The Carpinteria City Council this week received and filed its Comprehensive Annual Financial Report for the fiscal year that ended June 30, 2020.
Independent auditors from Moss, Levy & Hartzheim LLP issued an unmodified “clean” opinion of the report’s financial statements and noted that the city’s financial position conforms with generally accepted accounting principles.
The council discussed the report at its meeting Monday.
According to the report’s highlights, Carpinteria’s net position was $36.6 million on June 30. Revenue from all governmental activities (which was $22 million) increased by $5.6 million from 2019. Program revenues increased by $574,000, and general revenue increased by $5 million.
Expenses for all governmental activities of $15.1 million increased by $826,000.
The city’s governmental funds reported a combined ending fund balance of $17.1 million, an increase of $2.2 million compared to last fiscal year. The ending balance is primarily identified as $30,000 nonspendable, $10.5 million restricted, $6.1 million committed and $513,000 unassigned.
The unrestricted fund balance in the general fund totaled $6.6 million available for ongoing operations. When adjusted for the committed component of fund balance, the amount available for ongoing operations at the city’s discretion is reduced to $544,000.
Total expenses funded by tax revenues, investment income, grants and contributions and other general revenues totaled $10.5 million.
Total revenues for fiscal year 2020-21 are projected to decrease by about 25.6%, totaling $16.3 million, due to the COVID-19 pandemic’s impact on business operations that generate transient occupancy and sales tax revenues.
The city predicts a decrease of about 6.8% in property tax revenue, Carpinteria’s largest revenue source, and a decrease of 11.7% of sales tax at $4.2 million.
“In summary, the city’s financial position remains in good condition, and the city reaffirms its commitment to sound and conservative financial practices to ensure the city’s fiscal sustainability,” the report reads.
The full report can be viewed at carpinteria.ca.us/city-hall/administrative-services-finance.