Complete Document - City of Auburn

City of AuburnGeneral Fund - Overview of Changes in Fund BalanceThe City Council's approach to determining the level of fund balance to be maintained in the City's GeneralFund is two-fold: 1) a strong budget administration and monitoring process that enables a timely managementresponse to changing economic conditions; and 2) commitment to a taxation level that will support theprovision of services and facilities, as well as provide a modest reserve. This approach has worked well overthe years, and has sustained the City during recovery from natural disaster, such as Hurricane Opal in thefall of 1994, and during periods of economic stress, such as the recent recession.ActualBudgetFY02* FY03 FY04Revenues 32,498,932 31,974,298 33,104,616Other Financing Sources (OFS) 3,045,950 5,389,677 2,286,969Total Revenues and Other Sources 35,544,882 37,363,975 35,391,585Expenditures 30,522,572 35,579,913 35,070,781Other Financing Uses (OFU) 1,646,272 1,927,985 1,954,682Total Expenditures and Other Uses 32,168,844 37,507,898 37,025,463Excess (deficit) of Revenues and Other Sourcesover (under) Expenditures and Other Uses 3,376,038 (143,923) (1,633,878)Projected Beginning Fund Balances^ 5,138,775 ~ 8,514,813 # 8,370,890 #Projected Ending Fund Balances^ 8,514,813 8,370,890 6,737,012Permanent Reserve 4,000,000 4,000,000 4,000,000Projected Total Ending Fund Balances $ 12,514,813 $ 12,370,890 $ 10,737,012Projected Total Ending Fund Balances as a percentof Expenditures and Other Financing UsesBiennial Budget - FY 03 & FY 0438.90% 32.98% 29.00%Fund Balance Trends in the General Fund$40,000,000$35,000,000$30,000,000$25,000,000$20,000,000$15,000,000Fund BalanceExpenditures/OFURevenues/OFS$10,000,000$5,000,000$-35.86% FY 02 30.37% FY 03 26.35% FY 04* Unaudited.^ Excludes the $4 million Permanent Reserve.# Projected amounts based on the unaudited ending fund balance for FY 02.~ During FY01, a new accounting principle was implemented, increasing fund balance by $2.156 million. The newaccounting rule requires recording more revenues as receivable at fiscal year-end than were recorded under the priorrules. Revenue receivables are not fully liquid assets like cash and investments, so they become available to payexpenses over time and are not always collected at 100% of the receivable amount.91