CCP 03-13-1995 - Laserfiche WebLink

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I . I . CITY OF ARDEN fiLLS . MEMORANDUM I I DATE: March 24, 1995 TO: Brian Fritsinger, City Administrator I FRO~ Terrance Post, City Accountant I SUBJECT: 1994 Preliminary Operating Results/Commentary I The City's external auditors, Abdo Abdo & Eick (AA& E) are scheduled to commence their fieldwork in early April and issue a final audit report for the year ended December 31, 1994, by early May. I Prior to this activity, I have prepared internal unaudited fmancial results statements for this same I period. They, along with "Analysis of EstimatelBudget Deviation" schedules by fund, are enclosed for your review. I- My overview comments concern five topics: 1. Delinquency Assumption The five percent delinquency assumption used in the 1994 budget appears to have been I prudent in that estimated results indicate only a thin _1 % ($900) favorable variance. This contrasts with 1993 results of a 9_6% ($132,784) unfavorable variance. I 2. General Fund Balance I am estimating that 1994 General Fund operating results will increase the fund balance $255,800 to $569,561. This equity increase largely results from estimated 1994 revenues I exceeding budget by 3 _1 % ($62,838) and estimated 1994 revenues under running budget by 7.7% ($155,553). I This contrasts with 1993 results of a $66,674 equity reduction largely resulting from a net revenue/expenditure unfavorable variance against budget of $75,023. I , General Fund Caoital Budl!:et UndersDending- ~- Almost $70K of the $156K favorable General Fund expenditures variance is attributable I to underspending in the Street Maintenance department. Specifically, seal coat and overlay projects were not undertaken, a large planned miscellaneous project did not materialize, and a vehicle replacement was postponed. I I- I