Laserfiche WebLink
City of Centerville <br /> 9 P 0' <br /> April 1, 1999 <br /> Page Thee <br /> Purposes and Benefits <br /> • Expenditures are incurred somewhat evenly throughout the year. However, property tax and state aid <br /> revenues are not received until the second half of the year. An adequate fund balance will provide the <br /> cash flow required to finance the General Fund expenditures. Your fund balance appears to be sufficient <br /> to provide this working capital. <br /> • The City is vulnerable to legislative actions at the State and Federal level. Recent years have seen the <br /> State adjust the local government aid and property tax credit formulas along with implementing levy <br /> limits for some cities. An adequate fund balance will provide a temporary buffer against those aid <br /> adjustments and possible levy limits. <br /> • Expenditures not anticipated at the time the annual budget was adopted may need immediate Council <br /> action. These would include capital outlay replacement, lawsuits and other items. An adequate fund <br /> balance will provide the financing needed for such expenditures. <br /> - • A strong fund balance will assist the City in maintaining or improving its bond rating. <br /> A summary of the 1998 operations is as follows: <br /> Variance - <br /> Favorable <br /> Budget _ Actual (Unfavorable) <br /> Revenue $ 1,030,707 $ 1,246,907 $ 216,200 <br /> Expenditures 843,957 962 961 (119,004) <br /> Excess (Deficiency) of Revenue Over <br /> Expenditures $ 186.750 283,946 $ 97,196 <br /> Fund Balance, January 1 621 746 <br /> Fund Balance, December 31 $ 905.692 <br /> 1 <br />