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Governmental Funds At the end of the fiscal year, the City's Governmental Funds reported combined <br />ending fund balances of $28,529,847, a decrease of $15,609,102 in comparison with the prior year. <br />General Fund — The General Fund operating results can be summarized as follows: <br />Original Over (Under) % Over <br />Budget Final Budget Actual Budget (Under) Budget <br />Revenue $ 9,084,982 $ 8,159,142 $ 8,305,100 $ 145,958 1.8% <br />Expenditures 9,580,225 8,883,706 8,853,226 (30,480) (0.3 %) <br />Excess (deficiency) <br />. of revenue over <br />expenditures <br />Other Financing Sources (Uses) <br />(495,243) (724,564) (548,126) 176,438 <br />495,243 1,078,371 1,084,054 5,683 <br />Net change in <br />fund balances $ — $ 353,807 535,928 $ 182,121 <br />Fund balances <br />Beginning of year 5,585,266 <br />End of year $ 6,121,194 <br />The change in budget from the original to the final was a result of less than anticipated building permit <br />revenues. The variances of revenues to budget were mainly attributed to the area of investment earnings. <br />Due to more favorable market rates, and conservative budgeting, the City saw a fairly large increase in <br />investment earnings. <br />Tax Increment Funds — This Special Revenue Fund had a year -end fund balance of $1,662,013 which <br />reflects a $1,381,972 decrease from 2005. The decrease was due to the funding of improvements in the <br />Ramsey Town Center project area and the purchase of blighted properties within the City's commercial <br />area. <br />Public Improvement Revolving Fund -- This Capital Project Fund saw an overall decrease in fund <br />balance of $969,426 due to street, sewer, and water improvements expensed in 2006 but to be collected <br />in assessments over the next ten years. <br />Landfill Fund --- This Capital Project Fund showed an overall decrease in fund balance of $419,076 <br />which helped pay for the construction of the new municipal center. <br />Equipment Revolving Fund --- This Capital Project Fund reported a year -end fund balance of <br />$4,502,838. The increase of $79,958 in fund balance was attributed largely to investment earnings. <br />Public Improvement Revolving Ramsey Town Center -- This Capital Project Fund reported a fund <br />balance of $762,207. The reduction of $4,645,016 in fund balance represents infrastructure costs in the <br />Ramsey Town Center project area. <br />