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6.A. - Page 41 of 191 City of Redwood City Management's Discussion and Analysis For the fiscal year ended June 30, 2019 During fiscal year 2018-19, the Docktown Marina expenses decreased by $12.7 million due to a decrease in costs related to ending residential uses of the marina. 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 general government functions are contained in the general, special revenue, debt service, and capital project funds. The focus of the City's governmental funds is to provide information on near-term inflows, outflows, and balances of spendable resources by using the modified accrual basis of accounting. Such information is useful in assessing the City's financing requirements. In particular, unassigned fund balance may serve as a useful measure of the City's net resources available for spending at the end of the fiscal year. At June 30, 2019, the City's governmental funds reported combined fund balances of $154.7 million, which reflects an increase of $21.2 million from the beginning fund balance. Governmental fund revenues increased $23.8 million this fiscal year to $187.1 million. The majority of this increase occurred in the general fund ($16.5 million) and transportation grants fund ($7.9 million). The general fund revenue increases were primarily due to an increase in property taxes, sales tax, and interest/investment income. The transportation grants fund revenue increase was primarily due to an increase in various grant revenues. Expenditures, including capital outlay, increased $9.9 million this fiscal year to $160.4 million. A large part of the increase was attributable to increases in the following funds: transportation grants fund ($4.4 million), low and moderate income housing asset fund ($2.5 million), and parks impact and in lieu fund ($4.8 million), offset by a decrease of $3.2 million in general fund expenditures. The general fund is the primary operating fund of the City. At June 30, 2019, unassigned fund balance of the general fund was $41.3 million, while total fund balance increased to $51.3 million from a beginning fund balance of $30.2 million, as a result of revenues and transfers in of $161.3 million exceeding expenditures and transfers out of $140.2 million. Unassigned fund balance increased $16.2 million during the current fiscal year. The general fund net change in fund balance of $21.1 million was comprised of the following fund balance category changes: decrease of $223 thousand in nonspendable fund balance, increase of $1.4 million in restricted fund balance, increase of $683 thousand in committed fund balance, increase of $3.0 million in assigned fund balance, and an increase of $16.2 million in unassigned fund balance 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. Unassigned fund balance represents 33.6% of total fund expenditures, while total fund balance represents 41.8% of that same amount. The following are the major funds that qualified under the reporting criteria for major funds selection: 13 48