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CITY OF ROSEVILLE, MINNESOTA
<br /> MANAGEMENT'S DISCUSSION AND ANALYSIS
<br /> For Year Ended December 31, 2014
<br /> FINANCIAL ANALYSIS OF THE GOVERNMENT'S FUNDS
<br /> Component Unit
<br /> The City incorporates the Roseville Housing and Redevelopment Authority (HRA) as a component unit
<br /> into its financial statements. The HRA accounts for the City's housing-related programs. In 2014, the
<br /> HRA's net position increased by$492,536 reflecting strong program income.
<br /> Governmental Funds
<br /> The focus of the City of Roseville's governmental funds is to provide information on near-term inflows,
<br /> outflows, and balances of spendable resources. Such information is useful in assessing the City of
<br /> Roseville's financing requirements. In particular, unrestricted fund balance may serve as useful measure
<br /> of a government's net resources available for spending at the end of the fiscal year.
<br /> At the end of the current fiscal year, the City of Roseville's governmental funds reported combined ending
<br /> fund balances of $45,259,195. Approximately 53% of this total amount $23,990,263; constitutes
<br /> unrestricted fund balance. The remainder of the fund balance is restricted to indicate that it is not
<br /> available for new spending because it is legally restricted for; 1)various operating purposes - $2,921,054,
<br /> 2) for tax increment financing activities - $7,870,539, 3) bond funded capital improvements - $7,751,174,
<br /> and 4)debt service - $2,726,165.
<br /> The fund balances of governmental funds declined by $12,018,514 in 2014. The decline is due to the
<br /> increases in capital improvements and the reduction in cash held in escrow for the purpose of a bond
<br /> refunding.
<br /> The Economic Increments Construction Fund accounts for the activities in the City's Tax Increment
<br /> Financing (TIF) Districts. The Fund's balance increased by $178,474 resulting from the continued
<br /> collection of tax increment to repay TIF-related infrastructure investments made in prior years. The entire
<br /> fund balance of$7,870,539 is restricted for TIF-related activities.
<br /> The Debt Service Fund decreased by $3,635,863 largely due to a $4,750,000 bond refunding highlighted
<br /> above. The decrease was mitigated by the collections of special assessments and tax levies in advance
<br /> of making debt payments.
<br /> The Revolving Improvements Fund decreased $9,220,616 due to capital spending of previously issued
<br /> bond proceeds.
<br /> Proprietary Funds
<br /> The City of Roseville's proprietary funds provide the same type of information found in the government-
<br /> wide financial statements, but in more detail.
<br /> The unrestricted net position in the respective proprietary funds is Sewer - $1,427,844; Water —
<br /> ($1,407,355); Golf - $201,822; Recycling - $216,762 and Storm - $4,124,196. Overall net position
<br /> increased $2,018,689 reflecting positive cash flow from utility rate increases which were designated for
<br /> future capital replacements.
<br /> General Fund Budgetary Highlights
<br /> The General Fund balance increased by$74,711 in 2014, largely due to revenues and expenditures
<br /> being generally as expected.
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