05-26-2015 Council Packet - Laserfiche WebLink

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CITY OF LINO LAKES, MINNESOTA MANAGEMENT'S DISCUSSION AND ANALYSIS DECEMBER 31, 2014 FINANCIAL ANALYSIS OF THE GOVERNMENT'S FUNDS (CONTINUED) Governmental funds (Continued) — The Area and Unit Charge fund has a total fund balance of $4,383,677, all of which is assigned for financing capital improvements. The fund balance during the current year increased by $213,626, due in large part to the partial repayment of an interfund loan from the Dedicated Parks fund. Proprietary funds — The City of Lino Lakes' proprietary funds provide the same type of information found in the government -wide financial statements, but in more detail. The water fund has total net position at year-end of $18,860,755, of which $5,422,986 is unrestricted. The increase in net position of $27,692 was primarily due to operating income. Total net position in the sewer fund at the end of 2014 was $22,583,545, of which $8,465,292 was unrestricted. The decrease in net position of $5,858 was primarily due to a net operating loss on the year. The water rates, which reflect water conservation efforts through a tiered rate structure, and sewer rates were adjusted by 2% and 4%, respectively, in 2014. A 2% adjustment of water rates and 3% adjustment of sewer rates will go into effect in January, 2015. GENERAL FUND BUDGETARY HIGHLIGHTS The original budget was amended several times during the year reflecting increases in business license revenue, planning and engineering fees, public safety charges for services, MSA maintenance aid, police aid, SCORE grants and gas franchise fees; reductions in fiscal disparities revenue, licenses and permits fines revenue; and reallocating resources within the original budget. The final amended budget is $99,500 greater than the original adopted budget. Revenues were $1,079 under budget for the year. This is due primarily due to various factors. Fiscal disparities revenues came in under budget by $161,391. This were offset by greater than anticipating planning and engineering fees and business licensing and greater than anticipated public safety charges for services due to higher than anticipated traffic control contracts. Expenditures came in under budget by $194,195 due mainly to lower than expected personal services costs from vacant positions and lower contractual expenditures. Energy costs electricity and heating fuels were higher than budgeted amounts, and supplies costs were generally lower than anticipated. Spending on contractual services was lower overall from budgeted levels. There were also net transfers from the general fund of $565,196. This resulted in a net fund balance decrease of $79,548 for the fiscal year, compared to the planned reduction of $159,425. 19