Agenda - Council Work Session - 06/10/2025

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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. Actual revenues exceeded budgeted revenues by $1,556,350. The majority of the variance was attributed to conservative budgeting with most sources surpassing budget expectations. The largest variances occurred in licenses and permits ($688,537) due to an increase in building construction and charges for services ($540,900) with more development activity than anticipated. The difference between the final expenditure budget and actual was $20,101. The slight overage was attributed to all functions coming in less than budgeted, with the exception of capital equipment. Equipment that was originally budgeted for in 2023, but due to supply chain shortages, were not received until 2024. Final budget numbers are based on past history and expected needs. Overall fund balance increased by $1,058,458 to an ending fund balance of $13,324,373. The city's ending fund balance increase of $1,058,458 is determined by its fund balance policy which for the year ending is summarized: • $1,033,430 increase based on 50% increase in next years adopted budget • $25,028 increase in prior year encumbrances related to personnel costs Tax Increment Fund — This Special Revenue Fund had a year-end fund balance of $3,362,513 which reflects a decrease of $3,367,499 from 2023. The decrease was largely due to capital spending and transfers to several funds that contributed to the development of the COR area. COR Land Fund — This Special Revenue Fund increased $253,963 to a year-end fund balance of $8,597,266. Developer's Fees Fund — This Special Revenue Fund decreased $385,211 to $1,056,708. The decrease is attributed to the beginning of construction of a storm basin. Private Developer Fund — This Special Revenue Fund is used to account for monies deposited from developers to offset city administrative costs. There is no fund balance recorded for 2024. RALF Funded Projects Fund — This Capital Project Fund had a year-end fund balance of $400,837. The increase in fund balance by $190,614 was property lease income. State -Aid Construction Fund — This Capital Project Fund saw an overall increase in fund balance of $36,326. Pavement Management Program Fund — This Capital Project Fund saw a decrease in fund balance of $3,086,542 due to a significant increase in street reconstruction projects. The ending fund balance for 2024 was $11,918,186. Park Improvement Fund — This Capital Project Fund had a year-end fund balance of $9,087,595, or a $1,404,084 increase from 2023. The increase was due to the collection of park dedication fees. 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 $127,961,845 at December 31, 2024. 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 $492,880. 34