2008-06-25 CC Packet - Laserfiche WebLink

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Management Discussion and Analysis - Continued May 29, 2008 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. Governmentalfunds. The focus of the City's governmentalfunds is to provide information on near-term inflows, outflows and balances of spendable resources. Such information is useful in assessing the City's fmancing 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. Activity in the City's major governmental funds is discussed below: As of the end of the current fiscal year, the City's governmental funds reported combined ending fund balances of$4,895,765, an increase of$20,354 in comparison with the prior year. Approximately 50 percent of this total amount, or $2,441,035 constitutes unreservedfund 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 $2,454,730. Proprietary funds. The City's proprietary funds provide the same type of information found in the government-wide financial statements, but in more detail. Unrestricted net assets ofthe enterprise funds at the end of the year amounted to $3,863,667. The total growth in net assets for the funds was $182,880. 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 exceeded budget by a combined $112,682: -IX-