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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 position. 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 the net position of the City for the years ended December 31, <br />2014 and 2013: <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. In contrast, the City's business -type activities tend to rely more heavily on program <br />revenues like charges for services (sales) and program specific grants to cover expenses. This is critical <br />given the current downward pressures on the general revenue sources. <br />-15- <br />2014 <br />2013 <br />Program <br />Expenses <br />Revenues <br />Net Change <br />Net Change <br />Net (expense) revenue <br />Governmental activities <br />General government <br />$ 4,087,755 <br />$ 1,406,582 <br />$ (2,681,173) <br />$ (771,473) <br />Public safety <br />4,079,362 <br />864,883 <br />(3,214,479) <br />(2,941,530) <br />Highways and streets <br />4,263,552 <br />2,330,690 <br />(1,932,862) <br />(3,346,783) <br />Culture and recreation <br />1,422,810 <br />334,703 <br />(1,088,107) <br />(1,212,730) <br />Interest and fiscal charges <br />1,168,513 <br />— <br />(1,168,513) <br />(1,220,471) <br />Business -type activities <br />Water utility <br />1,221,211 <br />1,951,425 <br />730,214 <br />1,086,040 <br />Sewer utility <br />1,282,302 <br />1,399,319 <br />117,017 <br />234,471 <br />Street light utility <br />161,733 <br />192,085 <br />30,352 <br />23,822 <br />Recycling utility <br />321,321 <br />374,977 <br />53,656 <br />68,763 <br />Storm water utility <br />509,709 <br />706,135 <br />196,426 <br />186,566 <br />Total net (expense) revenue <br />$ 18,518,268 <br />$ 9,560,799 <br />(8,957,469) <br />(7,893,325) <br />General revenues <br />Property taxes <br />9,423,457 <br />10,421,456 <br />General grants and contributions <br />3,198 <br />38,577 <br />Investment earnings (charges) <br />1,851,650 <br />(765,402) <br />Sale of capital assets <br />— <br />12,940 <br />Total general revenues <br />11,278,305 <br />9,707,571 <br />Change in net position <br />$ 2,320,836 <br />$ 1,814,246 <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. In contrast, the City's business -type activities tend to rely more heavily on program <br />revenues like charges for services (sales) and program specific grants to cover expenses. This is critical <br />given the current downward pressures on the general revenue sources. <br />-15- <br />