2006-12-31 Audit - Laserfiche WebLink

Home Browse Search

Management Discussion and Analysis - Continued May 3, 2007 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 financing requirements. In particular, unreservedfund balance may serve as a useful measure ofa 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 governmental funds reported combined ending fund balances of$4,875,411, a decrease of$554,031 in comparison with the prior year. Approximately 42 percent of this total amount $2,036,803 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$2,838,608. The General fund is the chief operating fund of the City. At the end ofthe current year, the fund balance ofthe General fund was $1,563,335. As a measure of the General fund's liquidity, it may be useful to compare both unreserved fund balance and total fund balance to total fund expenditures. Unreserved fund balance represents 74 percent offund expenditures, while total fund balance represents 75 percent of that same amount. . The fund balance ofthe City's General fund increased by $13,979 during the current fiscal year. . A portion of the General Fund unreserved fund balance is attributed to delays in general capital projects (public works facility). 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 $2,791,160, all of which is reserved for the payment of debt service. The net decrease in fund balance during the current year in the Debt Service fund was $536,293. This net decrease resulted from the payment of the Temporary Improvement Bonds, Series 2003. 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 of the enterprise funds at the end ofthe year amounted to $3,383,644. The total growth in net assets for the funds was $1,329,903. 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 $26,421. -IX-