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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 $8,721,679, an increase of $1,177,859 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 $7,602,543 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 ($948,034), 2) for cable TV purposes ($148,450), or 3) is not in spendable form
<br />for prepaid items ($22,652).
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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 $2,987,183, while total fund balance equaled $3,215,583. 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 59.5 percent of the total subsequent year General Fund
<br />expenditures.
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<br />The City’s General Fund equity decreased by $124,786 during the current fiscal year, compared to a
<br />$692,880 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,
<br />such as licenses and permits and earnings on investments, contributed to the favorable revenue variance.
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<br />Fund balance in the Permanent Improvement Revolving Fund increased by $1,105,625 in the current
<br />year. Total current year revenues and a transfer from the General Fund exceeded expenditures based on
<br />the 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: $1,181,420 for water, $620,643 for
<br />sewer, $105,549 for surface water management, and $118,200 for recycling. Water net position increased
<br />$49,177, sewer net position increased $537,605, surface water management net position increased
<br />$271,220, and recycling net position decreased $5,237 during the year.
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