BUSINESS-TYPE ACTIVITIES. Business-type activities increased the City of Sulphur'snet assets by $2.2 million. Transfers from government activities were $1.8 million in the current year.
Operating revenues for water and sewer services increased $142,619 (3 percent) in the current fiscal year. Operating expenses increased $437,158 (10.2 percent). This activity generated an operating loss of $287,676 for the current fiscal year, compared to an operating gain of $6,863 for the prior fiscal year.
FINANCIAL ANALYSIS OF THE CITY'S FUNDS
As noted earlier, the City of Sulphur uses fund accounting to ensure and demonstrate compliance with finance-related legalrequirements.
Governmental Funds. The focus of the City's governmental funds is to provide information on near-term inflows, outflows, and balances of spendable resources. This information is useful in assessing the City's financing requirements. Unreserved fund balance may serve as a useful measure of a government's net resources available for spending at the end of the fiscal year.
Governmental funds reported combined ending fund balances of $22.6 million, an increase of $0.6 million (restated) in comparison with the prior year. Ninety-five percent of this total amount, $21.6 million, constitutes unreserved fund balance which is available for spending at the City's discretion. Reserved fund balances (not available for new spending because it has already been committed) includes $1.0 million committed to service debt.
The general fund is the primary operating fund of the City of Sulphur. At the end of the current fiscal year, unreserved fund balance of the general fund was $12.5 million. A comparison of both unreserved fund balance and total fund balance to total- fund expenditures can be a useful measure of the general fund's liquidity. Unreserved fund balance represents 94 percent of total general fund expenditures,
The fund balance of the City's general fund decreased by $1.4 million during the current fiscal year. Changes in the fund balance of the City's general fund are affected by the amount of resources transferred in by the sales tax fund. The sales tax fund transferred $6.6 million to the general fund during the current fiscal year.
Revenues on the general fund decreased $2,3 million (24.7 percent) over the prior year. In the prior year, the City received 1.9 million in reimbursement grants from FEMA related to hurricane Rita. Expenditures decreased $0.7 million (5.1 percent) over the prior year. The majority of this decrease was due to expenditures related to hurricaneRita n the prior year.
Revenues on the sales tax fund decreased $0.2 million (1.3 percent) over the prior year. The City transfers excess of revenues over expenses to other City funds as provided in the sales tax ordinances.
Proprietary Funds. The City's proprietary funds provide the same type of information found in the government-wide statements, but in more detail.
Unrestricted net assets of the enterprise fund (which accounts for water and sewer services) at the end of the year totaled $10.5 million. The total growth in net assets (prior year restated) for this fund was $2.2 million.
The internal service fund (which accounts for the City's workers' compensation program) had unrestricted net assets of $2.0 million at the end of the current fiscal year. This represents an increase of