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City posts $13.8M increase in fund balance after stronger-than-expected revenues and underspending, auditor says
Summary
The city's independent auditor gave an unqualified opinion on the FY2005 CAFR; the city reported about $9 million in revenue above estimates (roughly $3.8 million from real-estate taxes) and $10.8 million underspending, producing a $13.8 million increase in undesignated fund balance to roughly $42.3 million.
The city's independent auditor delivered an unqualified opinion on the FY2005 Comprehensive Annual Financial Report and finance staff reported improved revenues and an increased undesignated fund balance.
Whit Myers's auditor representative told council the audit opinion is unqualified and that there were only minor federal compliance findings. Finance director Carl Daughtry said the city generated about $9 million more in revenues than budgeted—about $3.8 million of that from real-estate taxes—and underspent appropriations by about $10.8 million, resulting in a $13.8 million increase in undesignated fund balance to around $42.3 million, roughly 12% of operating revenues. "We generated revenues above the estimate of $9,000,000 and most of that generation of additional revenues came from real estate taxes, approximately $3,800,000," Daughtry said.
Council discussed the fund-balance level and directed the finance committee to review policy; the city manager indicated proposals would be ready in time for the FY2007 budget process. The auditor and finance staff also noted a few minor federal compliance findings related to education program reporting in the back of the CAFR.
