|
<br />FINANCIAL ANALYSIS OF THE CITY’S FUNDS (CONTINUED)
<br />
<br />General Fund Budgetary Highlights
<br />
<br />The City does not formally amend its original budget during the calendar year except for extraordinary
<br />circumstances. Budget to actual reports are presented monthly to City Council and responsible staff.
<br />
<br />Actual revenues exceeded budgeted revenues by $1,698,255. The majority of the variance was attributed to
<br />conservative budgeting with most sources surpassing budget expectations. The largest variances occurred in
<br />intergovernmental ($811,705) with the City recognizing COVID-related funding that was not included in the
<br />budget and charges for services ($444,892) with more development activity than anticipated.
<br />
<br />The difference between the final expenditure budget and actual was $173,692 and is attributed to the highways
<br />and streets function in regards to patching and repairing potholes due to a freeze/thaw winter that took a toll on
<br />the city’s streets. These expenditures came in higher than expected. Final budget numbers are based on past
<br />history and expected needs.
<br />
<br />Overall fund balance increased by $1,170,863 to an ending fund balance of $12,265,915. The city’s ending fund
<br />balance increase of $1,170,863 is determined by its fund balance policy which for the year ending is summarized:
<br />
<br />x $1,108,298 increase based on 50% increase in next years adopted budget
<br />x $(64,987) decrease in prior year encumbrances related to personnel costs, general liabilities and
<br />capital maintenance transfer
<br />x $127,552 increase in compensated absences liability
<br />
<br />Tax Increment Fund – This Special Revenue Fund had a year-end fund balance of $6,730,012 which reflects
<br />an increase of $898,308 from 2022. The increase was due to the issuance of a $8,315,000 General Obligation
<br />Bond issue that had $6,915,000 appropriated to the Tax Increment Fund for COR improvements.
<br />
<br />COR Land Fund – This Special Revenue Fund increased $195,224 to a year-end fund balance of $8,343,303.
<br />
<br />Private Developer Fund – This Special Revenue Fund is used to account for monies deposited from developers
<br />to offset city administrative costs. There is no fund balance recorded for 2023.
<br />
<br />RALF Funded Projects Fund – This Capital Project Fund had a year-end fund balance of $210,223. The
<br />reduction in fund balance by $294,997 was the return of rental income to Met Council.
<br />
<br />State-Aid Construction Fund – This Capital Project Fund saw an overall decrease in fund balance of
<br />$1,465,288, due to the reconstructions of 161st and 167th Avenues.
<br />
<br />Pavement Management Program Fund – This Capital Project Fund saw a slight decrease in fund balance of
<br />$97,798. The ending fund balance for 2023 was $15,004,728.
<br />
<br />Park Improvement Fund – This Capital Project Fund had a year-end fund balance of $7,683,511, or a
<br />$742,822 increase from 2022. The increase was due to the collection of park dedication fees.
<br />
<br />Proprietary Funds – The City’s Proprietary Funds provide the same type of information found in the
<br />government-wide financial statements, but in more detail. The City’s Enterprise Funds had a combined net
<br />position balance of $116,164,718 at December 31, 2023. The financial activities of these funds have been
<br />summarized in previous charts within this discussion. The City’s Internal Service Fund had an ending net
<br />position of $436,956.
<br />
<br />The Enterprise Funds consist of the Water Utility Fund, Sewer Utility Fund, Street Light Utility Fund, Recycling
<br />Utility Fund, and Storm Water Utility Fund.
<br />34
|