FY 2006-2007_Budget - Laserfiche WebLink

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Other Enterprise Funds The Enterprise Funds are used to account for the acquisition, operation and maintenance of governmental facilities and services, which are entirely or predominantly self-supported by user charges. The operations of these funds are accounted for in such a manner as to show a profit or loss similar to comparable private enterprises. The projected end-of-year working capital for the Sylvan Beach Fund is $129,038, or 226 days of working capital. This is well within the targeted balance, but includes a reserve for pier repairs. The Airport Fund is expected to have a working capital balance of $192,855, which leaves the fund fiscally stable at 9/30/07. The La Porte Area Water Authority is expected to have a working capital balance of $1,401,527 which leaves the fund with an estimated 314 days of working capital at 9/30/07 with a large capital expenditure pending. The working capital balance of the Golf Course Fund is expected to be ($57,847), which is significantly below the targeted balance. Measures such as increasing fees and a new advertising strategy have been taken in this fund to attempt to improve the financial condition of this fund. Internal Service Funds All of the internal service funds are operations, which include funding for future large capital outlays and health services and therefore are not required to be measured by days of working capital. All funds include sufficient amounts to adequately replace equipment, as it becomes necessary. The Motor Pool Fund will expend $432,390 in replacing existing vehicles that have reached the end of their useful life while the Technology Fund will expend $282,436 to replace computer equipment. The Insurance Fund includes $363,506 for estimated worker’s compensation claims, $310,306 for liability insurance and $3.1 million for estimated health insurance claims. Special Revenue Funds The City has several Special Revenue Funds, which are used to account for specific revenues that are legally restricted to expenditure for particular purposes. All special revenue funds meet or exceed targeted reserves outlined in the financial plan. Capital Outlay Funds The Capital Improvement Funds contain numerous projects that will help fine-tune the City infrastructure and facilities. The 2006-07 budget includes over $3.5 million of capital improvement projects. All of these projects are vital to the City's continued operation in a manner that is acceptable to our citizens. The projects identified for the fiscal year 2006-07 are described in the Capital Improvement Funds section beginning on page 305. We expect increased efficiency to result from several of the projects, especially the improvements to the sewer system. None of the projects will have a major impact on increasing operational costs, with the exception of the Police Facility, which should be completed in June 2007. Additional costs totaling approximately $123,000 for operating the new police facility for the four month period of June through September have been included in the Police Departments operational budget. Those costs will increase to approximately $285,260 in FY2008. TARGETED OPERATING BALANCES The City strives to maintain a minimum reserve balance of 90 to 120 days of operating expenditures in the General Fund and 60 to 90 days of operating expenses in all other Operating Funds. With the exception of the Utility Fund and Golf Course Fund, all funds currently meet or exceed this benchmark. ïî