2006 Comprehensive Annual Financial Report

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Business-true Activities Business-type activities had an increase in net assets of $5.8 million dollars during 2006. The majority of the increase is due to higher charges for services in the Wastewater and the Water Works departments through hi er utility charges to customers. This increased revenue will finance along-term capital development plan at the Wastewater and Water Works utilities. Total expenses at the Wastewater and Water Works utilities were lower during 2006 than in 2005. Financial Analysis of the gGove~r~nments' Funds ~ ~ fan d vi~~e~~nto 1~~ ~ateg~nela g~ le~ngien~ufun~f s,np op oe}taryundsn~anc~~fiduc ~ary Tund~ete Governmental funds. The purpose of the City's governmental funds is to provide information on short-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. At the end of 2006, the City's governmental funds reported a combined ending fund balance of $139,890,912. Of this amount, $101;476,539, or 72.5%, was in unreserved fund balance, which is available for spending.at the City s discretion. The majority of this unreserved fund balance is for major capital pro ects that have been designated by the Common Council. The remainder of the fund balance (~$38,414,373).is reserved and is not available for new spending because it has already been dedicated for various commitments. The General Fund is the City's chief operating fund. At the end of 2006, the total General Fund balance was $25,851,295, a decrease ofg$2,892,899, or 10.1%, from 2005. This use of General Fund balance was planned for in the 2006 budget. The unreserved fund balance of the General Fund was $21,688 442 at December 31, 2006. Unreserved General Fund balance is approximately 31% of total General Fund expenditures at December 31, 2006. The Parks and Recreation Fund had an increase in fund balance of $493,495 during 2006. The reason for this increase is that revenue (~nmarily due to roperty taxes and user charges) . . exceeded expenditures during the year. ~'I'he ending fundpbalance in the Parks and Recreation Fund was $2,136,982 at December 31, 2006.Of this amount,. $2,075,034 is unreserved fund balance. The TIF Airport and County Option Income Tax (COIT)) funds are used to account for major capital construction protects. The fund balance in the T'IF Airport Fund increased by $5,843,279 during 2006, while the fund balance in the COIT fund decreased by $573,737 durin 2006. At December 31, 2006, the fund balances in the TIF Airport and COIT funds were 24,185,065 and $8,625,221, respectively. These fund balances represent resources that City has to meet some of its future capital construction needs. Individual fund data for each of the non-ma or governmental funds is provided in the form of the combining statements in the Supplemental ~nfonnation portion. Proprietary funds. Enterprise funds are used to report the same functions presented as business- type activities in the government-wide financial statements. Internal service funds are used to account for services provided to other City departments and funds on acost-reimbursement basis. The City maintains seven enterprise funds and three internal service funds. The basic proprietary fund financial statements can be found later in this report. Fiduciary funds. Fiduciary funds are used to account for resources held for the benefit of parties outside the government. The City has four fiduciary funds. The basic fiduciary funds financial statements can be found later in this report. 28