CCP 05-22-2006 - Laserfiche WebLink

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~ I'?;t flL~ 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 incuned somewhat evenly throughout the year. However, property tax and state aid revenues are not received until the second half of the year. An adequate fund balance will provide the cash Jlo,^" required 10 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 sesslon 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 \\"111 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 \>"111 provide the financmg needed for such expenditures. .. A strong fund balance will assist the City in maintaining. improving or obtaining a bond ratmg, The 2005 operations are 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,'1841 39,000 28.335 (J77,520) (241,452) (44.149) 1,314,929 1,314.929 $ 1,073,477 S 1,270.780 S Other financing sources (uses) Transfers in Transfers out Net change in fuod balances Fund balances, January 1 Variance with Final Budget- Positive (Negative) . $ (J38,014) 168,462 30,448 (10.665) 177.520 197,303 . The }8rgest item ofvanance on the revenue side was licenses and pcnnits. This item 'had an unfavorable variance of $158,801 or 115 percent of the total revenue Vallance. %2.8:\;"),9090 . tax %2.83::',:126] www.acmcpa:o.n>1l1 .