By: Libi Uremovic| Original Article at Patch.com
Excerpts from 2006 LAFCO Municipal Service Review: http://www.lafco.org/sites/default/MSR/2005-2012_MSRs/MSR-CentralValley_Pass_Southwestern_Final/September2006FinalDraft/TOC.pdf
5.2 FINANCIAL INFORMATION
At the beginning of each fiscal year the City adopts a budget. The most recent financial audit was completed for the fiscal year ending June 30, 2003.
Based on the information within this audit and the 2005–2006 budget, the City has had expenditures that exceeded revenues. However, the budget for FY 2005–06 is balanced and is expected to result in revenues that exceed expenditures. Table 5.A provides a summary of previous and budgeted revenues and expenditures.
Table 5.A: City of Beaumont Summary of Total Revenues and Total Expenses
Source: Financial Statement for the fiscal year ending June 2003; approved budget for the fiscal year ending June 2006.
2002
Total Expenses $17,065,597
Total Revenues $10,100,150
Net Revenues (Loss) ($6,965,447)
2003
Total Expenses $26,981,881
Total Revenues $15,776,587
Net Revenues (Loss) ($11,205,294)
2006
Total Expenses $14,919,000
Total Revenues $15,112,000
Net Revenues (Loss) $193,000
The City does not have any adopted reserve policies. To finance some capital improvements the City has incurred debt. The City’s total long-term debt at the end of FY 2003 was $16,433,290. To limit the use of debt and mitigate the costs related to new development, the City levies Development Impact Fees, which include fire station development fees, regional park development impact fees, and basic service development impact fees.
In order to provide efficient procedures for the purchase of supplies and equipment at the lowest possible cost, the City has adopted a purchasing policy. The policy details the duties of the City’s purchasing officer, the methods for procurement, and when competitive bids are required.
The City has adopted an investment policy. The objective of the policy is to attain a market rate of return while preserving and protecting capital in the overall portfolio. Through this policy the City has developed a Finance Committee to oversee all City investments.
The Riverside County Fire Department has response time goals, which are based on general land use type (urban, rural) and the distance of the fire station to the location of the service call. Table 5.D provides the Department’s response time goals. The City does not have any adopted response time goals.
Growth and development within the City and surrounding unincorporated areas would incrementally increase the demand for fire protection, fire prevention, and emergency medical services. Any development within the City would be required to pay development impact fees to offset the cost of the development’s increased demand on fire services. Additionally, the City requires development to be constructed consistent with current fire regulations, thus providing fire safety features.