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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 finance-related legal requirements.
<br />Governmental funds. The focus of the City’s governmental fundsis to provide information on near-term inflows, outflows and
<br />balances of spendableresources. Such information is useful in assessing the City’s financing requirements. In particular, unassigned
<br />fund balancemay serve as a useful measure of a government’s net resources available for spending at the end of the fiscal year.
<br />Activity in the City’s major governmental funds is discussed below:
<br />Fund Balance December 31,
<br />Increase
<br /> Major Funds
<br />20132012 (Decrease)
<br />General $1,258,596$1,205,820$52,776
<br />The General fund balance has increased from 2012 and is strong moving
<br />into 2013. The fund also transferred out $208,900 during the year.
<br />Debt Service$1,832,254$1,866,410$(34,156)
<br />The Debt Service fund increased $34,156. The City manages cash flow in
<br />all Debt Service funds and ensures adequate resources exist to fund future
<br />obligations.
<br />Park$(1,086,915)$(1,070,527)$(16,388)
<br />The Park fund balance decreased about $16,000 from the previous year.
<br />Which is due to interest paid on the interfund loan.
<br />2013 Street Project$237,170$-$237,170
<br />The 2013 Street project fund balance increased $436,230 during the year.
<br />Major activity in the fund included bond proceeds of $1,477,493 as well
<br />as $1,030,985 of capital expenditures for the street project.
<br />As of the end of the current fiscal year, the City’s governmental funds reported combined ending fund balances of $2,665,737, an
<br />increaseof $458,821in comparison with the prior year. Approximately 6.2percent of this total amount or $164,033constitutes
<br />unassignedfund balance, which is available for spending at the City’s discretion. The remainder of fund balance ($2,501,704) is not
<br />available for spending because it is either: 1) nonspendable ($30,229), 2) restricted ($2,058,863,3) committed ($3,041)or assigned
<br />($409,571) for the purposes described in the fund balance section of each balance sheet.
<br />Proprietary funds. The City’s proprietary funds provide the same type of information found in the government-wide financial
<br />statements, but in more detail.
<br />Unrestricted net positionof the enterprise funds at the end of the year amounted to $4,071,235. The total increasein net positionfor
<br />the funds was $26,288. Other factors concerning the finances of this fund have already been addressed in the discussion of the City’s
<br />business-type activities.
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