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Management's Discussion and Analysis
<br />Proprietary funds. The City's proprietary funds provide the same type of information
<br />found in the government -wide financial statements, but in more detail.
<br />The water fund has total net position at year-end of $22,019,271, of which $4,883,004 is
<br />unrestricted. The increase in net position of $1,706,346 was primarily due to capital
<br />contributions, partially offset by a net operating loss.
<br />The sewer fund has total net position at year-end of $23,704,786, of which $8,980,443 is
<br />unrestricted. The increase in net position of $394,698 was primarily due to capital
<br />contributions, partially offset by a net operating loss and transfers out of the fund.
<br />Budgetary Highlights
<br />General Fund
<br />The General Fund budget was amended several times during the year to reflect increased
<br />revenues in building activities, police state aid, and other fines and fees, as well as changes in
<br />expenditure areas due to personnel vacancies, changes to professional and contracted
<br />services, variances in supplies, tools, and fuel, and finally the transfer for the park land loan.
<br />The final amended expenditure budget was $317,388 less than the original adopted budget.
<br />Revenues were $185,564 over budget for the year. General property tax and
<br />intergovernmental state grant revenues were $50,529 under budget; however, this variance
<br />was more than offset by greater than anticipated license and permit revenues, public safety
<br />charges for services, and miscellaneous refunds and reimbursements.
<br />Expenditures came in under budget by $115,428 due to many factors including lower than
<br />expected personal service costs from vacant positions. Fuel and fleet maintenance supply
<br />costs were much lower than anticipated and contracted services was lower overall from
<br />budgeted levels primarily due to favorability in the streets, parks, and planning and zoning
<br />departments.
<br />Capital Asset and Debt Administration
<br />Capital assets. The City's investment in capital assets for its governmental and business -
<br />type activities as of December 31, 2016, amounted to $73,015,035 (net of accumulated
<br />depreciation), an increase of $2,659,169 from the prior year. This investment in capital
<br />assets includes land, construction in progress, buildings, equipment, vehicles, and
<br />infrastructure. The City has continued to work to complete the Shenandoah Area Street
<br />Improvements, NorthPointe 2nd Addition infrastructure improvements, Fire Station #2, Pump
<br />House #6, and the Birch Street turn lanes and infrastructure improvements in 2016. In
<br />addition, the City began the reconditioning of Water Tower #1, Aqua Lane to Blackduck
<br />Drive water main improvements, and the upgrade of the air conditioning system at the Civic
<br />Complex. Developer lead infrastructure improvements at various stages of completion
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