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Statement of Activities <br />The Statement of Activities tracks the City's yearly revenues and expenses, as well as any other <br />transactions that increase or reduce total net assets. These amounts represent the full cost of providing <br />services. The Statement of Activities provides a more comprehensive measure than just the amount of <br />cash that changed hands, as reflected in the fund -based financial statements. This statement includes the <br />cost of supplies used, depreciation of long -lived capital assets, and other accrual -based expenses. <br />The following table presents the change in net assets of the City for the years ended December 31, 2011 <br />and 2010: <br />Expenses <br />Net (expense) revenue <br />Governmental activities <br />General government $ 5,559,732 $ 1,026,608 $ (4,533,124) $ (3,866,578) <br />Public safety 4,307,045 1,140,897 (3,166,148) (2,937,081) <br />Highways and streets 6,129,272 4,254,030 (1,875,242) (3,197,530) <br />Culture and recreation 1,267,292 43,344 (1,223,948) (997,066) <br />Interest and fiscal charges 1,302,228 — (1,302,228) (1,316,893) <br />Business -type activities <br />Water utility 1,358,050 1,904,735 546,685 582,857 <br />Sewer utility 1,149,318 1,241,771 92,453 209,261 <br />Street light utility 163,758 178,850 15,092 20,903 <br />Recycling utility 302,947 347,505 44,558 36,828 <br />Storm water utility 410,666 617,579 206,913 282,794 <br />Total net (expense) revenue <br />General revenues <br />Property taxes <br />General grants and contributions <br />Investment earnings <br />Sale of capital assets <br />Total general revenues <br />Change in net assets <br />$ 21,950,308 $ 10,755,319 <br />2011 2010 <br />Program <br />Revenues Net Change Net Change <br />(11,194,989) (11,182,505) <br />11,671,760 12,144,908 <br />120,932 114,692 <br />1,364,014 1,914,575 <br />14,716 — <br />13,171,422 14,174,175 <br />$ 1,976,433 $ 2,991,670 <br />One of the goals of this statement is to provide a side -by -side comparison to illustrate the difference in the <br />way the City's governmental and business -type operations are financed. The table clearly illustrates the <br />dependence of the City's governmental operations on general revenues, such as property taxes and <br />unrestricted grants. It also shows that, for the most part, the City's business -type activities are generating <br />sufficient program revenues (service charges and program- specific grants) to cover expenses. This is <br />critical given the current downward pressures on the general revenue sources. <br />-16- <br />