Agenda - Council Work Session - 06/27/2023

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GOVERNMENT -WIDE FINANCIAL ANALYSIS (CONTINUED) Business -Type Activities — The following graph illustrate the City's business -type activities revenues: Revenues By Source — Business -Type Activities Capital grants and contributions, 72.07% Operating grants and rnntrihi itinnc n 52Ao/ __ .... Investment earnings, -73.50% Charges for servi 100.57% Charges for services (100.57%) and Capital grants and contributions (72.07%) are the main sources of revenue for the business -type activities, which represent the Utility Funds. Investment earnings (-73.50%) was due to writing down investments to fair value, even though the City holds investments to maturity. FINANCIAL ANALYSIS OF THE CITY' S FUNDS Governmental Funds — At the end of the fiscal year, the City's Governmental Funds reported combined ending fund balances of $61,436,516, an increase of $14,685,510 in comparison with the prior year. The increase is largely attributed to the issuance of $10,765,000 General Obligation Street Reconstruction Bonds in 2022. The General Fund reported a fund balance increase of $645,563 in the current year. The increase is attributed to the City's fund balance policy which states that ending fund balance shall be equal to fifty percent (50%) of the next years adopted operating budget, plus prior -year encumbrances (if any) plus compensated absences. General Fund — The General Fund operating results can be summarized as follows: Over (Under) % Over Revenue Expenditures Excess (deficiency) of revenue over expenditures Other financing sources (uses) Net change in fund balances Fund balances Beginning of year End of year $ 13,518,840 $ 13,518,840 $ 14,718,976 $ 1,200,136 8.88% 14,492,640 14,492,640 14,390,861 (101,779) -0.70% (973,800) (973,800) 973,800 973,800 328,115 1,301,915 645,563 $ 645,563 10,449,489 $ 11,095,052 33