Agenda Packet 12-10-18 Meeting - REVISED

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Fund-based Financial Analysis As previously discussed, the City uses fund accounting to demonstrate transparency and ensure compliance with finance- related legal requirements. 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 requirements for funding day-to-day operations. Significant issues regarding the governmental funds are listed below. As of the end of the fiscal year, the City’s governmental funds reported a combined ending fund balance of $176.1 million, an increase of $12.9 million from the prior year. $5.9 million of the fund balance is nonspendable because it consists of the following: 1) prepaid expenditures, 2) debt service, 3) inventories, and 4) assets held for resale. The remaining $170.2 million of fund balance was classified as follows.  $76.7 million was restricted due to external limits on how the resources may be used.  $12.7 million was committed as a result of specific constraints placed on the use of the resources per City ordinance.  $69.4 million was assigned per City Council’s intent to use these resources for a specific purpose: unappropriated ending fund balance, reserve for revenue shortfall, balancing the next year’s budget, and uncompleted capital projects are the primary components.  $11.4 million was unassigned and is available to be used at the government’s discretion, subject to fund limitations. The fund balance of the City’s General Fund increased $4.5 million from $60.4 million to $64.9 million during the current fiscal year. The change was attributable to an increase in revenues of $12.6 million offset by increases in department expenditures. The most significant changes were:  Tax revenues increased $8.4 million over the prior year which included a property tax settlement from Comcast of $3.5 million, an increase of $0.8 million in Marijuana tax and a higher collection rate than the prior year.  Charges for services and Intergovernmental revenues increased by $0.6 million and $1.4 million, respectively.  Departmental expenditures increased by $9.6 million with the largest increases in the Fire and Emergency Medical Services ($3.0 million) and Library, Recreation, and Cultural Services ($3.7 million). The fund balance in the Community Development Fund decreased $0.1 million from $4.2 million to $4.1 million during the fiscal year. The fund balance in the General Capital Projects Fund increased $0.2 million from $20.1 million to $20.3 million during the fiscal year. The fund balance in the Systems Development Capital Projects Fund increased $3.8 million from $27.6 million to $31.4 million during the fiscal year. The increase was primarily due to the accumulation of resources for future park developments and transportation projects. Proprietary funds. The City’s proprietary fund statements provide the same type of information found in the government-wide financial statements, but in more detail. Unrestricted net position and its percent to total net position of each proprietary fund are as follows: Unrestricted Percent of Total Fund Name Net Position Net Position Ambulance Transport $ (6.9) million 109.98% Municipal Airport (0.8) million (0.83%) Parking Services 0.6 million 4.02% Stormwater Utility 4.1 million 5.79% Wastewater Utility (7.3) million (9.42%) Total business-type net position (excluding the consolidation of internal service fund activities) increased $0.1 million in the fiscal year. 24 December 10, 2018, Meeting - Item 2D