Comprehensive Annual Financial Report (CAFR) - Johnson City

Financial Analysis of the City's FundsAs !loted earlier, the City of Johnson City uses fund accounting to ensure and demonstratecompliance with finance-related legal requirements. ·Governmental funds. The focus of the City's governmental funds is to provide information onnear-term inflows, outflows, and balances of spendable resources. Such information is useful inassessing the City's financing requirements. In particular, it is useful to review the variousclassifications of fund balance in measuring the City's net resources available for spending at theend of the fiscal year. As of the end of the current fiscal year, the City's governmental fundsreported combined ending fund balances of $54,822, a current year decrease of $32,513.Additionally, beginning fund balance decreased $56 for adjustments to inventory accounted for.under the purchase method. Included in ending fund balance are assets of $3 80 which arenonspendable, indicating that they are either not in a spendable form or must be maintainedintact. Restricted fund balance of $39,783 includes amounts constrained for education ($167),school debt service ($1,415), specific capital projects ($23,455), school food service ($1,257),public safety ($1,192), fund balance policy ($11,772), and other services ($525). Committedfunds total $315 for education and school food service and $2,299 for compensated absences.The general fund is the chief operating fund of the City. At the end ofthe current fiscal year, totalfund balance reached $19,853, including $12,139 of restricted funds and $2,299 committed forspecific purposes. As a measure of the general fund's liquidity, it may be useful to compare bothunassigned fund balance and total fund balance to total fund expenditures and transfers out.Unassigned fund balance represents 7% of total general fund expenditures and transfers out,while total fund balance represents 27% of that same amount. In conjunction with the 7%unassigned fund balance, it is important to consider that the restricted balance in fund balanceincludes 16% set aside to meet two (2) months of general fund expenditures, in accordance withthe City's fund balance policy. The fund balance of the City's general fund increased by $519 asa result of the transfer of funds from two (2) inactive capital project development funds. ·The general-purpose school fund has a total fund balance of $6,667, including $44 ofnonspendable assets, $167 of restricted funds and $309 committed for specific purposes . .The netincrease in fund balance was $45. This increase is due to lower than anticipated expenditures.A..t the end of the current fiscal year, the fund balance ofthe City's debt service fund totaled $0.The net change in fund balance was $0. ·The educational facilities trust fu.D.d has a total fund balance of $1,415, all of which is restricted.The net increase was $718. This increase is attributable to the restructuring of debt, which wasdone to more properly align debt service payments with the anticipated revenue stream.The school capital project fund has a total fund balance of $13,752, all of which is restricted. Thenet decrease in fund balance during the current year wa:s $24,487. This net decrease is primarilydue to the expending of bond proceeds received in previous years.Nonmajor (other) governmental funds have a fund balance of $13,135, including $336 ofnonspendable assets, $12,310 of restricted funds and $6 committed for specific purposes. The netdecrease in fund balance during the current year was $9,308. This net decrease is primarilyattributed to the expending of bond proceeds received in the previous year. Additionally, thebeginning fund balances for nonmajor governmental funds were decreased $56 for adjustments toinventory accounted for under the purchase method.8