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CITY OF ORONO, MINNESOTA
<br />MANAGEMENT’S DISCUSSION AND ANALYSIS
<br />YEAR ENDED DECEMBER 31, 2015
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<br />The City has historically been financially conservative, managing revenues and expenditures/expenses
<br />to assure operation of a balanced budget. The ongoing management of revenues and
<br />expenditures/expenses and the sound financial position the City has attained have resulted in the City’s
<br />excellent bond ratings: Aaa for all general obligation bond issues.
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<br />The following is a summary of the City’s change in Governmental net position:
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<br />2015 2014
<br />Annual
<br />Change
<br />Percent
<br />Change
<br />REVENUES
<br />Program Revenues:
<br />Charges for Services $ 3,977,001 $ 3,473,980 503,021$ 14.48 %
<br />Operating Grants and Contributions 732,114 925,968 (193,854) (21)
<br />Capital Grants and Contributions 13,549 22,060 (8,511) (39)
<br />General Revenues:
<br />Property Taxes 4,819,345 4,809,875 9,470 -
<br />Unrestricted Investment Earnings 144,252 215,606 (71,354) (33)
<br />Gain on Sale of Capital Assets 6,466 7,961 (1,495) (19)
<br />Other 44,051 17,337 26,714 154
<br />Total Revenues 9,736,778 9,472,787 263,991 2.79
<br />EXPENSES
<br />General Government 1,864,543 1,719,267 145,276 8
<br />Public Safety 5,107,619 4,984,389 123,230 2
<br />Streets 999,097 854,079 145,018 17
<br />Parks and Recreation 324,731 254,177 70,554 28
<br />Interest on Long-Term Debt 283,146 287,181 (4,035) (1)
<br />Total Expenses 8,579,136 8,099,093 480,043 6
<br />CHANGE IN NET POSITION
<br /> BEFORE TRANSFERS 1,157,642 1,373,694 (216,052) (16)
<br />Transfers 320,209 269,300 50,909 19
<br />CHANGE IN NET POSITION 1,477,851 1,642,994 (165,143) (10)
<br />Net Position - Beginning of Year 23,872,715 22,229,721 1,642,994 7
<br />Prior Period Restatement - See Note 11 (3,503,983) - (3,503,983) -
<br />Net Position - Beginning of Year, Restated 20,368,732 22,229,721 (1,860,989)
<br />NET POSITION - END OF YEAR 21,846,583$ 23,872,715$ (2,026,132)$ (8)%
<br />Governmental Activities
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<br />Overall revenues increased 2.8% between 2015 and 2016. Charges for service increased as a result of
<br />increased police service revenues and significant increase in construction activities. Net position
<br />increased by $1,161,525 from 2015 operations. With the implementation of GASB Statement No. 68, a
<br />prior year restatement resulted in an 8% decrease in net position at year end.
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