Agenda - Council Work Session - 06/25/2013

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Business -Type Activities — Business -type activities, which are the City's utility operations of water, sewer, street light, recycling, and storm water, increased the City's net position by $2,818,448. Key elements of this increase are as follows. • Transfers had a significant change from the previous year. In 2011 there was a $1,199,585 transfer out of the proprietary funds. The water fund transferred $1 million to the debt service fund to help offset the municipal center debt so that the total amount did not need to be levied in a year with decreasing market values and weakened economy. A similar transfer was not completed in 2012. • There was a 30% decrease in investment earnings as a result of a less favorable investment environment due to financial markets. • Capital grants and contributions increased $1,226,681 due to trunk charge contributions made from the developer of the Residence and the COR apartment building constructed in 2012. Governmental Activities — The following graphs illustrate the City's governmental activities: $20,000,000 $18,000,000 $16,000,000 $14,000,000 $12,000,000 $10,000,000 $8,000,000 $6,000,000 $4,000,000 $2,000,000 $- Expenses and Program Revenues — Governmental Activities General Government Property Taxes 57% Public Safety Highways and Culture and Interest and Streets Recreation Fiscal Charges The graphs show the governmental activities and their income clearly reflect the need for property taxes to supplement the activities of the City. The trend of property taxes shows an increasing reliance on this source as the state has withdrawn their support that was previously received as local government aid and market value homestead credit. Revenue by Source — Governmental Activities 31 Charges for Services 12% _Operating Grants & Contributions 10% Investment Earnings 2% • Expenses • Program Revenues Capital Grants and Contributions 19% General Grants & Contributions <1%