FINANCIAL ANALYSIS OF THE GOVERNMENT'S FUNDS As noted earlier, the City uses fund accounting to ensure and demonstrate compliance with finance-related legal requirements. The following funds have been classified as either governmental or proprietary fund types. Governmental Funds The focus of the City's governmental funds is to provide information on near-term inflows, outflows, and balances of spendable resources. Such information is useful in assessing the City's financing requirements. As of June 30, 2021, the City's governmental funds reported combined ending fund balances of $51.5 million, a net decrease of $7.3 million or 12.47% over the prior year. Approximately 48.38% of the City’s governmental fund ending fund balances, or $25.7 million, consisted of assigned and unassigned fund balance, which is available for spending at the City’s discretion within the guidelines of the funding sources. The remainder of fund balance, $25.9 million, is either nonspendable or restricted for purposes imposed by creditors, grantors, contributors, laws or regulations of other governments or through enabling legislation. Non-spendable fund balance of $7.3 million is not available for use and are comprised of advances to Successor Agency, notes and loans and prepaid costs. Restricted fund balance of almost $18.5 million can only be used for specific purposes pursuant to constraints imposed by applicable law and regulations and external parties such as grantors and creditors. The restricted funds are comprised of $2.0 million for public safety, $262 thousand for parks and recreation activity, $7.7 million for public works, $3.2 million for Capital Projects, and $5.4 million for low and moderate income housing.
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