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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 reported combined ending fund
<br />balances of $12,164,527, an increase of $1,500,822 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 $10,017,425 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 />cable TV purposes ($806), 2) for tax increment purposes ($1,471,705), 3) for park improvements
<br />($197,648), 4) for public safety ($433,096), or 5) is not in spendable form for prepaid items ($43,847).
<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 $2,878,628, while total fund balance equaled $3,205,735. 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 47.4 percent of the total subsequent year's General
<br />Fund expenditures.
<br />General Fund revenues slightly exceeded current year expenditures. The City Council approved a transfer
<br />to the Permanent Improvement Revolving Fund of $171,140 for capital purposes. After making this
<br />transfer in the current year, fund balance of the City's General Fund decreased by $160,502. A discussion
<br />of these actual results, compared to budget, is presented later in this report.
<br />Fund balance in the Permanent Improvement Revolving Fund increased by $903,178 in the current year.
<br />The expenditures in this fund will fluctuate based on the timing and completion of street and trail projects.
<br />Revenues tend to be more consistent from year to year, as the City utilizes an annual levy and other
<br />sources that are accumulated over several years, along with other funding sources to complete larger
<br />capital -related projects. The transfer from the General Fund, as previously discussed, along with current
<br />year revenues of taxes, grants, and investments, exceeded current year capital spending for public works
<br />and parks and recreation. The City was in a transition period in the current year with wrapping up several
<br />larger projects and in the planning process for upcoming capital projects of the City. The tax levy and
<br />capital plan allow the City to continue to complete larger capital street, park, and trail projects without
<br />requiring significant debt.
<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: $3,426,902 for water, $1,623,212
<br />for sewer, $788,809 for surface water management, and $240,423 for recycling. Water net position
<br />increased $473,575, sewer net position increased $566,678, surface water management net position
<br />increased $251,800, and recycling net position increased $33,924 during the year.
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