Combining Statement of Revenues, Expenditures and Changes in Fund Balances

The City’s Home Rule Charter provides for the submission of the budget to the City Council by the City Manager. The City’s fiscal year runs October 1 through September 30.

The following procedures are followed in establishing the budgetary data:

• No later than August 15th, the City management submits to the City Council a proposed operating budget for the fiscal year commencing October 1. The operating budget includes proposed expenditures and the means of financing them.

• Public hearings are conducted to obtain taxpayer comments.

• Prior to September 30, the budget is legally enacted through passage of an ordinance.

• The level of control (the level at which expenditures may not exceed budget) is the fund level. The City Manager or Director of Finance is authorized to approve a transfer of budgeted amounts within departments; however, any revisions that alter the total of any fund must be approved by the City Council.

• Budgets for the General Fund, Debt Service Fund, Roadway Impact Fund, Capital

Projects Fund, and Hotel/Motel Tax Fund are legally adopted on a basis consistent with generally accepted accounting principles. The City does not legally adopt a budget for the Fox Hollow PID Fund. The majority of the City’s Capital Projects Funds are budgeted on an annual basis. For budgeted capital projects not expended during the fiscal year, the City will roll those balances into the following year’s budget.

• According to the City Charter, total estimated expenditures of the General Fund are to be budgeted.

III. STEWARDSHIP, COMPLIANCE AND ACCOUNTABILITY

Expenditures Exceeding Appropriations

For the year ended September 30, 2021, total expenditures exceeded appropriations in the Debt Service Fund by $1,874,972. This overage was funded with existing fund balance.

IV. CASH AND INVESTMENTS

The City’s funds are required to be deposited and invested under the terms of a depository contract. The depository bank deposits for safekeeping and trust with the City’s agent bank approved pledged securities in an amount sufficient to protect City funds on a day-to-day basis during the period of the contract. The pledge of approved securities is waived only to the extent of the depository bank’s dollar amount of Federal Deposit Insurance Corporation (“FDIC”) insurance.

The City categorizes its fair value measurements within the fair value hierarchy established by generally accepted accounting principles. GASB Statement No. 72, Fair Value Measurement and Application provides a framework for measuring fair value which establishes a three-level fair value hierarchy that describes the inputs that are used to measure assets and liabilities.

• Level 1 inputs are quoted prices (unadjusted) for identical assets or liabilities in active markets that a government can access at the measurement date.

• Level 2 inputs are inputs—other than quoted prices included within Level 1—that are observable for an asset or liability, either directly or indirectly.

• Level 3 inputs are unobservable inputs for an asset or liability.