HomeMy WebLinkAboutAgenda Bill Item 12 S
CITYGF PETALUMA, CALIFORNIA.
AGENDA BILL
ty Meeting Date:
Agenda Title:
• Presentation and discussion of the Ci 's Comprehensive Annual January 16, 2001
Financial Report (CAFR) for the year ended June 30, 2000
Department: Director .A Contact Person: Phone Number:
Finance William Thomas William Thomas 778-4323 •
Cost of Proposals N/A Amount Budgeted:: N/A
Account Number:
N/A
Attachments to Agenda Packet Item:
1. Agenda Report
2. City's Comprehensive Annual'Financial Report (CAFR) —delivered under separate cover
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Other then the Agenda Report, attachment #2, numbering numerous pages, are not included,but are
available at the City Clerk's"office.. In4-ri effort to reduce paper copies, we have not included these in
the packet, but want to reinforcethe fact they are available to you and the public upon request.
Summary Statement:
The City is required to have its financial operations audited annually by a Certified Public Accounting
firm: For fiscal year 2000 that.was done by Pisenti & Brinker LLP provided that service and examined
the City's financial reports and financial operations. The results of that audit are compiled into a
• document that is commonly referred tows the Comprehensive Annual Financial Report or CAFR. The
CAFR consists of four sections—Introductory, Financial, Statistics and Compliance.
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Council Priority: THIS AGENDA ITEM IS CONSIDERED To BE PART OF, OR NECESSARY TO, ONE
OR MORE OF THE 1999-2000'PRIORITIES ESTABLISHED BY:THE CITY COUNCIL ON JANUARY 30,
1999.
Priority(s):
N/A
Recommended City`Council Action:
Discuss and accept the 1999/2000 fiscal year CAFR
Reviewed by-Fi i nce Director Revie s �- • e : A. �.au ed b i i Mana t er:
• Revie / 0 A _� Imtes�1 Date:
♦ . • ( ?S'!im �A'1
Today's Dater' Revision'#A I e evised: ile.Co•
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CITY OF PETALUMA, CALIFORNIA
January 16, 2001 �.
AGENDA REPORT FOR
• DISCUSSION OF FY'2000 COMPREHENSIVE ANNUAL
FINANCIAL REPORT (CAFR)
1. EXECUTIVE'SUMMARY:
The City.-is required to have its financial operations ,audited ;annually by a Certified Public
Accounting'firm. For fiscal year 2000 that was done by,Pisenti & Brinker LLP who provided
that service and examined the City'sfinancial reports and financial.operations. The results of
that audit are compiled into a'docutnent that is commonly refeired to as the Comprehensive
Annual Financial Report or CAFR. The CAFR consists of four sections — Introductory,
Financial, Statistics and Compliance.
2. BACKGROUND:
The Comprehensive'Annual Financial`Report for FY 2000 has been:completed and is being
submitted to the City Council-forreview;.discussion and acceptance. The City completed the
report. The audit firm ofPisenti and,Brinker,.LLP examined the financial statements and
provided an unqualified opinion on them. The auditors opined that-the°general purpose financial
statements provided to them by the City present fairly, in all material respects,the financial
positionof the City of Petaluma,,California as of June 30, 20000, and the results of its operations
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and the cash flows of its proprietary funditypes for the year ended in conformity with generally
accepted accounting principles.
The CAFR, as indicated.above, is comprised of four,sections—Introductory, Financial, Statistical -
and Compliance. The Introductorysectioncontains•the Letter of'Transmittal, which discusses
the City and its operations: Italso includes:a list of Principal Officials,an Organization Chart-
and the,prior years "Certificate of Achievement for Excellence:in Financial Reporting". This
award is issued by the Government Finance,Officer's Association•as the result of our FY 1999
CAFR, which was judged to have achieved the highest standards in government accounting and
financial reporting. We expect that our FY 2000 CAFR will also meet these requirements.
The second section,the financial section, consists of the financial statements that were prepared
by City staff and audited by the outside auditors. It consists of the following: •
Combined statements
Notes.to,the statements
Coinbiningstaternents •
• The combined statetnentsconsist of financial information,for all:of the funds maintained by the
City which includes the General.Fund, Special Revenue.funds, Debt Service,funds, Capital
Project funds, Enterprise funds, Internal Service funds, General FixedAssets'and General Long-
Term Debt.
The combining fund statedientsiseparate the financial statements into.the.above categories and
present more detailedhinfdrmation within the various fund types.
• The third section consists ofstatistical information, which includes information on general
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government expenditures and revenues-lot the last ten years. It also includes information
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concerning property tax levies and coll'cetions, tax rates other information that is presented
for a ten-year period. -
The final section, the,compliance section;.consists of the single audit that isrequired by all ' •
agencies that receive federal=fiends. The auditors,through their.audit;procedures,,obtain
reasonable assurance that the City's financial statements-are,free of material misstatements.
They obtain this assurance by performing tests;of its compliance with certain provisions of laws,
regulations, contracts and grants. The results of their tests disclosed no instances of
noncompliance thatwere reportable under Governmental Accounting Standards::
Revenues and expenditures for governmental fund types are presented below. Also presented is •
- the beginning and ending fund balances for these:
:funds.
Fund Balance
Total Total Fund Balance
Beginning of
Revenues Expenditures Year End of Year
General Fund - $ 28,769,662 $ 26,965,111 $ 3,366,407 ,$. 5,170,958
Special Revenue Funds 24,424,748 14,712,307 16,695,618 26,408,059
Debt Service Funds 1,607,952' 1,526,241 2,088;028 2,169;739
Capital,Projects 24,235,826' 10,9.73;062 223,781 13,486;545 .
FOr?fiscal year 1999/2000 the General Fund(the main operating fund of the.City)-ended with
• total revenues exceeding total expenditures by$1,804,55'1 increasing theiending fu`gd balance
$5,170,958. Of that fund balance, $83,212 is designated for special projects, $1,400,000:is'
designated for contingencies and $600,000 is designated for equipment replacement. The total
undesignated fund balance-is $3,030,886.
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Special.Revenue fiends•endeddwith total revenues-exceeding;;total expenditures by$9,709;441,
increasing the-ending fundbalances to$26,408,059, Of that amount$150,000 s^designated:for
special projects, $277,900 isireserved for'lnterfundreceivables and $5,139,816 is-reserved for
loans receivable. The-remaining$20,840,343 is undesignated. By their specific nature, these
funds are restricted in their use.
Debt Service funds ended with total revenues exceeding total expenditures by$81,711.-increasing
the.'ending fund-balance to $2,169,739. All of these funds!arereserved for future debt service.
obligations.
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Finally;the Capital Project funds ended the year with total revenues,exceeding'total expenditures
by $13;262,764 with a resultant ending fund balance of$13,486,545. Of that balance;
$1,082,700 is reserved for Interfund receivables, $525;000 is�reserved'for loans-receivable and ,
$402,053 is-reserved for land held for resale. The remaining balance of$11,476,792 is
designated for specific-projects. -
The Enterprise and Internal Service funds are accounted,for differently'than thegovernmental
funds and their equity is designated as retained earnings. Following is a presentation of their
activity for FY-2000.
Retained Retained
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Total. Total Earnings Earnings End
•Revenues Expenditures Beginning of
Year. of Year
Enterprise.Funds:
Water $ 7,340,529, $ 6,39-1,139 $ 12,070,173- $ 13,019,563
Water Pollution Control 7;796,798 5,827,509 9,063,664 11,032,953
Public Transportation 1,090;463 1,056,304 66,464 100,623
Airport Operations 857,071. 886,065 (-720,901)- (749,895)
Ambulance Services 1,516,066 1,301,387 447,660 662,339
Marina . - 225,265 537,491 (1-,788,177) (2,100,403)
Internal Service Funds:
Information Services 440,344 405;581 693,537 • 728,300
Employee Benefits 316,319 311,936 185,419 189,802
Risk Programs - - 2,038,717 1,894,597` (1,721,903) (1,577,783)
General Services 306,242 260;653 86,137 131,726
All of the enterprise and internal..service funds had positiveoperating results except for the
Airport Operations fund and the Manna;fund: The Airport Operations fund ended the year with a
loss of$28,994. The Marina:fund,ended the year with an!;operating loss of$259,726. The fund
is not generating sufficient revenues to paytheexisting debt service. Included in the total
expenditures of$537,491 is$245,476 interest that was accrued (but not paid) for lnterfund loans
• and the outstanding debt to'the'California Department of Boating'and,Waterways.
All of the Internal Service funds had positive operating,results. The only fund in this category
that has a deficit retained earnings is the Risk Management fund. That deficit,consists entirely of
accrued claims which.include`' incurred but not yet reported" claims. Those amount.to
$2,630;732. This issue will.be addressed'at the mid-year budget review. .
Finally, the Notes to the financial statements provide additional information that supports the
. numbers that are presented in.the financial statements. Of particular interest are Notes E, which
deals with loans receivable,Note L, which provides information'on the City's long-term debt
obligations, and Note 0, which provides information on Interfund accounts. Included in the
latter are the Interfund loans outstanding;at.year-end. •
3. ALTERNATIVES: Don't accept the CAFR and provide staff with other alternatives.
4. FINANCIAL.IMPACTS: The cost of the independent•audit and the cost of producing
the CAFR are included-in the current year budget.
5. CONCLUSION: The City hasconcluded the audit for FY 2000 andtheFY-2000 CAFR
has been completed. The`City received an unqualified opinion`'as a result of thataudit. The FY
2000 CAFR has been submitted to the Government Finance Officer's Association for award
• consideration and;anticipates that the document will received this prestigious'award.
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6. RECOMMENDATION: Receive and file the FY 2000 CAFR. -
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