“For the 2005/06 fiscal year, revenues totaled $12,273,173 - $1.2 million more than anticipated – and expenses came in almost $400,000 lower than expected, putting Carmel solidly in the black.”
“We had to spend down capital improvement reserves so much last year, my suggestion is to replenish that account before we put other projects in place,” stated City Administrator Rich Guillen.
(AUDITS GIVE CITY, SUNSET CENTER CLEAN BILLS OF HEALTH, Mary Brownfield, The Carmel Pine Cone, December 15, 2006.)
“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, http://ci.carmel.ca.us/)
QUESTIONS:
With Carmel-by-the-Sea “solidly in the black,” and accountant Ralph Marcello of Nicholson & Olson stating that “While the city budgeted to break even, you actually came out ahead,” how is it that any reserves were used in FY 2005/06 as City Administrator states capital improvement reserves were “spend down” so much last year?
If, as City Administrator Rich Guillen states, capital improvement reserves were spent down so much last year, then what Capital Improvement Projects were funded from the Capital Improvement Reserves, above and beyond the $772,135 budgeted for Capital Improvements Program in FY 2005/06?
REFERENCES:
CAPITAL IMPROVEMENTS PROGRAM
Funds are budgeted to provide for planning and construction of major capital improvements. The capital projects, submitted by departmental staff and their respective commissions or boards, are selected through an in-depth evaluation prioritization process and then reviewed and approved by the City’s Planning Commission as part of the City's Five-Year Capital Improvement Program.
Capital Improvements
Revised 05-06
$ 15,227 01-89277 Professional fees-Sunset Ctr Roof
$ 12,707 01-89409 Sunset Yoga Ctr Repairs
$ 577,285 01-89483 Fire Dept Seismic Retrofit
$ 119,616 01-89627 Resurface Beach Bluff Pathway
$ 9,300 01-89636 4th Avenue Riparian Restoration
$ 8,000 01-89637 Forest Hill Park Improvements
$ 18,000 01-89676 Forest Theater Fire Sprinklers
$ 12,000 01-89994 Sunset Ctr Roof/Fire System
$ 772,135 Subtotal
Proposed 2006/07
4th Avenue Riparian Restoration $ 44,594
Del Mar Restrooms $ 25,000
Subtotal $ 69,594
(Source: CITY OF CARMEL-BY-THE-SEA CALIFORNIA BUDGET FISCAL YEARS 2006/07 THROUGH 2008/09, http://ci.carmel.ca.us/)
CITY OF CARMEL-BY-THE-SEA
California
Annual Financial Report
June 30, 2006
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, CITY OF CARMEL-BY-THE-SEA, California, Annual Financial Report, June 30, 2006.)
CITY OF CARMEL-BY-THE-SEA
California
Annual Financial Report
June 30, 2005
BALANCE SHEET
Government Funds
June 30, 2005
Fund Balances
623,709 Reserved for debt service
Unreserved
$37,662 Designated for street and traffic safety
$740,451 Designated for liability insurance
$647,527 Designated for health insurance
$1,370,334 Designated for capital improvements
$249,579 Designated for equipment replacement
$1,432,394 Designated for benefits and wc insurance
$657,000 Designated for reserves
$549,690 Designated for economic uncertainty
$165,011 Designated for emergency response
$140,000 Designated for general services and operations
$468,857 Designated for customer deposits
$1,240,439 Undesignated
8,322,653 Total Fund Balances
(Source: CITY OF CARMEL-BY-THE-SEA California, Annual Financial Report, June 30, 2005, FINANCIAL STATEMENTS, Fund Financial Statements, Balance Sheet – Governmental Funds.)
3 comments:
Since city reserves appear to be in excess of 80% of annual revenue and most cities aspire to reserves of 15-20%, why is the City Administrator recommending adding to Carmel's reserves?
Since the city has a revenue surplus of about $1,600,000, why isn't that money going to be budgeted for badly needed deferred maintenance of badly deteriorating equipment, property and roads or rehiring staff, including department heads, to refill the many positions of the people, who were fired or forced to resign or restoration of library hours etc. which the City Council has failed to fund in recent years despite huge reserves?
Since there is a surplus in the city's reserves why won't the administration use some of these funds to maintain the Scout House and bring it up to ADA standards of accessibility? The Scout House could be a resource usable by many civic organizations, as a community center and for the Scouts. Wouldn't that be a blast?
ABSOLUTELY! That would be a BLAST! Especially given the City did not renovate Carpenter Hall as part of the $20 million plus renovation of Sunset Center. Even a McCloud supporter stated at a public meeting that the proximity of the Scout House makes the Scout House an ideal venue for community meetings, et cetera. And it would represent a commitment to the Scouts; after all, if it weren't for the Scouts, Carmel would not have the Scout House at all.
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