|
FINANCIAL CONDITION OF THE GOVERNMENTAL FUNDS AND ACTIVITIES AS A WHOLE
<br />The governmental funds reported total fund balances of $41,940,262 at December 31, 2011. This level of
<br />fund balance for all governmental funds represents an increase of $3,525,271 from the prior year fund
<br />balance for all governmental funds of $38,414,991. The Armstrong /Bunker Street Improvement Debt
<br />Service Fund increased by approximately $260,000 due to the issuance of $4,365,000 General Obligation
<br />Bonds, Series 2011A, while the 2011 -2005 General Obligation Improvement Bonds Fund increased over
<br />$3 million due to the issuance of $3,090,000 General Obligation Improvement Crossover Refunding
<br />Bonds, Series 2011B.
<br />The Statement of Net Assets shows an increase in the net assets of the governmental activities of
<br />$1,810,089, with ending net assets of $76,332,107. Since this statement is based on accrual accounting
<br />rather than modified accounting, the money spent on capital project costs are capitalized as assets, while
<br />in the fund statements they are expended.
<br />GENERAL FUND
<br />The City's General Fund accounts for the financial activity of the basic services provided to the
<br />community The primary services included within this fund are the administration of the municipal
<br />operation, police and fire protection, building inspection, streets and highway maintenance, and culture
<br />and recreation.
<br />The following graph displays the City's General Fund trends of financial position and changes in the
<br />volume of fmancial activity. Fund balance and cash balance are typically used as indicators of financial
<br />health or equity, while annual revenue is often used to measure the size of the operation.
<br />$10,000,000
<br />$8,000,000
<br />FINANCIAL TRENDS AND CONDITIONS OF SELECTED FUNDS
<br />$ 6,000,000
<br />$4,000,000
<br />$2,000,000
<br />$—
<br />General Fund Financial Position
<br />Year Ended December 31,
<br />IJ
<br />2002 2003 2004 2005 2006 2007 2008 2009 2010 2011
<br />Fund Balance 1 I Cash Balance Revenue
<br />The City's General Fund cash and investments balance (net of interfund borrowing) at December 31,
<br />2011 was $6,600,586, an increase of $629,340 from the previous year. Total fund balance at year -end
<br />was $6,388,632, an increase of $210,762 from the prior year. The stability of the General Fund's
<br />financial position is greatly attributed to the City's "Fund Balance and Excess Revenue Policy" as well as
<br />the general budgeting policies. These policies have allowed the City to provide funding for equipment
<br />replacement and recurring capital maintenance programs without disrupting the General Fund's financial
<br />position. This is an important factor because a government, like any organization, requires a certain
<br />amount of equity to operate. The amount of required equity increases as the size of the operation
<br />increases. Increase in the size of the operation is natural, caused by such things as inflation, population
<br />growth, desired increases in services, and — something which has impacted cities significantly in recent
<br />years— mandated increases in services and administrative requirements.
<br />-10-
<br />1
<br />i
<br />
|