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<br />.' <br /> <br />City of CentervULe <br />Narrative for Interim Financial Statements <br />Month Ended October 31, 2003 <br /> <br />Attached are interim financial statements for the General Fund and Enterprise Funds for <br />the City of Centerville. These reports are intended to illustrate how city operations are <br />progressing financially during the year. <br /> <br />The interim rmancial statements are unaudited and do not reflect all rmancial <br />transactions that will be recorded for the year. <br /> <br />General Fund <br />Revenues: <br />1. Taxes <br />Property tax revenues are received from the county in July, December and <br />January. The January settlement is accrued back to the previous year. This report <br />reflects the receipt of the July settlement, or close to half of the amount that was <br />levied. Property taxes are the city's main source of General Fund revenue. Since <br />the first property tax installment and the most of the intergovernmental revenues <br />are not received until mid-year, it is important to have adequate fund balance <br />designated for cash flow. <br /> <br />2. Intergovernmental <br />This past legislative session, the city lost all of its LGA, $13,413, and most of the <br />MVHC, $84,431, resulting in a total loss of$97,844 for fiscal year 2003, with no <br />chance to recover it elsewhere. In all other respects, the city is financially stable <br />and the 2003 city budget appears healthy. The first half of the reduced Market <br />Value Homestead Credit (MVHC), in the amount of $9,794, was received in <br />October. We expect to receive the police state aid payment in November. <br /> <br />3. Licenses and Permits <br />Permit revenue is expected to exceed budget for the year. Next to taxes and <br />intergovernmental revenue, permit revenue is the third largest source of city <br />mcome. <br /> <br />4. Charges for Services <br />Assessment searches and map sales are below average for the year. Since charges <br />for services are a minor part of the budget, the overall impact is negligible. <br /> <br />5. Interest <br />With interest rates at an all time low, interest earnings are slightly below budget. <br />This is due, in part, to staggering due dates of certificates of deposits. Interest <br />revenue will ebb and flow as certificates come due. Also, the General Fund <br />accrues less interest as reserves are down at this time of the year. We will review <br />the investment portfolio and invest aggressively, but continue to closely monitor <br />working capital reserves. <br />