2004 Audit - Laserfiche WebLink

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Management Discussion and Analysis - Continued Apri120, 2005 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 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 governmental funds reported combined ending fund balances of$5,665,552, an increase of$703,163 in comparison with the prior year. Approximately 48 percent of this total amount $2,738,208 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 $2,927,344. 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 $1,316,103. 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 69.1 percent of fund expenditures, while total fund balance represents 70.1 percent of that same amount. . The fund balance of the City's General fund increased by $247,722 during the current fiscal year. The Debt Service fund has a total fund balance of$2,870,417, 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 $203,390. Proprietary funds. The City's proprietary funds provide the same type of information found in the governrnent-wide financial statements, but in more detail. Unrestricted net assets of the enterprise funds at the end of the year amounted to $8,764,268. The total growth in net assets for the funds was $624,336. 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 not amended during the year. The budget called for spending down approximately $2,000 of reserves. Revenues exceeded expectations and expenditures were under expectations by $126,019. -IX-