HomeMy WebLinkAboutMinutes - January 23, 2001 SSCITY OF LODI
INFORMAL INFORMATIONAL MEETING
"SHIRTSLEEVE" SESSION
CARNEGIE FORUM, 305 WEST PINE STREET
TUESDAY, JANUARY 23, 2001
An Informal Informational Meeting ("Shirtsleeve" Session) of the Lodi City Council was held Tuesday,
January 23, 2001 commencing at 7:00 a.m.
A. ROLL CALL
Present: Council Members — Hitchcock, Howard and Land
Absent: Council Members — Pennino and Mayor Nakanishi
Also Present: City Manager Flynn, City Attorney Hays and City Clerk Blackston
Due to the absence of the Mayor and Mayor Pro Tempore a motion was made by Council Member
Land, Howard second, to nominate Council Member Hitchcock to conduct the order of business. The
motion was carried by the following vote:
Ayes: Council Members — Hitchcock, Howard and Land
Noes: Council Members — None
Absent: Council Members — Mayor Nakanishi and Mayor Pro Tempore Pennino
B. CITY COUNCIL CALENDAR UPDATE
City Clerk Blackston reviewed the weekly calendar (filed).
Introduction
Wally Sandelin, City Engineer, introduced recently hired Charlie Swimley, Senior Civil Engineer who
has been assigned to the east side infrastructure reconstruction and rehabilitation projects.
C. TOPIC(S)
C-1 "Budget Policies"
NOTE: Item C-1 was rescheduled to the next regularly scheduled Shirtsleeve Session.
C-2 "Presentation regarding GASB34"
Finance Director McAthie introduced Steve DeVetter, Partner, and Marvin Dozier and
Mike Martin, Senior Managers from KPMG.
Steve DeVetter stated that the Governmental Accountings Standards Board (GASB) is
the organization that sets accounting rules for governmental organizations. The GASB
issued a new standard in June 1999, which laid out a new framework for financial
reporting for governmental organizations. The Board's objective with this new standard
was to establish a framework that resulted in greater accountability by state and local
agencies in providing more information to a wider range of financial statement users (i.e.
citizens, councils, creditors, etc.).
With the aid of overheads (filed) Mike Martin reported that the "government wide
perspective" described in GASB34 presents the government as a whole. He explained
that under governmental funds the primary focus was on current assets and liabilities,
with long term assets and liabilities presented in the account groups. Under the new
reporting model at the government wide perspective the account groups are eliminated
and fixed assets, as well as all of the long-term debt, is rolled into the financial
statements.
Continued January 23, 2001
In reply to Council Member Hitchcock, Mr. Martin stated that the fixed assets would be
depreciated. Under GASB34, infrastructure (e.g. roads, bridges, and buildings) is
capitalized in the government wide statements and depreciated. There is an option called
the "modified approach", however, Mr. Martin noted that most governments are going to
use the depreciation methodology because of the burdensome disclosure requirements
under the modified approach.
Mr. Martin explained that in the fund perspective fixed asset additions are expensed in
capital projects/governmental funds. For the government wide perspective assets are
capitalized. GASB34 requires that a reconciliation be done between the two perspectives.
This will mean a fundamental shift in how things are accounted for. GASB34 has given
both the government wide statements and fund statements equal weight. Mr. Martin
reported that most governments are going to stay with the fund perspective in terms of
accounting for their assets and liability. At the end of the year they would then convert
that over to an accrual basis of accounting and be able to produce the government wide
statements. This conversion provides the reconciled items that must be disclosed on the
face.
In response to Council Member Land, City Manager Flynn stated that accounting for
capital assets will require a major effort. It may take an investment in staff, and/or a
consultant to identify and book all the assets the City has.
Mr. Martin explained that infrastructure, and any large addition, or capital outlay that
occurred after 1980 to present must be capitalized. For Lodi, GASB34 goes into effect in
fiscal year 2003, however, to get the necessary opening balances the standards of
GASB34 will need to be applied beginning July 1, 2002.
Council Member Land commented that the initial investment to get the inventory of assets
cost the City of Tracy $50,000 and the City of Corona $41,000.
City Manager Flynn pointed out that GASB is not part of the federal government, it is a
board of accountants. He warned that there may be negative implications in choosing not
to comply with the standards of GASB34 when it comes to dealing with other agencies,
borrowing money, paying back loans, etc.
Mr. Martin stated that GASB34 also requires the reporting of Management Decision
Analysis (MDA). The MDA is a comparison of how well the city is doing this year vs. last
year, this year vs. budget, and the government wide statement vs. the fund statement.
Marvin Dozier stated that at the government wide reporting level there are two financial
statements: 1) statement of net assets, and 2) statement of net activities. The fund
financial statement on the second perspective will include major governmental and
enterprise funds, as well as fiduciary activities (e.g. pension fund).
Ms. McAthie pointed out the difficulty involved changing the formats of all the statements,
keeping two sets of books, preparing two transmittal letters, and ensuring that the
information is not overlapped. It may require the purchase of software, and hiring a
consultant to do the inventory.
Mr. Martin recommended that the City raise their capitalization threshold. He commented
that the Federal Government recently increased the threshold that they would allow for
federal grant programs to $5,000.
City Manager Flynn explained that staff would be coming back to Council with a
recommendation regarding GASB34.
Council Member Land outlined three important elements in the process: 1) careful
planning, 2) staff training, and 3) allocating the necessary resources.
Continued January 23, 2001
Council Member Howard stated that the information currently being reported by the
Finance Department is very thorough and she was not convinced that the requirements of
GASB34 were necessary. She asked for further explanation of its purpose and value.
Mr. Martin answered indirectly, stating that the policy issues are most important, i.e. how
the raw data is translated into meaningful information for citizens, council, and creditors.
He concluded by stating that the GASB34 standard was developed over a period of ten
years and it is extremely controversial and complex.
D. COMMENTS BY THE PUBLIC ON NON -AGENDA ITEMS
None.
E. ADJOURNMENT
No action was taken by the City Council. The meeting was adjourned at approximately 8:13 a.m.
ATTEST:
Susan J. Blackston
City Clerk
k]
Mayor's & Council Member's Weekly Calendar
WEEK OF JANUARY 23, 2001
Tuesday, January 23, 2001
7:00 a.m. Shirtsleeve Session
1. Budget Policies
2. Presentation regarding GASS34
Reminder Land. 2001 NCPA Strategic Planning Workshop, Sacramento,
January 23 - 25, 2001.
Wednesday, January 24, 2001
Reminder Land. 2001 NCPA Strategic Planning Workshop, Sacramento,
January 23 - 25, 2001.
Thursday, January 25, 2001 ,
Reminder Land, 2001 NCPA Strategic Planning Workshop, Sacramento,
January 23 - 25, 2001.
Reminder Hitchcock. LCC Employee Relations Institute, Monterey.
5:30 - 7:30 p.m. San Joaquin County WorkNet's grand opening and ribbon cutting or the Tracy
WorkNet Center.
6:00 p.m. Land and Hitchcock. CVD Quarterly Dinner meeting, Modesto. Dinner at
6:00 p.m., Program at 7:00 p.m.
Friday, January 26, 2001
Saturday, January 27, 2001
Sunday, January 28, 2001
Monday, January 29, 2001
Disclaimer: This calendar contains only information that was provided to the City Clerk's office
counci 1\mi sc\mca Ind r. doc
.9t
m
C0
0
O
L
0
C
O
cn
O
U
0
cn
E
O
CD
cu
co
I
cn
O
E
O
CO
�U
C
cz
C
L.L
U
cz
m
Cn
O
E
C
O
O
0
CO
O
J
CTJ
ca
Cn
A
cu
Q
cu
W
U
t-
QU
a
1--
U
W
y
U
J
M
IL
Discussion Points
■ What's new?
■ Implementation timeline
■ Basics of the new model
■ Review of the financial statements
What's New?
■ Major fund reporting ■ Two different MFBAs
■ Interfund eliminations ■ MD&A
■ Fiduciary reporting ■ Budgetary reporting
■ Applicable FASBs ■ Infrastructure reporting
■ Direct method -cash ■ Depreciation
flows ■ Maintenance
■ No more account groups preservation
Reconciliation of MFBAs Full accrual accounting
■ And more ... Net program activity
3
CD
CD
E
I --
C
•0
E
E
I
V*
+�
M
M
ON
I
V*
+�
M
I
V*
Infrastructure Reporting
■ Prospective reporting required at the effective date of
Statement
■ Retroactive infrastructure reporting required for
infrastructure assets that were acquired or
significantly reconstructed, or that received significant
improvements, in fiscal years ending after June 30,
1980.
A
New GAAP Reporting Structure
L
O
Lk
■
■
r-
U
O
N
E
O
m
.�
N
�
•N
U
O
O
U
_
N
>
j
UCD
Z
Q
o
O
co'
E
_O
C:
_O
U
.O
E
E
.O
m
4-0
U
•�
U)
cu
U) m
UO
W
Q
I
i
I
I
m
2
■
■
r-
Government -Wide Reporting
■ Separate columns for:
— governmental and business type activities
— primary government and discretely presented
component units
■ Fiduciary activity are excluded
— resources not available to finance government's
programs
8
Fund Financial Statements
Reporting includes
■ Major governmental and enterprise funds
a Include blended component units
■ Fiduciary funds, and discretely presented fiduciary
activity
9
C -
4—
L
O
E
•N
.U)
m
Q.
U
CD A. -i
E N
CD E
O
L
� O
Z
a
C
(U
C
��—
cn
ti--
O
-1.-+
Q
cA
U
_0
CL
a
Fund Financial Statements
■ Proprietary fund statements include
- internal service funds
- major enterprise funds
■ Fiduciary funds and similar component units
- Pension trust funds
- Investment trust funds
— Private -purpose trusts
— Agency funds
11
Fund Statements MFBA
■ Proprietary and ■
Fiduciary Funds
— economic resources
measurement focus
— accrual basis of
accounting
12
Governmental Funds
— current financial
resources
— modified accrual
basis of accounting
Notes to Financial Statements
set of notes should pi
mation that is essentia
s understanding of the
financial statements.
13
RSI
Required supplementary information (RSI) now includes:
■ M D &A
■ Budgetary comparison
■ Modified approach for reporting infrastructure
■ Other data based on previous GASBs (e.g. pensions)
14
Q
06
0
i
E
4a
W
LO
r
.0
a)+
U)
U
O
C
->co
QL
C
E
cn
—
(uE
C:
O
N
-�
-L
cn
O
O
O
>
❑.
U
Lz-0
O
N
Q.
>
tCS
N
(U
C:N
M
-�
U
Q
O
-
>
cn
C7
0
cu
CD
(u
-�
o
c6
�O
+�
O
cn
O
�
O
'.I
O
CIDcn
cn
C6
O
�+
cm
UCn
O
W
O
M
cn
U
U
n
Q�
_c
r)
o
LO
r
RAI
.A
FinancialReview of Basic
,z
16
6A
Sample City
Budgetary Comparison Schedule
General Fund
For the Year Ended December 31, 2002
G-1
The variance column is
Actual Amounts
optional.
(Budgetary
Variance with
Budgeted Amounts
Basis)
Final Budget
Original
Final
(See Note A)
Positive (Negative)
Budgetary fund balance, January 1 $
3,528,750 $
2,742,799 $
2,742,799
S -
Resources (inflows):
Property taxes
52,017,833
51,853,018
51,173,436
(679,582)
Franchise taxes
4,546,209
4,528,750
4,055,505
(473,245)
Public service taxes
8,295,000
8,307,274
8,969,887
662,613
Licenses and permits
2,126,600
2,126,600
2,287,794
161,194
Fines and forfeitures
718,800
718,800
606,946
(111,854)
Charges for services
12,392,972
11,202,150
11,374,460
172,310
Grants
6,905,898
6,571,360
6,119,938
(451,422)
Sale of land
1,355,250
3,500,000
3,476,488
(23,512)
Miscellaneous
3,024,292
1,220,991
881,874
(339,117)
Interest received
1,015,945
550,000
552,325
2,325
Transfers from other funds
939,525
130,000
129,323
(677)
Amounts available for appropriation
96,867,074
93,451,742
92,370,775
(1,080,967)
Charges to appropriations (outflows)
General government:
Legal
665,275
663,677
632,719
30,958
Mayor, legislative, city manager
3,058,750
3,192,910
2,658,264
534,646
Finance and accounting
1,932,500
1,912,702
1,852,687
60,015
City derk and elections
345,860
354,237
341,206
13,031
Employee relations
1,315,500
1,300,498
1,234,232
66,266
Planning and economic development
1,975,600
1,784,314
1,642,575
141,739
Public safety:
Police
19,576,820
20,367,917
20,246,496
121,421
Fire department
9,565,280
9,559,967
9,559,967
-
Emergency medical services
2,323,171
2,470,127
2,459,866
10,261
Inspections
1,585,695
1,585,695
1,533,380
52,315
Public works:
Public works administration
388,500
385,013
383,397
1,616
Street maintenance
2,152,750
2,233,362
2,233,362
-
Street lighting
762,750
759,832
759,832
-
TrafFic operations
385,945
374,945
360,509
14,436
Mechanical maintenance
1,525,685
1,272,696
1,256,087
16,609
Engineering services:
Engineering administration
1,170,650
1,158,023
1,158,023
-
Geographical information system
125,625
138,967
138,967
-
Health and sanitation:
Garbage pickup
5,756,250
6,174,653
6,174,653
-
Cemetery:
Personal services
425,000
425,000
422,562
2,438
Purchases of goods and services
299,500
299,500
283,743
15,757
Culture and recreation:
Library
985,230
1,023,465
1,022,167
1,298
Parks and recreation
9,521,560
9,786,397
9,756,618
29,779
Community communications
552,350
558,208
510,361
47,847
Nondepartmental:
Miscellaneous
-
259,817
259,817
-
Contingency
2,544,049
-
-
-
Transfers to other funds
2,970,256
2,163,759
2,163,759
-
Funding for school district
22,000,000
22,000,000
21,893,273
106,727
Total charges to appropriations
93,910,551
92,205,681
90,938,522
1,267,159
Budgetary fund balance, December 31 $
2,956,523 $
1,246,061 $
1,432,253
$ 186,192
1118/01 10:45 AM 1
Overview of GASB 34
Basic Financial Statements — and Management's Discussion
and Analysis — for State and Local Governments
Presentee by
Slew D.Vetler.Perlrw
Marvin Owisr, Senior Manager
Mike Marlin, Senior Menage
PUBLIC SECTOR PRACTICE
Discussion Points
■ What's new?
• Implementation timeline
• Basics of the new model
What's New?
• Major fund reporting
■ Interfund eliminations
• Fiduciary reporting
• Applicable FASBs
• Direct method -cash
flows
• No more account groups
• Reconciliation of MFBAs
• And more ...
J
- Two different MFBAs
■ MD&A
• Budgetary reporting
• Infrastructure reporting
• Depreciation
• Maintenance
preservation
• Full accrual accounting
■ Net program activity
3
Implementation Timeline
Revenues of Periods
greater than
inning 9 after
$100 ;M M
ro 2001
Revenues oft
than $100 MM
nods
ginning after
but greater^tha„
$10 MM
mine `f 5, 2002
'.
Revenues of iesw
than $10 MM Y �
'`
ginning after
`June 15, 2003
El
Infrastructure Reporting
■ Prospective reporting required at the effective date of
Statement
■ Retroactive infrastructure reporting required for
infrastructure assets that were acquired or
significantly reconstructed, or that received significant
improvements, in fiscal years ending after June 30,
1980.
5
New GAAP Reporting Structure
financial
Management's
Notes to the financial statements
Other required supplementary info
financial
Government -Wide Reporting
• Basic Statements
— Statement of Net Assets
— Statement of Activities
• MFBA
— Economic resources measurement focus
— Accrual basis of accounting
7
Government -Wide Reporting
- Separate columns for:
— governmental and business type activities
— primary government and discretely presented
component units
Fiduciary activity are excluded
— resources not available to finance government's
programs
Fund Financial Statements
Reporting includes
• Major governmental and enterprise funds
■ Include blended component units
■ Fiduciary funds, and discretely presented fiduciary
activity
Fundfinancial Statements
Governmental fund statements (emphasizing major funds)
• general fund
• special revenue funds
• capital project funds
■ debt service funds
■ permanent funds
10
Fund -Financial Statements
• Proprietary fund statements include
— internal service funds
— major enterprise funds
• Fiduciary funds and similar component units
— Pension trust funds
— Investment trust funds
— Private -purpose trusts
— Agencyfunds
11
Fund -.Statements MFBA
• Proprietary and
Fiduciary Funds
— economic resources
measurement focus
— accrual basis of
accounting
• Governmental Funds
— current financial
resources
— modified accrual
basis of accounting
12
Notes to Financial Statements
mgle set of notes should pro,.,,..,,
information that is essential;Q
maW's understanding of the bast _
financial statements
13
RSI .
Required supplementary information (RSI) now includes:
■ MD&A
• Budgetary comparison
• Modified approach for reporting infrastructure
• Other data based on previous GASBs (e.g. pensions)
14
Elements of MD&A
• Explanation of the two perspectives
• Condensed, comparative government -wide financial
statements — analysis of changes
• Analysis of differences between original and revised
budget and between actual and final budget
• Description of capital asset and long-term debt activity
■ Discussion of whether financial position has improved
or deteriorated
15
KPMG -
Questions & Answers
Ire
Sample City
Statement of Net Assets
December 31, 2002
emotively, the internal balances could be
)orted on separate lines as assets and
Nlities. A notation would need to be added
inform the reader that the "Total' column is
ASSETS
Cash and cash equivalents
Investments
Receivables (net)
Internal balances
Inventories
Capital assets, net (Note 1)
Total assets
LIABILITIES
Accounts payable
Deferred revenue
Noncurrent liabilities (Note 2):
Due within one year
Due in more than one year
Total liabilities
NET ASSETS
Invested in capital assets, net of related debt
Restricted for:
A-1
Primary Government
Governmental Business -type Component
Activities Activities Total Units
S 13.597.899
$ 10.279.143 S
23,877,042 $
303,935
27,365.221
—
27,365.221
7,428,952
12.833.132
3,609.615
16,442,747
4,042,290
175.000
(175.000)
—
—
322,149
126,674
448,823
83,697
170, 022.760
151, 388.751
321,41 1,511
37, 744, 786
=24, 16.161
165, 2 .183
389,545,344
3604 3604660
6,783,310
751,430
7,534,740
1,803,332
1,435.599
—
1.435,599
38,911
9,236,000
4,426.286
13,662,286
1,426,639
83,302.378
74,482,273
157,784,651
27,106,151
_
100,757,287
79,659.989
I ,41 7630
75,-033
103,711,386
73.088,574
176,799,960
15.906,392
Capital projects
11,705,864 —
11.705.864 492.445
Debt service
3,020.708 1,451,996
4,472,704 —
Community development projects
4,811,043 —
4.81 1,043 —
Other purposes
3.214,302 —
3,214,302 —
Unrestricted(deficit)
2.904,429 11,028.624
8.124,195 2,829.790
Total net assets
3i 9 3b -m-
$3�T
Net assets restricted for capital projects includes approximately $13 million of capital debt for which the proceeds
have not yet been used to construct capital assets.
01/22/2001 5:18 PM
the
reported on separate lines as assets and
liabilities. A notation would need to be added
to inform the reader that the "Total" column is
Sample City
Statement of Net Assets
December 31, 2002
Primary Government
Governmental Business -type Component
Activities Activities Total Units
A-2
ASSETS
Current assets:
Cash and cash equivalents
$
13,597,899 $
8,785,821 $
22,383,720
$ 303,935
Investments
27,365,221
—
27.365,221
7,428,952
Receivables (net)
12,833,132
3,609,615
16,442,747
4,042,290
Internal balances
175,000
(175,000)
—
—
Inventories
322,149
126,674
448,823
83,697
Total current assets
54.293.401
12.347.110
66,645717 1
Noncurrent assets:
Restricted cash and cash equivalents
—
1,493,322
1,493,322
—
Capital assets (Note 1):
Land and infrastructure (see G-5)
118,620,361
34,788,333
153,408,694
751,239
Depreciable buildings, property, and equipment,
51,402,399
116,600,418
168,002,817
36,993,547
Total noncurrent assets
170.022,760-
1 M82,073
322,904
37.744,786
Total assets
S 49,603,660
LIABILITIES
Current liabilities:
Accounts payable $
6,783,310 $
751,430 $
7,534,740
$ 1,803,332
Deferred revenue
1,435,599
—
1,435.599
38,911
Current portion of long-term obligations (Note 2)
9,236.000
4,426,286
13,662,286
1,426,639
Total current liabilities
17.454,909
5, 77, 7 -16-22,632.6=53,268.882
Noncurrent liabilities:
Noncurrent portion of long-term obligations (Note 2)
83,302,378
74,482,273
157,784,651
27,106,151
Total liabilities
100,757.287
79, ,9
180.417-76—
30,375.033
NET ASSETS
Invested in capital assets, net of related debt
103,711,386
73,088,574
176,799,960
15,906,392
Restricted for:
Capital projects
11,705,864
—
11,705,864
492.445
Debt service
3,020,708
1,451,996
4,472,704
—
Community development projects
4,811,043
—
4,81 1,043
—
Other purposes
3,214,302
—
3,214,302
—
Unrestricted (deficit)
2,904,429
11,028.624
8,124,195
2,829,790
Total net assets
8627
Total liabilities and net assets
$
224,316.161 $
165,229,183 $
389,545,344
S 49,603,660
Net assets restricted for capital projects includes approximately S 13 million of capital debt for which the proceeds have not yet
been used to construct capital assets (see paragraph 33).
01/22/2001 5:18 PM
Sample City B_2
Statement of Activities
For the Year Ended December 31, 2002
Indirect expenses are presented in a separate column
to enhance comparability (of direct expenses by
Net (Expense) Revenue and
function) between'governments that allocate indirect
Pr ram Revenues
Changes In Net Assets
expenses and those that do not.
Indirect
aerating Capi a
Primary ovemment
Expenses
Charges for
Grants and Grants and
Governmental
Business -type
Component
Functions/Pro rams
Expenses Allocation
Services
Contributions Contributions
Activities
Activities
Total
Units
Pr mary government:
Governmental activities:
General government
S 9,571,410 S (5,580,878)
S 3,146.915
S 843,617 S --
$ —
$Public
safety
34,844,749 4,059,873
1,198.855
1,307.693 62,300
(36.335,774)
—
(36.335.774)
—
Public works
10,128,538 3,264,380
850.000
— 2.252,615
(10,290,303)
—
(10.290,303)
—
Engineering services
1,299,645 111,618
704.793
— —
(706.470)
—
(706,470)
—
Healthandsonitotion
6,738.672 558,088
5.612,267
575.000 —
(1.109.493)
—
(),109,493)
—
Cemetery
735,866 55.809
212,496
— —
(579.179)
—
(579,179)
—
Cultureandrecreation
11,532,350 1,858,966
3.995,199
2,450,000 —
(6.946,117)
—
(6,946,117)
Community development
2.994.389 1,740.265
—
— 2,580,000
(2,154.654)
—
(2,154,654)
—
Education (payment to school district) 21,893,273 —
—
(21,893,273)
—
(21,893.273)
—
Interest on long-term debt
,068,121 (6
—
—
Total governmental activities
X121)
5
�
Business -type activities;
Water
3.595.733
4,159,350
— 1.159.909
—
1,723,526
1,723,526
—
Sewer
4.912.853
7,170.533
— 486,010
—
2.743.690
2.743,690
Parking facilities
2,796,283
1,344,087
— —
-
—
(1.452.19.6)
(1,452,196)
—
Totalbusiness-typeoctiviTes
11, b
1 .67 , 7
— 1,64541
—
3,p13a'F(�
3,015,020
—
Total primary government
117,11T,88r
8
3,17E,ls
5
—3 5frb�
D
—
Component units:
Landfill
S 3,382,157
$ 3.857,858
E -- S 11,397
—
—
—
487,098
Public school system
31.186,498
705.765
3.937,083 —
—
—
26.543,650
Total component units
5 34.568.=
3 4,563,=
3_—T43T,68T 1T34i
General revenues:
Taxes:
Property taxes. levied for general purposes
51.693,573
—
51,693,573
—
Property taxes, levied for debt service
4,726,244
—
4.726.244
—
Franchise taxes
4,055,505
—
4,055,505
—
Public service taxes
8,969,887
—
8,969,887
—
Payment from Sample City
—
—
—
21,893,273
Grants and contributions not restricted to specific programs
1,457.820
—
1,457,820
6.461.708
Investment earnings
1.958,144
601,349
2,559,493
881.763
Miscellaneous
884,907
104.925
989.832
22,464
Special item—gain on sale of park land
2,653,488
—
2,653,488
—
Transfers
501.409(501.409)
Total general revenues. special items and transfers
-76.900,Y//
�B65
J,1 4
29,259, 8
Change In net assets
(3.114.2
3,21
1 5,599
1 1656
Net assets—beginning
126,673,160
82.349,309
209,022,469
16,025,971
Net assets—ending
01/22/2001 5:18 PM
N
O
O
N
d
t
0
O
LL
Sample City
Balance Sheet
Governmental Funds
December 31, 2002
C-1
Amounts
net assets
reported for governmental oCffvifie5 in the statement of
(A-1) are different because (see Note 4, also):
Capital assets used in governmental activities are not
financial resources and therefore are not reported
Explanations of the reconcilingamounts need not be as
detailed as the ones illustrated here. In some cases, detailed
Other
161,082.708
explanations on the face of the statements may eliminate the
Other long-term assets are not available to pay for
Debt
need for further descriptions in the notes. On the other hand.
current -period expenditures and therefore are
Governmental
Total
deferred in the funds.
9,348.876
HUD rvice
Community
Route 7
Funds
Governmental
General
Programs- unds Redevelopment_
- - Redevelopment
Construction
(see M-1)
Funds
ASSETS
information. In some situations, however, additional disclosure
Long-term liabilities, including bonds payable, are not
of reconcilono items is reoured. as dismissed in nritonronh 77,
due and payable in the current period and therefore
and cash equivalents $
3,418,485
$ 1,236,523 ## $
—
$ —
$ 5,606,792
$ 10,261,800
Investments
—
— ##
13,262,695
10,467,037
3,485,252
27,214,984
Receivables, net
3,644,561
2,953.438
353.340
11,000
10.221
6.972,560
Due from other funds
1.370.757
—
—
—
—
1,370.757
Receivables from other government
—
119.059
—
—
1,596,038
1.715.097
Liens receivable
791,926
3,195.745
—
—
—
3,987,671
Inventories
182,821
182.821
Total assets
�4 3
4. # -T---TT31
S 10,478,037-,6
LIABILITIES AND FUND BALANCES
Liabilities:
Accounts payable S
3,408,680
S 129,975 ## S
190,548
$ 1,104.632
S 1,074,831
$ 5,908,666
Due to other funds
—
25,369
—
—
—
25,369
Payable to other governments
94,074
—
—
—
—
94,074
Deferred revenue
4,250.430
6,273,045
250,000
11,000
10,784,475
Total liabilities (Note 2)
7,753.184
6.428.389 ##
440.548
1,115.632
1,074,831
16.812,584
Fund balances:
Reserved for:
Inventories
182.821
—
—
—
—
182821
Liens receivable
791,926
—
—
—
—
791,926
Encumbrances
40,292
41,034
119,314
5,792,587
1,814,122
7,807,349
Debt service
—3832.062
3, 832062
Other purposes
—
'Designations" Of unreserved fund balances may be
1,405.300
1,405,300
Unreserved, reported in:
disc
displayed or disc
in the notes.
General fund
640,327
—
—
—
—
640,327
Special revenue funds
—
1,035,342
—
—
1,330,718
2,366,060
Capital projects funds
—
13.056,173
3,569,818
1,241,270
17,867,261
Total fund balances
1.655.366
1.076.376 ##
13,175,487
9,362,405
9,623,472
34,893,106
Total liabilities and fund balances 3
�.�b =
T --- 730217737— T_____TT�
5 IU.478,037
Amounts
net assets
reported for governmental oCffvifie5 in the statement of
(A-1) are different because (see Note 4, also):
Capital assets used in governmental activities are not
financial resources and therefore are not reported
Explanations of the reconcilingamounts need not be as
detailed as the ones illustrated here. In some cases, detailed
In The funds.
161,082.708
explanations on the face of the statements may eliminate the
Other long-term assets are not available to pay for
need for further descriptions in the notes. On the other hand.
current -period expenditures and therefore are
long, complicated explanations on the statement may
deferred in the funds.
9,348.876
distract the users' attention from the other information
Internal service funds are used by management to charge the
presented. Preparers should weigh The advantages of
costs of certain activities. such as insurance and
telecommunications. to individual funds. The assets and liabilities
eliminating the need for users to refer to the notes against the
of the Internal service funds are included in governmental
possible disadvantage of overloading the statement with
activities in the statement of net assets (see D-1).
2.994,691
information. In some situations, however, additional disclosure
Long-term liabilities, including bonds payable, are not
of reconcilono items is reoured. as dismissed in nritonronh 77,
due and payable in the current period and therefore
are not reported in the funds (see Note 4a),
84,760,507)
Net assets of governmental activities
4
The reconciliation could be presented on an accompanying page, rather than on
the face of the statement. (See the separate reconciliation example in C-3.)
01/22/2001 5:18 PM
Sample City
Statement of Revenues, Expenditures, and Changes in Fund Balances
Governmental Funds
For the Year Ended December 31, 2002
C-2
01/22/2001 5:18 PM 6
Other
Governmental
Total
HUD
Community
Route 7
Funds
Governmental
General
Programs
Redevelopment
Construction
(See H-2)
Funds
REVENUES
Property taxes
S 51,173.436
S -
$ -
S -
S 4,680,192
S 55.853.628
Franchise taxes
4.055,505
-
-
-
-
4,055,505
Public service taxes
8,969.887
-
-
-
-
8.969,887
Fees and fines
606,946
-
-
-
-
606.946
Licenses and permits
2,287,794
-
-
-
-
2.287.794
Intergovernmental
6,119.938
2.578,191
-
-
2.630.916
11,529,045
Charges for services
11,374,460
-
-
-
30,708
11,405,168
Investment earnings
552,325
87.106
549.489
270.161
364,330
1.823.411
Miscellaneous
881.874
66,176
2.939
94
951.083
Total revenues
X63-
73,47
a
----- VT48r&7-
EXPENDITURES
Current:
General government
8.630,835
-
417.814
16.700
121,052
9.186.401
Public safety
33,729,623
-
-
-
-
33.729,623
Public works
4.975,775
-
-
-
3.721,542
8.697,317
Engineering services
1,299.645
-
-
-
-
1.299.645
Health and sanitation
6,070,032
-
-
-
-
6,070,032
Cemetery
706,305
-
-
-
-
706.305
Culture and recreation
11,411.685
-
-
-
-
11,411.685
Community development
-
2,954.389
-
-
-
2954,389
Educotion--payment to school district
21.893,273
-
-
-
-
21.893.273
Debt service:
Principal
-
-
-
-
3.450.000
3.450.000
Interest and other charges
-
-
-
-
5.215,151
5.215.151
Capital outlay
2.246,671
11.281.769
3.190,209
16.718.649
Total expenditures
7 ,173
11.298.469
554
----7T1-.M-2`i
Excess (deficiency) of revenues over
expenditures
(2.695.008)
(222.916)
(2,114.996)
(11,025.369)
(7.791,714)
(23.850,003)
OTHER FINANCING SOURCES (USES)
Proceeds of refunding bonds
-
-
-
-
38.045,000
38,045,000
Proceeds of long-term capitol -related debt
-
-
17,529.560
-
1.300.000
18.829.560
Payment to bond refunding escrow agent
-
-
-
-
(37.284.144)
(37,284.144)
Transfers in
129.323
-
-
-
5.551.187
5.680.510
Transfers out
163,759
348.046
�2.27�3,187)
19,076
(5.004.068)
Total other financing sources and uses
(. 436)
--(348-.04-6)
15.256.373
7.3
2(0,
SPECIAL ITEM
Proceeds from sale of park land
3.476.488
3.476,488
Net change in fund balances (see C-3)
(1.25 ,9 )
(5_7T76_2)
I ,141. 77
(1 )
( 747)
(1M -.69) -
.6 )Fundbalances-beginning
Fund balances-beginning
2.908,322
1.647,338
34.110
20.387,774
10.022,219
34,999.763
Fund balances -ending
S 1.655.366
5 1.076,376
S 13.175.487 S
9.362.405
$ 9.623.472
S 34.893.106
The reconciliation of the net Change in fund balances of
governmental funds to the change in net assets in the statement of
activities is presented in an accompanying schedule on the next
01/22/2001 5:18 PM 6
Sample City
Reconciliation of the Statement of Revenues,
Expenditures, and Changes in Fund Balances
of Governmental Funds
to the Statement of Activities
For the Year Ended December 31, 2002
Net change in fund balances—total governmental funds (from C-2) S (106.657)
Amounts reported for governmental activities in the statement of activities (B-1) are
different because (see Note 5, also):
Governmental funds report capital outlays as expenditures.
However, in the statement of activities, the cost of those assets is allocated
over their estimated useful lives as depreciation expense. This is the amount
by which capitol outlays exceeded depreciation in the current period.
14,039,717
In the statement of activities, only the gain on the sale of the park land is reported,
whereas in the governmental funds, the proceeds from the sale increase financial
resources. Thus, the change in net assets differs from the change in fund balance
by the cost of the land sold.
(823,000)
Revenues in the statement of activities that do not provide current financial
resources are not reported as revenues in the funds.
1,920,630
Bond proceeds provide current financial resources to governmental funds, but
issuing debt increases long-term liabilities in the statement of net assets. Repay-
ment of bond principal is an expenditure in the governmental funds, but the
repayment reduces long-term liabilities in the statement of net assets. This is the
amount by which proceeds exceeded repayments (see Note 5a).
(16,140,416)
Some expenses reported in the statement of activities do not require the use
of current financial resources and therefore are not reported as
expenditures in governmental funds.
(1,245,752)
Internal service funds are used by management to charge the costs of
certain activities, such as insurance and telecommunications, to
individual funds. The net revenue (expense) of the internal
service funds is reported with governmental activities (see D-3). (758,808)
Change in net assets of governmental activities (see B-1) S (3,114,286)
The reconciliation could be presented on the face of the statement. rather
than on a separate page. (See the reconciliation in C-1.)
01/22/2001 5:18 PM
C-3
7and
Tlustrates the "net assets"
folance sheet" format also
is D-2). Classification of
alities is required in either
c
ASSETS
Current assets:
Cash and cash equivalents
Investments
Receivables, net
Due from other governments
Inventories
Total current assets
Noncurrent assets:
Restricted cash and cash equivalents
Capital assets:
Land
Distribution and collection systems
Buildings and equipment
Less accumulated depreciation
Total noncurrent assets
Total assets
Sample City
Statement of Net Assets
Proprietary Funds
December 31, 2002
Business -type Activities—
Enterprise Funds
Water and Parking
Sewer Facilities Totals
$ 8,416,653 $ 369,168 $ 8,785,821
3,564,586 3,535 3,568,121
41,494 — 41,494
126,674 — 126,674
12,149,407 372,70T- 12, 2 T1 10
1,493,322 1,493,322
813,513
3,021,637
3,835.150
39,504,183
—
39,504,183
106,135,666
23,029,166
129,164,832
(15,328,911)5.786.503)
(21,1 15,414}
1 1,124.4 1
1, 57,6
158%
LIABILITIES
Current liabilities:
Accounts payable
Due to other funds
Compensated absences
Claims and judgments
Bonds, notes, and loans payable
Total current liabilities
Noncurrent liabilities:
Compensated absences
Claims and judgments
Bonds, notes, and loons payable
Total noncurrent liabilities
Total liabilities
NET ASSETS
Invested in capital assets, net of related debt
Restricted for debt service
Unrestricted
Total net assets
447,427 304,003 751,430
175,000 — 175,000
112,850 8,827 121,677
3.944.609 360,000 4,304,609
4779.966 672,837 5,352.716
451,399 35,306 486,705
54,451,549 19,544,019 73,995,568
54.902.948 19,579,325 74,482, 73
9,582, M` 20, IN.l gr 79.834,989
72, 728, 293 360,281
— 1,451,996
10,962,731 65,893
D-1
Governmental
Activities_
Internal Service
Funds
(See H-3) (Note 4)
S 3,336,099
150,237
157,804
139,328
3, 3.468
14,721, 786
(5,781,734
4,5
,
780,570
1,170,388
237,690
1,687,975
249,306
4,1 5,
S•�I.7YI7
73,088.574 8,690,746
1,451,996 —
Even though internal service funds are classified as proprietary funds, the nature of the activity accounted for in them is
generally governmental. By reporting internal service funds separately from the proprietary funds that account for business -
type activities, the information in the "Totals" column on this statement flows directly to the "Business -type Activities" column
on the statement of net assets, and the need for a reconciliation on this statement is avoided.
01/22/2001 5:18 PM
This statement illustrates the "balance
sheet" format, the net assets" format is
also permitted (see D-1). Classification
of assets and liabilities is required in
either case.
ASSETS
Current assets:
Cash and cash equivalents
Investments
Receivables, net
Due from other governments
Inventories
Total current assets
Noncurrent assets:
Restricted cash and cash equivalents
Capital assets:
Land
Distribution and collection systems
Buildings and equipment
Less accumulated depreciation
Total noncurrent assets
Total assets
LIABILITIES
Current liabilities:
Accounts payable
Due to other funds
Compensated absences
Claims and judgments
Bonds, notes, and loans payable
Total current liabilities
Noncurrent liabilities:
Compensated absences
Claims and judgments
Bonds, notes, and loans payable
Total noncurrent liabilities
Total liabilities
NET ASSETS
Sample City
Balance Sheet
Proprietary Funds
December 31, 2002
D-2
S 447,427 $
451,399
304,003 $
751,430 $
Governmental
Business -type Activities-
-
Activities—
1,1711388
Enterprise Funds
8,827
Internal Service
Water and
Parking
-
Funds
Sewer
Facilities
Totals
(See H-3) (Note 4)
249,306
4,6 ,886
672,830
5,352, 7 16
$ 8,416,653
S 369,168 S
8,785.821
$ 3,336,099
-
-
-
150,237
3,564,586
3,535
3,568,121
157,804
41,494
-
41,494
-
126,674
-
126,674
139,328
12,149.407372,703
1 T5_22, I 10
3,783,T6-8
-
1,493,322
1,493,322
-
813,513
3,021,637
3,835,150
-
39, 504,183
-
39, 504,183
-
145,639,849
23,029.166
168,669,015
14,721,786
(15,328,911
5,786,503
(21,115,414)
5,781,734
31,1 4,451
_
21,757,622
152, 8 ,073
8,940,05
31'3'
S 447,427 $
451,399
304,003 $
751,430 $
7811570
175,000
-
175,000
1,1711388
112,850
8,827
121,677
237,690
-
-
-
1,687,975
3,944.609
360,000
4,304,609
249,306
4,6 ,886
672,830
5,352, 7 16
4,12,5,9-2q-
,1 5,92
451,399 35,306 486.705 -
- - - 5,602.900
54,451.549 19,544,019 73,995,568 -
54,902,948 19,579,3Z- 74,482, 5,
59,582.834 .1 579,834,78-q- 9,
Invested in capital assets, net of related debt 72,728,293 360,281 73,088,574 8,690,746
Restricted for debt service - 1,451,996 1,451,996 -
Unrestricted 10,962,731 65,893 11,028,6245,696,055
Total net assets 83,691.024 1, ,170 ,56 , 4 4,b 1
Total liabilities and net assets
Even though internal service funds ore classified as proprietary funds, the nature of the activity accounted for in them is
generally governmental. By reporting internal service funds separately from the proprietary funds that account for
business -type activities, the information in the "Totals" column on this statement flows directly to the 'Business -type
Activities" column on the statement of net assets, and the need for a reconciliation on this statement is avoided.
01/22/2001 5:18 PM
Operating revenues:
Charges for services
Miscellaneous
Total operating revenues
Operating expenses:
Personal services
Contractual services
Utilities
Repairs and maintenance
Other supplies and expenses
I
Sample City
Statement of Revenues, Expenses, and Changes in Fund Net Assets
Proprietary Funds
For the Year Ended December 31, 2002
D-3
3,400.559
344,422
754,107
747,315
498.213
nsurance claims and expenses —
762,348
Governmental
Business -type Activities—
Activities—
Enterprise Funds
Internal Service
Water an Parking
Funds
Sewer Facilities
Totals (See H-4) (Note 5)
$ 11,329,883 $ 1,340,261 $
12,670,144 S 15,256,164
— 3,826
3.826 1,066,761
11. 3 1,344,0W
12.67379M_ 16,3292T2,5
3,400.559
344,422
754,107
747,315
498.213
nsurance claims and expenses —
762,348
4,162,907
96,032
440,454
100,726
854.833
64,617
811,932
17,119
515,332
Depreciation 1,163,140 542,049 1,705.189
Total operating expenses 6,90 ,756 1,582. 8,490.64
Operating income (loss) 4.422,12/ (2 ^ 8,8 ) 4,13
Nonoperating revenues (expenses):
Interest and investment revenue
454,793
146,556
Miscellaneous revenue
—
104,925
Interest expense
(1,600,830)
(1,166,546)
Miscellaneous expense
(46,846)
Total nonoperating revenue (expenses;
(l, 46. 7)
(961,911)
Income (loss) before contributions
and transfers
3,276,090
(1,200,715)
Capital contributions
1,645,919
—
Transfers out
(290,000)
(211,409)
Change in net assets
4, TOT
(1,41
Total net assets—beginning
79,059,015
3,290,294
total net assets—enaing
4,157,156
584,396
214,812
1,960,490
234,445
8,004,286
1,707.872
16,863,457
C )
601,349
134,733
104.925
20,855
(2,767,376)
(41,616)
(46,846)
176,003
(2.107,948)
(62,031)
2.075, 375
1,645,919
(501,409)
3,2 l
82, 349, 309
85, 56q7V-
(602,563)
18,788
175,033
( 8, 08)
3,753,499
though internal service funds are classified as proprietary funds, the nature of the activity accounted for in them is
trolly governmental. By reporting internal service funds separately from the proprietary funds that account for business -
activities, the information in the "Totals" column on this statement flows directly to the "Business -type Activities" column on
statement of net assets, and the need for a reconciliation on this statement is avoided.
01/22/2001 5:18 PM 10
Sample City
Statement of Cash Flows
Proprietary Funds
For the Year Ended December 31, 2002
CASH FLOWS FROM OPERATING ACTIVITIES
Receipts from customers
Payments to suppliers
Payments to employees
Internal activity—payments to other funds
Claims paid
Other receipts (payments)
Net cash provided by operating activities
CASH FLOWS FROM NONCAPITAL
FINANCING ACTIVITIES
Operating subsidies and transfers to other funds
CASH FLOWS FROM CAPITAL AND
RELATED FINANCING ACTIVITIES
Proceeds from capital debt
Capital contributions
Purchases of capital assets
Principal paid on capital debt
Interest paid on capital debt
Other receipts (payments)
Net cash (used) by capital and
related financing activities
CASH FLOWS FROM INVESTING ACTIVITIES
Proceeds from sales and maturities of investments
Interest and dividends
Net cash provided by investing activities
Net (decrease) in cash and cash equivalents
Balances—beginning of the year
Oulu[ Ices—el iu ur r r re your
Business -type Activities—
Enterprise Funds
Water and Parking
Sewer Facilities Totals
D-4
Governmental
Activities—
Internal
Service Funds
(See H-5)
$ 11,400,200 $ 1,345,292 $ 12, 745, 492 $ 15, 326, 343
(2,725,349) (365,137) (3,090,486) (2,812,238)
(3,360,055) (750,828) (4,110,883) (4,209,688)
(1,296,768) — (1,296,768) —
(8,482,451)
(2,325,483) — (2,325,483) 1,061,118
b 4
(290.000) (211.409) (501,409) (175.033)
4,041,322
8.660,778
12.702,100
—
1,645,919
—
1,645,919
—
(4,194, 035)
(144, 716)
(4,338,761)
(400, 086)
(2,178,491)
(8,895,000)
(11,073,491)
(954,137)
(1,479,708)
(1,166,546)
(2,646.254)
41,616
—
19,174
19,174
131,416_
(2,164,993) (1,526,310) (3,691,303) (1,264,423)
—
—
—
15,684
454,793
143,747
598,540
129,550
4
4 4
145,234
(307,655)
(1,364,645)
(1,672,300)
(411,138)
8,724,308
3,227,135
11,951,443
3.747,237
$ 8,416,653 5
1.862.490 $
10,2/9, 143 5
3,336,099
Reconciliation of operating income (loss) to net cash
provided (used) by operating activities:
Operating income (loss)
Adjustments to reconcile operating income to net cast
provided (used) by operating activities:
Depreciation expense
Change in assets and liabilities:
Receivables, net
Inventories
Accounts and other payables
Accrued expenses
Net cash provided by operating activities
4,422,127 S (238,804) $ 4,183,323 $ (540,532)
1,163,140 542,049 1,705,169 1,707,872
653,264
1,205 654,469
31,941
2,829
— 2,829
39,790
(297,446)
(86,643) (384,089)
475,212
(4,251.369)
11,520 (4,239,849)
(831,199)
Note: The required information about noncash investing, capital, and financing activities is not illustrated,
01/22/2001 5:18 PM 11
Sample City
Statement of Fiduciary Net Assets
Fiduciary Funds
December 31, 2002
Statements of individual pension plans and external investment pools are
required to be presented in the notes to the financial statements if
separate GAAP statements for those individual plans or pools are not
available (see paragraph 106).
E-1
01/22/2001 5:18 PM 12
Employee
Private-
Refirement
Purpose
Agency
Plan
Trusts
Funds
ASSETS
Cash and cash equivalents
$ 1,973
$ 1,250
$ 44,889
Receivables:
Interest and dividends
508,475
760
—
Other receivables
6,826
—
183,161
Total receivables
157 1
760
183,161
Investments, at fair value:
U.S. government obligations
13,056,037
80,000
—
Municipal bonds
6,528.019
—
—
Corporate bonds
16,320,047
—
—
Corporate stocks
26.112.075
—
—
Other investments
3,264.009
—
—
Total investments
65. ,18
— B
Total assets
82i017-
LIABILITIES
Accounts payable
—
1,234
5 —
Refunds payable and others
1,358
228.050
Total liabilities
NET ASSETS
Held in trust for pension benefits
and other purposes
S 65,796.103
S 80,776
Statements of individual pension plans and external investment pools are
required to be presented in the notes to the financial statements if
separate GAAP statements for those individual plans or pools are not
available (see paragraph 106).
E-1
01/22/2001 5:18 PM 12
Sample City
Statement of Changes in Fiduciary Net Assets
Fiduciary Funds
For the Year Ended December 31, 2002
Net assets—end of the year
Statements of individual pension plans and external investment pools are required to
be presented in the notes to the financial statements if separate GAAP statements for
those individual plans or pools are not available (see paragraph 106).
E-2
01/22/2001 5:18 PM 13
Employee
Private -
Retirement
Purpose
Plan
Trusts
ADDITIONS
Contributions:
Employer
$ 2,721,341
5 —
Plan members
1,421.233
Total contributions
471-42—,674—
,142. 4Investment
Investmentearnings:
Net (decrease)
in fair value of investments
(272,522)
—
Interest
2,460,871
4.560
Dividends
1,445.273
—
Total investment earnings
3,633,6224=,-
Less investment expense
216.428
Net investment earnings
3.4M714--
X4.56
Total additions
7,559,768
4.560
DEDUCTIONS
Benefits
2,453,047
3.800
Refunds of contributions
464,691
—
Administrative expenses
87,532
678
Total deductions
3772-77
4.47
Change in net assets
4,&54,498
82
Net assets—beginning of the year
61,241,605
80,694
Net assets—end of the year
Statements of individual pension plans and external investment pools are required to
be presented in the notes to the financial statements if separate GAAP statements for
those individual plans or pools are not available (see paragraph 106).
E-2
01/22/2001 5:18 PM 13
Sample City
Statement of Net Assets
Component Units
December 31, 2002
Sample City
Schnnl District
ASSETS
Sample City
Landfill Total
F-1
Cash and cash equivalents
$ 303,485 $
450 $
303,935
Investments
3,658,520
1, 770, 432
5,428, 952
Receivables, net
3,717,026
325,264
4,042,290
Inventories
83,697
—
83,697
Restricted assets—landfill closure
—
2,000,000
2,000,000
Capital assets, net (Note 1)
34,759,986
2,984,800
37,744,786
Total assets
42,522,714
7,080,946
49,603,660
LIABILITIES
Accounts payable 1,469,066
Deposits and deferred revenue 38,911
Long-term liabilities (Note 2):
334,266 1,803,332
— 38,911
Due within one year
1,426,639
—
1,426,639
Due in more than one year
22,437,349
4,668,802
27,106,151
Total liabilities
25,371,965
5,003,068
30,375,033
NET ASSETS
Invested in capital assets, net of related det
12,921,592
2,984,800
15,906,392
Restricted for capital projects
492,445
—
492,445
Unrestricted
3,736,712
(906,922)
2,829,790
Total net assets
17,150,74-7
19,228,627
Nonmajor component units would be aggregated into a single
column. Combining statements of the nonmajor components would
be accorded the some status as combining statements for nonmajor
funds (supplementary information).
01/22/2001 5:18 PM 14
Sample City School District
Instructional
Support services
Operation of noninstructional services
Facilities acquisition and construction
services
Interest on long-term debt
Unallocated depreciation (Note F)
Total—Sample City School District
Sample City Landfill
Landfill operations
Total component units
Sample City
Statement of Activities
Component Units
For the Year Ended December 31, 2002
F-2
48,136 — 1.171
— (46.965)
Program Revenues
Net (Expense) Kevenue
4.171.760 — —
— (4.171,760)
Operating Capital
and Changes in Net Assets
22.464
Charges for
Grants and Grants and
School
Expenses
Services
Contributions Contributions
District Landfill Totals
1.380.539
16.025,971
S 17.150.749
$ 16,924,321
S 147,739
S 2.825.109 S —
S (13,951,473) S — $ (13,951.473)
7.972,559
300
751.711 —
(7.220.548) — (7.220.548)
1,523,340
557,726
359.092 —
(606.522) — (606.522)
48,136 — 1.171
— (46.965)
546.382 — —
— (546.382)
4.171.760 — —
— (4.171,760)
31,186.498 705.765 3.937.083
— (26,543,650)
3,382.157 3,857.858 — 11.397
S 34.568,655 S 4.561623 S 3.937,083 S 11.397
General revenues:
Payment from Sample City
Grants, entitlements, and contributions not
restricted to specific programs
Investment earnings
Miscellaneous
Total general revenues
Change in net assets
Net assets—beginning
Net assets—ending
21,893.273
— (46,965)
— (546.382)
— (4.171,760)
487.098 487.098
(26.056,552)
— 21.893.273
6.461,708
—
6.461.708
674.036
207.727
881.763
19.950
2,514
22.464
29.048.967
210.241
29.259.208
2.505.317
697.339
3.202.656
1.4.645,432
1.380.539
16.025,971
S 17.150.749
S 2.077,878
S 19.228,627
I
01/22/2001 5:18 PM 15
Sample City
Budgetary Comparison Schedule
General Fund
For the Year Ended December 31, 2002
G-1
01/22/2001 5:18 PM 16
Actual Amounts
The variance column is
(Budgetary
Variance with
optional.
Budgeted Amounts
Basis)
Final Budget
Original
Final
(See Note A)
Positive (Negative)
Budgetary fund balance, January 1 $
3,528,750 $
2,742,799
$ 2,742,799
5 -
Resources (inflows):
Property taxes
52,017,833
51,853,018
51,173,436
(679,582)
Franchise taxes
4,546,209
4.528,750
4,055.505
(473,245)
Public service taxes
8,295,000
8,307,274
8,969,887
662,613
Licenses and permits
2,126,600
2,126,600
2,287,794
161,194
Fines and forfeitures
718,800
718,800
606,946
(111,854)
Charges for services
12.392,972
11,202,150
11,374,460
172,310
Grants
6,905,898
6,571,360
6,119,938
(451,422)
Sale of land
1,355,250
3,500,000
3,476,488
(23,512)
Miscellaneous
3,024,292
1,220,991
881,874
(339,117)
Interest received
1,015,945
550,000
552,325
2.325
Transfers from other funds
939,525
130,000
129,323
(677)
Amounts available for appropriation
96,867,074
93,451,742
92,370,77-r
(1,08W9_67)-
8 96 )Charges
Chargesto appropriations (outflows)
General government:
Legal
665,275
663,677
632,719
30,958
Mayor, legislative, city manager
3,058,750
3,192,910
2,658,264
534,646
Finance and accounting
1,932,500
1,912,702
1,852,687
60,015
City clerk and elections
345,860
354,237
341,206
13,031
Employee relations
1,315,500
1,300,498
1.234,232
66,266
Planning and economic developmer
1,975,600
1,784,314
1,642,575
141,739
Public safety:
Police
19,576,820
20,367,917
20,246,496
121,421
Fire department
9,565,280
9,559,967
9,559,967
-
Emergency medical services
2,323,171
2,470,127
2,459,866
10,261
Inspections
1,585,695
1,585,695
11,533,380
52,315
Public works:
Public works administration
388,500
385,013
383,397
1,616
Street maintenance
2,152,750
2,233,362
2,233,362
-
Street lighting
762,750
759,832
759,832
-
Traffic operations
385,945
374,945
360,509
14,436
Mechanical maintenance
1,525,685
1,272,696
1,256,087
16,609
Engineering services:
Engineering administration
1,170,650
1,158.023
1,158.023
-
Geographical information system
125,625
138,967
138,967
-
Health and sanitation:
Garbage pickup
5,756,250
6,174,653
6,174,653
-
Cemetery:
Personal services
425,000
425,000
422,562
2,438
Purchases of goods and services
299,500
299,500
283,743
15,757
Culture and recreation:
Library
985,230
1,023,465
1,022,167
1,298
Parks and recreation
9,521,560
9,786,397
9,756,618
29,779
Community communications
552,350
558,208
510,361
47,847
Nondepartmental:
Miscellaneous
-
259,817
259,817
-
Contingency
2,544,049
-
-
-
Transfers to other funds
2,970,256
2,163,759
2,163.759
-
Funding for school district
22,000,000
22,000,000
21,893,273
106,727
Total charges to appropriations
93,910,551
92,205,681
90.938,522
1,267,159
Budgetary fund balance, December 31 S
2,956,523 S
1,246,061
S 1,432,253
$ 186,192
01/22/2001 5:18 PM 16
G-5
Condition Rating of the City's Street System
Percentage of Lane -Miles in
Good or Better Condition
-2002 2001 2000
Main arterial
93.2%
91.5% 92.0%
Arterial
85.2%
81.6% 84.3%
Secondary
87.2%
84.5% 86.8%
Overall system
87.0%
85.5% 87.3%
Percentage of Lane -Miles in
Good or Better Condition
2002
2001 2000
Main arterial
1.7%
2.6% 3.1%
Arterial
3.5%
6.4% 5.9%
Secondary
2.1%
3.4% 3.8%
Overall system
2.2%
3.6% 3.9%
Comparison of Needed -to -Actual Maintenance/Preservation
(in Thousands)
2002
2001 2000
1999
1998
Main arterial:
Needed
S 2,476
$ 2,342 $ 2,558
$ 2,401 $
2,145
Actual
2,601
2,552 2,432
2,279
2,271
Arterial:
Needed
1,485
1,405 1,535
1,441
1,287
Actual
1,560
1,531 1,459
1,367
1,362
Secondary:
Needed
990
937 1,023
960
858
Actual
1,040
1,021 972
911
908
Overall system:
Needed 4,951 4,684 5,116 4,802 4,290
Actual 5,201 5,104 4,863 4,557 4,541
Difference 250 420 (253) (245) 251
Note: The condition of road pavement is measured using the XYZ pavement management
system, which is based on a weighted average of six distress factors found in pavement surfaces.
The XYZ pavement management system uses a measurement scale that is based on a condition
index ranging from zero for a failed pavement to 100 for a pavement in perfect condition. The
condition index is used to classify roads in good or better condition (70-100), fair condition (50-69),
and substandard condition (less than 50). It is the City's policy to maintain at least 85 percent of its
street system at a good or better condition level. No more than 10 percent should be in a
01/22/2001 5:18 PM 17