Centerville 2010 Financial Report

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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 (Deficit) December 31, Increase Major funds 20102009 (Decrease) $1,068,411$1,231,326$(162,915) General The general fund balance has decreased 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 (52 percent). $2,102,681$3,803,087$(1,700,406) Debt Service The debt service fund balance decreased $1,700,406. The decrease is due to the crossover refunding payment of about $2.5 million. This was anticipated since the City manages cash flow in all debt service funds and ensures adequate resources exist to fund future obligations $(1,071,510)$(242,837)$(828,673) Park The park fund balance decreased about $829,000. This was mainly due to a transfer out in the amount of $825,000 to the Pedestrian Ways Trail fund as part of an interfund loan. $47,918$759,316$(711,398) 2009 Street & Utility Improvements The decrease in fund balance ($711,398), was mainly due to expenditures for the street and utility improvement project. As of the end of the current fiscal year, the City’s governmental funds reported combined ending fund balances of $2,837,564, a decrease of $3,058,911in comparison with the prior year. Approximately 25.7percent of this total amount or $729,670 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 $2,107,894. 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 $3,499,744. The total decrease in net assets for the funds was $170,500. 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 amended budgetcalled for a $156,830 decrease in fund balance. This was primarily driven by an advanced seal coating project and a capital equipment purchase. At year end, expenditures exceeded revenues and other financing sources by $162,915, therefore falling reasonably close to the budgeted decrease in fund balance. -21-