HomeMy WebLinkAboutItem 14 - Council Presentation1
CITY OF LAKE ELMO
Financial Summary -2012
2
Audit
Audit Opinion
•Provides reasonable, but not absolute, assurance that financials are free of material misstatement
•Audit procedures include: outside confirmation of certain balances and transactions, sample tests
of documentary evidence, inquiries of employees and management, analytical procedures applied
to balances and certain other testing procedures
•Unqualified opinion –Financial Statements fairly stated in all material respects
Minnesota Legal Compliance
•Seven areas required to be tested by the State of Minnesota: contracting and bidding, deposits
and investments, conflicts of interest, public indebtedness, claims and disbursements,
miscellaneous provisions and tax increment financing. The items required to be tested for each
area are listed in the Office of the State Auditor’s Minnesota Legal Compliance Guide for Political
Subdivisions
•Testing covered all of the listed areas except for tax increment financing and consisted of inquiries,
sighting of documents and testing on a sample basis
•No exceptions noted
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Fund Types
Governmental
•General Fund
•Special Revenue Funds
•Debt Service Funds
•Capital Projects Funds
•Internal Service Funds
•Fiduciary Fund
Enterprise
•Water
•Sewer
•Storm sewer
4
Governmental
Funds
Revenues
Property Tax Revenues
$-
$500,000
$1,000,000
$1,500,000
$2,000,000
$2,500,000
$3,000,000
$3,500,000
2010 2011 2012
General Library
Property tax revenues in total increased
by 15% in 2012 and 2% in 2011. The
majority of the increase in 2012 was due
to the shift of library levy dollars from
Washington County to the City.
In 2012, property tax revenues
represented 77% of governmental
revenues excluding transfers and bond
proceeds
Property tax revenues have grown from
$2,737,225 in 2010 to $3,221,733 in
2012 due to increases in levied taxes and
increased collections of delinquent taxes
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6
Other Governmental
Fund Revenues
$-
$50,000
$100,000
$150,000
$200,000
$250,000
$300,000
$350,000
2010 2011 2012
Special assessments Licenses and permits Intergovernmental Charges for services
Fines and forfeitures Investment Earnings Miscellaneous
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Governmental Fund Revenues
$-
$1,000,000
$2,000,000
$3,000,000
2010 2011 2012
General property taxes Library property taxesSpecial assessments Licenses and permitsIntergovernmentalCharges for servicesFines and forfeitures Investment Earnings
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Governmental
Funds
Expenditures
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General Governmental Expenditures
Includes mayor and council, elections, administration, communications, building, professional services and planning and zoning
Represented 36% of governmental expenditures (excluding capital projects and debt service) in 2012
Totaled $1,034,712 in 2012, an increase of $17,814 from 2011 due primarily to the addition of planning department personnel in order to support the City expansion projects
$860,000
$880,000
$900,000
$920,000
$940,000
$960,000
$980,000
$1,000,000
$1,020,000
$1,040,000
$1,060,000
2010 2011 2012
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Public Safety Expenditures
Includes police, fire protection, building inspector, animal control, criminal legal and emergency communications
Public Safety represented about 39% of total governmental expenditures (excluding capital projects and debt service) in 2012
Totaled $1,109,937 in 2012, an increase of $113,204 (11%) from 2011
Increase in public safety expenditures in 2012 is due primarily to an increase in contract services for law enforcement and building inspection services$940,000
$960,000
$980,000
$1,000,000
$1,020,000
$1,040,000
$1,060,000
$1,080,000
$1,100,000
$1,120,000
2010 2011 2012
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Public Works Expenditures
Includes personnel services, outside services, supplies, trees and street lighting
Totaled $446,541 in 2012 and $447,629 in 2011 –a decrease of less than 1%
$0
$50,000
$100,000
$150,000
$200,000
$250,000
$300,000
$350,000
$400,000
$450,000
$500,000
2010 2011 2012
12
Culture and Recreation Expenditures
Includes parks, Fall Festival and library services
Primarily salaries and related benefits, supplies and contract services
Totaled $260,404 in 2012 and $168,747 in 2011 –an increase of 54% due primarily to increased expenditures for the library that is now run by the City rather than Washington County
$0
$50,000
$100,000
$150,000
$200,000
$250,000
$300,000
2010 2011 2012
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Governmental Fund Expenditures
General Government36%
Public Safety39%
Public Works
16%
Culture and Recreation9%
2012
General Government39%
Public Safety38%
Public Works17%
Culture and Recreation6%
2011
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General Fund Reserves
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General Fund -Reserves
Unassigned General Fund balance as a % of General Fund expenditures
•2012 88%
•2011 66%
•2010 62%
Unassigned fund balance is 90% of 2013 budgeted expenditures
State Auditor recommendation is 35 to 50% in unassigned fund balance
Unassigned fund balance in 2012 and 2011 is comparable to unreserved fund balance in prior years
$0
$500,000
$1,000,000
$1,500,000
$2,000,000
$2,500,000
$3,000,000
2010 2011 2012
Unassigned Fund Balance General Fund Expenditures
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Purposes & Benefits of Reserves
Cash flow timing differences
Intergovernmental revenue cutbacks
Capital outlay replacement
Emergency or unanticipated expenditures
Special City Council projects
Unfunded mandates
Favorable bond rating
Higher investment earnings
Provides resources for minor projects or feasibility reports
Avoids temporary overdrafts prior to major receipts
Allows time to study effects of revenue cuts
Avoids overburdening of annual budgets for certain capital outlay
Provides the City greater options to deal with unexpected events
Purpose of Reserves Benefits of Reserves
17
Debt Service
18
5 Year Debt Service Requirements
All bond payments
are being paid on a
timely basis
Includes principal and
interest
Large debt service
requirement in 2013
and 2015 is due to
the refunding of the
2004 CIP bonds and
the 2005A water
revenue bonds,
respectively
$0
$500,000
$1,000,000
$1,500,000
$2,000,000
$2,500,000
$3,000,000
$3,500,000
$4,000,000
$4,500,000
2013 2014 2015 2016 2017
General Obligation Improvement Equipment Certificates
General Obligation Revenue
19
Capital Projects
20
Capital Outlay Expenditures
Major capital outlay expenditures in 2012 were for:
•2012 street improvements project
•Purchase of the library building
Major capital outlay expenditures in 2011 were for:
•2011 street improvements project and completion of 2010 street improvements project
•South of 10th Street improvements project
•Improvements including field lights and roof repair in Lions Park
$0
$200,000
$400,000
$600,000
$800,000
$1,000,000
$1,200,000
Buildings andEquipment Constructionand acquisition Improvements Miscellaneous
21
Enterprise Funds
Operational Trends
22
Enterprise Funds
-$200,000
$0
$200,000
$400,000
$600,000
$800,000
$1,000,000
$1,200,000
2010 2011 2012
RevenuesExpensesNet Loss (Before Contributions and Transfers)
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Enterprise Funds (Cont’d)
Water, sewer and storm sewer services supported by ratepayers
Population and commercial industrial growth has been fairly stagnant in the past three years, resulting in relatively stable operating revenues, operating expenses, other income and other expense
Revenues include charges for services, rental income and investment earnings
Expenses include operating expenses, amortization of deferred charges related to revenue bonds and interest expense
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Summary
Unqualified audit opinion
No Minnesota Legal Compliance
exceptions in 2012
Unassigned general fund balance of
$2,414,692 (88% of 2012 expenditures)
Bonds and certificates outstanding of
$16,905,000 at 12/31/12