Item 6-O

City Council Meeting: 12-15-98

TO: Mayor and City Council

FROM: City Staff

SUBJECT: Transmittal of Comprehensive Annual Financial Report for Fiscal Year Ended June 30, 1998

Introduction

This report transmits to the City Council the City's Comprehensive Annual Financial Report for FY 1997-98 as required by Section 1516 of the City Charter.

Background

The City Charter requires that the City's financial records and systems be examined by a qualified accountant and that an audit report be submitted to the Council. The attached Comprehensive Annual Financial Report for FY 1997-98 contains the results of the audit work performed by the City's certified public accountant KPMG Peat Marwick and is submitted herewith in conformance with Charter requirements.

Report Highlights

The City's auditors have issued an unqualified opinion. This means that the auditors believe that the City's combined financial statements have been prepared in conformity with generally accepted accounting principles and, therefore, fairly present the financial position of the various fund types and account groups of the City.

Budget/Financial Impact

There is no budget or financial impact to receive and file the City's Comprehensive Annual Financial Report for FY 1997-98. An analysis of the City's financial position as of June 30, 1998 will be presented as part of the City Council budget priorities public hearing on January 12, 1999.

Recommendation

It is recommended that the City's Comprehensive Annual Financial Report for FY 1997-98 be received and filed.

Prepared by: Mike Dennis, Director of Finance