FY 17 Annual Report

Special Revenue Funds

2017

CITY OF SPENCER, IOWA

CITY SHARE- FICA/IPERS

FUND #112

FUND INFORMATION

This fund accounts for the City's share of FICA taxes and the City's contribution into the Iowa Public Employee's Retirement System (IPERS). This fund is one of seven separate employee benefits funds created by the City to account for certain employee benefits. Legal authority for the fund is established by two sections of the Iowa Code. Iowa State Code chapter 386.61 provides authority for municipalities to establish a fund for the purpose of "accounting for pension and related employee benefit funds as provided by the City Finance Committee," while also providing the authority to levy a tax in the amount necessary to meet these obligations. Chapter 545.4 of the Administrative Code of Iowa provides the City Finance Committee's definition of eligible benefits and how they must be accounted for. For FY17, the City did not levy any additional taxes to pay for its portion of FICA and IPERS. The General Fund still has the capability of paying the City's share of FICA and IPERS for all employee salaries budgeted within the fund. All employee salaries budgeted within an enterprise fund are paid for by revenues derived by the specific enterprise. However, in the future, the amount of revenue needed to operate each of the City's General Fund Departments continues to outpace the amount of revenue that can be generated. As this gap narrows, the City will have to transfer some of these costs to the employee benefit tax levy. However, for FY17, the City was able to increase the fund balance by $56,577.04. This increase primarily reflects expenditures coming in less than budgeted and revenue coming in at budget.

CURRENT BUDGET

YEAR TO DATE

% OF

ACTUAL FY 2016

ACTUAL

BUDGET

REVENUES

MISCELLANEOUS

29,945.00

27,562.49

92.04

25,854.73

TAXES

-

-

-

0.36

OTHER FINANCING

433,903.00

437,966.00

100.94

319,693.00

TOTAL REVENUES

463,848.00

465,528.49

100.36

345,548.09

EXPENDITURES EMPLOYEE BENEFITS

463,848.00

408,951.45

88.16

312,928.08

312,928.08

463,848.00

408,951.45

88.16

TOTAL EXPENDITURES

Fund Balance

INCREASE / (DECREASE)

BALANCE

BALANCE

REVENUES

EXPENDITURES

JULY 1, 2016

JUNE 30, 2017

56,577.04

272,923.56

465,528.49

408,951.45

329,500.60

SPECIAL REVENUE