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GOVERNMENTAL FUNDS OVERVIEW <br />This section of the report provides an overview of the financial trends and activities of the City's <br />governmental funds, which includes the General Fund, special revenue, debt service, and capital project <br />funds. These funds are used to account for the basic services the City provides to all of its citizens, which <br />are financed primarily with property taxes. The governmental fund information in the City's financial <br />statements focuses on budgetary compliance, and the sufficiency of each governmental fund's current <br />assets to finance its current liabilities. <br />GOVERNMENTAL FUND BALANCES <br />The following table summarizes the changes in the fund balances of the City's governmental funds during <br />the year ended December 31, 2012, presented both by fund balance classification and by fund: <br />Governmental Fund Changes in Fund Balance <br />Fund Balance <br />as of December 31, Increase <br />2012 2011 (Decrease) <br />Fund balances of governmental funds <br />Total by classification <br />Nonspendable $ 4,042 $ 10,233 $ (6,191) <br />Restricted 17,606,291 25,032,219 (7,425,928) <br />Committed 946,312 819,839 126,473 <br />Assigned 10,104,800 10,677,369 (572,569) <br />Unassigned 6,122,130 5,400,602 721,528 <br />Total— governmental funds $ 34,783,575 $ 41,940,262 $ (7,156,687) <br />Total by fund <br />Major funds <br />General $ 6,725,283 $ 6,388,632 $ 336,651 <br />Special revenue funds <br />Tax Increment 1,146,330 8,816,253 (7,669,923) <br />Housing and Redevelopment Authority 8,259,754 8,335,507 (75,753) <br />Debt Service Fund <br />2012A/2005A G.O. Improvement Bond Refund 959,891 2,155,461 (1,195,570) <br />Capital Project Fund <br />Public Improvement Revolving 2,237,526 1,829,367 408,159 <br />Landfill 2,135,357 3,099,101 (963,744) <br />Equipment Revolving 1,780,818 3,276,236 (1,495,418) <br />Public Improvement Revolving The COR (103,504) (256,024) 152,520 <br />Armstrong /Bunker Street Improvement 260,269 (260,269) <br />Sunwood Drive Realignment 1,074,576 (33,220) 1,107,796 <br />Nonmajor funds 10,567,544 8,068,680 2,498,864 <br />Total — governmental funds $ 34,783,575 $ 41,940,262 $ (7,156,687) <br />As reflected in the table above total governmental fund balance decreased by $7,156,687. The decrease <br />reflects the approved use of restricted resources of the Tax Increment Special Revenue Fund primarily <br />within Tax Increment District 14, The COR (Center of Ramsey) Development Project. <br />