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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 funds is to provide information on near-term inflows, outflows and
<br />balances of spendable resources. Such information is useful in assessing the City's financing requirements. In particular, unassigned
<br />fund balance may 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, Increase
<br />Major Funds 2015 2014 (Decrease)
<br />General $ 1,169,065 $ 1,319,013 $ (149,948)
<br />The General fund balance has decreased from 2014 and is healthily moving into
<br />The fund transferred out $498,000 during the year.
<br />Debt Service $ 1,369,769 $ 1,799,549 $ (429,780)
<br />The Debt Service fund decreased $429,780. The City manages cash flow in all
<br />Debt Service funds and ensures adequate resources exist to fund future obligations.
<br />Park $ (1,116,065) $ (1,103,264) $ (12,801)
<br />The Park fund balance decreased $12,801 from the previous year,
<br />Which is due to interest paid on the interfund loan.
<br />2013 Street Nojeet $ (471,947) $ 173,430 $ (645,377)
<br />The 2013 Street Project fund decreased $645,377 from 2014 due to capital outlay
<br />expenditures related to a joint project with Anoka County for street improvements.
<br />As of the end of the current fiscal year, the City's governmental funds reported combined ending fund balances of $1,360,739, a
<br />decrease of $1,120,900 in comparison with the prior year. A deficit fund balance $420,720 constitutes unassigned fund balance. The
<br />remainder of fund balance ($1,781,459) is not available for spending because it is either: 1) nonspendable ($22,755), 2) restricted
<br />($1,375,723, or 3) assigned ($382,981) 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 position of the enterprise funds at the end of the year amounted to $5,046,956. The total increase in net position for
<br />the funds was $574,457. Other factors concerning the finances of this fund have already been addressed in the discussion of the City's
<br />business -type activities.
<br />General Fund Budgetary Highlights
<br />The City's General fund budget was not amended during the year. Revenues had a positive budget variance of $58,132 and
<br />expenditures had positive budget variance of $33,920. Overall the General fund had a net negative budget variance of $149,948.
<br />Some of the significant variances can be briefly summarized as follows:
<br />• Total revenue had a positive budget variance of $58,132. All revenue categories had positive variances, except for fines and
<br />forfeitures and special assessments.
<br />• Total expenditures had a positive budget variance of $33,920. Total general government, public safety and public works
<br />expenditures were under budget by a total of $23,290, $12,473 and $7,700, respectively.
<br />• The city also transferred $498,000 from the General fund to other funds, which was $242,000 more than budget. City Council
<br />approved a transfer of $242,000 which was authorized to fund expenditures associated with the Centerville Road
<br />Reconstruction Project.
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