06-01-2020 Council Work Session Packet

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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 $30,223,529. Approximately 22% of this total amount ($6,650,462) constitutes fund balance restricted by external constraints established by creditors, grantors, contributors, or by state statutory provisions. $399,749 of fund balance is not in a spendable form, $619,385 has been committed, $19,672,706 has been assigned, and $2,881,227 is unassigned. The fund balance of the General Fund decreased by $92,947 in 2019, while the City anticipated the use of $375,645 of the general fund balance. Strong investment earnings and increased license and permit revenues resulted in favorable General Fund revenues for the year. Reduced expenditures, primarily for personal services through position vacancies, and favorable professional and contractual services spending 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 $62,605 to the MSA Construction fund. The G.O. Improvement Bonds of 2016B fund decreased by $132,581. 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 $8,307,394, all of which is assigned for financing capital improvements. The fund balance during the current year increased by $150,594 due primarily to the collection of prepaid special assessments and strong investment earnings. This increase was partially offset by feasibility and design expenditures incurred for Well #7. The MSA Construction fund has a total fund balance of $3,733,517, all of which is assigned to capital improvements for City MSA designated roadways. The fund balance during the current year decreased by $186,212 primarily due to transfers out for debt service payments. 24