04012008 Regular Meeting - Laserfiche WebLink

Home Browse Search

FINANCIAL ANALYSIS OF THE GOVERNMENT'S FUNDS As noted earlier, the City of San Marcos uses fund accounting to ensure and demonstrate compliance with finance- related legal requirements. Governmental funds. The focus of the City of San Marcos' governmental funds is to provide information on near -term inflows, outflows, and balances of spendable resources. Such information is useful in assessing the City of San Marcos'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 the current fiscal year, the City of San Marcos' governmental funds reported combined fund balances of $63.8 million, an increase of $27 million in comparison with the prior year. Approximately 22.71% of this total amount constitutes unreserved, undesignated fund balance, which is available for use within the City's fund designation and fiscal policies. The remainder of fund balance is reserved to indicate that it is not available for new spending because it has already been committed 1) to liquidate contracts and purchase prepaid expenses of the prior period, 2) to pay debt service, 3) for capital projects, or 4) to generate income to pay for the perpetual care of the municipal cemetery. The General Fund is the main operating fund of the City of San Marcos. At the end of the current fiscal year, unreserved fund balance of the General Fund was $14.5 million, while total fund balance reached $14.7 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. Unreserved fund balance represents 39% of total General Fund expenditures. The Debt Service Fund has a total fund balance of $5.8 million, all of which is reserved for the payment of debt service. The net increase in fund balance during the current year was $3,530,929. TABLE 3 GOVERNMENTAL TAX REVENUES ?nn7 Property $ 9,756,640 Sales 17,405,977 Franchise 6,927,867 Hotel /motel 1,308,101 Mixed Drink 211,795 Increase 2006 (Decrease) $ 8,899,335 16,232,402 6,999,442 1,209,367 191 _R ?1 $ 857,305 1,173,575 ( 71,575) 98,734 19.97 $ 35,610,380 $ 33,532,369 $ 2,078,011 Other factors concerning the finances of governmental funds have already been addressed in the discussion of the City's governmental activities in the government -wide financial statements. Proprietary funds. The City of San Marcos' proprietary funds provide the same type of information found in the government -wide financial statements, but in more detail. 0