FROM FY2011 AUDIT REPORT ENTIRE AUDIT IS AVAILABLE ON CITY WEBSITE UNDER FINANCE DEPARTMENT
FINANCIAL ANALYSIS OF THE CITY S FUNDS
Governmental Funds provide information about near-term inflows, outflows and balances of resources that are available for spending. At the end of a fiscal year the unreserved fund balance serves as a useful measure of a government s net resources. Types of governmental funds reported by the City include the General Fund, the Capital Projects Fund, the Impact Fee Fund, and the Public Safety Fund.
At the end of the current year, the City s governmental funds had a combined ending fund balance of $27.2 million which is an increase of $971,669.
As discussed in the Notes to the Financial Statements the City implemented GASB Statement No. 54, Fund Balance Reporting and Governmental Fund Type Definitions for the fiscal year ended September 30, 2011. The GASB statement changes the fund balance classifications so they can be more consistently applied. Of the combined ending fund balance of $27.2 million $119,984 was non spendable, $3.1 million was restricted by law, $6.5 million assigned by the intent of the City to specific purposes, and $17.4 million was unassigned and available for spending by the City within the purposes specified for the City s funds.
City of Meridian, Idaho
Management s Discussion and Analysis
The General Fund is the primary operating fund of the City, used for major operations including public safety, planning and development, parks, and administration. At the end of the fiscal year, the unassigned fund balance of the General Fund was $17,408,645 down from the previous year balance of $17,779,306. The City maintains a general fund balance reserve equivalent to four months of on-going personnel and operating expense. The amount of reserve is calculated using the upcoming budget year i.e. the FY2012 budget is used to calculate the balance at the end of FY2011. For fiscal year end this amount is $8.5 million.
The restricted impact fee fund can only be spent on police, fire and parks capital projects that sustain the level of service existing when the fees were adopted per Idaho statute. Little was spent from the fund in FY2011, the fund balance increased from $1,964,241 at the end of fiscal year 2010 to $3,077,450 at the end of fiscal year 2011.
The Development Services Fund is used to account for Building and Planning Department Operations. The fund is combined with the Capital Projects Fund to create the fund balance, Reserved for Capital Improvements. During FY2011 the City transferred $600,722 from the Development Services Fund to the Capital Projects Fund.
Assigned for Public Safety Purchases is a fund used to save for public safety construction or large capital purchases. At the end of FY2011 the balance is $2 million, essentially unchanged, except for a small amount of interest, since the end of FY2010.
General Fund Budgetary Highlights
Total actual general fund revenue exceeded the final budget amount by 2% which is a little over $500,000. By and large the additional revenues were due to greater than budgeted property tax collections. For the year ended FY2011 61% of the general fund revenue was from property taxes. Intergovernmental is the next highest percentage of revenue, this category includes grants, sales tax revenue sharing, and a joint powers agreement with the Meridian Rural Fire District. The amount received for grant revenue varies from year to year, this year it was just over $700,000. For the last three years sales tax revenue sharing and Meridian Rural Fire District reimbursements have been consistent at about $3.5 million and $1.5 million respectively. The original revenue budget was amended upward during the fiscal year to reflect about $765,000 in additional revenue from grants, donations, licenses and permits.