CCP 05-22-2006 - Laserfiche WebLink

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Management Discussion and Analysis - Continued April 14,2006 .Financial Analysis of the Government's Funds As nOled earlier, the City uses fund accounting to ensure and demonstrate compliance with finance-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 infOlmation is useful in assessing the City's fmancing requirements. In particular, unreserved fimd balance may serve as a useful measure of a government's net resources available for spenchng at the end of the fiscal year. As of the end of the current fiscal year, tbe City's governmental funds reported combined ending fund balances of $9, I 53,443, a decrease of $1 ,989,439 in comparison with tbe prior year. Approximately 99 percent ofthis total amount $9,144,973 constitutes unreserved fund balance, which is available for spending at the City's discretion. The remainder of nmd 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. Tbe General fund is the chief operating fund of tbe City_ At the end of the curreut year, the fund balance of the General fuud was $1,266,743. As a measure of the General fund's liquidity, it may be useful to compare botb unreserved fund balance and total fund balance to total fimd expenditures. Unreserved fund balance represents almost 40 percent of budgeted 2006 fund expendihrres, while total fund balance represents 40 percent of that same amount. . The fund balance oftbe City.s General fund decreased by $44,149 dUrillg tbe current fiscal year. The Debt Service fund has a total fund balance of $1 ,962, all of which is reserved for the payment of debt service. The net decrease in fimd balance during the current year in tbe Debt Service fund was $2,37] ,827. The City issued refunding bnnds 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 fmUld 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 51,163,456. The total increase in net assets for the 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 Fnnd Budgetary Highligbts The City's General fund budget was amended during tbe year. Tbe budget caJ1ed for spending doWIl $24],452 of reserves_ . -IX-