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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 governmenYs 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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