CITY OF TEMPLE, TEXAS MANAGEMENT’S DISCUSSION AND ANALYSIS September 30, 2014 Our discussion and analysis of the City of Temple’s financial performance provides an overview and analysis of the City’s financial activities for the fiscal year ended September 30, 2014. Please read it in conjunction with the accompanying transmittal letter and the accompanying basic financial statements. FINANCIAL HIGHLIGHTS
The City’s net position of the primary government was $ 162,693,979 at September 30, 2014. Of this amount, $ 42,991,066 is unrestricted and may be used to meet the City’s future obligations. Of the $ 43 million unrestricted net position, $ 18,278,736 is related to governmental activities, which includes the General Fund. The $ 24,712,330 remaining balance of unrestricted net position is related to Business-type activities, which is the City’s enterprise fund (water and sewer).
The City of Temple’s total net position decreased by $ 4,988,956 during the current fiscal year. Net position of governmental activities decreased $ 9,299,750 from $ 72,970,917. Net position of business-type activities increased $ 4,310,794 from $ 94,712,018. The net decrease in governmental activities is attributable to the expenditure of bond proceeds for the Pass-Through Financing Project. The PassThrough Financing project is not a capital asset of the City, and all expenditures related to project are expensed as incurred by the City. The Texas Department of Transportation will reimburse the City $16,555,000. These funds will be used pay the debt service on the Pass-Through Agreement revenue and limited tax bonds. The increase in the business-type activities is attributable to an increase in the City’s investment in capital assets.
As of September 30, 2014, the City of Temple’s governmental funds reported combined ending fund balances of $ 42,061,480, a decrease of $ 32,075,053 in comparison with the prior fiscal year. The majority of this decrease, $ 16,176,146, was in the passthrough financing project fund related to the expenditure of bond proceeds. The capital projects fund to fund had a decrease of $ 9,880,074 due to the expenditure of bond proceeds from the first phase of the Transportation Capital Improvement Program. In addition, the decrease was also attributable to a decrease in the debt service fund of $ 6,007,044 due to the defeasance of the limited tax notes from the funds received in the settlement of lawsuit related to the Police Headquarters. There were also decreases in fund balances in the general fund of $ 6,849 and nonmajor governmental funds of $ 4,940.
At the end of the current fiscal year, assigned/unassigned fund balance for the general fund was $ 24,609,091 or approximately 39.37% of total general fund expenditures.
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