The Financial Report is being presented to the City Council and the public to provide a status update of the City's financials as of April 30, 2020. The Financial Report includes the budgetary information for the City’s annual financial plan as well as the actual resources received and the use of these resources in fulfilling the financial plan.
Financial data is reported on a cash basis, meaning that revenue is reported when cash is received and expenditures are reported when cash payments are made. The majority of General Fund revenues come in sporadically throughout the year and most of it is received or accrued in the last six months of the fiscal year. Meanwhile, expenditure transactions continue to be paid each month regardless of when the revenues are received. This highlights the importance of maintaining a reserve that allows for cash flow needs during the lean months when there are no revenues. At the end of the fiscal year, the accrual basis of accounting is applied to all governmental accounts. As a result, many of the revenues received or expenditures paid in July and August are accrued to the month of June, to comply with the Generally Accepted Accounting Principles (GAAP), which matches the transaction to the period in which the revenue was earned or the expenditure occurred. The Enterprise Funds, or business type funds, use the “accrual” method of accounting. These business type funds charge customers a fee to cover the cost of services that are provided. This method applies to the Water Utility Fund and Sewer Utility Fund.
City staff is seeking approval for the following budget amendment:
Citizen’s Option for Public Safety - Fund (2140)
The San Bernardino County Sheriff’s Department provides police services for the City. In the current fiscal year there were increased quarterly costs for services due to increases in the MOU for Sheriff Personnel. It is recommended to increase the public safety budget by $109,549 to account for the additional service costs for the current fiscal year. This budget amendment will decrease the Citizen’s Option for Public Safety projected fund balance by $109,549.