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I <br /> 1 1. Working Capital(assets minus liabilities):$2,531,107 <br /> Governmental funds do not show fixed assets or long-term liabilities on the fund balance sheet; therefore, the fund <br /> I balance is the fund's"working capital." However,a portion of the fund balance is reserved and may not be available <br /> for use as working capital.Therefore,the unreserved fund balance of$2,365,155 is substituted for"working capital" <br /> as a measure of liquidity for the fund. <br /> 2. Current Ratio(current assets divided by current liabilities)4.5:1 <br /> I Modified Current Ratio (current assets less property tax accrual and less "long term" prepaid expenses divided by <br /> current liabilities less property tax deferral): 10.3:1 the current ratio is used,by business organizations,to display the <br /> ability to meet currently maturing obligations. <br /> I While the analysis provided above must be combined with other information in order to develop a certain conclusion as to <br /> the liquidity and the probability of continuation of financial operations by the Town of Palisade's general fund, it is also <br /> obvious that the Town's general fund level of liquidity is not deficient. <br /> IProprietary Funds.The Town's proprietary fund statement provides the same type of information found in the government-wide <br /> financial statements,but in greater detail. <br /> I As of the end of 2009, the combined ending net assets of Town of Palisade's enterprise funds were $8,644,618. Approximately <br /> 29.6%of this consists of unrestricted net assets,which are available as working capital and for current spending. <br /> I The Town has two major enterprise funds the Utility Fund, and the Water Fund. The Water Fund is used to account for water <br /> system operations.The Utility Fund is used to account for the sewer and refuse for the Town. <br /> At December 31,2009,the Utility Fund and the Water Fund had total assets,which equaled 2.3 times the total liabilities. 70.4%of <br /> I the fund's net assets were invested in capital assets. 29.6%of the fund's net assets are unrestricted net assets that are available as <br /> working capital and to be used for subsequent operations. The Utility fund and the Water Fund are enterprise funds with a large <br /> ratio of fixed assets. These funds will often require large amounts of capital outlay. This causes special cash flow needs for these <br /> Ifunds. <br /> GENERAL FUND BUDGETARY HIGHLIGHTS <br /> IThe Town's budget is prepared and approved according to Colorado statutes. <br /> IIn December of 2008,the Town of Palisade's Trustees budgeted$3,453,013 for 2009 general fund revenues. <br /> The Town's General Fund Budget is shown below: <br /> I Original Final <br /> Budget Budget Actual <br /> Carry forward from 2009 $ 2,459,226 $ 2,459,226 $ 2,459,226 <br /> IRevenues and other financing <br /> sources $ 3,453,013 $ 3,453,013 $ 3,295,684 <br /> IExpenditures and other financing <br /> uses $ 4,272,952 $ 4,272,952 $ 3,223,803 <br /> ICarry forward to 2010 $ 1,639,287 $ 1,639,287 $ 2,531,107 <br /> I <br /> I <br /> 8 <br /> II <br />