Statement of Revenues, Expenses and Changes in Fund Net Position

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 Commitments may be established, modified or rescinded only through resolutions and ordinances approved by the City Council .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 .