Ordinance 2024-611 - Laserfiche WebLink

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City of Sunny Isles Beach, Florida Management's Discussion and Analysis September 30, 2023 Financial Analysis of the City's Funds As noted earlier, the City uses fund accounting to ensure and demonstrate compliance with finance - related legal requirements. Governmental Funds The fund financial statements for the governmental funds are provided on pages 19 through 22. The focus of the City's governmental funds is to provide information regarding near-term inflows, outflows, and balances of spendable resources. Such information is useful in assessing the City's financing requirements. Unassigned fund balance may serve as a useful measure of a government's net resources available for spending at the end of the fiscal year. The major funds are explained below. The General Fund is the chief operating fund of the City. At the end of the current fiscal year, the unassigned fund balance of the General Fund was $55.6. As a measure of the General Fund's liquidity, it may be useful to compare both unassigned fund balance and total fund balance to total fund expenditures and other financing sources (uses). Unassigned fund balance represents 145.5% of total General Fund expenditures and other financing sources (uses), while total fund balance represents 199.8% of the same amount. The fund balance of the City's General Fund increased $14.8 during the current fiscal year. When comparing this to the previous year's fund balance increase of $11.3, this was due to a $7.0 increase in total revenues and $3.5 increase in total expenditures and other financing sources (uses). Contributing factors to the increase in revenues include $3.3 for investment income due to favorable interest rates, $1.6 for charges for services primarily due to special duty, recreation programs, and lease revenues, $1.3 for property taxes due to an increase in the tax base from new residential developments and real estate values, $1.1 for utility taxes and franchise fees due to new residential developments. These increases were offset by reductions of $0.1 for intergovernmental, fines and forfeitures, and miscellaneous, respectively. The increase in total expenditures is the result of an increase in capital outlay of $1.5 due to supply chain issues and delays that caused capital outlay to be much lower than anticipated in the previous year and $1.4 for subscription acquisitions due to the implementation of the Governmental Accounting Standards Board ("GASB") Statement No. 96, Subscription -based IT arrangements ("GASB 96"). The ARPA fund was created because of the American Rescue Plan Act of 2021 and reflects a minimal ending fund balance of $0.01 due to funds received from the Coronavirus State Fiscal Recovery Fund for the motor fuel tax relief act of 2022. The General Capital Projects Fund had a decrease of $5.7 in the fund balance. When comparing this to the previous year's fund balance decrease of $17.1, this was attributed to a decrease of $3.6 in revenues due to lower transfer development rights fees being received and a decrease of $14.0 in capital expenditures due to the timing of projects. These decreases were offset by higher investment income of $1.0 due to favorable interest rates. The Law Enforcement Fund has a total fund balance of $4.0 in which most of it is held in cash and investments. The decrease in fund balance of $1.4 is primarily due to capital outlay. 13