Changes in Fund Balance
Ending fund balance is calculated using the following formula: Beginning Fund Balance + Revenue - Expenses = Ending Fund Balance. The change in fund balance is the difference between revenue and expenses reported in a fund. A summary schedule of changes in fund balance for all budgeted funds is shown below.
Fund balance changes in excess of 10% are described below.
- The General Fund has a change in fund balance that is under 10%. It has a decrease of 3% due to the one-time purchase of equipment.
- The Hotel/Motel Tax Fund has a decrease in fund balance of 14%. This is due to using fund balance to pay for one-time expenses related to tourism.
- The Debt Service Fund has a positive change in fund balance of 22% due to taxable valuations increasing and a portion of general obligation debt retiring in FY 2022-2023.
- Some of the smaller Special Revenue funds, such as Police Forfeiture, Court Technology, Building Security, and Juvenile Case Manager, have either increases or decreases in fund balance due to the nature of the revenue sources. Forfeiture revenue, for example, is dependent on the number and nature of seizures performed by the Police Department. These small Special Revenue funds generally do not have ongoing expenses but are one-time as revenue becomes available. These revenue sources are also restricted for specific public safety purposes.
- The Economic Development Corporation (EDC) and Hotel Conference Center funds have changes in fund balance of -46% and -100% respectively. The decreases are due to expenses related to the EDC's capital Hotel Conference Center project.
- The Capital Improvement funds have either positive or negative changes in fund balance due to receipt of one-time revenue, such as grants and loan proceeds, as well as significant expenses related to major capital improvements. For instance, Fund 45 shows a positive change in fund balance of 191% due to the receipt of grants and bond proceeds for the planning, design, and construction of a new Wastewater Treatment Plant.
CAPITAL PURCHASES FOR FY 2022-2023
The capital expenses shown below are programmed in the Fiscal Year 2022-2023 budget. The revenue to cover the expenses are either from one-time revenue sources such as grants and reserves or from short and long-term debt proceeds, such as capital leases and certificates of obligation. The capital purchases include one-time vehicle and equipment purchases and capital improvements.