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<br />FINANCIAL ANALYSIS OF THE GOVERNMENT’S FUNDS
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<br />As noted earlier, the City uses fund accounting to ensure and demonstrate compliance with
<br />finance-related legal requirements.
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<br />Governmental Funds – The focus of the City’s governmental funds is to provide information on
<br />near-term inflows, outflows, and balances of spendable resources. Such information is useful in assessing
<br />the City’s financing requirements. In particular, unassigned fund balance may serve as a useful measure
<br />of a government’s net resources available for spending at the end of the fiscal year.
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<br />As of the end of the current fiscal year, the City’s governmental funds reported combined ending fund
<br />balances of $10,709,962, an increase of $2,872,493 in comparison with the prior year. Committed,
<br />assigned, and unassigned fund balance, which are available for spending at the government’s discretion,
<br />have a total balance of $9,522,040 at year-end. The remainder of fund balance is nonspendable or
<br />restricted to indicate that it is not available for new spending because it has already been obligated : 1) for
<br />tax increment purposes ($616,829), 2) for cable TV purposes ($281,910), or 3) is not in spendable form
<br />for prepaid items ($289,183).
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<br />The General Fund is the chief operating fund of the City. At the end of the current fiscal year, unassigned
<br />fund balance of the General Fund was $3,065,250, while total fund balance equaled $3,639,317. As a
<br />measure of the General Fund’s liquidity, it may be useful to compare the unassigned fund balance to
<br />expenditures. Unassigned fund balance represents 64.4 percent of the total subsequent year General Fund
<br />expenditures.
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<br />The City’s General Fund equity increased by $694,504 during the current fiscal year, compared to a
<br />$195,955 decrease approved in the final budget; this was due to favorable revenue and expenditure
<br />variances, with several departments spending less than amounts approved in the budget mainly in
<br />personal services. Conservative budgeting for less predictable sources such as licenses and permits and
<br />charges for services contributed to the favorable revenue variance.
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<br />Fund balance in the EDA Operating Fund increased by $19,411, which compares to an anticipated fund
<br />balance reduction of $83,599. Tax increment collections and earnings on investments were $3,709 more
<br />than expected in the final budget, while expenditures were $99,301 below appropriations.
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<br />Equity in the Equipment, Building, and Replacement Fund decreased by $222,167 as expenditures
<br />exceeded revenues and transfers in the current year. The General Fund, Water Fund, Sewer Fund, and
<br />Surface Water Management Fund made transfers of $280,765 to this fund in the current year.
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<br />Fund balance in the Permanent Improvement Revolving Fund increased by $2,341,078 in the current
<br />year. Total revenues and transfers from the General Fund, Water Fund, Sewer Fund, and Surface Water
<br />Management Fund exceeded current year expenditures based on the timing of projects.
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<br />Proprietary Funds – The City’s proprietary funds provide the same type of information found in the
<br />government-wide financial statements, but in more detail.
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<br />Unrestricted net position in the respective proprietary funds includes: $799,506 for water, negative
<br />($94,251) for sewer, $461,930 for surface water management, and $131,559 for recycling. Water net
<br />position decreased $78,810, sewer net position decreased $80,629, surface water management net position
<br />increased $297,699, and recycling net position increased $29,146 during the year.
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