I-1 - Preliminary Official Statement - UR Loan Agreement

Total business type activities receipts for the fiscal year were approximately $5,545,000 compared to approximately $4,028,000 last year, a 37.7% increase. The increase is primarily due to bond proceeds received in the current year of $3,673,761. Total disbursements for the fiscal year increased to approximately $6,104,000 compared to approximately $3,588,000 last year, an increase of 70.1%. The increase in disbursements was due primarily to more capital outlay disbursements in the current year for constructing improvements and extensions to the sewer utility. INDIVIDUAL MAJOR GOVERNMENTAL FUND ANALYSIS As the City of Tiffin completed the year, its governmental funds reported a combined fund balance of $4,248,087, a decrease of approximately $3,579,000 from last year’s total of $7,826,809. The following are the major reasons for the changes in fund balances of the major funds from the prior year. • The General Fund cash balance increased $988,978 over the prior year to $2,326,451. Receipts increased approximately $458,000, or 29.5%, and disbursements increased approximately $56,000, or 5.7%. The increase in the cash balance is primarily due to an increase in property tax and licenses and permit receipts for building and construction, and an increase in miscellaneous receipts for a deposit received and held in escrow per a property development agreement. • The Special Revenue, Road Use Tax Fund cash balance decreased $95,326 from the prior year to $163,904. Road use tax receipts were similar to the prior year. Disbursements increased $56,638 over the prior year to $348,122, and transfers to the Capital projects fund decreased $30,475 in the current year. • The Special Revenue, Urban Renewal Tax Increment Fund cash balance decreased $943,597 from the prior year to $858,245. Tax increment financing receipts increased by $199,550 in the current year. Disbursements for developer agreements increased by $43,541 in the current year and transfers to the Debt Service Fund for payment of TIF debt and Capital Projects to eliminate deficit balances increased by $163,227 and $ 1,015,065 respectively in the current year. • The Debt Service Fund cash balance decreased $75,473 from the previous year to $116,406. Receipts, transfers from the Urban Renewal Tax Increment Fund and disbursements increased $86,594, $163,227 and $445,254, respectively, over the prior year. • The Capital Projects Fund cash balance decreased $3,448,745 from the prior year to $518,041. The decrease was primarily due to intergovernmental receipts for the Department of Transportation RISE grant decreasing by $1,651,259. In addition, disbursements increased $1,394,835 for capital projects, including street and park projects. INDIVIDUAL MAJOR BUSINESS TYPE FUND ANALYSIS • The Enterprise, Water Fund cash balance increased $238,062, or 34.6%, to $926,526. Operating receipts increased $75,871, or 11.3% over the prior year, primarily due to an increase in the number of customers. Operating disbursements increased $131,965, or 25.9%, due to increased utility usage costs for the water treatment plant construction project. 12