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Financial Analysis of the City’s Funds
<br />As noted earlier, the City uses fund accounting to ensure and demonstrate compliance with finance-related legal
<br />requirements.
<br />Governmental Funds. The focus of the City’s governmental funds is to provide information on near-term inflows, outflows
<br />and balances of spendable resources. Such information is useful in assessing the City’s financing requirements. In
<br />particular, unassigned fund balance may serve as a useful measure of a government’s net resources available for
<br />spending at the end of the fiscal year.
<br />As of the end of the current fiscal year, the City’s governmental funds had combined ending fund balances of $7,719,676,
<br />an increase of $126,306 in comparison with the prior year. Approximately 12.3 percent of this total amount, $1,611,964,
<br />constitutes unassigned fund balance, which is available for spending at the City’s discretion. The remainder of fund
<br />balance is not available for new spending because it is either 1) nonspendable $119,157, 2) restricted $3,250,008, 3)
<br />committed $16,741, or 4) assigned $2,721,806. For further classification refer to Note 3F starting on page 76 of this
<br />report.
<br />Activity in the City’s major funds is discussed below:
<br />Increase
<br />2019 2018 (Decrease)
<br />General 4,407,693$ 4,454,566$(46,873)$
<br />Pavement Management (488,179)$ (61,123)$(427,056)$
<br />Municipal State Aid Street (2,188,393)$ (2,698,607)$ 510,214$
<br />Fund Balances
<br />Major Fund
<br />December 31,
<br />The General fund is the chief operating fund of the City. As a measure of the General fund’s liquidity, it may be useful
<br />to compare total fund balance to the annual budget. The fund balance is 50.0 percent of the annual budgeted
<br />expenses
<br />The Municipal State Aid Street fund is used to collect and spend resources on the various projects related to state aid
<br />streets and highways. The Fund balance increase in the current year mostly due to a decrease in the amount of Capital
<br />Outlay expenses by the fund in the current year.
<br />The Pavement Management fund was established to account for the governmental portion of capital projects. The
<br />ending fund balance is assigned for capital improvements. The decrease is largely related to expenses related to the
<br />project by the fund.
<br />Municipal State Aid StreetMunicipal State Aid Street (2,188,393)(2,188,393)$$(2,698,607)(2,698,607)$
<br />(488,179)(488,179)$$((61,61,$$
<br />und balance to the annualund balance to the annual budget. The fund balance is 50.0 percent0 percent of of t of he annualhe annual
<br />The Municipal State Aid Street fund is used to collect and spend resources on the various projects related to state aid The Municipal State Aid Street fund is used to collect and spend resources on the various projects related to state aid
<br />The Pavement Management fund was established to account for the governmental portion of capital projects. The The Pavement Management fund was established to account for the governmental portion of capital projects. The
<br />ending fund balance is assigned for capital improvements. The decrease is largely related to expenses related to the ending fund balance is assigned for capital improvements. The decrease is largely related to expenses related to the
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