Agenda - 10-30-1997 - 2 - Laserfiche WebLink

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6 • After the required accounting adjustments for depreciation and other non-cash items, the income (revenues in excess of expenses) from Landfill operations for FY 1996- 97 is about$564,000. Balance Sheet-Attachment B • Cash and investments at year end totaled$5 million. This represents an increase of approximately $1.3 million over the prior year. • Current liabilities for the Landfill were about$175,000 at year-end. • Cumulative retained earnings (since inception of the Landfill Fund) at year end were approximately $7.4 million. • The Landfill has no installment purchase or bond related debt. The $1.9 million reported on the balance sheet represents required accounting entries to record the estimated future landfill closure costs and the estimated amount to pay accrued vacation leave. Fund Balance and Financial Condition Since the landfill is reported as an enterprise operation on the financial statements, it is difficult for an individual without accounting knowledge to determine the fund balance position at year end. Total fund balance or fund equity on the attached balance sheet is reported as $7.6 million. How much of this is undesignated and what is the true financial condition at year end? This is determined as follows: Cash and Investments $5,002,861 Less Current Liabilities (174,745) Equals Fund Balance Available $4,828,116 Of the amount of fund balance available, $4,278,863 is being reserved or appropriated for subsequent fiscal years. A listing of the reservations are included on Attachment C. This leaves the total undesignated and unreserved amount of fund balance at $549,253. This amount is 17.6 % of expenditures at year-end, which is more than twice the amount recommended by the Local Government Commission for financial stability. The Landfill Fund is in sound financial condition.