01-24-2022 Council Packet - Laserfiche WebLink

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Financial Analysis of the City’s Funds As noted earlier, the City uses fund accounting to ensure and demonstrate compliance with finance-related legal requirements. Governmental Funds. The focus of the City’s governmental funds 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, unassigned 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 had combined ending fund balances of $7,153,868, a decrease of $565,808 in comparison with the prior year. Approximately 10.6 percent of this total amount, $1,405,177, constitutes unassigned fund balance, which is available for spending at the City’s discretion. The remainder of fund balance is not available for new spending because it is either 1) nonspendable $30,343, 2) restricted $2,908,430, 3) committed $36,329, or 4) assigned $2,773,589. For further classification refer to Note 3E starting on page 68 of this report. Activity in the City’s major funds is discussed below: Increase 2020 2019 (Decrease) General 4,547,033$ 4,407,693$ 139,340$ Municipal State Aid Street (1,922,298)$ (2,188,393)$ 266,095$ Fund Balances Major Fund December 31, The General fund is the chief operating fund of the City. As a measure of the General fund’s liquidity, it may be useful to compare total fund balance to the annual budget. The fund balance is 50.0 percent of the annual budgeted expenses. The Municipal State Aid Street fund is used to collect and spend resources on the various projects related to state aid streets and highways. The Fund balance increase in the current year mostly due to a decrease in the amount of Capital Outlay expenses by the fund in the current year.