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Financial Analysis of the Government’s Funds
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<br />As noted earlier, the City uses fund accounting to ensure and demonstrate compliance with finance-related legal requirements.
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<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.
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<br />Activity in the City’s major governmental funds is discussed below:
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<br />Fund Balance December 31,
<br />Increase
<br /> Major Funds
<br />20142013 (Decrease)
<br />$ 1,319,013$ 1,258,596$ 60,417
<br />General
<br />The General fund balance has increased from 2013 and is strong moving into
<br /> The fund also transferred out $223,000 during the year.
<br />$ 1,799,549$ 1,832,254$ (32,705)
<br />Debt Service
<br />The Debt Service fund decreased $32,705. The City manages cash flow in all
<br />Debt Service funds and ensures adequate resources exist to fund future obligations.
<br />$ (1,103,264) $ (1,086,915) $ (16,349)
<br />Park
<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 />As of the end of the current fiscal year, the City’s governmental funds reported combined ending fund balances of $2,481,639, a
<br />decrease of $184,098 in comparison with the prior year. Approximately 8.6 percent of this total amount or $214,477 constitutes
<br />unassigned fund balance, which is available for spending at the City’s discretion. The remainder of fund balance ($2,267,162) is not
<br />available for spending because it is either: 1) nonspendable ($25,069), 2) restricted ($1,961,220, or 3) assigned ($280,873) for the
<br />purposes described in the fund balance section of each balance sheet.
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<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.
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<br />Unrestricted net position of the enterprise funds at the end of the year amounted to $4,280,196. The total increase in net position for
<br />the funds was $327,605. 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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<br />General Fund Budgetary Highlights
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<br />The City’s General fund budget was not amended during the year. Revenues had a positive budget variance and expenditures had
<br />negative budget variance, and overall the General fund had a net positive budget variance of $50,889.
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<br />Some of the significant variances can be briefly summarized as follows:
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<br />Total revenue had a positive budget variance of $52,535. All revenue categories had positive variances, except for interest on
<br />investments, property taxes, and fines and forfeitures. The City holds its investments to maturity and the market value decline
<br />is temporary and will not affect the overall cash received.
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<br />Total expenditures had a positive budget variance of $4,854. Total public safety and public works expenditures were over
<br />budget by a total of $33,484 and $23,601, respectively. Total general governmental expenditures were under budget by
<br />$56,533
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<br />The city also transferred $223,000 from the General fund to other funds, which was $54,000 more than budget. City Council
<br />approved a transfer of $54,000 which was authorized to fund future capital asset acquisitions.
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