Of the $6,211,587 fund balance available for spending in the governmental funds (committed, assigned and unassigned fund balance), the use of $3,200,187 or approximately 52 percent was in the general fund’s fund balance. The General Fund is the chief operating fund of the Village of Grafton. As of December 31, 2016, the total fund balance of the general fund was $3,303,125 of which $2,056,179 was unassigned. This unassigned fund balance represents approximately 25 percent of 2016 total general fund expenditures while total general fund balance represents approximately 40 percent of that same amount. The fund balance of the general fund decreased $398,640 during fiscal year 2016. The 2016 annual program budget for the Village of Grafton’s general fund identified the appropriation of $1,320,423 in fund balance to reduce the impact of taxes levied and to balance the budget. However, actual expenditures were less than budgeted expenditures by approximately 7 percent or $662,163 and actual revenues were more than budgeted revenues in the general fund by $264,336 or approximately 4 percent. The Debt Service Fund has a total fund balance of $424,568 all of which is restricted for the payment of debt service. The fund balance increased by $267,913. The Impact Fee Debt Service Fund was created to account for the accumulation of impact fees designated for the retirement of debt incurred to construct and improve the fire station, library, police station, and public works facility. The collection of impact fees in 2016 will be applied to the debt service requirement and any additional funds received will be applied to the fund balance to pay for future debt service requirements. The total fund balance of this fund at December 31, 2016 is $0. The fund balance decreased by $142,460 due to the transfer of funds to the Debt Service Fund. The Capital Projects Funds provide funding for capital projects of the Village of Grafton or other unique expenditures, which are not normal operating or maintenance type expenditures reportable within the general fund or other governmental funds. The total fund balance as of December 31, 2016 is $3,953,830 of which $1,857,433 is related to capital equipment funds to be used for future capital purchases of the Fire Department. TID No. 3 – Downtown Redevelopment has a deficit fund balance of $385,312 due to a decrease in increment revenue from a decline in property value. The fund balance of this fund increased by $295,522 due to borrowing funds for a developer incentive payment in 2016 but payable in 2017. Proprietary fund. The Village of Grafton’s proprietary funds provide the same type of information found in the government-wide financial statements, but in more detail. Unrestricted net positions of the Water and Wastewater Utilities at the end of the year amounted to $3,669,036, a decrease of $555,742 from December 31, 2015. The total decrease in total net position was $205,134. The financial statements and a statement of cash flows for the proprietary funds can be found on pages 37 - 40 of this report. 21