Town of Chapel Hill header
File #: [18-0042]    Version: Name:
Type: Discussion Item Status: Filed
File created: 12/29/2017 In control: Town Council
On agenda: 1/31/2018 Final action: 1/31/2018
Title: * Report on the Town's Comprehensive Annual Financial Report (CAFR) for the Period ended June 30, 2017 and Financial Update Presentation.
Attachments: 1. Draft Staff Presentation, 2. Staff Report, 3. Staff Presentation, 4. Martin Starnes and Associates Presentation, 5. Council Questions with Staff Response

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* Report on the Town's Comprehensive Annual Financial Report (CAFR) for the Period ended June 30, 2017 and Financial Update Presentation.
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Staff:
Department:
Kenneth C. Pennoyer, Director
Business Management
Amy Oland, Assistant Director


Overview: The Town's Comprehensive Annual Financial Report (CAFR) for the period ended June 30, 2017 has been distributed and is available on the Town's website. Among other things, the CAFR is a record of the Town's financial performance for the fiscal year and a snapshot of the Town's fiscal condition. The information in the Town's CAFR provides important indicators of the Town's Financial Health that are used by a variety of outside stakeholders, including investors, bond rating agencies, state and federal agencies.


Recommendation(s):
That the Council accept this report on the Town's Comprehensive Annual Financial Report (CAFR) for the period ended June 30, 2017 (FY17) and financial update presentation.

Key Issues:
* As has been the case in previous years, the Town has received an unqualified or "clean" opinion from the independent auditors attesting to the fact that the Town's financial statements fairly represent the Town's financial condition in all material respects.
* The Town's overall financial performance for FY17 reflected several key decisions that affected the Town's financial position. These decisions included the planned spend-down of fund balance for the purchase of land.
o Governmental Funds:
* The General Fund finished FY17 with a significant decrease in fund balance due mostly to planned spend-down. Undesignated fund balance decreased to 20.2%. This is below the Town's target General Fund fund balance of 22%.
* The debt fund had a modest increase in fund balance as the dedicated tax revenues exceeded debt service payments. We expect this trend to reverse as we finance major high priority capital projects over the next few years.
* The Capital Fund fund balance increased due to capit...

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