06-03-2019 Council Packet - Laserfiche WebLink

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Management’s Discussion and Analysis Financial Analysis of the Government's Funds Governmental Funds. The focus of the City’s governmental funds is to provide information on near-term inflows, outflows, and balances of spendable resources. Such information is useful in assessing the City’s financing requirements. In particular, unassigned fund balance may serve as a useful measure of a government’s net resources available for spending at the end of the fiscal year. At the end of the current fiscal year, the City’s governmental funds reported combined ending fund balances of $33,255,201. Approximately 30% of this total amount ($9,824,255) constitutes fund balance restricted by external constraints established by creditors, grantors, contributors, or by state statutory provisions. $388,184 of fund balance is not in a spendable form, $182,613 has been committed, $19,195,652 has been assigned, and $3,664,497 is unassigned. The fund balance of the General Fund increased by $69,217 in 2018, while the City anticipated the use of $32,288 of the general fund balance. Overall, signs of continued economic recovery are being seen with increased building and development activities taking place which resulted in increased license and permit revenues for the year. The City also saw a significant increase in the number of roofing and siding permits issued during the year due to a storm causing significant damage throughout the City in June of 2017. Finally, reduced expenditures, primarily for personal services through vacant positions, and professional and contractual services helped to increase the year end fund balance. The G.O. Improvement Note of 2009A fund was established to service the debt issued by Anoka County as the City’s financial commitment for the I-35E interchange project. The City prepaid the remaining balance of the note in 2017 using MSA funds. As deferred special assessments are received, MSA funds will be replenished. The fund began and ended the year with a fund balance of $0, and transferred $647,371 to the MSA Construction fund. The G.O. Improvement Bonds of 2016B fund decreased by $217,643. The 2016B series bonds were issued to refund the 2005A series bonds and fund the Legacy at Woods Edge improvements. Future tax increment and land sale proceeds are expected to cover debt service and the interfund loan payable. The Area and Unit Charge fund has a total fund balance of $8,156,800, all of which is assigned for financing capital improvements. The fund balance during the current year increased by $500,645 due to the collection of prepaid special assessments and trunk utility development fees. The MSA Construction fund has a total fund balance of $3,919,729, all of which is assigned to capital improvements for City MSA designated roadways. The fund balance during the current year increased by $3,076,355 primarily due to an advance of funds for MSA street projects completed in prior years. 26