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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 $22,021,663,
<br />an increase of $14,867,795 in comparison with the prior year. Approximately 0.5 percent of this total amount, $135,537,
<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 $40,670, 2) restricted $18,561,508, 3)
<br />committed $38,712, or 4) assigned $3,245,236. For further classification refer to Note 3E starting on page 70 of this
<br />report.
<br />Activity in the City’s major funds is discussed below:
<br />Increase
<br />2021 2020 (Decrease)
<br />General 4,660,573$ 4,547,033$ 113,540$
<br />Municipal State Aid Street (1,813,502)$ (1,922,298)$ 108,796$
<br />2010 General Obligation Bond (877,128)$ 594,204$ (1,471,332)$
<br />Pavement Management Plan (774,042)$ (822,820)$ 48,778$
<br />Project Construction Fund 15,778,512$ -$ 15,778,512$
<br />The 2012 General Obligation Bond fund is used to collect and spend resources related to the bonds issued in 2010.
<br />The decrease in fund balance is directly attributed to the paying down of debt obligations
<br />The Pavement Management Plan fund collects and allocates resources realted to the repair and maintenance of roads
<br />within the City. The increase in fund balance is due to transfers from other funds.
<br />The Project Construction Fund is used to collect and spend resources related to various construction projects within
<br />the City. The increase is due to bond proceeds exceeding current year project costs.
<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 to
<br />compare total fund balance to the annual budget. The fund balance is 50.0 percent of the annual budgeted 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 />Proprietary Funds. The City’s proprietary funds provide the same type of information found in the government -wide
<br />financial statements, but in more detail. At the end of the year, unrestricted net position of the enterprise funds amounted
<br />to $6,604,757. Other factors concerning the finances of these funds have already been addressed in the discussion of the
<br />City’s business-type activities.
<br />General Fund Budgetary Highlights a
<br />The City’s General fund budget was not amended during the year. The final budget anticipated no changes in fund
<br />balance. Revenues were more than budget by $730,548, primarily due to intergovernmental and charges for services
<br />revenue coming over budget by $278,258 and $431,921 respectively. Expenditures were $45,099 more than budgeted
<br />amounts, primarily due to expenditures for public works coming in over budget by -$21,564.
<br />DRAFT
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