2003-12-31 Year End Financial Audit

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Management Discussion and Analysis February 6,2004 Page IX The fund balance of the City's general fund increased by $130,448 during the current fiscal year. Key factors in this growth are as follows: · Due to a modest increase in development activity, licenses and permit revenues exceeded budget by $53,319. . Property tax revenue increased by $58,559 over last year. All of this increase is attributed to a surplus TIF payment resulting from the closing ofTIF District 1-3. . Police sting activity during the year resulted in increased fme revenues of$6,830. . Most of the budget set aside for investment in capital assets, $389,223, was not utilized. Economic Factors and Next Year's Budgets and Rates · The unemployment rate for the county in which the City is located is currently 5.0 percent, which is slightly lower than the State average of 5.3 percent · The population in the year 2002 was estimated at 3,430, which is up 7.1 percent from the 2000 federal census figure of 3,202. . In the year 2002, there were an estimated 1,178 households in the City, with an average of2.91 persons per household. . Per capita income for the county in which the City is located was $30,533 for the year 2001, which was 7.6 percent lower than the State average. All of these factors were considered in preparing the City's budge for the 2004 fiscal year. The tax levy was increased by only the amount necessary to recover 60 percent oflost State aids. We wish to thank all members of the City Council for their interest and support in planning and conducting the financial activities of the City in a responsible and progressive manner. The City's excellent financial status is a reflection of that involvement. We also wish to thank everyone who made the preparation of this report possible, especially all City staff members. Respectfully submitted, ~~-AI~ Kim Moore-Sykes City Administrator ~ Ellen Paulseth Finance Director