2006-06-28 CC Packet - Laserfiche WebLink

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Management Discussion and Analysis - Continued May 4, 2006 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. Govemmenttdftmds. The focus of the City's governmentalfimds is to provide information on near-term inflows, outflows and balances of spendable 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. As of the end of the current fiscal year, the City's governinental funds reported combined ending fund baIances of$5,663,244, an decrease of$2,308 in comparison with the prior year. Approximately 41 percent of this total amount $2,316,008 constitutes unreservedfimd balance, 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 $3,347,236. The General fund is the chief operating fund of the City. At the end of the current year, the fund balance of the General fundwas $1,549,356. As a measure of the General fund's liquidity, it maybe useful to compare both unreserved fund balance and total fund balance to total fund expenditures. Unreserved fund balance represents 80 percent of fund expenditures, while total fund balance represents 81 percent of that same amount. . The fund balance of the City's General fund increased by $233,253 during the current fiscal year. . A portion of the General Fund unreserved fund balance is attributed to delays in general capital projects. This portion and any subsequent portions will be transferred to a general capital projects fund. The Debt Service fund has a total fund balance of $3,327,453, all of which is reserved for the payment of debt service. The net increase in fund balance during the current year in the Debt Service fund was $457,036. This net increase resulted from the prepayment of the GO Improvement Bonds, Series 1998 and the issuance of debt for the Joint Police Station 2005A. Proprietary funds. The City's proprietary funds provide the same type of information found in the government-wide financial statements, but in more detail. Umestricted net assets of the enterprise funds at the end of the year amounted to $2,741,715. The total growth in net assets for the funds was $244,837. 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 budget was balanced and was not amended during the year. At year end, revenues exceeded expectations and expenditures were under expectations by a combined $188,670. -IX-