Council approves comprehensive financial report

Posted: 7:33 pm, January 28, 2017 by Reporter Jackie Iddings

Interim Administrative Services Director Deanne Purcell presenting the Comprehensive Annual Financial Report to the City Council

Report details financial results of city operations

-The Paso Robles City Council heard the Comprehensive Annual Financial Report (CAFR) presented by Interim Administrative Services Director Deanne Purcell at the Tuesday night meeting. The report is for the fiscal year ending June 30, 2016. The CAFR is prepared in accordance with generally accepted accounting procedures (GAAP), including compliance with pronouncements issued by the Governmental Accounting Standards Board (GASB). The report provides detailed information regarding the financial results of city operations and highlight changes in the city’s financial condition and practices. The council voted unanimously to receive the CAFR.

The audit was performed by the outside certified public accounting firm, Moss, Levy & Hartzheim, who has been the City’s auditor for the past decade. The audit addresses the General Fund, each enterprise fund and all of the city’s other funds. Every financial practice and transaction is examined.

Key results, summarized from the report, include:

General Fund: The General Fund’s fund balance is $28.7 million, which is an increase of just under $10 million from last year. Of this amount approximately $8.6 million is restricted and $5.6 million is set aside for General Fund reserves leaving $14.5 million “unassigned” and available to meet the city’s current and future needs.
Water Operations: The Water Fund ended the year with a reduction of $1.3 million in it’s reserves, primarily due a decrease in revenues from water use restrictions and the construction of the Water Treatment Plant. Water operations experienced an operating deficit of approximately $3.2 million. The reduction reflects reserves that are used to cover unfunded depreciation expenses and to pay back the Water Fund for construction. The balance of cash resources as of June 30, 2016 was $7.4 million. For reporting purposes, all water related funds are consolidated, i.e., these cash balances include development impact fees as well as user fees.
Sewer Operations: Sewer operations experienced an increase in reserves of approximately $1.5 million. These additional funds will become part of the fund reserves to cover unfunded depreciation expenses and to help pay new debt service payments, which began in FY 2015-16. The balance for cash resources at June 30, 2016 was $13.5 million. For reporting purposes, all waste water related funds are consolidated.
Airport Operations: The Airport Fund ended the year with a $30 thousand addition to its cash reserves. However, the Airport Fund was not able to cover its entire depreciation costs of $386 thousand, such that it showed an operating “loss” of $84 thousand. The Airport Fund has a loan with the State for the Airport Fuel Facility project. The cash resources balance at June 30, 2016 was $2.0 million. This includes the Airport Operations fund, Airport Capital Match fund, and the Airport Terminal Repair fund.

Hard copies of the CAFR are available for review in the City Library and City Clerk’s Office at 1000 Spring Street; and the Administrative Services Offices at 821 Pine Street. A reference copy for the city council has been placed in the City Council office. An electronic copy of the CAFR is on the city’s website.