2014 Annual Comprehensive Financial Report

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Financial Analysis of Funds As the City completed the year, its governmental funds reported a combined fund balance of $20.5 million, a decrease of $3.6 million (15.0%) from last year. Some items to be noted, within various funds are: The General Fund balance declined by $2.8 million, or 44%, during 2014. This was due to $5.9 million of transfers to other funds, including $5.6 million to the Capital Projects Fund and $200,000 to the Golf Course Fund. This large decline was actually less than anticipated due to higher than anticipated receipts of sales and use tax and building -related revenue. In addition, total General Fund expenditures came in at 5.2% under budget. As anticipated, the Open Space & Parks Fund balance declined by nearly $2.1 million during 2014 due to a significant amount of capital projects. However, the fund balance remained at $5.3 million. As with the General Fund, the decline was less than expected. Although fund revenue came in under -budget by $75,000, fund expenditures came in under - budget by $1.4 million, mainly due to unfinished capital projects. Although the Capital Projects Fund balance was projected to decline significantly during 2014, it increased by over $1.8 million. This was due to capital expenditures being under - budget by nearly $6 million because of delayed capital projects. The majority of this unused budget will be re -appropriated for 2015 in order to complete the projects. General Fund Budgetary Highlights For 2014, General Fund revenue exceeded budget by $980,000 (6%). As previously stated, this was primarily due to positive budget variances in sales tax revenue ($171,000) use tax revenue ($393,000), and licenses and permits ($141,000). The only significant negative revenue variance occurred because the City failed to sell property as anticipated at the time of budget adoption ($1 million). In addition, continued emphasis on cost -containment resulted in General Fund expenditures (excluding interfund transfers) coming in over $1 million (6%) below budget. Excluding interfund transfers and sales of assets, the positive variances in revenue and expenditures total approximately $2 million. Capital Asset and Debt Administration Capital Assets At the end of 2014, the City had invested $276.0 million (Figure 7) in a broad range of capital assets, including land, water rights, streets, and utility infrastructure. Net of accumulated depreciation, the City's capital assets total $184.2 million. More detailed information on capital asset activity can be found in the notes to the financial statements, Note 6: Capital assets. 18