06-02-25 - Council Work Session Agenda

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Management's Discussion and Analysis The MSA Construction Fund has a total fund balance of $4,283,196, all of which is assigned to capital improvements for City MSA designated roadways. The fund balance during the current year decreased by $527,228 primarily due to project costs exceeding revenues. Capital activity occurred on the Marketplace Drive realignment project and the Otter Lake Road extension during 2024. The combined fund balance of other governmental funds decreased by $959,213 during 2024 primarily due to debt repayments and nonmajor capital project funds activities. Proprietary funds. The City's proprietary funds provide the same type of information found in the government -wide financial statements, but in more detail. The Water Fund has a total net position at year-end of $38,808,686, of which $7,798,516 is unrestricted. The increase in net position of 5,094,747 was primarily due to capital contributions from governmental activities. The Area and Unit Trunk Fund is funding water infrastructure, including the water treatment plant and trunk watermain additions. The Sewer Fund has a total net position at year-end of $32,270,204 of which $10,081,789 is unrestricted. The increase in net position of $736,859 was primarily due to developer contributed infrastructure additions, particularly in the Watermark 5th and 6th Additions. The Storm Water Fund has a total net position at year-end of $363,384 of which all is unrestricted. The Storm Water Utility was established in 2022 to fund the operation and management of the City's storm water infrastructure. Budgetary Highlights General Fund There were no amendments to the original budget in 2024. Budgeted revenues for 2024 were $12,998,968. Actual revenues exceeded the budget by $727,213. General property taxes and other taxes were the only revenue source category that did not exceed its budget. Intergovernmental revenues were stronger than budgeted primarily due to recognizing the portion of the Fire State Aid which is passed through to the PERA Statewide Volunteer Firefighter Retirement Plan, which was not budgeted. Investment earnings also contributed to the positive budget variance. Budgeted expenditures for 2024 were $13,018,968. Actual expenditures were $529,874 under budgeted amounts. The main causes of the under -budget variances were due to personal services budgeting for positions that remained vacant during the year. The City carried out its budgeted transfer out to the Capital Equipment Replacement Fund but additionally made a small transfer out to the Comp Plan Update capital project fund and transferred out to the Office Equipment Replacement Fund for the reimbursement of the City's new financial ERP software. 27