trporfatfon DrvelopmentAct Beg'iwdna Fund Balance Unreserved M1
Beginning Fund Balance (Reserved/Designs tad)
Revenues 38,911
39,865
Expenditures (405,424)
(6,451)
Year-endAudit Adjustments/Other 0
0
Net Difference (366,513)
33,414
Fund Balances (Net Assets) for6l30/03 & 6130f04 Ending Fund Balance (Reserved/Designated)
Stated on GAAP BASIS Ending Fund Balance Unreserved
Trust and Agency Stunning Fund Balance 1'areaerved 1,061,574
Bcriiminu Elrod Bmlance (Reser%ed I)esignaird)
545,772
Revenues 210,579
239,664
Expenditures (274.770)
(388,610)
Year-end Audit AdjusurtenWOther 177,229
(123,347)
Net Difference 113,038
(272,293)
Fund Balances (Net Assets) for 6130103 & 6130104 Ending Fund Balance (Reserved/Designated) 545,772 557,866
Stated on GAAP BASIS Ending FundBalance Unreserved
:::s:rt:>::<{:
DAt Service Waft Raid Bahince Umeserve1# _.
Beginning Fund Balanoc (Reserrod/Designaied)
Revenues
Excpenditmes
Year-endAudit Adjustrnenia/Other
Net Difference
1950,040 1,775,837
(1,950,040) (1,775,837)
0 0
0 0
Ending Fund Balance (R.eserved/Designa(cd)
Ending Fund Balance Unreserved
Total all Revenues
Total all Expenditures
Net Difference
Page194 Section M fFund Balances)
EXHIBITA
231,784
331,086
Budget and FinaneW Phik 20046
Expeaditmis
Updated with
0
0
Actual
Changes In Fund Balance -RF VISED 2-15-06
Reshming
Net Difference
(29,005)
Balances
331,086
Fund 13212nces (Net Assets) for6/30103 & 6/30/04 Ending Fund Balance (Reseryed/Dosipated)
......... ......
694,327
Stated on GA,,A-P BASIS Ending Fund 13 a 19 nce Unreserved
.. . ...... .. ..
.......
"K . . ..
T"ndt Beginning Fund BaJan" (Cash) Unmervc4
"
........ .. . ...... . ........
Debt Service Begirmilag FundBalance Unreserved
BeginningFund Balance (Reacrvedll),-signated)
...............
0
Revenues 3,270,169
3,880,360
3,880,360
Expenditures (3340,625)
(3,873,892)
(3,873,892)
Year-end Audit Adjuatnients/Other 180,081
Expenditures
(1,776,094)
N c t Difference 109.625
6.468
6,468
Fund Balance isnot ata ted In accord2lice
with GAAP, which would be on a net 95stt EndirxjFVnd Balance (P,-esem:(VDesignatzd)
0
0
balls rather than ons cash basis Ending Fund Balance (Cash) Unreserved
M'.
Transportation DevelopmentArt Beginning Fund Balance Unreserved
Beginning Fund Balance (Reserved/Designated)}
1,680
Revenues 39,367
39,900
39,900
Expenditures (66,156)
0
0
Year-endAudit AdjusUmnWOthcrr 26,789
0
0
Net Difference 0
39,900
39,900
Fund Bala nce5 (Net Ass e ts) for 61,30/03 6/30/04 Ending Fund Balance (Roserved/Designated)
1,680
statcd Qn GAAX BASPS Endfrig. Fund Balance. Unreserved
NNW
MONOW
Trust and Agency Beghming Fund Bal2nce Unr"er-�ed
Beghming Fund Balmcc (Reservtd/Designa(ed) 550,000 694,327
Revenues
231,784
331,086
331,086
Expeaditmis
(196,005)
0
0
Year-end Audit Adjustments,Other
(64,784)
Net Difference
(29,005)
331,086
331,086
Fund 13212nces (Net Assets) for6/30103 & 6/30/04 Ending Fund Balance (Reseryed/Dosipated)
694,327
Stated on GA,,A-P BASIS Ending Fund 13 a 19 nce Unreserved
.. . ...... .. ..
nm
Mffi�
. .........
..........
. ....
....
.... . ....
"
........ .. . ...... . ........
Debt Service Begirmilag FundBalance Unreserved
....................................
...............
.. ....... ..
...
Beginning Fund BalanceDnafed
Revcuu0s
1,776,094
1,772,478
1,772,478
Expenditures
(1,776,094)
(1,772,478)
(1,772,478)
Year-mdAuditAdjustwants/Other
0
Net Difference
0
0
0
Ending Fund Btlanoe (Reservcd/Drsignmd)
...... ..
nreserved
Ending Fund 13,21ance U
. ...... . ... . . ....
....... ... ... ... ....... ........
. ........ .. ... .. . .......
.. . ..... ... .... .
.. .......... .
.........
Total 211 Revenues
Total 211 Expenditures
Not Diffemnec
153,499,630 153,499,630
(159,133.460) (159,133,460
15,633.830) (5,633,831}
pagO195 Section 111(Fund Balances)
Page 1 of 2
Susan Blackston
From: Jim Reeves (reevesgen@yahoo.coml
Sent: Wednesday, March 01, 2006 2:38 PM
To: JoAnne Mounce- External; andrewa@lodinews.com
Cc: Jerry Adams; John Beckman; Blair King; Susan Blackston; Jennifer Bonnet; dflynn@inreach. com; Richard Hanner;
Larry Hansen; Susan Hitchcock; Jeff Hood; Emily Howard - External; Jason; Bob Johnson; Jim Kruger; Keith Land;
JoAnne Mounce; Richard Prima; Steve Schwabauer;Alan Vallow; Bob Wheeler
Subject: Re: The Financial Reports March 1 Council Meeting
JoAnne
If this were complicated I would be glad to meet with you but it is very simple. Go to pages 148 and 151 of the budget
you approved in June. Look at the columns under 2004-05 in the Accounting Services of the Finance Department and
the Revenue Services of the Finance Department. The numbers do not add. For instance in the Accounting Services it
shows a total of 8. If you add the numbers it is 7. What is the correct number. There are lots of errors like this
throughout the budget. Who's checking? Your Finance Director, Jim Kruger.
VOw if you look at the annual financial report which you adopted last month. I hope it is correct Your auditor's
''.poked at it. In the statistical section of the report start on page 93. Divide the 2004-05 number ($54,755) by the 1995-
)6 number ($28,606). The answer is 1.914. Which means that revenues increased 91 % in the last 10 years. Do the
iame for pages94, 95 and 112. You can interpret the results yourself.
ToAnne Mounce ymounce ab.odicitycouncil.com> wrote:
Jim,
I really believe that the first step to resolving your concerns is for you to be willing to meet with the City's
Accounting Manager, the City Manager, and myself to address the issues you continue to email me regarding.
It makes it very hard to for me to help you strictly via the Internet. Please call me on my cell # at 747-0381, so
that I can make arrangements to meet you.
I look forward to hearing from you.
Jo Anne
Jim Reeves <reevesgen(a yahao.com? wrote:
The City Council has a problem and has not figured it out. They approved a budget in June, they are
changing it in March and it is still wrong. Item K-1 on the agenda for tonight says: "correct the
mathematical errors". This budget is full of math errors. Go page pages 148 and 151 of the budget.
Look at the section titled: "Staffing Summary". Look at the column 2004-05. Add the numbers. Both
are wrong and this is in the Finance Department. Kruger's won Department and he can't get it right.
So what do you think the rest of the budget looks like?
Now go to item K-2 and the Annual Finacial Report for the year ending June 30,2005 just approved by
the City Council.It shows on page 93 that General Government revenues rose 91% from 1996to 2005.
It shows on page 94 that General Government Expenditures rose 83%. Is that right? Revenue
increased faster than expenditures. Yes taxes did not keep up but that is not all the revenue the city
receives for general government. Look at "Inter -Government Revenues on page 93. They rose 343%.
Part of this is from the State for the City's property tax.
Yes the City of Lodi has a problem. And the problem is the ability to solve problems and prepare
accurate financial reports
/1/2006
e'er a lqc ti
'ram: Jim Reeves [reevesgen@y2hoo.com]
gent: Wednesday, March 01, 2006 2:40 PM
o: JoAnne Mounce- Externai; andrewa@lodinews.com
:c: Jerry Adams; John Beckman; Blair King; Susan Blackston; Jennifer Bonnet; dflynn@inreach.com; Richard Hanner;
Larry Hansen; Susan Hitchcock; Jeff Hood; Emily Howard - External; Jason; Bob Johnson; Jim Kruger; Keith Land;
JoAnne Mounce; Richard Prima; Steve Schwabauer; Alan Vallow; Bob Wheeler
subject: Re: The Financial Reports March 1 Council Meeting
Ty point on item K-1 is, if the Finance Director can's add up the numbers for his own department correctly how can
)u expect him to get anything else correct?
.nd his fund balance projections are still wrong. I'll give you the errors on that one step at a time.
+om: Jim Reeves [reevesgen@yahoo.com]
Sent: Wednesday, March 01, 2006 2:46 PM
o: JoAnne Mounce- Externai; andrewa@lodinews.com
_c: Jerry Adams; John Beckman; Blair King; Susan Blackston; Jennifer Bonnet; dflynn@inreach .com; Richard Hanner;
Larry Hansen; Susan Hitchcock; Jeff Hood; Emily Howard - External; Jason; Bob Johnson; Jim Kruger; Keith Land;
JoAnne Mounce; Richard Prima; Steve Schwabauer; Alan Vallow; Bob Wheeler
Subject: Re: The Financial Reports March 1 Council Meeting
)ne last point. Your Finance Director did not even put a personnel summary in the budget so there is no way to check
gut the numbers in item K-2. The city has always included a personnel summary. So this is a fact: Your Finance
department and your Personnel Department have two different sets of numbers and they don't agree. That is why
truger left it out. When they fired Narloch, the lost the institutional knowledge to pull it together. THIS IS A REAL
v4ESS. SO HANG IN THERE.
rom: Jim Reeves [reevesgen@yahoo.com]
ent: Wednesday, March 01, 2006 2:51 PM
o: JoAnne Mounce - External; andrewa@lodinews.com
Jerry Adams; John Beckman; Blair King; Susan Blackston; Jennifer Bonnet; dflynn@inreach.com; Richard Hanner;
Larry Hansen; Susan Hitchcock; Jeff Hood; Emily Howard - External; Jason; Bob Johnson; Jim Kruger; Keith Land;
JoAnne Mounce; Richard Prima; Steve Schwabauer; Alan Vallow; Bob Wheeler
ubject: Re: The Financial Reports March 1 Council Meeting
nd this may not be important to you and you can blow it off. But let me assure you that the rating agencies will not
ow it off and your rating which continues to go down will get down to the JUNK BOND level. I intend to bring this
their attention, if you can't get this budget and reports correct.
_NOTE: The following blue sheet
items were presented at the
meeting of 2/15/06, at which this
subject matter was subsequently
pulled from the agenda.
Page 1 of 1
r
Susan Blackston
From: Susan Blackston
Sent: Tuesday, February 14,20065:02 PM
To: 'Jim Reeves'
cc: City Council; Blair King
Subject: RE: The Budget Is Still Wrong
)ear Mr. Reeves:
Fhis reply is to confirm that your message was received by the City Clerks Office and each member of the City Council. In
addition, by copy of this e-mail, we have forwarded your message to the City Manager for informational purposes.
Susan J. Blackston, City Clerk
-----Original Message -----
From: Jim Reeves [mailto:reevesgen@yahoo.com]
Sent: Tuesday, February 14,2006 4:57 PM
To: John Beckman; Larry Hansen; Susan Hitchcock; JoAnne Mounce
Cc: Jerry Adams; andrewa@lodinews.com; Susan Blackston; Jennifer Bonnet; dflynn@inreach.com; Richard Hanner; Jeff
Hood; Emily Howard - External; Jason; Jim Kruger; Keith Land; Richard Prima; Steve Schwabauer; Alan Vallow; Bob
Wheeler
Subject: The Budget Is Still Wrong
Your Finance Director just can't seem to get it right. Are you sure he is qualified. I don't believe there has been
as bad a budget since Jerry Glen prepared the budget. Look at the agenda report he has given you for February
15th.
Now look at each fund and look at the balance at the bottom for each year. The ending balance for one year
should be the beginning balance for the next year. Just simple accounting. Let's get it straight guys. You look
like a bunch of idiots. As I said earlier, maybe you should turn finances over to Roseville or Tracy. They seem
to get it. You stick to the social issues, wine and entertainment. You know ... cultural affairs. I believe
Hitchcock understands that.
Brings words and photos together (easily) with
PhotoMail - it's free and works with Yahoo! Mail.
1/14/2006
Susan Blackston
From: Susan Blackston
Sent: Wednesday, February 15,20062:15 PM
To: 'Jim Reeves'
Cc: City Council
Subject: RE: Agenda - Budget Item K-4
]ear Mr. Reeves.
Page I o f2
rhis reply is to confirm that your message was received by the City Clerks Office and each member ofthe City Council
's/ Susan J. Blackston, City Clerk
-----Original Message -----
From: Jim Reeves [mai Ito: reevesgen @ya hoo.com]
Sent: Wednesday, February 15, 2006 2:11 PM
To: andrewa@lodinews.com; Jennifer Bonnet; Richard Hanner; Susan Hitchcock; Jim Kruger; JoAnne Mounce; Blair King
Cc: John Beckman; Susan Blackston; dflynn@inreach.com; Larry Hansen; Jeff Hood; Emily Howard - External; Jason; Bob
Johnson; Keith Land; Richard Prima; Steve Schwabauer; Alan Vallow; Bob Wheeler
Subject: Agenda - Budget Item K-4
Just in case you did not understand what I tried to convey last night. Go of item K-4 on the agenda for the City
Council Meeting Wednesday night February 15,2006.
Kruger starts out saying: "The attached Exhibit A shows the revised amounts that correct the mathematical
errors and in addition show the actual Beginning Fund Balance amounts as stated in the Comprehensive Annual
Financial for June 30, 2003"
Kruger does not know what he is doing and the City Council appear to be incapable of checking the report. I
believe I can demonstrate that he has manipulated the numbers to confirm the story that the city has a financial
problem.
So go to page 352 in Exhibit A. It also shows the page number in the budget as page 188. In the Electric Fund
the Beginning Fund Balance for 2002-03 is $2,423,175 and the Ending Fund Balance is $771,588. In 2003 it
shows the Beginning Fund Balance as $771,588 and the ending fund balance as $6,347,087. So far, so good.
Now look at the Beginning Fund Balance in 2004-05. It says itis $2,721,119. Wrong! It must be the same
balance as the ending fund balance from the prior year of $6,347,087. This means that $3,625,968 is missing.
What did Kruger do with the money? What did Hitchcock so with the money.
Now if you check all funds you will see that Kruger is consistent in making this mistake in every fund and that
there is some missing money. Hitchcock with a degree in Finance from Sac State and years of working
experience in a bank should have caught this the first time. And Joanne Mounce who is the "Controller" for a
CPA firm should have caught this.
Now le's look at the second issue. Look at the Electric Fund under Year End Audit Adjustments. In 2002-03,
Kruger subtracts $1,120,318, in 2003-04 he adds 57.309,445, and 2004-05 he adds $8,088,756. I think he is
trying to show the difference in the budget from year to year. Wrong, the difference is automatically corrected
when you report actual revenues and actual expenditures. When he became Finance Director he probably went
back to check prior year history. Prior year numbers are normally shown as actual and not budget. He doesn't
seem to know this. Check with any other City. They will tell you the same thing.
2/15/2006
Page 2 of 2
However, he is consistent in applying this practice to each fund.
There are some additional errors in his numbers but I am going to save them for June 30,2006 when they will
become super obvious and then let the voters of Lodi know what a greatjob the City Council is doing in
overseeing their money.
Yahoo! Mail
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