Finance and Budget Committee Report

Transcription

1 N o 89 Finance and Budget Committee Report 2018 Quonochontaug Central Beach Fire District Annual Meeting September 15, 2018

2 Fiscal Year 2017 Comparative Review Actual and Budget Results Actual 2017 Results *2017 tax collections of 282,963, which combined with 4,737 of road impact fees, tennis lease payments, interest and other reimbursements, resulted in total operating sources of 287,700. *After giving effect to operating expenses of 236,971, combined with capital expenditures and reserve additions of 49,000, cash exclusively from operations was 1,730. *This amount was supplemented with a small increase in payables and offset by a 10,000 reduction in escrow deposits, resulting in cash use of 7,841. The increase in unrestricted cash balances was 2,159 (excludes escrows) and the increase in reserve balances was 45,041. At yearend 2017, unrestricted cash balances were 186,107 and reserves were 125,217, for total cash balances of 311,324. There were no escrows Actual vs. Budget *Total Sources of 287,700 were consistent with the approved budget, with the principal variance being 1,000 of unbudgeted road impact fees. Expenses of 236,971 were flat to budget of 237,112 with an overage of 11,719 in fire protection in connection with the new contract, 2,357 in water system expenses and 1,565 in beaches/dunes offset by savings in roads (3,201), charter and legal (2,384), communications (1,707), administration (1,513) and insurance (1,307), among others. *Capital expenditures of 3,959 included 4,000 for the installation of a new water system program and a 41 refund for the defibrillators. *Reserves increased by an aggregate 45,041, 73,541 higher than the budgeted use of 28,500 primarily due to an unspent allocation of 60,000 for the water nitrate issue which remains under study. *Cash from operations less capital expenditures of 1,730 was favorable to budget by a like amount due to the above mentioned operating and capital expenditure variances. Giving effect to the 429 increase in payables, unrestricted cash increased 2,159 vs. budget. When combined with the higher reserves, total cash increased 84,408 to 311,324. Unaudited Notes: Total Cash--Ending The financial statements are unaudited. The financial statements are consistent with prior year presentations and are not prepared in accordance with generally accepted accounting principles. Quonochontaug Central Beach Fire District Cash Flow 2017 Actual vs. Budget, 2018 Approved Budget Approved 2017 Approved Actual Actual Actual Budget Actual vs. Budget Fiscal Fiscal Fiscal Fiscal Budget Fiscal Variance 2018 Sources of funds - Operating Tax revenue 259, , , , , Lease to tennis club 1, , , , , Road impact fees 3, , , , , , Lost beach pass fees/fun Run & Golf Donations/Misc. 1, Contributions-Special Events 10, Interest income Total Operating Sources 274, , , , , , Uses of funds - Operating Charter, legal, negotiation fees , , (2,384.00) 3, Contingency Expense Storm restoration Communications 2, , , (1,706.51) 1, Administration 3, , , , (1,513.17) 3, Memberships (Salt Ponds/RISC/Hist Soc) (150.00) Ball field/playground (461.00) Beaches/dunes 3, , , , , , Boating/docking , (859.92) 1, CI - Other 7, , , , (758.98) 12, CI - Garbage 27, , , , (750.00) 31, Police/security 7, , , , (404.78) 9, PW - Water operator (NWSI) 6, , , , , PW - Water system 23, , , , , , PW - Roads 5, , , , (3,201.12) 6, Real estate/property , (1,000.00) 1, Mapping project Tennis 1, , (655.00) Water project loan - principal/interest 14, , , , , Water project loan - prepayment Taxes (Charlestown) 4, , , , (602.05) 5, Insurance 12, , , , (1,307.00) 14, Fire Protection (Dunn's Corner's) 83, , , , , , Miscellaneous expense (28.86) Total Operating Uses 206, , , , (141.44) 257, Cash Flow from Operations 68, , , , , , Capital Expenditures/Reserve Funding Contingency - 3, (40.60) 5, (5,040.60) 5, Water System - 11, , , (61,000.00) - Road Fund Road Expenditures 9, , Asset Replacement - - 6, (6,500.00) - Mapping Project 2, Test Bore 30, , Tennis Courts Boat Launch Compliance , (1,000.00) - Total Capital Expenditures 41, , , , (73,540.60) 62, Net Reserve Funding 11, , , (28,500.00) 73, (22,000.00) Cash from Operations less Funding & Cap Exp 15, , , , Working Capital Change in Accounts Receivable (inc)/dec Change in Accounts Payable inc/(dec) Change in Escrows inc/(dec) Net Change in Cash - 10, (10,000.00) - (10,000.00) - 15, , (7,841.05) 0.00 (7,841.05) 0.00 Cash Balance Unrestricted--Beginning (actual) 143, , , , , , Cash Balance--Reserves (actual) 40, , , , , Cash Balance--Escrows (actual) , , , Total Cash--Beginning 183, , , , , , Cash Flow 15, , , , Increase (Decrease) in Reserves 11, , , (28,500.00) 73, (22,000.00) Increase (Decrease) in Escrows - 10, (10,000.00) - (10,000.00) - Cash Balance Unrestricted--Ending (actual/budget) 159, , , , , , Cash Balance Reserves --Ending (actual/budget) 51, , , , , , Cash Balance Escrows --Ending (actual/budget) - 10, , , , , , , ,

3 2018 Budget Update 2019 Proposed Budget 2018 Estimate 2018 estimated total revenue of 302.9k will exceed budget largely due to the 5.7k contributed shed from Special Events total operating expenses are estimated to be under budget, with 11.7k in savings across several categories offset by 3.2k in higher Police/Security expenses associated with additional hours and coverage at the pond. Consistent with budget, Fire Protection increased 6.8k in connection with the new Dunn s Corners contract. As a result, cash flow from operations is estimated to be 54.3k as compared to 40.5k budgeted. Capital expenditures are expected to be about 19k lower than budget largely due to lower cost road paving options and no use of the 5k contingency allocation. Other projects included street signs, new beach parking lot gate, kayak rack and additional test bore analysis. Total reserves are estimated to be 123.2k, largely flat from 125.2k at year-end Year-end 2018 unrestricted cash is estimated to be 198k, up from 186k at the end of Budget 2019 tax revenue is budgeted to increase by 11.8k over 2018, or 4.0%. The 2018 tax rate of.11556% would increase to.12025% assuming constant property assessments. Operating expenses of 265.7k are budgeted to rise by 8.7k over 2018 budget due to increases in Dunn s Corners Fire Contract, which is assumed to increase by 5%, or 5.4k, along with increases in legal, water system and road expenses. Most other items are budgeted to remain constant with the 2018 budget. Capital expenditures are budgeted at 23.0k, including 5.0k for each of water system and road work, 7.0k for street light upgrades to LED, 1.0k for marina improvements and 5.0k for contingencies. In the aggregate, 44.0k is budgeted for deposit into reserves from cash flow, resulting in a projected increase of 21.0k in reserve balances. Year-end unrestricted cash is projected to be flat at 198k and reserves are projected to be 144.2k, up from 123.2k. Quonochontaug Central Beach Fire District Cash Flow 2019 Proposed Budget Unaudited Y-o-Y 4.0% Budget vs. Proposed Actual Estimated Estimate Budget Fiscal Fiscal Variance Fiscal Sources of funds - Operating Tax revenue 282, , , Lease to tennis club 1, , , Road impact fees 3, , (1,000.00) 2, Lost beach pass fees/misc Contributions-Special Events - 5, , Interest income Total Operating Sources 287, , , , Uses of funds - Operating Charter, legal, negotiation fees , (1,500.00) 3, Contingency Expense Storm restoration Communications (200.00) 1, Administration 2, , (1,200.00) 3, Memberships (Salt Ponds/RISC/Hist Soc) Ball field/playground Beaches/dunes 5, , , Boating/docking , , CP Other 10, , , CP - Garbage 29, , (1,500.00) 31, Police/security 8, , , , PW - Water operator (NWSI) 8, , , PW - Water system 28, , , PW - Roads 3, , (2,000.00) 6, Real estate/property - - (1,000.00) Mapping project Tennis Water project loan - principal/interest 14, , , Water project loan - prepayment Taxes (Charlestown) 5, , (775.00) 5, Insurance 12, , (1,500.00) 13, Fire Protection (Dunn's Corners) 105, , (1,613.00) 118, Miscellaneous expense - (424.96) 1, Total Operating Uses 236, , (8,512.96) 265, Cash Flow from Operations 50, , , , Capital Expenditures/Reserve Funding Contingency (40.60) - (5,000.00) 5, Water System 4, , Road Fund Road Expenditures - 30, (20,000.00) - Asset Replacement - - 7, Mapping Project Test Bore - 7, Tennis Courts Boat Launch - 1, , , Compliance Other 5, , Reserve Funding 3, , , Capital Expenditures 43, (19,000.00) 23, Net Reserve Funding 45, (2,000.00) 20, , Cash from Operations less Funding & Cap Exp 1, , (6,190.16) - Working Capital/Other Change in Accounts Receivable (inc)/dec Change in Accounts Payable inc/(dec) Change in Escrows (inc)/dec (10,000.00) 5, , Change in Assets (inc)/dec (5,702.48) (5,702.48) Net Change in Cash (7,841.05) 12, (6,892.64) - Cash Balance Unrestricted--Beginning (actual) 183, , , , Cash Balance--Reserves (actual) 80, , , Cash Balance--Escrows (actual) 10, (5,000.00) - Total Cash--Beginning 274, , (3,250.07) 321, Cash Flow 2, , , Increase (Decrease) in Reserves 45, (2,000.00) 20, , Increase (Decrease) in Escrows (10,000.00) Cash Balance Unrestricted--Ending (actual/budget) 186, , , , Cash Balance Reserves --Ending (actual/budget) 125, , , , Cash Balance Escrows --Ending (actual/budget) - - (5,000.00) - Total Cash--Ending 311, , , ,

4 2019 Proposed Budget Reserve Funds 2019 Budget, cont Actual 2018 Estimate Quonochontaug Central Beach Fire District Reserve Funds Actual, Estimated and Budgeted Balances Unaudited () Water Boat Asset Total Contingency System Road Launch Test Bore Tennis Replacement Compliance Reserves Fund balance at 12/31/16 (actual) 10, , , , , , , , Funding , , , Disbursements Well, Pump & Water Line repair/rehab - (4,000.00) (4,000.00) Road Resurfacing & Repair - - Tennis Nitrate Issue Stop Signs Boat Launch/Kayak Racks Legal/OMA/APRA Other Total disbursements (4,000.00) (3,959.40) Transfer in (out) - 14, (5,000.00) - - (2,000.00) (7,500.00) - Fund balance at 12/31/17 (actual) 10, , , , , , , , Funding , , , , , , Disbursements Well, Pump & Water Line repair/rehab Road Resurfacing & Repair - (25,000.00) (25,000.00) Tennis Nitrate Issue/Deep Well Analysis (7,500.00) (7,500.00) Speed Humps - - (5,000.00) (5,000.00) Boat Launch/Kayak Racks (1,000.00) (1,000.00) Legal/OMA/APRA Other (5,000.00) (5,000.00) Total disbursements (5,000.00) - (30,000.00) (1,000.00) (7,500.00) (43,500.00) Transfer in (out) Fund balance at 12/31/18 (estimated) 10, , , , , , , , Funding , , , , , Disbursements Well, Pump & Water Line repair/rehab - (5,000.00) (5,000.00) Road Resurfacing & Repair - (5,000.00) (5,000.00) 2019 Tennis Proposed Nitrate Issue/Deep Well Analysis Budget Speed Humps Boat Launch/Kayak Racks (1,000.00) (1,000.00) Legal/OMA/APRA Other (5,000.00) (7,000.00) - (12,000.00) Total disbursements (5,000.00) (5,000.00) (5,000.00) (1,000.00) - - (7,000.00) - (23,000.00) Transfer in (out) Fund balance at 12/31/19 (projected) 10, , , , , , , ,

5 2017 Cost & Expense Distribution (includes capital expenses) 2017 Cost & Expenses Fire Protection 43.8% Public Works 1.4% Taxes (Charlestown) 2.1% Legal & Administratiion 1.7% Community Property 4.3% Public Works - Water System CapEx 1.7% Insurance 6.3% Loan - Principal & Interest 5.3% Other 6.0% Community Property - Garbage 12.2% Public Works - Water System 15.3% Other includes ball field, beaches & dunes, boating, and police/security 4

6 Financial Reporting Central Beach Fire District Balance Sheet As of December 31, 2017 ASSETS Current Assets Bank Accounts Total LIABILITIES AND EQUITY Liabilities Current Liabilities 4000 Cash Accounts Payable 4010 Checking 10, Accounts Payable Savings 0.00 Total Accounts Payable Municipal Money Market 300, Other Current Liabilities Total 4000 Cash 311, Escrow Payable Escrow 0.00 Total Other Current Liabilities 0.00 Total Bank Accounts 311, Total Current Liabilities Accounts Receivable 0.00 Long-Term Liabilities Total Accounts Receivable Water System Loan 100, Total Current Assets 311, Real Estate Loan 0.00 Fixed Assets 7130 Capital Loan Boat Landing 75, Total Long-Term Liabilities 100, Beach Lot 6, Total Liabilities 100, Parking lot end 2, Equity 5040 Beach Lots 154, Restricted Funds 5050 Beach Lot right of way 69, Contingency Fund 10, Beach lot right of way other side 69, Water Conservation Fund 56, Ball Field 206, Road Fund 33, Land near wells 26, Boat Fund 2, Land near wells 2 20, Compliance Fund 5, Tennis Club Land 8, Mapping Project Fund Pump House Land 1, Test Bore Fund Water System 270, Tennis Fund 4, Water Purification System 36, Asset Replacement Fund 13, Tennis Courts 1 5, Total 1000 Restricted Funds 125, Tennis Courts 2 2, Fund Balance 1,059, Mapping 26, Opening Balance Defibrillators 2, Net Income 10, Total Fixed Assets 984, Total Equity 1,195, TOTAL ASSETS 1,295, TOTAL LIABILITIES AND EQUITY 1,295, Total 5

7 Financial Reporting Central Beach Fire District Profit and Loss Total Total Total Income 1500 Revenues 1510 Lease of Tennis Courts 1, , , Miscellaneous Fees Golf Open Revenue 1, Lost Beach Pass Fees Road Impact Fees 3, , , Contributions Special Events 10, Tax Receipts 259, , , Finance Charge on Overdue Bal Interest Income Miscellaneous Income Total 1500 Revenues 274, , , Services Total Income 274, , , Gross Profit 274, , , Expenses 2000 Expenses 2022 Charter, legal, negotiation fees , Contingency Expense 2, , Communications 2, , Administration 3, , , Donations/Memberships Ballfield/Playground Beach/Dunes 3, , , Boating/Docking Civic Improvement 7, , , Civic Improvement.- Garbage 27, , , Civic Improvement - Fire 83, , , Police/Security 7, , , Total 2000 Expenses 140, , , Public Works 2210 Water System Operator 6, , , Water System 1, , Filtering System Generator 1, Propane Pump House Electricity 2, , , Chemistry 3, , , System Repairs & Maintenance 4, , , Water Testing 3, , , A Dues and Licenses B Cox Telephone-Monitoring 6, , , Test Bore Accrual 30, Water Conservation Fund Accrual , Total 2220 Water System 54, , , Roads/Parking Lots 12, , , Filtering System 2, Generator 2, Sump Pump Electricity Streetlight Electricity , Sump Pump Electricity Road Fund Accrual , Total 2240 Roads/Parking Lots 17, , , Total 2200 Public Works 78, , , Tennis 1, , Water Loan Interest 6, , , Total 2340 Loans - Interest 6, , , Taxes , Taxes (Charlestown) 4, , , Insurance 12, , , Transfer Asset Replacement Fund 5, , Miscellaneous Expense Transfer Compliance , Total Expenses 249, , , Net Operating Income 25, , , Net Income 25, , ,

8 Financial Reporting NOTES to Financial Statements as of December 31, 2017 LONG-TERM LIABILITIES A. Changes in Long-Term Liabilities Changes in the District's long-term liabilities for the year ended December 31, 2017 are as follows: Beginning Balance Additions Reductions Ending Balance Due Within One Year Water Loan Payable 109,215-8, ,414 9,282 B. Loans Payable The District has entered into one loan agreement with The Washington Trust Company (the "Lender") as follows: Loan Date Date of Maturity Interest Rate (%) Amount of Original Loan Balance Outstanding December 31, 2017 July 6, 2010 July 6, , ,414 Payments of principal and interest totaling 1,200 are due on the 6th of every month with the final payment due on July 6, The note is designated as a "qualified tax-exempt obligation" for purposes of Section 265(b)(3)(B) of the Internal Revenue Code of In the event that the designation is not effective or for any reason does not constitute a "qualified tax-exempt obligation", then the District will pay to the Lender as additional interest an amount such that the yield on the note is not diminished by the occurrence of an event of non-deductibility. Interest paid during the year was 5,599. C. Revolving Credit Facility The District has entered into a Loan Agreement dated as of December 28, 2005, as amended (the "Agreement"), with the Lender which provides for revolving credit loans up to a maximum amount of 500,000. Unpaid principal amounts will bear interest at floating rate of 75% of the Prime Rate, payable monthly in arrears. The term of the Agreement is one year, though the note is structured as a demand promissory note. The existing maturity date is September 10, The Agreement provides that the principal amount of the loan will be paid down to zero for a thirty day period each year and during any annual extension thereof. The note is designated as a "qualified tax-exempt obligation" for purposes of Section 265(b)(3)(B) of the Internal Revenue Code of In the event that the designation is not effective or for any reason does not constitute a "qualified tax-exempt obligation", then the District will pay to the Lender as additional interest an amount such that the yield on the note is not diminished by the occurrence of an event of non-deductibility. In order to maintain the existing tax-exempt interest rate on the loan, the District agreed that the proceeds of any draws shall be used solely for the purpose of capital projects in accordance with the requirements of the Internal Revenue Service. In the event that proceeds are used for purposes other than capital projects, the Lender has reserved the right to adjust the rate on the loan to a taxable rate. As of December 31, 2017, there were no outstanding borrowings under this Agreement. 7

9 Financial Reporting NOTES to Financial Statements Quonochontaug Central Beach Fire District Assessed Value of Taxable Property and Tax Rates (unaudited) Fiscal Year Total Taxable Assessed Value Total Direct Tax Rate Tax Rate / 1, ,551, % ,772, % ,562, % ,672, % ,176, % ,046, % ,722, % ,110, % ,708, % ,721, % ,717, % ,015, %

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