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GOVERNMENTAL FUNDS OVERVIEW <br /> This section of the report provides you with an overview of the financial trends and activities of the City's <br /> governmental funds,which includes the General, special revenue, debt service, and capital projects funds. <br /> These funds are used to account for the basic services the City provides to all of its citizens, which are <br /> financed primarily with property taxes. The governmental fund information in the City's financial <br /> statements focuses on budgetary compliance and the sufficiency of each governmental fund's current assets <br /> to finance its current liabilities. <br /> GOVERNMENTAL FUND BALANCES <br /> The following table summarizes the changes in the fund balances of the City's governmental funds during <br /> the year ended December 31,2025,presented both by fund balance classification and by major fund: <br /> Governmental Funds Change in Fund Balance <br /> Fund Balance <br /> as of December 31, <br /> 2025 2024 Change <br /> Fund balances of governmental funds <br /> Total by classification <br /> Nonspendable $ 37,847 $ 56,081 $ (18,234) <br /> Restricted 2,836,053 2,637,373 198,680 <br /> Assigned 11,971,171 12,427,329 (456,158) <br /> Unassigned 4,695,761 4,309,823 385,938 <br /> Total governmental funds $ 19,540,832 $ 19,430,606 $ 110,226 <br /> Total by fund <br /> General $ 8,546,384 $ 8,076,660 $ 469,724 <br /> Economic Development Authority <br /> Special Revenue 1,513,412 1,439,985 73,427 <br /> Community Center Special Revenue 179,125 252,932 (73,807) <br /> TIF District No.5 Special Revenue 64,523 55,397 9,126 <br /> Vehicle and Equipment Capital Projects 2,455,054 2,867,094 (412,040) <br /> Special Projects Capital Projects 3,280,792 3,632,306 (351,514) <br /> Street Improvement Capital Projects 2,415,886 2,216,511 199,375 <br /> Nonmajor 1,085,656 889,721 195,935 <br /> Total governmental funds $ 19,540,832 $ 19,430,606 $ 110,226 <br /> In total, the fund balances of the City's governmental funds increased by $110,226 during the year. The <br /> largest increase was in the General Fund with an increase in unassigned fund balance. The decrease in <br /> assigned fund balance was primarily due to spending for capital projects. <br /> -5- <br />