|
<br />-11-
<br />FINANCIAL ANALYSIS OF THE GOVERNMENT’S FUNDS
<br />
<br />As noted earlier, the City uses fund accounting to ensure and demonstrate compliance with
<br />finance-related legal requirements.
<br />
<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.
<br />
<br />As of the end of the current fiscal year, the City’s governmental funds reported combined ending fund
<br />balances of $10,814,728, an increase of $141,298 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 $9,559,411 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 ($1,129,558), 2) for cable TV purposes ($90,729), or 3) is not in spendable form
<br />for prepaid items ($35,030).
<br />
<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 $2,899,564, while total fund balance equaled $3,169,812. 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 55.3 percent of the total subsequent year General Fund
<br />expenditures.
<br />
<br />The City’s General Fund equity decreased by $210,694 during the current fiscal year, compared to a
<br />$657,710 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. Spending for
<br />other services and charges for protective inspections was over budget, due to the City contracting out their
<br />building inspection with difficulty filling open positions, along with increased activity ongoing in the
<br />current year. Conservative budgeting for less predictable sources, such as licenses and permits,
<br />contributed to the favorable revenue variance.
<br />
<br />Fund balance in the Permanent Improvement Revolving Fund increased by $61,650 in the current year.
<br />Total current year revenues and a transfer from the General Fund exceeded expenditures, which fluctuate
<br />based on the timing of street and trail projects.
<br />
<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.
<br />
<br />Unrestricted net position in the respective proprietary funds includes: $2,518,417 for water, $1,079,248
<br />for sewer, $133,774 for surface water management, and $190,195 for recycling. Water net position
<br />increased $1,345,320, sewer net position increased $424,746, surface water management net position
<br />increased $227,248, and recycling net position increased $48,200 during the year.
|