FINANCE DEPARTMENTChristopher M. Quinn, MACC, CPA, CFE, CGFO, CGMAFinance Director
Utility Capital Financing Plan
Government Accounting 101
• General Fund• Special Revenue Funds• Capital Project Funds
Governmental Funds
• Enterprise Funds• Internal Service Funds
Proprietary Funds
• Trust Funds• Agency Funds
Fiduciary Funds
Why the City uses Fund Accounting
DO NOT TOUCH Restricted Fund
Must Comply with Legal and External RequirementsSome Examples: Infrastructure Surtax (Capital Projects) Utility Revenues (Operation and
Expansion of Utility System) Impact Fees (Infrastructure Capacity
Improvements related to Growth) Grants (Specific Programs/Projects)
What is an Enterprise Fund?
Type of Proprietary Fund Operates like a business
Primarily funded through charges for services Services to external customers
Separate accounting and financial reporting Fund has its own set of “books”
Examples of Enterprise Funds
Utility FundStormwater FundSolid Waste FundGolf Course FundTennis Center FundBuilding Permits & Inspections FundIT&C Fund
Fund Restrictions Each enterprise fund has a separate
rate structure
Rates are reviewed to insure that adequate funding is available to meet the needs of that enterprise’s budgetary requirements
Reserves are planned to meet operating expenses and future capital needs
Bond covenants restrict use of revenuesLegally bindingProtect the bond holder
Treated like a separate business for accounting purposes
Financial statements are included in the annual audit report
Excess revenues (profits) are restricted from use in other areas of the City Re-invested back in the Utility
Utility Fund
Charges for Services 37.5%
Intergovernmen-tal Revenue
13.2%
Permits, Fees and Special As-sessments 1.4%
Local Business Tax 0.3%
Communications Services Taxes
2.0%
Local Option, Use and Fuel Taxes 2.0%
Ad Val-
orem Taxes 11.0%
Appropriated Fund Balance
9.9%
Transfers from Other Funds 2.4% Non Revenues 6.5%Debt Proceeds
12.3%Miscellaneous
Revenues 0.3%Interest and
Other Earnings 0.7%
Judgments, Fines & Forfeits
0.6%
Total City RevenuesFiscal Year 2013
City Ad Valorem Tax HistoryDeclining Ad Valorem Receipts
FY 2008 FY 2009 FY 2010 FY 2011 FY 2012 FY 2013$0
$5
$10
$15
$20
$25
$20.2$17.6 $18.0
$15.0 $15.0 $15.1
Year
$ (M
illio
ns)
Ad Val-orem Taxes
$15.1 Mil-lion
Services Provided through Property TaxesFiscal Year 2013
Fire Pro-tec-tion $7.3
M48.4%
Po-lice Pro-tec-tion $2.6
M17.2%
Street & Park Main-tenance $4.7M
31.1%
Cap-ital Projects$.5M
3.3%
Comprehensive Annual Financial Report (CAFR)Prepared AnnuallyAudited by independent, external audit firm
hired by City CouncilAudit is Required by State Statute
Provides insight into how the City is managing finances and the financial health of the City
Provides financial transparencyPromotes accountability
Annual Financial Audit Report
Where can it be found?On the City’s website under “Popular Links” then
“Financial Reports” www.palmcoastgov.com
Fiscal Year 2000 – 2012 is available
Filed with Florida Auditor General
Available for viewing on the Florida Auditor General’s website: www.myflorida.com/audgen
Annual Financial Audit Report
Summary of 2010-2012Total Operating ExpensesChange in Net Assets (net profit)Net Cash FlowUnrestricted Net Assets (reserves)
Utility Financial Performance
Utility Financial Analysis
Utility Financial Analysis
Utility Financial Analysis
Utility Financial Analysis
History of Rate Adjustments2003 (Purchase of Utility) through November 2008
No rate change
November 2008 12.5% increase to address capital needs including Water Treatment Plant 3
2009-2012 Consumer Pricing Index (CPI) adjustments only
Average 1.67% Included a decrease of 1.4% in 2009
Refinancing 2003 Bonds – Cost Savings due to reduced interest rates
Capital Financial ProgramAddressing 3 issues:
Provide capital funding needed for EPA required ZLD Project
Anticipated need for Waste Water Treatment Plant 2 which is in current 5 year capital improvement program.
Questions?