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CITY OF MONTE VISTA, COLORADO
<br /> MANAGEMENT'S DISCUSSION AND ANALYSIS
<br /> December 31, 2011
<br /> As management of the City of Monte Vista, we offer readers of the City's financial statement this narrative
<br /> overview and analysis of the financial activities of the City of Monte Vista for the fiscal year ended December 31,
<br /> 2011.
<br /> In compliance with Statement Number 34 also known as GASB34, we present this report titled Management's
<br /> Discussion and Analysis, or MD&A. This discussion and analysis of the City of Monte Vista's financial
<br /> ' performance provides an overview of the City's financial activities for two fiscal years ending December 31,2010
<br /> and December 31,2011.
<br /> We encourage readers to consider the information presented here in conjunction with additional information
<br /> furnished in the City's financial statements,which follows this section.
<br /> Financial Highlights
<br /> • As of December 31, 2011, the City of Monte Vista has government-wide net assets totaling $10,309,024.
<br /> Of this amount, net assets related to governmental activities total $7,163,596 and net assets related to
<br /> business-type activities total$3,145,428.
<br /> • Total net assets of the City increased by $844,507, or 9%, compared to 2010. Of this amount net assets
<br /> for governmental activities increased by$665,038 and net assets for business-type activities increased by
<br /> ' $179,469.
<br /> • The City of Monte Vista's general revenue and special items, primarily taxes, account for $2,088,067 or
<br /> 37% of total revenue. Program revenues, in the form of charges for services, grants and contributions,
<br /> accounted for$3,582,122 or 63%of total revenue.
<br /> 1 • Total government-wide revenues decreased by $998,789 compared to 2010. Of this amount, the City's
<br /> capital/operating grants and contributions decreased by$1,075,667, general revenues decreased by$7,131
<br /> and charges for service increased by $84,009 compared to 2010. A majority of the decrease is
<br /> attributable to a decline in grant revenue.
<br /> • The City had $3,539,238 in expenses related to governmental activities in 2011, a decrease of$654,230
<br /> compared to the prior year. Expenses in business-type activities totaled $1,286,444, a decrease of
<br /> $95,485 compared to 2010. Total revenues of $5,670,189 were adequate to provide for the above
<br /> expenses.
<br /> • At the end of 2011, the City of Monte Vista's governmental funds reported combined ending fund
<br /> balances of$2,778,685, a decrease of$63,501 compared to 2010. Of this total amount, $2,003,678 is
<br /> restricted, $74,142 is committed, $49,927 is assigned, and$650,938 is unassigned.
<br /> • The City of Monte Vista's total debt increased by $358,785 during the current fiscal year. In 2011 the
<br /> City acquired a loan from the Colorado Water Resource and Power Development Authority in order to
<br /> ' install a water chlorination system for the City.
<br /> Overview of the Financial Statements
<br /> This discussion and analysis is intended to serve as an introduction to the City's basic financial statements. We
<br /> present two years of information, as recommended by GASB, so that the reader can review trends in the City's
<br /> financial position and activities. The City of Monte Vista's basic financial statements are comprised of three
<br /> components: 1) Government-wide financial statements, 2) Fund financial statements, and 3) Notes to the basic
<br /> financial statements. This report also contains other supplementary information in addition to the basic financial
<br /> statements themselves.
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