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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 repo rted combined ending fund
<br />balances of $10,673,430, an increase of $1,951,751 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 $9,503,228 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 ($1,021,370), 2) for cable TV purposes ($116,370), or 3) is not in spendable form
<br />for prepaid items ($32,462).
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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 $3,155,257, while total fund balance equaled $3,380,506. 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 60.5 percent of the total subsequent year General Fund
<br />expenditures.
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<br />The City’s General Fund equity increased by $164,923 during the current fiscal year, compared to a
<br />$612,740 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, materials and supplies, and other services and charges. Conservative budgeting for less
<br />predictable sources, such as earnings on investments and reimbursements, contributed to the favorable
<br />revenue variance. The City also recognized $419,614 in federal coronavirus relief funds that were not
<br />anticipated in the budget.
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<br />Fund balance in the Permanent Improvement Revolving Fund increased by $1,165,868 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: $1,528,912 for water, $926,628 for
<br />sewer, $402,958 for surface water management, and $141,995 for recycling. Water net position increased
<br />$296,717, sewer net position increased $185,370, surface water management net position increased
<br />$265,624, and recycling net position increased $23,795 during the year.
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