CC PACKET 07272004 - Laserfiche WebLink

Home Browse Search

City Council Regular Meeting Minutes 03 July 13, 2004 Page 2 1 certain properties. He added included is the implementation of the new reporting standards 2 required by Governmental Accounting Standards Board Statement No. 34 (GASB 34). He 3 indicated this statement changed drastically the method of presenting the financial statements 4 and activities of the City. 5 6 Mr. Bonniwell indicated the emphasis of GASB 34 is reporting the City as a whole with an 7 added focus on major funds of the City. He noted it involves the conversion of traditional 8 underlying financial operating statements into a single statement of net assets depending on type 9 of activity; governmental or business. He stated the conversion process involves the reporting of 10 capital assets (less accumulated depreciation),recognition of long-term debt (bonds payable) and 11 other reconciling items. He added the statement of activities summarizes expenditures by 12 function, or program of major activities of the City, and how they are financed. He reported 13 statements of proprietary funds remain unchanged as these statements were previously prepared 14 on the accrual method of accounting. 15 16 Mr. Bonniwell continued in stating as previously noted, GASB 34 focuses on reporting of the 17 City as a whole,however,the importance of individual funds and their activities remain the 18 critical factor since GASB 34 reporting basis starts with the underlying financial statements. He 19 indicated traditional accounting standards are still utilized in accounting for activities of the City. 20 He noted individual fund financial statements are contained within the new reporting format, 21 although if the fund is determined to be a major fund, it is listed separately rather than with its 22 fund type. 23 24 Mr. Bonniwell indicated his report; dated April 28, 2004 expresses an unqualified report on the 25 basic financial statements of the City as prepared in accordance with the provisions of GASB 34. 26 He indicated the following comments or observations are for Council's information and 27 consideration based on the audit of the financial statements of the City of St. Anthony for the 28 year ended December 31, 2003. 29 30 Mr. Bonniwell presented a financial summary for the Council noting the financial condition of 31 the City continues to remain strong. He reported as presented in the financial report,the City 32 reported a change in net assets of$970,000 (after capitalization of capital assets and related 33 depreciation). He indicated the governmental, operating funds of the City, consist of the General 34 Fund, Special Revenue, Debt Service and Capital Project funds remain healthy. He added the 35 City's proprietary funds, liquor and utility, are also financially strong. 36 37 Mr. Bonniwell presented a summary of fund balances,by fund category, as of December 31 for 38 each of the past three years to include the General Fund, Special Revenue Funds, Debit Services 39 Funds, Capital Project Funds and Enterprise Funds. 40 41 Mr. Bonniwell continued in reporting the City's financial condition has not changed significantly 42 over the past several years. He noted the large increase in the fund balance of the Capital Project 43 Funds is the result of bond proceeds for the renovation and construction of public facilities which 44 were unexpended at year end. 45