COG Comprehensive Annual Financial Report

Figure 4 Revenues by Sources – Business-Type Activities

96.1%

Capital Grants and Contributions Charges for Current Services Investment Income (Loss) Miscellaneous

2.4%

0.4%

1.1%

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, 2018, governmental funds reported a combined fund balance of $160.4 million, an increase of approximately $16.2 million or 11.2% of the FY 2017 amount. The General Fund net results decreased fund balance by $898 thousand, due to increased support for the Debt Service Fund and certain utility sales tax receipts missing their budgeted targets. Internal Service Funds are reported with the governmental activities in the Statement of Net Position. Overall operating expenditures (excluding debt service) have increased approximately $5.3 million or 1.8% primarily due to increased spending for public safety and culture and recreation projects. Debt service expenditures at $22.8 million are up by approximately $3.4 million year to year. The current year transfers out exceeded transfers in by $14.8 million to support other operations including governmental debt proceeds issued to support Coliseum capital improvements recorded in the Coliseum enterprise fund and matching support for state and federal grants. Fund balance of $91 million or 56.7% 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, 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 6.4%, assigned 24.6% and unassigned 12.3% 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 $68.7 million. Of this amount, $1.2 million is non-spendable, $28.8 million is restricted, $6.2 million is assigned for appropriation in next year’s budget, $6.2 million is assigned for capital projects and $26.3 million or 9% of the subsequent years’ budget is unassigned and retained for working capital purposes as well as unforeseen emergencies. General Fund fund balance decreased by approximately $898 thousand primarily as a result of increased support to the debt service fund and certain utility sales tax receipts missing their budgeted targets.

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