5.0. SR 05-13-2002 - Laserfiche WebLink

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MEMORANDUM Item 5. TO: Mayor and Council FROM: Lori Johnson, Finance Director DATE: May 13, 2002 SUBJECT: Consider Comprehensive Annual Financial Report for the Period Ended December 3 I, 2001 Attached to this memo are three documents: the Comprehensive Annual Financial Report for the City for the period ended December 31, 2001, the Financial Management Plan, and the Annual Financial Report of the Elk River Fire Relief Association for the years ended December 31, 2001 and 2000. The main item of discussion at Monday's meeting will be the City's Comprehensive Annual Financial Report for 2001. A copy of the Financial Management Plan as approved by Council on January 28, 2002, is included for your reference only. As ! stated, the main point of discussion on Monday is the City's Comprehensive Annual Financial Report for 2001. Please refer to my Transmittal Letter, which starts on page iii of the Introductory Section, for summary information and discussion on the main points of the report. Pages vi-xi of the Transmittal Letter provide summary information on General Fund Revenues, Expenditures, and Fund Balance as well as Enterprise Funds. As you can see from the General Fund chart on page x, the ending fund balance is $3,062,175 or 42.44 percent of the 2002 budget. The new Financial Management Plan (Plan) states that the Council will have an opportunity to allocate that portion of the fund balance over the 40 percent target identified in the Plan if the Council so chooses. However, because the Plan was adopted very late in January and the audit schedule was already set, that opportunity was not available to the Council prior to finalizing this year's report. In future years the fund balance information will be presented to the Council for action prior to finalizing the report. Of course, this year the Council still has the opportunity to transfer funds as it deems appropriate. Based on the Plan and a 40 percent fund balance to budget target, the Council would have $175,975 available to allocate to other funds. The Council may also choose to leave this in the General Fund for projects or programs to be undertaken in 2002 that were not included in the budget.