Apartments and crunching through that number and arranging all the pieces together to present to you what we have today.

Government financial structure or fund accounting is really unique.

It's a repeat.

I repeat this every year, but I think it's important to review basically Huntsville structure.

Every government is a little bit unique in the way that they stack up their funds in the way they do that.

But it's not like a business, and it's not like any other kind of individual structure that you would see.

So basically, city and counties assess and collect taxes and charge fees that provide through that they provide the services to the citizens.

Both laws locally, state, and national govern how much we can collect and how we spend those resources.

As you can see on the screen, the city works through a framework of funds.

Each fund is comprised of revenues, expenditures, assets, liabilities, and fund balance.

It is all contained within each fund, what happens.

This helps us track, manage, and account and report on varying sources of revenue and expenditures, ensuring they are regulated in accordance with the laws.

You can't dip out of some buckets and put them in others.

That's why we build the funds the way we do.

The City of Untsville has right around 50 funds, each unique in nature.

We've changed a few, there's been a few significant changes since I started here.

One of them is taking the enterprise fund of the, well, taking the sanitary, the sorry sanitation out of the general fund and moving it to an enterprise fund.

This has helped us understand the relationship between garbage charges and the coverage of the services provided.

The second is the deletion of a debt services fund.

You'll see that last line up there is kind of missing a segment.

In simplest terms, it means that the principals and interest that we borrowed are now associated with their appropriate revenue streams.

It helps us to better account for how those those borrowings are associated with different revenue streams.

Over the next few slides, I'm going to walk you through some of these funds.

Obviously, I'm not going to touch all 50.

The general fund is usually the largest of any city, and it is with the City of Huntsville.

All that is listed on the screen is part of the general fund.

Revenue service revenue sources and the departments.

The total budget is $343 million, and this is where a majority of the activities occurs.

Besides the general fund housing all of these sources and uses, the city is self-insured and therefore budgets and maintains a health insurance fund.

Around $40 million in premiums and charges are maintained or managed through this fund each year.

On an even smaller level, though, is the events and donations funds, which is maintained to orderly receive and disperse dedicated donations received throughout the city each year.

CAFE, JAS in the Park, and the like are examples of programs that are financially managed through this fund.

Special revenue funds are used to account for specific revenue sources that are restricted or committed by law to spending in a specific purpose.

Advalorum taxes or property taxes are levied under certain laws.

In each of these different boxes that I'm going to put up there, the number at the bottom represents the number of funds that I'm talking about in general.

The city has determined in the best interest to provide certain portions of sales tax to the operations of Huntsville City Schools.

14.7 percent of 3.5 pennies goes in sales and use tax goes to the Huntsville City Schools for operations.

This year it is budgeted at $36.5 million.

The lodging tax funds accounts for lodging taxes collected in the city.

By local law, they are allocated to certain spending on tourism, sporting, and entertainment venues.

We are down to two of which are in current operation.

We have gas tax funds, which are restricted for road, bridge repair, and maintenance, and it can it can be used for street lighting.

There are certain federal and state funds that are collected that can only be spent on public safety corrections andor court funds.

And grant funds obviously are used for for different grant specific purposes and laid out in their in their agreements.

We also have capital projects funds.

The city had designated a portion of funding to invest in capital projects for the 1990 capital projects, that it is 18 percent of 3.5 pennies, and for the 2014, it's 1 percent of 4.5 of the 4.4.5.

Road construction and maintenance and recreation facility construction, fleet purchases and the like are accounted for in these funds.

They also pay for principal and interest of the borrowings.

Water pollution control, sanitary and sanitation or garbage services accounted and managed in for in in enterprise funds.

Fiduciary funds or get there.

The retiree trust fund for health benefits.

These assets are not our own.

They are retained in a custodial relationship with the city.

Before I get into the budget numbers, I want to set the stage as I always do with a few economic drivers that are current indicators that affect the financial position of the city.

I'm not going to read this slide or get into this.

You can refer to this a little later if you want to.

Basically, our economy right now, we're in a place of kind of kind of stagnant.

We're not there the markets are doing really well, but inflation is also rising, the job growth is weakening, consumer confidence remains low, but in the end, we are also the reserve just cut interest rate funds.

So that should open up some markets and give a boost to spending.

So we're kind of a little bit in a wait and see.