2003-04-09 CC Packet - Laserfiche WebLink

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City of Centervi{{e Narrative for Interim Financial Statements Month Ended May 31, 2003 Attached are interim financial statements for the General Fund and Enterprise Funds for the City of Centerville. These reports are intended to illustrate how city operations are progressing financially during the year. The interim financial statements are unaudited and do not reflect all financial transactions that will be recorded for the year. General Fund Revenues: 1. Taxes Property tax revenues are received from the county in July, December and January. The January settlement is accrued back to the previous year. Property taxes are the city's main source of General Fund revenue. Since the first property tax installment and the most of the intergovernmental revenues will not be received until mid-year, it is important to have adequate fund balance designated for cash flow. We expect to receive approximately $700,000 in General Fund revenues from the first property tax settlement, which will put the General Fund total revenues budget right on track for the year. 2. Intergovernmental The fate of the city's Local Government Aid (LGA) and Market Value Homestead Credit (MVHC) for this year is now known. The city will lose all of its LGA, $13,413, and most of the MVHC, $84,431, resulting in a total loss of $97,844 for fiscal year 2003, with no chance to recover it elsewhere. In all other respects, the city is financially stable and the 2003 city budget appears healthy. This will certainly help to mitigate the shortfall. 3. Licenses and Permits Permit revenue is right where it is expected to be. Next to taxes and intergovernmental revenue, permit revenue is the third largest source of city Income. 4. Charges for Services Assessment searches and map sales are expected to increase as the construction season begins. 5. Interest With interest rates at an all time low, interest earnings are slightly below budget. This is due, in part, to staggering due dates of certificates of deposits. Interest revenue will ebb and flow as certificates come due. We will review the investment portfolio and invest aggressively, but continue to closely monitor working capital reserves.