Fort Walton Beach Council agenda — 03-19-12--special--audit — reading text

ofof fundfund balancebalance isis nonnon- - spendablespendable oror restricted.restricted. DetailsDetails ofof thethe fundfund balancebalance classifications classifications cancan bebe foundfound onon pagepage 1616 ofof thisthis report,report, asas wellwell asas inin NoteNote 18.18. TheThe GeneralGeneral FundFund isis thethe chiefchief operating operating fundfund ofof thethe City.City. AtAt thethe endend ofof thisthis fiscalfiscal yearyear , , unrestrictedunrestricted fundfund balancebalance ofof thethe GeneralGeneral FundFund waswas$ $ 7.7. 00 mil ion,mil ion, whilewhile totaltotal fundfund balancebalance reachedre$ached $ 1010- - 1 mil ion.mil ion. AsAs aa measure measure ofof thethe GeneralGeneral Fund'Fund' s liquidityl,iquidity, itit maymay bebe usefuluseful toto comparecompare bothboth unrestrictedunrestricted fundfund balancebalance andand totaltotal fundfund balancebalance toto totaltotal expenditures.expenditures. UnrestrictedUnrestricted fundfund balance balance representsrepresents 39.39. 1% ofof thethe totaltotal GeneralGeneral FundFund expenditures,expenditures, whilewhile totaltotal fundfund balancebalance represents represents 56.56. 1%1% ofof thatthat samesame amount.amount. DuringDuring thethe 20122012 fiscalfiscal year,year, thethe fundfund balancebalance ofof thethe CityCi' ty' s GeneralGeneral FundFund decreaseddecreased byby$ $ 1. 22 mil ion.mil ion. ThisThis decrease decrease waswas primarilyprimarily relatedrelated toto anan increaseincrease inin thethe otherother post-post- employmentemployment benefitsbenef ( its ( OPEB)OPEB) liabilityl,iability, CityCity CouncilCouncil plannedplanned useuse ofof unrestrictedunrestricted fundfund balancebalance forfor employee employee incentives,incentives, unanticipatedunanticipated expensesexpenses thatthat necessitatednecessitated thethe useuse ofof fundfund balance,balance, andand increasedincreased pensionpension contributions,contributions, allall coupledcoupled withwith lowerlower thanthan anticipatedanticipated revenues.revenues. 1010 PaciltetPg..PaciltetPg..  F31.a Proprietary Funds The City of Fort Walton Beach' s proprietary funds provide the same type of information found in the govemment -wide financial statements, but in more detail. Unrestricted net assets of the proprietary funds totaled $ 8. 6 million at September 30, 2012, of which the Utilities Fund amounted to $ 6.3 million, the Sanitation Fund totaled $ 1. 9 million, and the Stomtwater Utility Fund was $ 485, 259. The Golf fund had negative unrestricted net assets of $123,094 as a result of an improper chemical application that substantially impacted course play. In total, net assets of the proprietary funds decreased $ 385, 079. The factors concerning the finances of these four funds have already been addressed in the discussion of the City of Fort Walton Beach' s business -type activities. GENERAL FUND BUDGETARY HIGHLIGRrs A schedule comparing the original to the final budget and the variance from the final budget to the actual results is included on page 20 of the financial statements. Differences between the original budget and the final amended budget were $ 1. 8 million. Significant information related to this difference is summarized as follows: Donations in the amount of $48, 638 were received and utilized during the fiscal year. Unanticipated expenses of $201, 701 were incurred. These expenses included replacement of the fire station rollup doors, city council chambers renovations, Hurricane Ivan deobligation, fuel system startup costs, environmental testing at several City owned properties, and recreation management software. Utilization of fund balance of $ 138, 968 for the implementation of an electronic timekeeping system. Approved carryovers of $1. 3 million, the majority of which included a new aerial ladder truck, preliminary site investigation for the proposed recreation center, and four police patrol cars. General fund grants of $56,463 were received during the fiscal year. Actual budget results, when compared to the final budget, show a variance of $737. 247 for expenditures. This variance is primarily due to amending the budget for donations and the purchase of capital outlay, as well as amending the budget for grant revenue received and carryovers planned, but not yet expended. CAPITAL ASSET AND DEBT ADMINISTRATION Capital Assets The City' s investment in capital assets for its governmental and business -type activities, as of September 30, 2012, was $ 40. 3 million ( net of accumulated depreciation). This represents a net decrease of 51. 5 million, or 3. 6 %. Highlights are summarized as follows: Fewer assets were purchased that were over the GASH 34 threshold. Capital assets outdated, unserviceable, and no longer used are systematically disposed of on an annual basis. An impairment loss of $588, 652, due to the revised average expected life of the City' s Pump Station # 1. Utilization of 2005 Utility Revenue Bond proceeds for the decommissioning of the City' s Wastewater Treatment Plant. 11  F- 3-1-- Table 3 Total Capital Assets NA ofAC9mnulated Depreciation 765, 078 10. 929, 339 10, 726, 339 59, 961261 765098 9, 961, 261 Land 9, 109, 939 9, 501, 017 2052. 313 2,218, 237 1057, 626 7286, 780 Building 22, 893, 538 23675. 114 6. 162, 400 16. 983, 482 1] 512] 14 Mprovemen6 Other Man Buildings 6. 110, 056 4,431, 266 4, 499319 4, 431, 266 4, 499, 319 417, 188 404, 620 Infnrible 23, 253 7364 393935 397 158 Intangible Assets As 4350770 635 2. 933. 928 4, 644 -966 2, 026, 331 IY14842 2, 61P fi35 Meebinery & 69uipmem IZ429 62, 149 12, 826 6' 147 391 Equipment un d e ' Capital Leave 28, 532 28, 532 0 Easements 1. 629_180 1296, 888 Coasunetion in Progress 488, 118 352, 292 2, 616, 944 3_ 1051 ,062 sm " I Snf AdditionalAdditional informationinformation onon thethe capitalcapital assetsassets ofof thethe CityCity ofof FortFort WaltonWalton BeachBeach cancan bebe foundfound inin NoteNote 55 ofof thisthis reportreport onon pagepage 48.48. LongLong - - TermTerm DebtDebt AsAs shownshown inin thethe fol owingfol owing tablet,able, asas ofof September September 30,30, 2012,2012, thethe CityCity hadhad totaltotal bonded bonded debtdebt , , revenuerevenue notes,notes, andand capitalcapital leasesleases outstandingoutstanding ofof$ $ 15.15. 44 mil ion.mil ion. AllAll ofof thethe City'City' ss debtdebt representsrepresents bondsbonds andand notesnotes secured secured solelysolely byby specifiedspecified revenuerevenue sources sour( ces ( i. e.e. revenuerevenue bondsbonds / / notes)notes) andand capitalcapital leases.leases.