Internal service funds activities include; communication center, capital projects management, combined transportation fleet maintenance, , emergency, information systems, wireless communication, employee benefits, liability reserve, support services and workers compensation. These services help governmental operations not business type functions and therefore have been included in governmental activities in the financial statement.
The major enterprise fund for Austin City includes Austin energy which accounts for the electric utility, Austin water utility accounting for water and wastewater utility and airport which accounts for the operation of Austin airport.
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Deferred inflows of resources of the internal service funds are incorporated in governmental activities in the financial position statement. The city also records a portion of the net revenues and expenses with governmental activities in the statement of activities.
Capital Projects Management one of the internal services funds reported a deficit of 1,808. During the year, $4 billion which is equivalent to 92.1% were invested. The city’s enterprise fund realized an increase of $248.2 million before consolidation of internal services funds activities. The amount was invested in capital improvement projects.
The government has revenue bonds outstanding. The bonds relate to business-type activities. The city issued $247.8 million for water and wastewater systems bond. The financial statements comprise a statement of cash flows for proprietary funds. The report uses direct basis with the cash flows being represented in four categories, i.e., operating, non-capital financing, capital and related financing and investing activities. Operating and investing activities resulted in net cash inflows while financing activities contributed in net cash outflows
The combined operating income for the city for 2016 was $ 409,416, and the net cash from operating activities was $909,492. Noncash expenses and changes in the working capital like receipts and payment to other funds account for the largest difference between the two amounts.
The city has entered into three service concession arrangement recording capital assets of $148.6 million, deferred inflows of $147.8 million and other assets of $12.6. The three are management and operation of the Umlauf Sculpture Gardens and Museum. The purpose is for displaying artist work of Charles Umlauf for public education and enjoyment. Another involves Young Men Christian Association for the development and operation of a joint-use recreational facility for the public. The third includes a lease agreement with Austin Conrac LLC which was incorporated to operate the rent a car facility. It involves the construction, financing, and management of a joint-use facility.
Austin maintains 3 permanent funds which are non-major and include 3 M Maintenance Endowment Fund which accounts for 3M Mitigation Land Endowment . The other is Ellis Library Trust Fund which accounts for principal and interest income earned from Elis Estate. The third is Perpetual Care Fund which accounts for funds to be used to maintain the cemeteries.
The government maintains a fiduciary fund. These are assets belonging to other parties that are held by the city in trust or as an agent for a different individual, agencies, governmental units, and organization. The government also contributes to three different pension plans. The three are defined benefits and also citywide single employer-funded plans. The city also reports pension expenses in the notes to financial statements. The government states pension liability in the statement of position as a liability.
The annual report shows the actuarial value of assets and liabilities. From the annual report, the plans are not funded. The annual report also includes the financial statements of the pension plans. The city issues their independent reports that are available for the public to view. The city provides internet addresses for accessing the plans. The city lacked the financial statement for 2016 however 2015 performed well, and the city estimates its expected rate of return in the long-term to be between 7.5% - 7.8% for the three plans.
The annual report indicates that the government provides other post-employment benefits. For the year 2016, the city reported a figure of $537.8 million. Post-employment benefits plans are presented in the statement of financial position and required supplementary information section.
The government also maintains three agency funds; campaign financial fund, municipal court fund, and neighborhood revitalization fund. The first agency fund deals with donations and collected fees for the city fair campaign. The second reports services fees that are collected from municipal courts while the third accounts for escrow deposits and payments to loan recipients.
Reference
Canally, G., Eenoo, E. V., & Thomas, D. (2016). City of Austin Texas: Comprehensive Annual Financial Report (Rep.). Austin: City of Austin Texas.
