2005 Comprehensive Annual Financial Report

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The park and recreation unreserved fund balance saw an increase of $149,585. The major reason for this increase is due to higher overall revenues as well as expenditures that had normal increases from the prior year. Since the Park fund is a recipient of property taxes, it has also experienced the problems that have been chronicled earlier. The TIF Airport and COIT funds are used to account for major capital construction. The unreserved fund balances changes increased $4 million and decreased (2.1) million respectively. These changes are due to the construction of multi -year projects. Individual fund data for each of the non -magr governmental funds is provided in the form of the combining statements in the Supplemental Information portion. Proprietary funds. Enterprise funds are used to report the same functions presented as business- type activities in the government -wide financial statements. The City maintains seven individual enterprise 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 basic fiduciary funds financial statements can be found later in this report. General Fund Budgetary Highlights The City adopts an annual appropriated budget for its general fund. The final budget was greater than the original budget by 5,365,442. An amended original budget can be explained by either an encumbrance rollover or a current year budget overrun. The general fund budget is reviewed throughout the year and revised as needed with the approval of the City Council. At the end of the fiscal year the actual expenditures are projected and the budget is amended to prevent any budget overruns. The City tries to work within its original budget by increasing categories that will exceed budget while decreasing other categories to cover these overruns. If this transferring will not cover these expenditures then the City must appropriate from its fund balance. Of the $5,365,442, $4.5 million was to amend the original budget to account for a capital project that the City as well as other participants will be cost sharing on. The remainder was prior year encumbrances that rolled over and were added to the original budget. The actual revenues are $4,563,641 over budget and expenditures are $2,989,572 under budget. The majority of $4.5 million can be explained by the one time reimbursement. The under spending of the expenditures can be partially attributed to the fact that the City budgets at full staff and not all positions were filled in 2005. Also, a major capital project was not completed in 2005. In all, this saving provides evidence that the City's budget has been prepared on a conservative basis and provided adequate resources to fund services provided. All cities have limited resources and, thus, limited numbers of programs and services that can be provided. We are proud to say that we have done well in terms of maintaining a solid, financially sound organization by spending within our means. Capital Asset and Debt Administration Capital assets. The Cityy's investment in capital assets for its governmental and business type activities at December 31, 2005 amounts to $277,437,682 (net of accumulated depreciation. This investment in capital assets includes land, buildings, roads, improvements, service lines, automobiles and equipment, and street lights. A detailed note of these capital assets can be found in the Notes to the Basic Financial Statements (Note III Q. Major capital asset additions during the current fiscal year include the following: - Relocation of Park Maintenance Facility. - Major road renovation at $1.75 million. - New vehicles added to fleet at a cost of $1.2 million. 10