2018 Comprehensive Annual Financial Report

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CITY OF CASSELBERRY, FLORIDA MANAGEMENT'S DISCUSSION AND ANALYSIS Continued September 30, 2018 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, unassigned 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 FY 2018, the City's governmental funds reported combined ending fund balances of $21,998,815, an increase of $1,032,784 in comparison with the prior year. The increase in fund balances is attributable to planned increases in General Fund revenue offset by regular scheduled debt service payments. The Infrastructure Surtax Fund experienced a decrease in fund balance due to the continuation of planned capital projects.The City's governmental fund balances are allocated as follows: non -spendable for prepaid items and inventory - $66,111; Restricted for various purposes - $13,287,243; Committed by City Commission - $639,876; and Assigned for budget roll -forward - $700,407. Unassigned fund balance is $7,305,178 and is available for spending in accordance with related ordinances, resolutions, laws and regulations, Florida Statutes, and City policies. MAJOR FUNDS General Fund The General Fund is the chief operating fund of the City. At the end of FY 2018, unassigned fund balance of the General Fund was $7,305,097, while total fund balance was $8,067,782. As a measure of the General Fund's liquidity, it may be useful to compare both unassigned fund balance and total fund balance to total fund expenditures. Unassigned fund balance represents 49.9% of the total General Fund expenditures including transfers, while total fund balance represents 55.1% of that same amount. The fund balance of the City's General Fund increased $1,626,083 during the current fiscal year. Total revenues increased by $1,367,157 and total expenditures increased by $618,984 from the prior year. The increase in revenues is attributable to increases in taxes due to new construction and increases in property values and permits, fees and special assessments revenue as a result of a stronger economy. T.here was a reduction in the payment to Seminole County for fire services of $318,071. The remaining differences in revenues and expenditures were due to routine variations. The following graph displays the General Fund current expenditures by function for FY 2018 and FY 2017 as a visual display. 14