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6.1.G. - Page 14 It should be acknc�wledged that the levels of UGFB reported represent thase Ieveis at a paint ira tinie, that af 7une 30` of each year. Levels fluctuate throughaut the year due to the timing of tax receipts and certain major expenditures. One city noted that its reserv�s on 7une 30` can be much higher than at the low points of the fiscal year, and that it specificalIy deszgz�ates a portion of fund balance for cash flow in recognition of this tirning issue. While accepted as real, it was beyond the scope of this investigation to accammo�ate suc� variables for each city and the County. Such explanatians can appropriately address any concerns raised by the standard approachtaken. C. Net Change in General Fund Balance {Revenues minus Expenditures including Transfers) - Cities and the County attempt to control costs to match anticipated revenues and budget accordingly. In diffzcult tiaxaes in which revenue gzawth is slowing or declining, cities and the County make decisions to cut costs and sez to match reven�es or draw down reserves to balance the bud�et. This tneasurement aIlows fc�r proper recagnition of certain expenditures, such as d�bt payments, that for sorne cities may be shawn on their Financial Statements as Internal Transfers. Tt should be acknowlet�.ged that one-time revenues and e�penditures are not excluded in our calculations or in the CAFR StatemezZt refereneed. As a result, apparent anomalies seen in tI�e da�a fQZ arzy particular year{s) when trended over time, may patentially be d�e to a significant one-time revenue ar expenditure. The fact #hat this Financial Statement does not identify such one-time events, and thax a separate standard audited finan�ial statement that includ�s only annually recuzxing revez�ues and expenditures is nat provided, is anoth�r indicator o.f the connplexi#y an interested citzzen encouniers when trying ta assess the fiscal health of a city t�y its numbers. The table belaw illustrates the number of consecutive years through 2010 (or the most recent data available} that individual czties and the County increased or drew dowz� their Total Ger�eral Fund Balance, including both reserved and unr�served �ortions. As s�tch, it is a view of aperating revez�ues minus expenditures including alI trans�ers into and out of the GeneraI Fund, and therefore an indicator of net opera.tzng s�azpluses or de�cits in any given year. 9