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13 AUG 15 CITY OF JACKSONVILLE REGULAR CITY COUNCIL MEETING AUGUST 15, 2013 7:00 P.M. – 7:48 P.M. REGULAR CITY COUNCIL MEETING - CITY HALL - #1 MUNICIPAL DRIVE The City Council of the City of Jacksonville, Arkansas met in regular session on August 15, 2013 at the regular meeting place of the City Council. Alderman Bolen delivered the invocation and Vice Mayor Elliott led a standing audience in the “Pledge of Allegiance” to the flag. ROLL CALL: Aldermen: Bolden, McCleary, Sansing, Ray, Mashburn, Traylor, Twitty, and Howard answered roll call. Vice Mayor Elliott also answered ROLL CALL declaring a quorum. PRESENT EIGHT (8), ABSENT (1). Vice Mayor Elliott presided. Mayor Fletcher was out of town. Others present for the meeting were: City Attorney Robert Bamburg, IT Director Barbara McDaniel, Finance Director Cheryl Erkel, City Engineer Jay Whisker, Public Works Director Jim Oakley, Police Chief Gary Sipes, Human Resource Director Jill Ross, CDBG Director Theresa Watson, Parks and Recreation Director Kevin House, 911 Communications Director Tabby Hughes, Johnny Simpson, Planning Commissioner Avis Twitty, Keith Webber, Gerald Clark, interested citizens, and members of the press. PRESENTATION OF MINUTES: Vice Mayor Elliott presented the minutes of the regular City Council meeting of August 1, 2013 for approval and/or correction at the next regularly scheduled City Council meeting. APPROVAL AND/OR CORRECTION OF MINUTES: Alderman Howard moved, seconded by Alderman Sansing that the minutes of the regular City Council meeting of 18 July 2013 be APPROVED. MOTION CARRIED. CONSENT AGENDA: REGULAR MONTHLY REPORT/FIRE DEPARTMENT Alderman Ray moved, seconded by Alderman Bolden to approve the regular monthly report for July 2013 from the Jacksonville Fire Department, reflecting a fire loss of $206,000.00 and a savings total of $59,000.00. REGULAR MONTHLY REPORT/ENGINEERING DEPARTMENT Alderman Ray moved, seconded by Alderman Bolden to approve the regular monthly report for July 2013. PERMITS/LICENSE ISSUED INSPECTIONS PERFORMED Building Permits 16 Building Inspections 45 Business Licenses 16 Electrical 52 Plumbing 29 HVACR 28 1 CITY OF JACKSONVILLE REGULAR CITY COUNCIL MEETING AUGUST 15, 2013 7:00 P.M. – 7:48 P.M. REGULAR MONTHLY REPORT/ANIMAL CONTROL Alderman Ray moved, seconded by Alderman Bolden to approve the regular monthly report for July 2013. ADOPTION FEES/FINES $ 1,980.00 CONTRIBUTIONS 55.00 TOTALS $ 2,035.00 REGULAR MONTHLY REPORT/POLICE DEPARTMENT Alderman Ray moved, seconded by Alderman Bolden to approve the Regular Monthly Report for July 2013 regarding annual crime statistical comparisons. Code Enforcement for July 2013 Assigned Calls 54 Self Initiated Calls 248 Follow ups 400 Basketball Goals 2 Meetings/Court Hearings 136 Structures Inspected 6 Citations/Warnings Issued 0 Rental Properties Inspected 0 Notices/Letters Written 30 Properties Red Tagged 2 Vehicles Tagged 11 Search Warrants Served 2 Vehicles Towed 2 Structures Rehabbed 0 Lots posted 9 Structures Condemned 0 Signs removed 90 Houses Demolished by City 0 Trash cans tagged 0 Houses Demolished by Owner 2 Parking Violations 0 Grass Letters 12 Grass Mowed 36 ROLL CALL: Aldermen: Bolden, McCleary, Sansing, Ray, Mashburn, Traylor, Twitty, and Howard voted AYE. MOTION CARRIED. WATER DEPARTMENT: WASTEWATER DEPARTMENT: FIRE DEPARTMENT: POLICE DEPARTMENT: STREET DEPARTMENT: Request to Accept Bid 2013 Asphalt Overlay Alderman Ray moved, seconded by Alderman Bolden to approve the low bid from Cranford Construction for the amount of $230,028.37 with funds to be drawn from budgeted Street Funds. MOTION CARRIED. SANITATION DEPARTMENT: PARKS & RECREATION: RESOLUTION 702 (#11-2013) A RESOLUTION AUTHORIZING THE MAYOR AND/OR HIS DESIGNEE TO SUBMIT AN APPLICATION TO THE ARKANSAS DEPARTMENT OF PARKS AND TOURISM OUTDOOR RECREATION GRANT TO OBTAIN 50/50 MATCHING GRANT FUNDS FOR CREATION OF AN ARCHERY RANGE FOR THE CITY OF JACKSONVILLE, AND, FOR OTHER PURPOSES. 2 CITY OF JACKSONVILLE REGULAR CITY COUNCIL MEETING AUGUST 15, 2013 7:00 P.M. – 7:48 P.M. Alderman Ray moved, seconded by Alderman Sansing to read Resolution 702 (#11-2013). Parks and Recreation Director Kevin House related that they requesting permission to apply for a 50/50 matching grant from the Arkansas Department of Parks and Tourism regarding the archery trail at the Shooting Range. He stated that because the Shooting Range is already under construction this was the only improvement that fit the criteria for grant funds. He responded to a question from Alderman Traylor, explaining that the cap is $100,000.00, adding that the archery trail is estimated to come in at approximately $40,000.00. It was clarified that the archery trail is included in the overall Shooting Range budget. Alderman Traylor questioned how much it would cost to operate the archery range annually. Assistant Parks and Recreation Director Kevin House concurred with Vice Mayor Elliott that it is a part of the overall Shooting Range budget. He explained that after visiting a similar archery range he would estimate that the annual operating cost would be approximately $500.00. He noted that the trail has been proposed to be free for public use. He then estimated that the City’s match would be approximately $20,000.00 for the total construction including the clearing of land. Discussion ensued and it was noted that Resolution 702 provides for a charge of reasonable rates. City Attorney Bamburg clarified that “reasonable rates” is normal language used when applying for a grant from the Arkansas Department of Parks and Tourism. He added that it was his understanding there would be a use fee charged regarding the archery trail. It was the general consensus of City Council to charge a minimum charge to defer maintenance cost. Assistant Parks and Recreation Director Kevin House noted that fees are nominal; when he visited the other archery trail the fee was $5.00. Alderman Traylor issued concerns for not knowing how much the City’s matching amount would be before applying for a 50/50 match grant. Assistant Parks and Recreation Director Kevin House stated that they have applied for this type of grant from the Parks and Tourism before, explaining that it generally takes approximately 6 months to complete. He informed the City Council that with this application he only had two and a half weeks to get the material submitted. He stated that he is trying st to meet the August 31 deadline. He apologized for not having the complete budget available, explaining that he has not gotten to that point yet. 3 CITY OF JACKSONVILLE REGULAR CITY COUNCIL MEETING AUGUST 15, 2013 7:00 P.M. – 7:48 P.M. Alderman Mashburn noted that the City’s matching portion has already been budgeted in the overall budget for the Shooting Range. MOTION CARRIED with Alderman Traylor voting NAY. Whereupon City Attorney Bamburg read the heading of Resolution 702 (#11-2013). Alderman Ray moved, seconded by Alderman Bolden to approve Resolution 702 (#11-2013) in its entirety. MOTION CARRIED with Alderman Traylor voting NAY. PLANNING COMMISSION: a. ORDINANCE 1497 (#28-2013) AN ORDINANCE RECLASSIFYING PROPERTY IN THE CITY OF JACKSONVILLE, ARKANSAS (GENERAL LOCATION: 1100 N. JAMES); AMENDING ORDINANCE NOS. 213 AND 238 AND THE LAND USE MAP OF THE CITY OF JACKSONVILLE, ARKANSAS; AND, FOR OTHER PURPOSES Alderman Ray moved, seconded by Alderman Bolden that Ordinance 1497 be placed on FIRST READING. City Engineer Whisker provided an aerial photograph of the property, stating that the property is located on the south side of James Street heading west over the bridge. He related that it is between the octagonal building and the strip center. He then answered that the petitioner is proposing to have a used car lot on the location, adding the petitioner owns the property. He explained that the petitioner currently has his business in the City of Bryant and is proposing to move that business to Jacksonville. ROLL CALL: Aldermen Bolden, McCleary, Sansing, Ray, Mashburn, Traylor, Twitty, and Howard voted AYE. NAY (0). MOTION CARRIED. Whereupon City Attorney Bamburg read the heading of Ordinance 1497. Alderman Ray moved, seconded by Alderman Bolden to APPROVE Ordinance 1497 on FIRST READING and suspend the rules and place Ordinance 1497 on SECOND READING. ROLL CALL: Aldermen Bolden, McCleary, Sansing, Ray, Mashburn, Traylor, Twitty, and Howard voted AYE. NAY (0). MOTION CARRIED. Whereupon City Attorney Bamburg read the heading of Ordinance 1497. Alderman Ray moved, seconded by Alderman Bolden to APPROVE Ordinance 1497 on SECOND READING and to further suspend the rules and place Ordinance 1497 on THIRD and FINAL READING. ROLL CALL: Aldermen Bolden, McCleary, Sansing, Ray, Mashburn, Traylor, Twitty, and Howard voted AYE. NAY (0). MOTION CARRIED. Whereupon City Attorney Bamburg read the heading of Ordinance 1497. Alderman Ray moved, seconded by Alderman Bolden that Ordinance 1497 be APPROVED AND ADOPTED. ROLL CALL: Aldermen Bolden, McCleary, Sansing, Ray, Mashburn, Traylor, Twitty, and Howard voted AYE. NAY (0). MOTION CARRIED. 4 CITY OF JACKSONVILLE REGULAR CITY COUNCIL MEETING AUGUST 15, 2013 7:00 P.M. – 7:48 P.M. th ORDINANCE APPROVED, ADOPTED, AND NUMBERED 1497 THIS 15 DAY OF AUGUST 2013. b. ORDINANCE 1496 (#27-2013) AN ORDINANCE CREATING JACKSONVILLE MUNICIPAL CODE § 18.38 (R-8 RECREATIONAL VEHICLE PARK); AMENDING §§ 18.32, 18.36, 18.37, 18.38, AND 18.39 OF THE JACKSONVILLE MUNICIPAL CODE; AND, FOR OTHER PURPOSES. Alderman Ray moved, seconded by Alderman Sansing that Ordinance 1496 be placed on FIRST READING. City Engineer Whisker related there was a recent request before the Planning Commission to develop an RV Park, explaining that the question has always been whether it should be established under the regulations for a mobile home park or as its own zoning classification. He explained that a mobile home park is a different type of residential entity, noting that a mobile home park is a permanent living situation. He then related that Jacksonville has an established RV Park that is located in a C-3 zone, adding that the Park does adhere to the proposed ordinance guidelines. City Attorney Bamburg explained that the Ordinance was drafted from various ordinances from cities throughout the State. He related that parts were used and modified for the best fit to establish and create codes for the City of Jacksonville. He noted that the Planning Commission reviewed the Ordinance at their previous meeting and recommended approval to the City Council for adoption. Discussion ensued regarding the terminology of “temporary” not being defined in the Ordinance. City Attorney Bamburg stated that intentionally it was left undefined, answering he learned that RV parks are commonly used not only for travel purposes but also for temporary work circumstances. He explained that construction crews will stay in RV parks on a temporary basis until their job is completed. He related that if a time limit were established it might cause someone to have to move before the job is finished. He related that he learned from Mr. Smith, the present RV park owner, that most people are there anywhere from overnight to as long as six months. He stated that RV parks would not be a circumstance for long-term housing, explaining that in his research he learned that other cities did not use a specific time frame. He then noted that in designated tourist areas, the cities or state does regulate a limited time frame. He explained that a limited time frame would not satisfy what we know is a need and use of RV parks for the City of Jacksonville. In response to a question from Alderman Traylor, City Engineer Whisker noted that a recent petitioner was interested in developing an RV park so the new zoning was drafted to provide a vehicle for that type of request. 5 CITY OF JACKSONVILLE REGULAR CITY COUNCIL MEETING AUGUST 15, 2013 7:00 P.M. – 7:48 P.M. City Attorney Bamburg explained that the when a new residential zoning was added the residential zoning classifications had to be renumbered to make it work logically. ROLL CALL: Aldermen Bolden, McCleary, Sansing, Ray, Mashburn, Traylor, Twitty, and Howard voted AYE. NAY (0). MOTION CARRIED. Whereupon City Attorney Bamburg read the heading of Ordinance 1496. Alderman Ray moved, seconded by Alderman McCleary to APPROVE Ordinance 1496 on FIRST READING and suspend the rules and place Ordinance 1496 on SECOND READING. In response to a question from Alderman Traylor, City Attorney Bamburg explained that in the development of the Shooting Range it is anticipated that eventually the City will build an adjacent RV park that would be used during tournaments. He explained that he exempted that from the requirements of this Ordinance until it can be determined how it will be developed and operated. He stated that the RV park for the Shooting Range will have limitations regarding the time they are allowed to stay and that would be worked to fit the length of the tournaments being hosted. ROLL CALL: Aldermen Bolden, McCleary, Sansing, Ray, Mashburn, Traylor, Twitty, and Howard voted AYE. NAY (0). MOTION CARRIED. Whereupon City Attorney Bamburg read the heading of Ordinance 1496. Alderman Ray moved, seconded by Alderman Twitty to APPROVE Ordinance 1496 on SECOND READING and to further suspend the rules and place Ordinance 1496 on THIRD and FINAL READING. ROLL CALL: Aldermen Bolden, McCleary, Sansing, Ray, Mashburn, Traylor, Twitty, and Howard voted AYE. NAY (0). MOTION CARRIED. Whereupon City Attorney Bamburg read the heading of Ordinance 1496. Alderman Ray moved, seconded by Alderman Bolden that Ordinance 1496 be APPROVED AND ADOPTED. ROLL CALL: Aldermen Bolden, McCleary, Sansing, Ray, Mashburn, Traylor, Twitty, and Howard voted AYE. NAY (0). MOTION CARRIED. th ORDINANCE APPROVED, ADOPTED, AND NUMBERED 1496 THIS 15 DAY OF AUGUST 2013. GENERAL: a. RESOLUTION 700 (#9-2013) A RESOLUTION AUTHORIZING THE CITY OF JACKSONVILLE TO ENTER INTO A CONTRACT OF OBLIGATION WITH THE ARKANSAS DEPARTMENT OF ENVIRONMENTAL QUALITY; AND, FOR OTHER PURPOSES Alderman Ray moved, seconded by Alderman Howard to read Resolution 700 (#9-2013). 6 CITY OF JACKSONVILLE REGULAR CITY COUNCIL MEETING AUGUST 15, 2013 7:00 P.M. – 7:48 P.M. Public Works Director Jim Oakley related that the City’s compost facility is required under State law to procure a permit from Arkansas Department of Environmental Quality. He stated that one of the requirements is to set aside funds to close the facility if it ever has to be closed. He continued saying that the cost is $22,500.00, explaining that they allow city entities to execute a letter of obligation versus a cash bond. City Attorney Bamburg pointed out that it has to be renewed every five years and Resolution 700 (#9-2013) is a renewal. MOTION CARRIED. Whereupon City Attorney Bamburg read the heading of Resolution 700 (#9-2013). Alderman Ray moved, seconded by Alderman Bolden to approve Resolution 700 (#9-2013) in its entirety. MOTION CARRIED. b. RESOLUTION 701 (#10-2013) A RESOLUTION AUTHORIZING THE CITY OF JACKSONVILLE TO ENTER INTO A JOINT COOPERATIVE AGREEMENT WITH PULASKI COUNTY, ARKANSAS; AND, FOR OTHER PURPOSES Alderman Ray moved, seconded by Alderman Bolden to read Resolution 701 (#10-2013). City Engineer Whisker reviewed that the City is proposing to construct a round-a-bout at Main Street and Harris Road, explaining that the easiest way to help facilitate that was the Judge decided to use County road funds to construct this project since the City of Jacksonville used its funds that had been set aside for this project to help with the development of the Shooting Range. City Attorney Bamburg pointed out that the Quorum Court had agreed to pass a resolution stating that they will obligate $250,000 of the County’s road monies to this project. He added that the City Council has to authorize Mayor Fletcher to sign off on the cooperative agreement. Alderman Howard noted that the same type of cooperative agreements have been executed in Conway and Little Rock. MOTION CARRIED. Whereupon City Attorney Bamburg read the heading of Resolution 701 (#10-2013). Alderman Ray moved, seconded by Alderman Sansing to approve Resolution 701 (#10-2013) in its entirety. MOTION CARRIED. c. PRESENTATION OF THE 2012 CAFR Gerald Clark, CPA with McAlister & Associates introduced himself and stated that it is his privilege to present the Comprehensive Annual Financial Report (“CAFR”) for the City of Jacksonville for the year ended December 31, 2012. 7 CITY OF JACKSONVILLE REGULAR CITY COUNCIL MEETING AUGUST 15, 2013 7:00 P.M. – 7:48 P.M. th Calendar year 2012 marks the 16 consecutive year that the City has prepared a Comprehensive Annual Financial Report. The 2012 annual report was prepared by the City’s Finance Department. It contains financial statements audited by the auditing firm, McAlister & Associates, P.A., CPAs, and also pertinent financial, economic, demographic, and statistical information relevant to the City over a ten-year period. The purpose of the report is to provide the City’s elected officials, citizens, financial institutions and other interested parties with detailed information concerning the financial condition and performance of the City of Jacksonville. Each year since 1997 and including the 2011 report, the City’s CAFR has received the Certificate of Excellence in Financial Reporting awarded by the Government Finance Officers Association of the United States and Canada (GFOA). The Certificate of Achievement is a prestigious national award recognizing conformance with the highest standards for preparation of state and local government financial reports. The 2012 Comprehensive Annual Financial Report has also been submitted to GFOA for award consideration. Independent Audit The goal of the independent audit was to provide reasonable assurance that the financial statements of the City for the year ended December 31, 2012, are free of material misstatement. The independent audit involved examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements, assessing the accounting principles used and significant estimates made by management, and evaluating the overall financial statement presentation. Based upon our audit, we have rendered a “clean”, or unqualified opinion on the City’s financial statements for the year ended December 31, 2012. Our Independent Auditor’s Report is presented on page 10 of the CAFR. Audit of Federal Funds All non-Federal entities that expend $500,000 or more in Federal awards in a year are required to obtain an annual audit in accordance with the Single Audit Act of 1984, as amended in 1996. A single audit is intended to provide a cost-effective audit in that one audit is conducted in lieu of multiple audits of individual Federal programs. During 2012, the City expended $1,872,000 in federal awards. Our responsibility as auditors is to express an opinion on compliance for each of the City’s major Federal award programs. Our opinion on compliance for the City’s major Federal award program was unmodified and can be found on page 139 of the CAFR. 8 CITY OF JACKSONVILLE REGULAR CITY COUNCIL MEETING AUGUST 15, 2013 7:00 P.M. – 7:48 P.M. Management Letter We have issued a formal management letter, included with the annual report, which is a customary by-product of the audit process and is intended to provide management with suggestions and guidance in the ongoing effort to improve internal controls. The management letter addresses the resolution of matters that were reported in the prior year audit, and contains two comments related to the 2012 financial statement preparation. The following are financial highlights of the 2012 report:  The Summary Statement of Net Position shown below indicates total assets of the City were $64,036,000 at the end of 2012, an increase of $6.2 million from 2011. Total liabilities of the City were $13.3 million, an increase of $6.6 million over the prior year. Total assets exceeded total liabilities by $50.7 million ($50,729,628) at the end of 2012. The amount by which assets exceed liabilities is now referred to as the City’s “Net Position”. Net position is essentially composed of three components: the largest of which, for the City, is it’s investment in capital assets such as land, buildings, infrastructure, and machinery and equipment. This amount at the end of 2012 was $41.9 million ($41,885,375) or 83% of total net position. These capital assets are used to provide services to the community and, as a result, they are not available for future spending. An additional portion of the City’s net position is subject to external restrictions as to how the funds may be used. At the end of 2012 the City’s restricted net position totaled $1.8 million ($1,798,969) or 4% of the total net position of the City. The remaining balance, approximately $7.0 million ($7,045,284) is considered an unrestricted net position. This amount is available to meet the City’s ongoing obligations to its citizens and creditors. 9 Net Position Governmental Activities Business-type Activities Total CITY OF JACKSONVILLE 201220112012201120122011 REGULAR CITY COUNCIL MEETING AUGUST 15, 2013 7:00 P.M. – 7:48 P.M. Current and other assets$ 12,505,283 $ 16,166,713 $ 1,267,548$ 927,732 $ 13,772,831 $ 17,094,445 City of Jacksonville Capital assets 48,404,340 38,774,829 1,858,954 1,948,304 50,263,294 40,723,133 Summary Statement of Net Position December 31, 2012 and 2011 Total assets 60,909,623 54,941,542 3,126,502 2,876,036 64,036,125 57,817,578 Long-term liabilities outstanding 8,419,447 3,843,292 771,818 1,037,081 9,191,265 4,880,373 Other Liabilities 3,690,265 1,420,709 424,967 360,045 4,115,232 1,780,754 Total liabilities 12,109,712 5,264,001 1,196,785 1,397,126 13,306,497 6,661,127 Net Position: Invested in capital assets net of related debt 41,063,504 36,800,745 821,873 653,790 41,885,377 37,454,535 Restricted 1,798,969 2,052,401 - - 1,798,969 2,052,401  The Summary Statement of Change in Net Position shown below Unrestricted 5,937,438 10,824,395 1,107,844 825,120 7,045,282 11,649,515 indicates total revenues of the City increased in 2012 over 2011. 2012 total revenues were $25.5 million ($25,557,753) compared to $24.4 million ($24,414,111) in 2011, an increase of about $1.1 million or 4.7%. Total expenses also increased to $25.9 million Total Net Position$ 48,799,911 $ 49,677,541 $ 1,929,717$ 1,478,910 $ 50,729,628 $ 51,156,451 ($25,984,575) in 2012 from $24.5 million in 2011 or just over 6.0%. Overall, expenditures exceeded revenues by $427,000 ($426,822) in 2012. 10 Change in Net Position Governmental Activities Business-type Activities Total 201220112012201120122011 CITY OF JACKSONVILLE Revenues REGULAR CITY COUNCIL MEETING AUGUST 15, 2013 Program revenues: 7:00 P.M. – 7:48 P.M. Charges for services$ 2,071,810 $ 1,870,025 $ 2,879,100 $ 2,821,508 $ 4,950,910 $ 4,691,533 Operating grants and contributions 3,991,373 3,731,153 13,000 13,500 4,004,373 3,744,653 Capital grants and contributions 1,013,992 709,285 59,196 305,495 1,073,188 1,014,780 City of Jacksonville Summary Statement of Change in Net Position 7,077,175 6,310,463 2,951,296 3,140,503 10,028,471 9,450,966 December 31, 2012 and 2011 General revenues: Property taxes 784,180 777,265 - - 784,180 777,265 Sales taxes 13,138,610 12,612,511 - - 13,138,610 12,612,511 Franchise taxes 1,031,798 1,057,234 - - 1,031,798 1,057,234 Investment earnings 21,136 38,014 504 (17,890) 21,640 20,124 Intergovernmental Revenues 459,957 459,187 - - 459,957 459,187 Gain/(loss) on sales of capital assets 10,263 9,265 47,881 27,559 58,144 36,824 Total general revenues 15,445,944 14,953,476 48,384 9,669 15,494,328 14,963,145 Total revenues 22,523,119 21,263,939 2,999,680 3,150,172 25,522,799 24,414,111 Expenses General government 3,061,493 2,823,996 - - 3,061,493 2,823,996 Public works 2,872,093 2,585,034 - - 2,872,093 2,585,034 Parks and recreation services 2,748,589 2,602,790 - - 2,748,589 2,602,790 Public safety 13,866,306 13,380,635 - - 13,866,306 13,380,635 Housing and neighborhood programs 365,162 273,097 - - 365,162 273,097 Interest on long-term debt 79,563 102,070 - - 79,563 102,070 Sanitation services - - 1,531,003 1,628,388 1,531,003 1,628,388 Emergency medical services - - 1,460,366 1,094,031 1,460,366 1,094,031  The City’s governmental funds, which are reported on the modified Total expenses 22,993,206 21,767,622 2,991,369 2,722,419 25,984,575 24,490,041 accrual basis of accounting, reported total 2012 revenues of $22.5 million and total expenditures of $32.0 million. Sales tax revenues which account for slightly less than 60% of all City revenues were Change in net position before transfers (470,087) (503,683) 8,311 427,753 (461,776) (75,930) $13.1 million in 2012, an increase 4.1% from 2011 sales tax Transfers (442,496) (342,500) 442,496 342,500 - - revenue. State tax turnbacks and other intergovernmental revenues were $5.3 million in 2012 or approximately 24% of revenues; utility Change in net position (912,583) (846,183) 450,807 770,253 (461,776) (75,930) franchise taxes were $1,031,000 or 5% of total revenues. Net Position - January 1 49,677,541 50,523,724 1,478,910 708,657 51,156,451 51,232,381 Net Position - December 31$ 48,764,957 $ 49,677,541 $ 1,929,717 $ 1,478,910 $ 50,694,674 $ 51,156,451 11 Percent of 201020112012Total CITY OF JACKSONVILLE Revenues REGULAR CITY COUNCIL MEETING AUGUST 15, 2013 Property taxes$ 723,754$ 762,221$ 779,861 3.5 % 7:00 P.M. – 7:48 P.M. Sales taxes 13,157,342 12,612,511 13,138,610 58.3 City of Jacksonville Comparative Statement of Revenues and Expenditures-Governmental Licenses and permits 153,264 122,289 160,514 0.7 Funds Intergovernmental 4,305,841 4,053,971 5,310,202 23.6 Charges for services 1,026,128 924,618 1,056,207 4.7 Fines and fees 651,231 651,271 791,192 3.5 Utility franchise taxes 1,097,960 1,057,234 1,031,798 4.6 Investment income 79,823 38,014 21,136 0.1 Miscellaneous 343,931 818,963 227,747 1.0 Total revenues$ 21,539,274$ 21,041,092$ 22,517,267 100.00% Expenditures General government$ 3,265,843$ 2,794,399$ 3,600,208 11.2% Public works 3,259,890 4,137,281 3,070,904 9.6  The City’s General Fund finished 2012 with a fund balance of $4,639,311, which was a decrease of $765,000 from the December 31, Parks and recreation 2,568,025 2,332,786 3,694,975 11.5 2011 fund balance. General Fund revenues of $18,839,000 were $713,826 over budgeted revenues for the year, while General Fund Police 7,920,716 7,675,658 11,533,317 36.0 expenditures of $19,167,000 were $23,646 under budgeted expenditures for 2012. Fire 5,177,419 4,716,182 4,403,817 13.7 Emergency communications 672,701 755,149 4,858,959 15.2 Animal control 299,631 295,563 298,166 0.9 Housing and neighborhood programs 539,016 286,307 371,863 1.2 Debt service 240,206 239,694 237,168 0.7 12 Total expenditures$ 23,943,447$ 23,233,019$ 32,069,377 100.00% 2012 General Fund Operations CITY OF JACKSONVILLE Final Variance REGULAR CITY COUNCIL MEETING AUGUST 15, 2013 Budgeted Actual with Final 7:00 P.M. – 7:48 P.M. AmountsAmountsBudget Revenues$ 18,124,739$ 18,838,565$ 713,826 Expenditures 19,190,962 19,167,317 23,646 Revenues in excess of expenditures (1,066,223) (328,752) 737,472 Other financing sources (uses) Transfers-in: (From Other Funds) 1,659,901 6,004 (1,653,897) Transfers-out (883,539) (442,496) 441,043 Total other financing sources (uses) 776,362 (436,492) (1,212,854)  As a measure of the General Fund’s liquidity, it is useful to compare total General Fund fund balance to total General Fund Net change in fund balances$ (289,861) (765,244)$ (475,382) expenditures. The fund balance of $4,639,311 at December 31, 2012 represents approximately 24% of 2012 actual General Fund expenditures ($19,167,317) and, also approximately 24% of 2013 General Fund budgeted expenditures ($19,718,371). Fund balances, January 1 5,404,555 As a general policy, the City’s minimum target at the end of a fiscal year for the fund balance of the General Fund is 60 days (16%) expenditures based on the most recent completed year. At the end of 2012, the balance on hand met this target. Fund balances, December 31$ 4,639,311 This minimum level of fund balance is required to ensure funds availability for unforeseen emergencies that might impact the City’s ability to pay for basic operations and also to guarantee the payment of debt obligations. 13 $-BudgetActual Fund Balance2013201220112010200920082007 $25,000,000 $20,000,000 $15,000,000 $10,000,000 $5,000,000$15,265,213 $19,718,371 $19,190,962 $17,853,061 $18,663,794 $18,888,911 $17,516,497 18.8%20.8%23.5% 28.2% 19.4%19.1%21.0% CITY OF JACKSONVILLE REGULAR CITY COUNCIL MEETING AUGUST 15, 2013 7:00 P.M. – 7:48 P.M. General Fund Ending Fund Balance as a Percent of Next Year’s General Fund Budgeted Expenditures Conclusion In conclusion, I encourage you to read the Management’s Discussion and Analysis included in the financial section and beginning on page 14, and also the notes to financial statements which begin on page 45. The MD&A analyzes the City’s financial performance for the year, provides comparisons of the current year results to the prior year, and discusses both the positive and negative aspects of the comparison. The notes provide required detailed disclosures and descriptions of the financial statements. The preparation of this report would not have been possible without the dedication and committed services of key staff in the City’s Finance Department under the leadership of Finance Director Cheryl Erkel. I would like to express our appreciation to all City staff who assisted us in the audit and whose efforts resulted in a timely and successful completion of this year’s report. Finally, we want to express our appreciation once again to the City and the Council for allowing us the opportunity to serve as the City’s auditors. We very much value our business relationship with the City of Jacksonville. Alderman Howard moved, seconded by Alderman Ray to accept the 2012 CAFR. MOTION CARRIED. 14 CITY OF JACKSONVILLE REGULAR CITY COUNCIL MEETING AUGUST 15, 2013 7:00 P.M. – 7:48 P.M. APPOINTMENT(S): ANNOUNCEMENT(S): Vice Mayor Elliott announced that the ceremony regarding the land being proposed for the possible site of the new Veterans’ Home is being held Wednesday, August 21 @ 1:00 p.m. ADJOURNMENT: Without objection, Vice Mayor Elliott adjourned the meeting at approximately 7:48 p.m. MOTION CARRIED. Respectfully, ________________________ _________________________ Susan L. Davitt MAYOR GARY FLETCHER City Clerk-Treasurer 15