Many citizens agree that financial reports are confusing -- they contain a lot of numbers in a spreadsheet that may not always appear to make sense; however, each one of those numbers has a story behind it, and Quarterly Reports are no different.
For example, if you look at the City of Blackfoot's 1st Quarterly Report for FY 2019 (PDF), you might notice large percentages on the Capital Improvement line, and if you were to add the Percent of Budget Column it would not equal 100%. Why? In the first quarter of FY 2018 the City purchased a new fire truck. The total bill was $458,780, with the Blackfoot Snake River Fire District paying $221,492. Because they paid this when the truck was ordered over a year ago, the City benefited from an $8,840 discount, leaving the City's portion at $227,394. This amount had to be financed, but due to contract terms and delivery schedule, the City had to pay the vendor at the time the truck was delivered, then be reimbursed once the financing was in place. The percentage line in the report is over 100% because only the yearly payment of $45,000 was budgeted for the new truck.
This same issue shows up in the Percent of Budget for the Other Governmental Funds. The City completed several large street projects that were funded by grant dollars; however, when the budget was approved, the City did not have the surety that these grants would be awarded. Therefore the grant funds were not included in the budget. The City has since been awarded the grants, and the funds were spent, but the reimbursements take time to 'catch up'.
The other item that may be confusing is why the General Fund and Other Governmental Funds' Ending Balances are negative. This is because the City does not receive its first substantial property tax disbursement from the State until January of each year. The City runs on reserves until those disbursements are received.
As always, please feel free to contact the City Treasurer, Holly Powell, should you like to discuss this information or if you have any questions.