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The following is a summary of the City's changes in net assets: <br />Expenses <br />General government <br />Public safety <br />Highways and streets <br />Culture and recreation <br />Water utility <br />Sewer utility <br />Street Light utility <br />Recycling utility <br />Storm Water utility <br />Interest and fiscal charges <br />Total expenses <br />Changes in net assets before transfers <br />Transfers <br />Changes in net assets <br />Changes in Net Assets <br />Governmental Business -Type <br />Activities Activities <br />Total <br />2919 7009 2919 2QQB 2919 7009 <br />Revenues <br />Program revenues <br />Charges for services $ 1,839,273 $ 1,409,107 $ 3,986,557 $ 3,944,612 $ 5,825,830 $ 5,353,719 <br />Operating grants and contributions 326,986 614,816 49,873 59,963 376,859 674,779 <br />Capital grants and contributions 2,828,240 2,700,471 310,040 102,512 3,138,280 2,802,983 <br />General revenues <br />Property taxes 12,144,908 13,019,854 - - 12,144,908 13,019,854 <br />General grants and contributions 114,692 204,752 - - 114,692 204,752 <br />Sale of capital assets - 5,816 - - - 5,816 <br />Investment earnings 1,283,533 1,116,588 631,042 734,353 1,914,575 1,850,941 <br />Total revenues 18,537,632 19,071,404 4,977,512 4,841,440 23,515,144 23,912,844 <br />4,998,807 4,690,824 - - 4,998,807 4,690,824 <br />4,153,361 4,438,324 - - 4,153,361 4,438,324 <br />5,791,896 4,795,460 - - 5,791,896 4,795,460 <br />1,048,690 1,067,125 - - 1,048,690 1,067,125 <br />1,295,721 1,291,952 1,295,721 1,291,952 <br />1,101,554 1,076,451 1,101,554 1,076,451 <br />158,369 148,140 158,369 148,140 <br />307,662 298,631 307,662 298,631 <br />- - 350,521 358,522 350,521 358,522 <br />1,316,893 1,330,224 - - 1,316,893 1,330,224 <br />17,309,647 16,321,957 3,213,827 3,173,696 20,523,474 19,495,653 <br />1,227,985 2,749,447 1,763,685 1,667,744 2,991,670 4,417,191 <br />(125,751) 91,800 125,751 (91,800) <br />$ 1,102,234 $ 2,841,247 $ 1,889,436 $ 1,575,944 $ 2,991,670 $ 4,417,191 <br />Governmental Activities - Governmental activities account for 37% growth in the City's net assets (approx. <br />$1.1 million). Charges for services increased by 31 %, or $430,000 due to an increase in the amount of public <br />projects and the staff time charged to each. Property taxes decreased $874,946 (approximately seven percent) <br />during the year. This percentage change reflects the current economy that stills sees a large number of <br />foreclosures and job loss. The highways and streets function experienced a $996,436 increase (21 percent) in <br />expenses. This increase was due to the construction of a county road in which the city contributed in the cost <br />of construction, but does not own. <br />Business -Type Activities - Business -type activities, which are the City's utility operations of water, sewer, <br />street light, recycling, and storm water, increased the City's net assets by $1 9 million, accounting for 63% of <br />the total growth in the City's net assets. Key elements of this increase are as follows. <br />• There was a 14% decrease in investment earnings due to the lower percentage of business -type <br />activities funds contributed in respect to overall total funds contributing for the distribution of pooled <br />interest earnings. <br />• Transfers had a significant change from the previous year. The increase of $217,551 is due to a <br />contribution in capital assets from the Governmental Funds. <br />