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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 2016 2015 (Decrease)
<br />General $ 1,310,308 $ 1,169,065 $ 141,243
<br />The General fund balance has increased from 2015 by $141,243 due primarily to licenses and permits coming in higher than
<br />expectations. The fund transferred out $250,000 during the year.
<br />Debt Service $ 3,161,596 $ 1,369,769 $ 1,791,827
<br />The Debt Service fund increased $1,791,827 due primarily to the issuance of crossover refunding bonds. The City manages cash
<br />flow in all debt service funds and ensures adequate resources exist to fund future obligations.
<br />Park $ (1,132,980) $ (1,116,065) $ (16,915)
<br />The Park fund balance decreased $16,915 from the previous year, due to the 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 $3,430,908, an
<br />increase of $2,070,169 in comparison with the prior year. A fund balance $111,824 constitutes unassigned fund balance. The
<br />remainder of fund balance ($3,319,084) is not available for spending because it is either: 1) nonspendable ($22,444), 2) restricted
<br />($3,174,790, or 3) assigned ($121,850) 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 $5,513,084. The total increase in net position for
<br />the funds was $115,942. 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 $170,981 and
<br />expenditures had negative budget variance of $29,738. Overall the General fund had a net positive budget variance of $141,243.
<br />Some of the significant variances can be briefly summarized as follows:
<br />• License and permits revenues came in $97,569 over budget.
<br />• Culture and recreation expenditures came in $27,793 over budgeted amounts.
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