The Airport's original reconciliation was that there was $113,333.10 left after spending $629,296.82 for claimed capital expenditures. However as you can see from the table below there is $126,045.29 MISSING IN ACTION. Ultimately there is either $126,045.29 more in the capital Reserve account OR there are $126,045.29 of Capital Expenditures that have to be detailed.
I predict that this money will be detailed as a capital Expenditure made for the Airport but paid directly from the City's Books. (a balancing item will be about$500 in Nov.interest on the Airport's books that was never shown broken out from the Nov. Bank Reconciliation.)
When the full list of capital is complete there will be discussions of whether these are truly Capital Items but I leave that to the elected Council to debate.
This will set the stage for the Council to decide whether they will have the $113,333 in Capital Reserve topped up by a further $300,000 in 2007 to provide for Taxiway Charlie. (Estimated $360,000 to $420,000). As this is an large portion of the tax increase presently proposed the discussion should be interesting!
The Airport Corporation is now the Airport committee and the year end books and any outstanding deficits etc. will have to be re-consolidated back into the City's books. The Airport operating deficit stood at $98,498 at 2005 year end with 2006 deficit or hopefully surplus to come. This could be offset by accumulated amortization as the airports capital account runs differently from the City's cash basis accounting. (should prove interesting!)
POSTING OF NOV 25/06:
Musings from the COW meeting 8:40 AM (excerpt)
Beardsell referred to the "infamous" Don Quixote and asked for an explanation of whether any monies that had been transferred for Capital Improvements had been used for operating expenses. The City Administrator L. Gous indicated that this was not the case and a full accounting of the capital expenditures would be reported back to Council in short order.
Budget Capital Summary from Mr. Grahame Go, Airport Manager. (p.5) is available at Agenda Package !
The Fletcher Report for the Strategic Business Plan cost $6,890 and the GHK Report for the Economic Impact Assessment cost $29,044. (of which $15,000 was paid by the GVSC Economic Development) Both of these 2006 Reports were paid for by the Airport Capital Fund. The 2005 PDK Report for An Assessment of the Potential for Commercial Passenger Services at Vernon Airport cost $5,778 which was paid by the Airport but it does not appear to have come from the Capital Account. These 2006 reports can be found at Economic Impact Assessment 2006 Final Report - 360Kb Airport Business Plan 2006-2007 - 96Kb.
Interesting Observations about Invoicing: The 2 Consultants from outside the area charge at the rates of$1500 and $1200 per day respectively while our local Consultant Fletcher charges only $1000/day. (It is also noted that Mr. Maggs [the $1200/day consultant] is charged on the GHK Consulting and also seems to be a Senior Associate in the company PDK that did the 2005 study)Capital Accounting Reconciliation: (p.5 & 6 in Agenda Package) (The totals are right but it doesn't add up!)
Accepting that the opening balance of 2005 is correct ($357,451.67) then we should simply be able to add the City's Contribution in 2005 ($250,000), the interest revenue in this account ($ 5282.57) and subtract the expenses for a Fuel Del System and Truck ($96,046.97) and come to an ending 2005 balance of $516,687.27.
However the Reconciled balance for 2005 year end shows as $390,641.98. The out of balance is $516,687.27 - $390,641.98 = $126,045.29 !
The 2006 year appears to have the $250,000 contribution for the capital reserve correctly recorded and if you accept the use of the money for the various capital projects listed then the accounting is correct for the year but the balance of $113,333.10 is still short $126,045.29 !
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