MANAGEMENT’S DISCUSSION AND ANALYSIS (UNAUDITED) DECEMBER 31, 2020
Governmental activities. Governmental activities increased the City’s net position by $19,490,000. Key elements of this change are due to the following: • • •
Developer contributions amounted to $8,108,000 Grant funding increased $8,519,000 due to CARES Act funding from Jefferson and Adams Counties Sales and use tax revenues increased $6,964,000
Business-type activities. Business-type activities increased the City’s net position by $13,446,000. Key elements of this increase are due to the following: • • • •
Developer contributions amounted to $7,624,000 Charges for services increased $4,838,000 due to water rate and consumption increases Expenditures for the Golf fund and Food Service fund decreased $1,324,000 due to closures due to the COVID 19 pandemic Transfers to governmental activities decreased $2,333,000 due to fewer transfers for construction projects
Financial Analysis of the City’s Funds As noted previously, 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 year. December 31, 2020, fund balances of governmental funds are classified as follows: Nonspendable – amounts that cannot be spent either because they are not spendable in form or because they are legally or contractually required to be maintained intact. The City had $599,000 in non-spendable resources. Restricted – amounts that are subject to externally enforceable legal purpose restrictions imposed by creditors, grantors, contributors, or law and regulations of other governments; or through constitutional provisional or enabling legislations. The City had $103,276,000 in restricted resources. Committed – amounts that are subject to a purpose constraint imposed by a formal action of the City Council. The City Council is the highest level of decision-making authority for the City. Commitments may be established, modified or rescinded only through resolutions and ordinances approved by the City Council. The City had $24,752,000 in committed resources. Assigned – amounts that are for an intended use established by the City, but that are not considered restricted or committed. The purpose of the assignment must be narrower than the purpose of the General Fund. The City had $14,553,000 in assigned resources. Unassigned – represents the remaining balance for the City’s General Fund. The City had $41,077,000 in unassigned resources.
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