2023 Annual Comprehensive Report

FINANCIAL ANALYSIS OF THE CITY’S FUNDS A. Governmental Funds

As noted earlier, the City uses fund accounting to ensure and demonstrate compliance with finance related legal requirements. As of June 30, 2023, governmental funds reported a combined fund balance of $323.1 million, an increase of approximately $129.7 million or 67.0% of the FY 2022 amount. The General Fund net results increased fund balance by $23.9 million, due primarily to increases in property tax and local sales tax revenues and approximately $14.3 million designated for American Rescue Plan Act (ARPA)-enabled projects. Internal Service Funds are reported with the governmental activities in the Statement of Net Position. Overall operating expenditures (excluding debt service) increased approximately $7.4 million or 2.0%. General Government and Public Safety expenditures were up 6.7 million and 10.2 million respectfully, primarily due to increased personnel costs associated with merit and market adjustments. Debt service expenditures at $39.1 million are down $1.9 million from the previous year. The current year transfers out exceeded transfers in by $25.0 million to support other operations including transfers to support Coliseum, Solid Waste Management and Parking enterprise funds and to support ARPA-enabled projects. Fund balance of $193.5 million or 59.9% of the total amount is non-spendable or restricted to indicate that it is not available for spending due to GASB No. 54 classifications of (1) Non-Spendable which includes inventories, prepaid expenses, leases, perpetual maintenance or assets held for resale (2) Restricted which includes amounts to liquidate contracts and purchase orders of the previous year, adherence to Stabilization for State Statute, amounts bound by debt covenants and third party grantor requirements. The adherence to State Statute limits the amount that may be appropriated by the governing board or for other restricted purposes. The remainder of fund balance represents amounts committed 3.9%, assigned 29.1% and unassigned 7.1% funds. The General Fund is the chief operating fund of the City. At the end of the current fiscal year, total fund balance of the General Fund was $126.6 million. Of this amount, $2.2 million is non-spendable, $46.3 million is restricted, $6.5 million is assigned for appropriation in next year’s budget, $20.9 million is assigned for capital projects, $14.3 is assigned for ARPA enabled projects, and $36.4 million or 9% of the subsequent years’ budget is unassigned and retained for working capital purposes as well as unforeseen emergencies. General fund balance increased by $23.9 million due primarily to an increased amount of property taxes collected and funds held for ARPA-enabled projects. The Debt Service Fund has a fund balance of $13.8 million, $12.3 million more than last year. The fund covered debt service expenditures (principal and interest) of approximately $33.7 million, amounting to approximately 8.7 cents of the general property tax rate. The total fund balance at June 30, 2023, less amounts restricted by state statue, is assigned for debt service in next year’s budget with the balance to be used to stabilize property tax rates from year to year for future increases in debt service amounts due to new voter-approved bonds, as well as to support the City’s fund balance goals. Revenues for general governmental functions (General, Special Revenue, Capital Project and Debt Service Funds) amounted to $479,528,814 for the fiscal year ended June 30, 2023 and are comprised of various sources as shown in the following graph:

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