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<br />Management Discussion and Analysis - Continued <br />May 4, 2006 <br /> <br />Financial Analysis of the Government's Funds <br /> <br />As noted earlier, the City uses fund accounting to ensure and demonstrate compliance with finance-related legal requirements. <br /> <br />Governmentalfunds. The focus of the City's govemmentalfunds 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, <br />unreserved fund balance may serve as a useful measure of a government's net resources available for spending at the end of the <br />fiscal year. <br /> <br />As of the end of the current fIscal year, the City's governmental funds reported combined ending fund balances of $5,663,244, an <br />decrease of $2,308 in comparison with the prior year. Approximately 41 percent of this total amount $2,316,008 constitutes <br />unreservedfund balance, which is available for spending at the City's discretion. The remainder of fund balance is reserved to <br />indicate that it is not available for new spending because it has already been committed to pay debt service and prepaid expenses <br />in the amount of $3,347,236. <br /> <br />The General fund is the chief operating fund of the City. At the end of the current year, the fund balance of the General fund was <br />$1,549,356. As a measure of the General fund's liquidity, it may be useful to compare both unreserved fund balance and total <br />fund balance to total fund expenditures. Unreserved fund balance represents 80 percent of fund expenditures, while total fund <br />balance represents 81 percent of that same amount. <br /> <br />. The fund balance of the City's General fund increased by $233,253 during the current fiscal year. <br /> <br />. A portion of the General Fund unreserved fund balance is attributed to delays in general capital projects. This portion <br />and any subsequent portions will be transferred to a general capital projects fund. <br /> <br />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 <br />increase in fund balance during the current year in the Debt Service fund was $457,036. This net increase resulted from the <br />prepayment of the GO Improvement Bonds, Series 1998 and the issuance of debt for the Joint Police Station 2005A. <br /> <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 /> <br />Unrestricted net assets of the enterprise funds at the end of the year amounted to $2,741,715. The total growth in net assets for <br />the funds was $244,837. Other factors concerning the fInances of this fund have already been addressed in the discussion of the <br />City's business-type activities. <br /> <br />General Fund Budgetary Highlights <br /> <br />The City's General fund budget was balanced and was not amended during the year. At year end, revenues exceeded <br />expectations and expenditures were under expectations by a combined $188,670. <br /> <br />-IX- <br />