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GOVERNMENTAL FUNDS OVERVIEW <br />This section of the report provides you with an overview of the financial trends and activities of the City's <br />governmental funds, which includes the General, special revenue, debt service, and capital project funds. <br />These funds are used to account for the basic services the City provides to all of its citizens, which are <br />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, 2025, presented both by fund balance classification and by major fund: <br />Governmental Fund Changes in Fund Balance <br />Fund balances of governmental funds <br />Total by classification <br />Nonspendable <br />Restricted <br />Committed <br />Assigned <br />Unassigned <br />Total governmental funds <br />Total by fund <br />Major funds <br />General <br />Special revenue funds <br />Tax Increment <br />COR Land <br />Capital project funds <br />RALF Funded Projects <br />State -Aid Construction <br />Pavement Management Program <br />Park Improvement <br />Nonmajor funds <br />Total governmental funds <br />Fund Balance <br />as of December 31, <br />2025 2024 <br />$ 29,459 <br />11,000,150 <br />1,891,396 <br />30,327,916 <br />14,436,283 <br />$ 57,685,204 <br />$ 14,462,749 <br />2,780,887 <br />6,965,191 <br />273,915 <br />434,487 <br />8,813,381 <br />11,066,067 <br />12,888,527 <br />$ 57,685,204 <br />$ 14,056 <br />14,953,404 <br />1,514,777 <br />29,749,235 <br />13,311,361 <br />Change <br />$ 15,403 <br />(3,953,254) <br />376,619 <br />578,681 <br />1,124,922 <br />$ 59,542,833 $ (1,857,629) <br />$ 13,324,373 <br />3,362,513 <br />8,597,266 <br />400,837 <br />466,915 <br />11,918,186 <br />9,087,595 <br />12,385,148 <br />$ 1,138,376 <br />(581,626) <br />(1,632,075) <br />(126,922) <br />(32,428) <br />(3,104,805) <br />1,978,472 <br />503,379 <br />$ 59,542,833 $ (1,857,629) <br />In total, the fund balances of the City's governmental funds decreased by $1,857,629 during the year <br />ended December 31, 2025. The decrease was largely due to the capital spending for the pavement <br />management program. <br />-5- <br />