|
-12-
<br />FINANCIAL ANALYSIS OF THE GOVERNMENT’S FUNDS
<br />As noted earlier, the City uses fund accounting to ensure and demonstrate compliance with
<br />finance-related legal requirements.
<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 />As of the end of the current fiscal year, the City’s governmental funds repo rted combined ending fund
<br />balances of $10,663,705, a decrease of $151,023 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 $8,983,934 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 ($1,366,532), 2) for cable TV purposes ($56,621), 3) for park improvements
<br />($218,039), or 4) is not in spendable form for prepaid items ($38,579).
<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 $3,072,714, while total fund balance equaled $3,366,237. 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 55.6 percent of the total subsequent year General Fund
<br />expenditures.
<br />The City’s General Fund equity increased by $196,425 during the current fiscal year, compared to a
<br />$420,460 decrease approved in the final budget. This increase was due to favorable variances in revenues,
<br />other financing sources, and expenditures. The City’s receipt of licenses and permits and proceeds on the
<br />sale of capital assets surpassed budgetary expectations. Spending was under budget in several functions.
<br />These favorable variances more than covered the deficit spending approved in the original budget.
<br />Fund balance in the Permanent Improvement Revolving Fund decreased by $288,093 in the current year.
<br />Total current year revenues and transfers from other funds were less than capital expenditures, which
<br />fluctuate based on the timing of street and trail projects.
<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 />Unrestricted net position in the respective proprietary funds includes: $2,799,399 for water, $1,242,364
<br />for sewer, $431,542 for surface water management, and $206,499 for recycling. Water net position
<br />increased $480,537, sewer net position increased $521,334, surface water management net position
<br />increased $327,502, and recycling net position increased $16,304 during the year.
|