Agenda Packets - 1997/03/03 - Laserfiche WebLink

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etc. Project are not always completed within one year and reconciling project costs to funding has not always been completed on a timely basis (At the end of 1995, the fund had a deficit of approximately $276,000 which appears to relate to projects undertaking in the mid to late 1980's). To assist in the ability to reconcile project costs to funding, it is recommended that on a periodical basis (annually or whenever there is a large construction project), a new fund be established. Once the project is completed, the fund would be balanced out, insuring that there were sufficient revenues to pay for the project. For annual, ongoing maintenance items such as seal coating, etc.,these items should be charged to the general fund. Water System Contribution Fund. The activity in this fund relates to water connection charges and interest earnings on unspent funds. The Water Fund is an enterprise fund which accounts for system improvements similar to business by capitalizing and depreciation such items. It is recommended that this fund be consolidated with the Water Fund in 1996 by utilizing a reserved cash and fund equity account, and separate revenue accounts for connection charges and allocation of interest;the same level of detail would be maintained but would simplify the records. This change would provide a more accurate reporting of the activity in the Water Fund, eliminate duplicate reporting of activity, and be supported by generally accepted accounting principles. Silver Lake Woods Fund. At the end of 1996, approximately $41,000 will remain in the fund and such amount has • been budgeted to be used in 1997. This amount will be supplemented with funds from the special project fund to fund seal coating work in 1997. It is recommended that at the end of 1996, the remaining fund balance in this fund be transferred to the general fund and the 1997 budget be modified to reflect this change. This will simplify the accounting,reporting, and budgeting in 1997. Consolidation of General Fund Programs. Simplify the accounting system by consolidating the funds/departments/programs whenever possible, and establish written policies on the special funds to reduce confusion or misunderstandings on how such funds can or should be used. Attached are preliminary revised budgets for Finance and Community Development as well as the budgets as presently formatted. This should provide you with some basis to compare the two formats. If you are receptive to this change,we would like some flexibility to modify it slightly as we work with setting up the budget. We will also provide a proposed format for the remainder of the departments within the general fund. It is proposed that this change be adopted for 1997. • Vehicle and Equipment Fund.