2009 Annual Audit - Laserfiche WebLink

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Management Discussion and Analysis - Continued May 19, 2010 Financial Analysis of the Government’s Funds As noted earlier, the City uses fund accounting to ensure and demonstrate compliance with finance-related legal requirements. Governmental fundsgovernmental funds . The focus of the City’s is to provide information on near-term inflows, outflows and spendable balances of resources. Such information is useful in assessing the City’s financing 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. Activity in the City’s major governmental funds is discussed below: Fund Balance December 31, Increase Major funds 20092008 (Decrease) General $1,231,326$1,157,516$73,810 The general fund balance had an increase mainly due to the budget cutting the City did in anticipation of lost funding. The fund balance is still strong relative to the following years budget (57 percent) Debt Service$3,803,087$1,296,215$2,506,872 The debt service fund balance increased $2,506,872. The increase is due to the issuance of $2.4 million of crossover refunding bonds. This was anticipated since the City manages cash flow in all debt service funds and ensures adequate resources exist to fund future obligations $759,316$(388,468)$1,147,784 2009 Street and Utility Improvements The City issued $3,715,000 in bonds during 2009 to finance street and utility improvements. As of the end of the current fiscal year, the City’s governmental funds reported combined ending fund balances of $5,896,475,an increase of $3,838,947 in comparison with the prior year. Approximately 35 percent of this total amount or $2,086,510 unreserved fund balance constitutes , 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 debt service and prepaid expenses in the amount of $3,812,441. 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 $3,358,028. The total decrease in net assets for the funds was $540,973. 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 activity performed better than anticipated as compared to the amended budget. At year end, revenues exceeded expenditures by$73,810. óîïó