Poorly Managed Little RICH City

City Council Agenda
Regular Meeting
November 7, 2006

V. Announcements from Closed Session, from City Council Members and the City Administrator.

C. Announcements from City Administrator.

• Receive City’s annual audited financial statements for the fiscal year ended June 30, 2006.

CITY OF CARMEL-BY-THE-SEA
CALIFORNIA
ANNUAL FINANCIAL REPORT
June 30, 2006

Nicholson & Olson
Certified Public Accountants
729 Sunrise Av, Suite 303
Roseville, CA. 95661

Independent Auditor’s Report
September 29, 2006

Financial Highlight:

“As of June 30, 2006, the City’s government funds (general fund and special revenue funds) had a combined fund balance of approximately $10 million, an increase of almost $1 million from the previous year. Of the total fund balance, $1.3 million was reserved; $5.4 million was designated for capital acquisitions and future expenditures; and $3 million was neither reserved nor designated.”
(Source: Nicholson & Olson, Certified Public Accountants, Independent Auditor’s Report, web page 5.)

The following, “As prepared by the Carmel-by-the-Sea Finance Department:”

CITY OF CARMEL-BY-THE-SEA
BALANCE SHEET
Government Funds
June 30, 2006

FUND BALANCES
Reserved for debt service:$627,309

Unreserved:
Designated: $5,359,692
Reserved: $552,884 (Parking)
Undesignated: $3,053,341

Total Fund Balances: $9,040,342 $552,884

TOTAL: $9,593,226.00

(Source: Financial Statements, CITY OF CARMEL-BY-THE-SEA, BALANCE SHEET, Government Funds, June 30, 2006, web page 17 of CITY OF CARMEL-BY-THE-SEA, California, Annual Financial Report, June 30, 2006.)

NOTES:
• GENERAL FUND:
Total Revenues: $12,273,173
Total Expenditures:$11,636,900
Excess of Revenues Over Expenditures: $636,273

• GOVERNMENT FUND BALANCES increased from approximately $8.8 million in Fiscal Year 2004/05 to over $9.7 million for Fiscal Year 2005/06.

(Reference: http://www.ci.carmel.ca.us/, Segment3QuarterlyReportNovember2006.pdf)