CCP 05-15-2006 - Laserfiche WebLink

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The purposes and benefits of a General fund balance are as follows: Purposes and Benefits City of Arden Hills . April 14, 2006 Page Eight . Expenditures are incurred somewhat evenly throughout the year. However. property tax and state aid revenues are not received until the second half ofthe year. An adequate fund balance will provide the cash flow required to finance the General fund expenditures. . The City is vulnerable to legislative actions at the State and Federal level. The State eliminated HACA aid with the 2001 legislative session and imposed reductions of market value credit aid and local government aid for some cities. Levy limits have also been implemented for municipalities in past legislative sessions. An adequate fund balance will provide a temporary buffer against those aid adjustments and levy limits. . Expenditures not anticipated at the time the annual budget was adopted may need immediate Council action. These would include capital outlay replacement, lawsuits and other items. An adequate fund balance will provide the financing needed for such expenditures. . A strong fund balance will assist the City in maintaining. improving or obtaining a bond rating. The 2005 operations arc summarized as follows: Final Budgeted Amounts Actual Amounts Revenues Expenditures $ 3,200,930 3,303,862 $ 3,062,916 3,135,400 Excess (deficiency) of revenues over (under) expenditures (102,932) (72,484) 39,000 28,335 (177,520) (241,452) (44,149) 1,314,929 1,314,929 $ 1,073,477 $ 1,270,780 $ Other financing sources (uses) Transfers in Transfers out Net change in fund balances Fund balances, January 1 Variance with Final Budget- Positive (Negative) . $ (138,014) 168,462 30,448 ( 10,665) 177,520 197,303 . The largest item of varia nee on the revenue side was licenses and pennits. This item had an unfavorable variance of $158,801 or 115 percent of the total revenue variance. 952.8.%.9090 . Fa, 952.8:}:J.;~261 WWW.<lt::lHqla....cum .