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CC:HA:SA - Receipt and Filing of Fiscal Year 2014/2015 Year-End Report and Audit Summary.
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Contact Person/Dept: Jeff Muir, Finance
Phone Number: (310) 253-5865
Fiscal Impact: Yes [] No [X] General Fund: Yes [] No []
Public Hearing: [] Action Item: [] Attachments: Yes [X] No []
Commission Action Required: Yes [] No [X]
Commission Name:
Public Notification: (E-Mail) Meetings and Agendas - City Council (12/30/15); (Email) Ongoing Topics - Fiscal and Budget Issues (12/30/15)
Department Approval: Jeff Muir, Chief Financial Officer (12/29/15)
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RECOMMENDATION
Staff recommends the City Council, Housing Authority Board, and Successor Agency Board receive and file the Fiscal Year 2014/2015 Year-End Report and Audit Summary.
BACKGROUND
The purpose of the attached report is to provide an update on the financial results for Fiscal Year 2014/2015 (FY 2014/2015). Staff has worked with the independent auditors to finalize the annual financial statements and prepare the Comprehensive Annual Financial Report (CAFR). The CAFR has been published on the City’s website and submitted to the Government Finance Officers Association for the Certificate of Achievement for Excellence in Financial Reporting award. The attached report is a brief summary of the results, with particular emphasis on the General Fund.
DISCUSSION
During FY 2014/2015, there was a continued recovery in the overall economy, as well as the local economy. General Fund revenues outpaced expenditures for the second year in a row. There was a significant one-time revenue due to the sale of two City properties.
One important note regarding the FY 2014/2015 CAFR is that the City was required to implement Governmental Accounting Standards Board (GASB) Statement No. 68, Accounting and Financial Reporting for Pensions (GASB 68). GASB 68 requires the City to record its full net pension liability in the government-wide financial statements. The net pension liability is the different between the actuarially determined present value of benefits (the estimated long-term costs for pensions to current retirees and current employees in today’s dollars) and the cash available in the plan to pay for them. As of June 30, 2015, the City’s net pension liability is $162.1 million. The City has also elected to early-adopt GASB Statement No. 75, Accounting and Financial Reporting for Postemployment Benefits Other Than Pensions (GASB 75). Similar to GASB 68, GASB 75 requires the City to record its full liability for Other Post -Employment Benefits (OPEB), which for the City is certain lifetime medical benefits for retirees. As of June 30, 2015, the City’s net OPEB liability is $112.4 million. There is a long-term plan in place to amortize both of these liabilities.
Details are provided in the attached report.
FISCAL ANALYSIS
There is no fiscal impact from this item.
ATTACHMENTS
Fiscal Year 2014/2015 Year-End Report and Audit Summary
RECOMMENDED MOTION(S)
That the City Council, Housing Authority Board, and Successor Agency Board:
Receive and file the attached Fiscal Year 2014/2015 Year-End Report and Audit Summary.