Lake Forest Institute

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Lake Forest Institute

• Finance 101

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Topics

• Fund Accounting and Audit
• Budget
• Operational
• Capital
• Tax Levy
• Bonds

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Fund Accounting - 3 Categories

• Fundsself balancing set of accounts
• Governmentaltypically tax-supported
• General Fund
• Proprietarybusiness type activities
• Water Fund
• Golf Fund
• Fleet Fund
• Fiduciarygovernment is trustee
• Police and Fire Pension

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Fund Types

• Governmental Major and Non-Major
• General
• Special RevenueCemetery
• Debt service11 outstanding bond issues
• (AAA rated)
• Capital ProjectsCapital Improvement

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Annual Audit

• Required by State
• Performed by McGladrey Pullen, LLP
• CAFR submitted to the Government Finance
• Officers Association
• Fund statements
• GovernmentWide statements
• Certificate of Achievement for Excellence in
  Financial Reporting28 years
• View at www.cityoflakeforest.com on the
• Finance downloads page

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Budget

• Four Functions
• Policy Development
• Financial Planning
• Operations Planning
• Communications
• Appropriations Ordinance
• Adopt within 1st quarter of fiscal year
• View at www.cityoflakeforest.com on the
• Finance downloads page

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Policy Development

• Strategic Planning
• Financial Policies
• Accountability

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Financial Planning

• Assess and project financial condition
• Historical comparisons
• Allocates resources
• Prepare for the future

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Financial Planning Elements

• Projection of financial condition
• Historical comparisons
• Revenue estimates
• Capital expenditures
• Debt requirements

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Operations Planning

• What services will be provided?
• How will they be provided?
• Department goals
• Authorized staffing levels

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Communications

• Council to management
• Management to staff
• Council to staff and residents
• External communication

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Budget Type

• Target Base
• Ties expenses to revenues at start of budget
  process
• Reaffirms relationship between revenues and
  services
• Involves departments in the process from the
  beginning

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Capital Budget

• Largest revenue source is
• Real estate transfer tax
• 0.4 on buyers
• 2,000 rebate
• Expected revenue of 1,400,000
• Used only for infrastructure
• Infrastructure Report Card
• Individual Project Justification
• CIP 5-year Plan
• Revenue/Expenses/Fund Balance

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Budget Monitoring

• Monthly reports
• Departments
• Finance
• Flash ReportCouncil
• Estimated actuals after mid year

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City Council Budget Calendar
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General Fund Revenue

includes 0.5 storm sewer sales tax
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General Fund Expense by Department
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Where are my tax dollars going?
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The Citys Portion of 2006 Tax Levy
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Property Tax Bill
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Property Tax Bill
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Property Tax Bill
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Property Tax Bill
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General Obligation Bonds (GO)

• Debt Service (Principal and Interest) appears on
  the tax levy and is paid from property taxes
• Individual bond issues can have fluctuating
  principal payments
• Debt is structured so that TOTAL debt service
  payments remain as even as possible

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Alternate Revenue Bonds

• Debt Service DOES NOT appear on
• the tax levy
• Debt Service is paid from the bond issues
  designated revenue source
• At maturity, the need for a new bond issue can be
  evaluated based upon the revenue source and the
  capital project.

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Questions?