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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 $7,543,820, a decrease of $3,166,142 in comparison with the prior year. Committed, assigned,
<br />and unassigned fund balance, which are available for spending at the government’s discretion, have a
<br />total balance of $6,507,603 at year-end. The remainder of fund balance is nonspendable or restricted to
<br />indicate that it is not available for new spending because it has already been obligated: 1) for tax
<br />increment purposes ($747,898), 2) for cable TV purposes ($262,623), or 3) is not in spendable form for
<br />prepaid items ($25,696).
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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 $3,052,082, while total fund balance equaled $3,340,369. 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 60.3 percent of the total subsequent year General Fund
<br />expenditures.
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<br />The City’s General Fund equity decreased by $298,948 during the current fiscal year, compared to a
<br />$637,225 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 and other services and charges. Conservative budgeting for less predictable sources such
<br />as licenses and permits and charges for services contributed to the favorable revenue variance.
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<br />Fund balance in the EDA Operating Fund increased by $205,183, which compares to an anticipated fund
<br />balance increase of $43,888. Tax increment collections and earnings on investments were $2,611 more
<br />than expected in the final budget, while expenditures were $158,682 below appropriations.
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<br />Equity in the Equipment, Building, and Replacement Fund increased by $476,171 as revenues and other
<br />financing sources exceeded expenditures in the current year. The General Fund, Water Fund, Sewer Fund,
<br />and Surface Water Management Fund made transfers totaling $750,000 to this fund in the current year.
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<br />Fund balance in the Permanent Improvement Revolving Fund decreased by $3,423,480 in the current
<br />year. Total expenditures exceeded current year revenues and transfers from the General Fund based on the
<br />timing of street and trail 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: $988,428 for water, $190,893 for
<br />sewer, $26,510 for surface water management, and $123,437 for recycling. Water net position increased
<br />$659,907, sewer net position increased $110,089, surface water management net position increased
<br />$272,566, and recycling net position decreased $8,122 during the year.
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