06-1659 Comprehensive Annual F - Laserfiche WebLink

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CITY OF CASSELBERRY, FLORIDA MANAGEMENT'S DISCUSSION AND ANALYSIS - Continued September 30, 2005 Financial Analysis of the City's Funds As noted earlier, the City uses fund accounting to ensure and demonstrate 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 financing requirements. In particular. unreserved fund balance may serve as a useful measure of a government's net resources available for spending at the end of the fiscal year. As of the end of fiscal year 2005, the City's governmental funds reported combined ending fund balances of $16.5 million, a decrease of $0.9 million in comparison with the prior year. Unreserved fund balance is $15.5 million and is available for spending, subject to regulatory, statutory, and budgetary restrictions. The remainder of fund balance is reserved to jndicate that it is not available for new spending because it has already been committed: 1) for inventories ($22 thousand), and 2) for prepaid items ($907 thousand). The General Fund is the chief operating fund of the City. At the end of fiscal year 2005. unreserved fund balance of the General Fund was $5.4 million, while total fund balance reached $6.1 million. As a measure of the General Fund's liquidity, it may be useful to compare both unreserved fund balance and total fund balance to total fund expenditures and transfers out. Unreserved fund balance represents 27.3% of the total general fund expenditures and transfers out, while total fund balance represents 30.5% of that same amount. The fund balance of the City's General Fund increased by $1.9 million during the current fiscal year. The key factor in this growth is the receipt of hurricane recovery cost reimbursements from the Federal and State governments of $2.4 million. Enterprise fund The City's enterprise fund provides the same type of information found in the government-wide financial statements, but in more detail. The City only has one enterprise fund, the Utility Fund, which is a major fund. Unrestricted net assets of the enterprise fund, at the end of the year was $17.1 million. The total net assets of the enterprise fund increased by $1.3 million. Other factors concerning the finances of these funds have been addressed in the discussion of the City's business-type activities. General Fund Budgetary Highlights Differences between the General Fund's original budget and final amended budget, for expenditures and transfers out, increased by $4.8 million for the year. These increases were appropriated from additional revenue sources which included proceeds from a revenue note issue of $2.3 million and a FEMA grant to purchase a iadder fire truck for $500 thousand. The changes within functions are briefly summarized as follows: Increase in general government activities of $2.8 million. Increase in public safety activities of $685 thousand. Increase in physical environment activities of $781 thousand. Increase in transportation activities of $64 thousand. Increase in culture/recreation activities of $366 thousand. Increase in transfers out of $117 thousand. Increase in debt service of 7 thousand. The City's total actual general fund expenditures and transfers out were $3.0 million less than the final amended budget for the General Fund. 9