CCAgenda_04May19 - Laserfiche WebLink

Home Browse Search

CITY OF FALCON HEIGHTS, NIINNESOTA MANAGEMENT'S DISCUSSION AND ANALYSIS December 31, 2003 As management of the City of Falcon Heights, we offer readers of the City of Falcon Heights' financial statements this narrative overview and analysis of the financial activities of the City of Falcon Heights for the fiscal year ended December 31, 2003. We encourage readers to consider the information presented here in conjunction with additional information that we have furnished in our letter of transmittal, which can be found on pages 7-10 of this report. All amounts, unless otherwise indicated, are expressed in dollars. FINANCIAL HIGHLIGHTS • The assets of the City of Falcon Heights exceeded its liabilities at the close of the most recent fiscal year by $ 12,214,461 (net assets). Of this amount, $ 5,998,371 (unrestricted net assets) may be used to meet the government's ongoing obligations to citizens and creditors. • The government's total net assets increased by $ 133,250. • As of the close of the current fiscal year, the City of Falcon Heights' governmental funds reported combined ending fund balances of $ 5,261,741, a decrease of $ 328,650 in comparison with the prior year. Approximately 83% of this total amount, $ 4,388,472, is available for spending at the government's discretion (unreserved fund balance); the City has designated $ 3,994,496 of this amount for specific purposes. • • At the end of the current fiscal year, unreserved fund balance for the general fund was $ 1,08.0,800, or 81% of total general fund expenditures at 2003 levels. • The City of Falcon Heights' total debt decreased by $ 524,000 (17.6%) during the current fiscal year. This represents scheduled payments of the City's debt. During 2003, the City completely retired the improvement bonds of 1993. • During 2003, actual construction started on the maj or redevelopment of the SE corner of the intersection of Snelling Avenue and Larpenteur Avenue. This development includes 56 senior apartment units, 119 multi-family apartment units, 14 town homes and 12,000 square feet of retail space. The Metropolitan Council, a governmental agency of the State of Minnesota, awarded a $ 1,450,000 grant for this project. The Community Development Special Revenue Fund, a major fund for 2003, accounts for the financial activity of this project. This grant was used to help fund the purchase of the existing property and lease buy-outs of existing tenants and property owners. This project is projected to be completed in 2005. Overview of the Financial Statements -This discussion and analysis are intended to serve as an introduction to the City of Falcon Heights' basic financial statements. The City of Falcon Heights' basic financial statements comprise three components: 1) government-wide financial statements, 2) fund financial statements, and 3) notes to the financial statements. This report also contains other supplementary information in addition to the basic financial statements themselves. • 15