Agenda - Council Work Session - 06/14/2022

Home

FINANCIAL ANALYSIS OF THE CITY'S FUNDS (CONTINUED) General Fund Budgetary Highlights The city does not formally amend its original budget during the calendar year except for extraordinary circumstances. Budget to actual reports are presented monthly to City Council and responsible staff. The city experienced a favorable revenue variance in that actual revenues exceeded budgeted revenues by $652,203. The majority of the variance was attributed to an increase in building permits. The difference between the final expenditure budget and actual was a difference of$216,945 and is attributed to several budgeted line items related to services and charges that came in lower than expected. Final budget numbers are based on past history and expected needs. Overall fund balance increased by$359,436 to an ending fund balance of$10,449,489. The city's ending fund balance increase of$359,436 is determined by its fund balance policy which for year ending 2021 is summarized as follows: • $109,292 increase based on 50%increase in next years adopted budget • $230,958 increase in prior year encumbrances related to public safety personnel costs, worker's compensation,general liabilities and capital maintenance transfer • $19,186 increase in compensated absences liability Tax Increment Fund—This Special Revenue Fund had a year-end fund balance of$5,043,300 which reflects a decrease of$265,319 from 2020. The decrease was due to the decertification of the City's Tax Increment District 98 and the return of excess increment to the County. COR Land Fund—This Special Revenue Fund held a constant year-end fund balance of$8,148,079. Private Developer Fund —This Special Revenue Fund was previously reported as an Agency fund in years prior to 2019. There is no fund balance recorded for 2021. Federal Relief Fund — This Special Revenue Fund had a year-end fund balance of $0. The City had not expended any Coronavirus State and Local Fiscal Rescue Funds(SLFRF)authorized by the American Recovery Plan Act of 2021 in the current year. State-Aid Construction Fund—This Capital Project Fund saw an overall decrease in fund balance of$421,676, due to the construction of Riverdale Drive. Pavement Management Program Fund — This Capital Project Fund saw an increase in fund balance of $202,038 due to the collection of franchise fees and other revenues exceeding current year spending for road improvements. Public Works Campus Fund—This Capital Project Fund had a year-end fund balance of$1,251,372, or an $11,881,734 reduction from 2020. The reduction was due to construction of the public works campus. Proprietary Funds — The City's Proprietary Funds provide the same type of information found in the government-wide financial statements, but in more detail. The City's Enterprise Funds had a combined net position balance of$106,066,647 at December 31, 2021. The financial activities of these funds have been summarized in previous charts within this discussion. The City's Internal Service Fund had an ending net position of$467,903. The Enterprise Funds consist of the Water Utility Fund,Sewer Utility Fund,Street Light Utility Fund,Recycling Utility Fund,and Storm Water Utility Fund. 34