Annual city finance audit results to be presented to Council tonight

The results of the annual independent review of city revenue and expenses for the budget year October 1, 2016 ? September 30, 2017 will be presented at the regular monthly meeting of the Kennedale City Council, beginning at 7 p.m. tonight at Kennedale City Hall. {{more: continue …}}

The audit was conducted by Patillo, Brown & Hill and is called the Comprehensive Annual Financial Report or CAFR. The following is information provided in a staff report addendum to the published agenda for the meeting tonight.?

Budgetary Highlights …?

1. The FY16-17 Adopted Budget included an $840,000 draw-down to the General Fund. This fund was only actually reduced by about $100,000, due primarily to the following:

• Revenue: Taking out a $400,000 loan

• Expenditures: $100,000 in first-year capital savings by partnering with Enterprise Fleet Management; and ~$300,000 in combined General Fund savings, largely driven by staff turnover and strong expenditure controls from Department Heads

• Although this short-term strategy of increased reliance on wells produced real savings, it is not sustainable.?

• Additional significant savings were realized through delayed capital and maintenance projects.

Closing Available Fund Balance for significant funds (staff-calculated)?

• Available Fund

  Balance:$ 1,340,336 – Projected

  at Budget: $ 1,104,740??

• Debt Service Fund: $ 41,982 – Projected at Budget: $ 47,484?

• Capital Replacement

  Fund: $ 352,651 -? Projected at Budget $ 201,599 (phone/computer replacement delayed)?

• Street Fund: $ 309,804 – Projected at Budget $ 260,262 (some increase in franchise fee revenue)?

• Water & Sewer Fund:? $ 1,045,984 Projected at Budget $ 464,027 (Budgetary Highlight 2 above)??

• Stormwater Fund: $ 169,428 – Projected at Budget: 708,525 (Construction in Progress erroneously

  included in prior carryover balance)

Additional information: (staff provided).?

• The Kennedale Economic Development Corporation (EDC) is not included in this audit, as they undergo a separate audit, which will be presented at the next Regular Meeting of the EDC Board, on Tuesday, March 27, at 7:00 p.m..

• ‘Water and Wastewater’ includes restricted water and sewer impact fees; however, the Stormwater Fund is, for the first time, reported separately

See full agenda at Meeting Agendas City of Kennedale