CCP 05-15-2006 - Laserfiche WebLink

Home Browse Search

Management Discussion and Analysis - Continued April 14,2006 . Financial Analysis of the Government's Funds As noted earlier, the City uses fund accounting to ensure and demonstrate compliance with fmance-related legal requirements. Governmental funds. The focus of the City's governmental funds is to provide infonnation on near-term inflows, outflows and balances of spendable resources. Such information is useful in assessing the City's fmancing requirements. In particular, unreserved fund balance may serve as a useful measure of a government's net resources available for spending at the end of the fiscal year. As ofthe end of the current fiscal year, the City's governmental funds reported combined ending fund balances of$9,153,443, a decrease of$1,989,439 in comparison with the prior yeaL Approximately 99 percent of this total amount $9,144,973 constitutes unreservedfund balance, which is available for spending at the City~s discretion. The remainder of fund balance is reserved to indicate that it is not available for new spending because it has already been committed to pay prepaid items and debt service in the amount of$8,470, The General fund is the chief operating fund of the City, At the end of the current year, tbe fund balance of the General fund was $1,266,743, As a measnre of the General fund's liquidity, it may be useful to compare both unreserved fund balance and total fund balance to total fund expenditures, Unreserved fund balance represents almost 40 percent of budgeted 2006 fund expenditures, while total fund balance represents 40 percent of that same amount. . The fund balance of the City's General fund decreased by $44,149 during the current fiscal year. The Debt Service fund has a total fund balance of$I,962, all of which is reserved for the payment of debt service, The net decrease in fund balance during the current year in the Debt Service fund was $2,371,827, The City issued refunding bonds in 2004, a portion of which was used to retire outstanding bonds in 2005, . Proprietary funds, The City's proprietary funds provide the same type of information found in the government-wide financial statements, but in more detail. Unrestricted net assets of the enterprise funds at the end of the year amounted to $1,163,456, The total increase in net assets for tbe funds was $88,608, Other factors concerning the finances of this fund have already been addressed in the discussion of the City~s business-type activities. General Fund Budgetary Highlights The City's General fund budget was amended during the yeaL The budget called for spending down $241,452 of reserves, . -IX-