Agenda - Council - 06/09/2026 - Laserfiche WebLink

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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 $1,197,870. The majority of the variance was attributed to conservative budgeting with most sources surpassing budget expectations. The largest variances occurred in licenses and permits ($486,014) due to an increase in building construction and charges for services ($433,238) with more development activity than anticipated. The difference between the final expenditure budget and actual was $1,064,540. All current functions came in underbudget due to several individual line items within each function spending less than originally requested. Final budget numbers are based on past history and expected needs. Overall fund balance increased by $1,138,376 to an ending fund balance of $14,462,749. The city's ending fund balance increase of $1,138,376 is determined by its fund balance policy which for the year ending is summarized: • $1,207,995 increase based on 50% increase in next years adopted budget • $(69,619) decrease in prior year encumbrances relate to personal costs and general liabilities. Tax Increment Fund — This Special Revenue Fund had a year-end fund balance of $2,780,887 which reflects a decrease of $581,626 from 2024. The decrease was largely due to economic development spending and transfers to several funds that contributed to the development of the COR area. COR Land Fund — This Special Revenue Fund decreased $1,632,075 to a year-end fund balance of $6,965,191. The decrease was attributed to transfers to the Park Improvement Fund for the construction costs of the Draw Park. 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 2025. RALF Funded Projects Fund — This Capital Project Fund had a year-end fund balance of $273,915. The decrease in fund balance by $126,922 was the return of rental income to Met Council. State -Aid Construction Fund — This Capital Project Fund saw an overall decrease in fund balance of $32,428. Pavement Management Program Fund — This Capital Project Fund saw a decrease in fund balance of $3, 1 04,805 due to a significant increase in street reconstruction projects. The ending fund balance for 2025 was $8,813,381. Park Improvement Fund — This Capital Project Fund had a year-end fund balance of $11,066,067, or a $1,978,472 increase from 2024. The increase was due to the transfer from the COR Land Fund for the construction costs of the Draw Park in the COR. 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 $138,578,504 at December 31, 2025. 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 $439,765. 34