1994 MIN DEC 6 - Laserfiche WebLink

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there were solid projections on revenues. City Treasurer stated his function is not to be involved in the overall budget. He is responsible f or his own budget. He believed that the City received the "growing concern" based on the negative trend. The City has continuing losses from operations and numerous funds with negative fund balances; however, these are not a fatal flaw. He stressed that the primary reason is that the City does not have a plan to cure the deficit. City Manager Martinez remarked that the document which presented the 1994 preliminary and then adopted budget clearly stated that the City would receive a "growing concern. 11 The reason is that the City has a history of using one-time revenues to balance ongoing operations. In response to Mayor Fulp, City Treasurer Williams stated his function is to receive and invest monies which come into the City. He is active on the review and administration of bond issues. The one-time revenue through RDA was based on analysis he made for defeasance of the bond. With approval of City Council and City Manager, he is involved with debt issuance as well. Mayor Fulp inquired if the Treasurer knew the source of origin of the funds coming in. City Treasurer responded that he usually does not know as the money is receipted in the Finance Department where they do accounting and then advise him of the bank deposit in the morning. He then has until 9:30 A. M. or 10:00 A. M. to make investments or liquidate investments to ensure that all outstanding checks of the City will clear. City Treasurer Williams stated that the investment policy observed is for preservation of capital, liquidity and then yield. As requested, City Treasurer Williams agreed to provide monthly reports. Finance Director Chamberlain informed there are 70 funds. Monies received are identified if they are restricted, as required by revenue grants, and are coded for the appropriate fund. Thereafter, all monies go into one pool. Having analyzed 10 years of the general fund, Director Chamberlain stated that the majority of expenditures coming out of the general fund are for personnel costs and general operations. FINANCE DIRECTOR'S REPORTS AND RECOMMENDATIONS: City Audit Reports FY 1993-94 Mr. Rod La Mond, Partner of McGladdery and Pullen along with Audit Associate JoAnne Snowden presented an overview of their recent audit for fiscal year 1993-94. He said an audit is essentially a financial and compliance audit. The Financial side are for numbers driven, taking financial statements to verify accuracy of numbers, whatever they may be and presented in a format of "generally accepted accounting principles." The compliance side delves into statutory and legal compliance with respect to the funding the City receives. Certain funds are restricted by nature as they are nEC 6 ' 1994