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Management's Discussion and Analysis
<br />Financial Analysis of the Government's Funds
<br />Governmental Funds. The focus of the City's governmental funds is to provide information on
<br />near -term inflows, outflows, and balances of spendable resources.
<br />At the end of the current fiscal year, the City's governmental funds reported combined ending
<br />fund balances of $36,850,557. Approximately 17% of this total amount ($6,441,358) constitutes
<br />fund balance restricted by external constraints established by creditors, grantors, contributors, or
<br />by state statutory provisions. Of the remaining fund balance, $713,505 is not in a spendable
<br />form, $388,929 has been committed, $22,269,960 has been assigned, and $7,036,805 is
<br />unassigned.
<br />The General fund balance increased by $972,537. Overall revenues increased by approximately
<br />$1,143,000 over 2023. Property taxes, intergovernmental revenues and charges for services were
<br />the major drivers of the increase over the prior year due to an increased tax levy and increased
<br />state aids. The increases in revenues were partially offset by increased expenditures over 2023,
<br />however the City had fewer transfers -out, which resulted in the net increase in fund balance
<br />outperforming 2023 by $475,174.
<br />The Rookery Activity Center opened to the public in May 2022. The fund balance improved
<br />from a deficit of $5,067 to a positive $77,356 in 2024 resulting from positive operating activity,
<br />and an increase in the tax levy over the prior year levy. During 2024, the Fund had revenues
<br />over expenditures of $82,423, whereas 2023's expenditures exceeded revenues by
<br />$335,089. While the Rookery operating revenues fell short of budget, primarily in charges for
<br />services, expenditures were also under budget, primarily in personal services. The tax levy
<br />increased by $100,000 in 2025 with the goal of total revenues covering total expenditures for the
<br />current and future years.
<br />The G.O. Improvement Bonds of 2016B deficit fund balance increased by $1,728,204 during the
<br />year and the fund was closed at year end. The 2016B series bonds were issued to refund the
<br />2005A series bonds and fund the Legacy at Woods Edge improvements. The bonds matured in
<br />2021, and future tax increment was expected to cover the interfund loan payable. During 2024
<br />the interfund loan payable liability was transferred to the TIF 1-11 Legacy at Woods Edge Fund
<br />where it will continue to be reduced by future tax increment.
<br />The Capital Equipment Replacement fund balance increased by $679,463 due to a significant
<br />increase in the property tax levy and proceeds from the sale of fixed assets. The fund also
<br />reduced its interfund loan payable by its scheduled payments. The interfund loan payable will
<br />continue to be paid back with a tax levy over the next nine years. The fund accounts for the
<br />replacement of public safety and public works equipment and vehicles financed by a pay as you
<br />go tax levy.
<br />The Area and Unit Trunk fund has a total fund balance of $10,419,643, all of which is assigned
<br />for financing water and sewer capital improvements, including the new water treatment plant.
<br />The fund balance increased during the current year by $857,318 primarily due to investment
<br />earnings and trunk fees (either collected over time through special assessments or paid up front
<br />through charges for services). Intergovernmental revenues also were received for much of the
<br />covered project costs that were incurred during the year.
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