06-27-2016 Council Packet - Laserfiche WebLink

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CITY OF ORONO, MINNESOTA MANAGEMENT’S DISCUSSION AND ANALYSIS YEAR ENDED DECEMBER 31, 2015 (11) As management of the City of Orono, Minnesota (the City), we have provided readers of the City’s financial statements with this narrative overview and analysis of the financial activities of the City for the fiscal year ended December 31, 2015. FINANCIAL HIGHLIGHTS o The net position of the City’s governmental activities increased by $1,477,851 during the year excluding the effects of the prior period restatement. With the prior period restatement the net position of the City’s governmental activities decreased by $2,022,249 to $21,850,466 at year- end. o The net position of the City's business-type activities increased by $224,619 during the year excluding the effects of the prior period restatement. With the prior period restatement the net position of the City’s business-type activities decreased by $71,363 to $21,917,703 at year-end. o The fund balance of the General Fund increased by $381,827 during the year to $4,308,487 at year-end. o The Water, Sewer, and Recycling Funds reported operating losses of $39,435, $43,750, and $18,445 respectively. o The Storm Water and Cable Television Funds reported operating incomes of $91,840 and $67,830 respectively. OVERVIEW OF THE FINANCIAL STATEMENTS The Management’s Discussion and Analysis is intended to serve as an introduction to the City’s basic financial statements, which are comprised of three components: 1) government-wide financial statements, 2) fund financial statements, and 3) notes to the basic financial statements. This report also contains other information in addition to the basic financial statements themselves. Government-Wide Financial Statements – The government-wide financial statements are designed to provide readers with a broad overview of the City’s finances in a manner similar to private sector businesses. The statement of net position presents information on all the City’s assets, deferred outflows of resources, liabilities, and deferred inflows of resources, with the difference between the assets and deferred outflows and liabilities and deferred inflows reported as net position. Over time, increases in net position may serve as a useful indicator of whether the financial position of the City is improving or deteriorating. The statement of activities presents information showing how the City’s net position changed during the most recent fiscal year. All changes to net position are reported as soon as the underlying event giving rise to the change occurs, regardless of the timing of related cash flows. Thus, revenues and expenses are reported in this statement for some items that will only result in cash flows in future fiscal periods (e.g. delinquent taxes and special assessments).