C.A.F.R., FY 2004-05 - Laserfiche WebLink

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IV. Purchasing Procedures Savings can be accomplished by the centralization of purchasing. V. Stop Charitable Donations The City should discontinue its history of providing money to charities such as the American Red Cross, Children's Advocacy Center, Family Haven, Keep Paris Beautiful, Lamar County Human Resources Council, North East Texas Council on Alcohol and Drugs, Models of the Maker, Breakfast Optimists, and Casa for Kids, VI. Reduce Operating Inefficiencies Every city water system has the problem of lost and unaccounted for water. The City should be vigilant in accounting for every gallon of water produced. An aggressive meter testing/replacement program should be accomplished for larger meter users. When necessary, a correction of meter size should be made to insure accurate low flow readings. Water audits are legally required and a good conservation idea. VII. Internal Financing of Replacement Equipment The City of Paris is currently financing the purchase of vehicles through local banks or commercial lending organizations. The City needs to establish through savings enough money in a pool to internally purchase replacement vehicles and equipment. The departments would be charged annually a fee based on depreciation of the asset over its useful life. Of the proposed cuts outlined in the seven strategies above, the most controversial appeared to be the blending of the EMS and Fire Departments. The proposal to blend the departments was eventually discarded by the Council. The second largest bone of contention concerning the manager's plan was the privatization of the Sanitation Department. Supporters of the current methodology presented the City Council with a petition signed by over 1,100 residents requesting that the City continue to operate the residential sanitation service. A referendum calling for the City not to privatize residential sanitation service passed on a vote of IOn to 737. Since that time the manager has worked to make the existing department more efficient and less costly. Changes to work schedules and the handling of bulk items has brought about needed cost reduction in this department. Preliminary estimates indicated that just over $3,000,000 could be saved annually if the manager's plan was fully implemented. Even without the implementation of the two most controversial proposals, significant cost reductions have been made and the City's fmancial position has improved. The City has reversed it recent pattern of spending more than it takes in. The 2005-2006 budget calls for revenues in excess of expenditures for the second consecutive year. Management believes that if this new pattern is followed for the next few years, achieving the major goal of significant property tax rate reduction should be attainable. Financial Highlights of the Primary Government . The assets of the City of Paris exceeded its liabilities at the close of the most recent fiscal year by $69,118,352 (net assets), an increase of $1,978,088 or 2.94% over the previous year. Of the amount known as net assets, $12,891,352 (unrestricted net assets) may be used to meet the government's ongoing obligations to citizens and creditors. . As of the close of the current fiscal year, governmental funds reported combined ending fund balances of $11,440,304 compared to $12,380,120 the previous year. This amounts to a decrease of$939,8l6 or 7.59%. Approximately 56.43% of this total amount or $6,455,507 is available for spending at the government's discretion (unreserved fund balance). . At the end of the fiscal year, unreserved fund balance for the general fund was $5,375,749 or 27.98% of total general fund expenditures. . The City of Paris' non-current liabilities decreased by $884,108 or 1.95% during the current fiscal year. 6