by Mike Sharkey
Staff Writer
While $2.1 million is certainly a lot of money, considering the City has a $960 million budget, it isn’t much. However, according to the latest quarterly summary from the Council Auditor’s Office, the City finished the 2006-07 fiscal year with a $2.1 million favorable variance. This variance “represents approximately one-fifth of one percent of the total general fund budget,” according to the report prepared by Council Auditor Kirk Sherman and members of his staff.
“A favorable variance is always better than an unfavorable variance, but a $2.1 million variance is only a fraction of a percent of the total general fund budget,” said Janice Billy, assistant Council Auditor. “A bigger favorable balance is always better.
“Overall, the quarterly report indicates that there were no areas of particular concern within the City’s operation for the period reviewed.”
The report is a requirement of Chapter 106 of the City’s Ordinance Code which also requires all City departments as well as independent agencies to submit financial statements and accompanying narratives.
According to Sherman, the City took in $16.7 million less in revenue than projected for the year. However, that unfavorable variance was offset by expenditures that were $18.8 million below budget.
The report also contains sections on the City’s independent agencies. The following is a summary of those reports:
• JEA — According to the report produced by JEA Vice President of Financial Services Paul McElroy, “JEA’s contribution to the City’s General Fund for the twelve months ended September 30, 2007 was a record high $91.4 million.”
Standard & Poor also revised JEA’s business outlook from negative to stable.
“JEA is proud of the fact that it continues to be among the few highly rated electric utilities, both in the state and the country,” said McElroy in the report.
• JTA — According to the report submitted by JTA CFO Margo Smith, revenues from the Better Jacksonville Plan were under the budget model by $5.6 million or 7 percent. “At the same point last year, the amount of sales tax collected had exceeded budget by over $1 million,” said Smith in the report. Overall, according to Smith, JTA’s general fund expenditures were below budget.
• Jacksonville Port Authority — Port Authority Deputy Executive Director and CFO Ron Baker said in his report, “The Jacksonville Port Authority is in good financial position and experienced no budgetary stress during the period.”
• Jacksonville Aviation Authority — CFO Richard Rossi submitted an unaudited quarterly report. “Operating Revenues were slightly above budget and expenditures were lower than budget, resulting in a favorable operating income variance,” said Rossi, in the Aviation Authority’s report.
A majority of the 71-page report consists of detailed financial breakdowns of the City’s budget and its various departments as well as the independent agencies.
Copies of the report are available in the Council Auditor’s Office in City Hall, Suite 200.