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The following is a summary of the City's changes in net position: <br />Governmental Activities - Governmental activities account for $441,943 of the increase in the City's net <br />position. The general government function experienced a $352,098 increase (approx. 9 percent) in expenses. <br />The increase in general governmental expenses was due to additional costs related to personnel services. <br />Highway and Street expenses decreased $951,708 or 18% as a result of a reduction in non -capitalized street <br />project costs. <br />Investment earnings increased $1,392,368. The city is required per the Governmental Accounting Standards <br />Board to reflect all investments at market value as of December 31St of the current year. The city reflects any <br />changes in market value against interest earnings. The investment market was more favorable in 2014 resulting <br />in a significant positive change in interest earnings. Operating grants and contributions decreased $795,151 or <br />67% due to a reduction in relevant projects and their respective grant funding. <br />Page 30 <br />Changes in Net Position <br />Governmental <br />Business -Type <br />Activities <br />Activities <br />Total <br />2014 <br />2013 <br />2014 <br />2013 <br />2014 <br />2013 <br />Revenues <br />Program revenues <br />Charges for services <br />$ 1,528,139 $ <br />1,779,150 <br />$ 4,457,017 $ <br />4,492,104 <br />$ 5,985,156 $ <br />6,271,254 <br />Operating grants and contributions <br />385,574 <br />1,180,725 <br />65,817 <br />79,358 <br />451,391 <br />1,260,083 <br />Capital grants and contributions <br />3,023,145 <br />3,208,950 <br />101,107 <br />488,687 <br />3,124,252 <br />3,697,637 <br />General revenues <br />Property taxes <br />9,423,457 <br />10,421,456 <br />- <br />- <br />9,423,457 <br />10,421,456 <br />General grants and contributions <br />3,198 <br />38,577 <br />- <br />- <br />3,198 <br />38,577 <br />Sale of capital assets <br />- <br />12,940 <br />- <br />- <br />- <br />12,940 <br />Investment earnings (charges) <br />980,922 <br />(411,446) <br />870,728 <br />(353,956) <br />1,851,650 <br />(765,402) <br />Total revenues <br />15,344,435 <br />16,230,352 <br />5,494,669 <br />4,706,193 <br />20,839,104 <br />20,936,545 <br />Expenses <br />General government <br />4,087,755 <br />3,735,657 <br />- <br />- <br />4,087,755 <br />3,735,657 <br />Public safety <br />4,079,362 <br />4,074,688 <br />- <br />- <br />4,079,362 <br />4,074,688 <br />Highways and streets <br />4,263,552 <br />5,215,260 <br />- <br />- <br />4,263,552 <br />5,215,260 <br />Culture and recreation <br />1,422,810 <br />1,415,736 <br />- <br />- <br />1,422,810 <br />1,415,736 <br />Water utility <br />- <br />- <br />1,221,211 <br />1,293,201 <br />1,221,211 <br />1,293,201 <br />Sewer utility <br />- <br />- <br />1,282,302 <br />1,190,551 <br />1,282,302 <br />1,190,551 <br />Street Light utility <br />- <br />- <br />161,733 <br />176,736 <br />161,733 <br />176,736 <br />Recycling utility <br />- <br />- <br />321,321 <br />308,629 <br />321,321 <br />308,629 <br />Storm Water utility <br />- <br />- <br />509,709 <br />491,370 <br />509,709 <br />491,370 <br />Interest and fiscal charges <br />1,168,513 <br />1,220,471 <br />- <br />- <br />1,168,513 <br />1,220,471 <br />Total expenses <br />15,021,992 <br />15,661,812 <br />3,496,276 <br />3,460,487 <br />18,518,268 <br />19,122,299 <br />Changes in net position before transfers <br />322,443 <br />568,540 <br />1,998,393 <br />1,245,706 <br />2,320,836 <br />1,814,246 <br />Transfers <br />119,500 <br />112,000 <br />(119,500) <br />(112,000) <br />- <br />- <br />Changes in net position <br />441,943 <br />680,540 <br />1,878,893 <br />1,133,706 <br />2,320,836 <br />1,814,246 <br />Net Position - beginning <br />64,610,193 <br />63,929,653 <br />79,464,306 <br />78,330,600 <br />144,074,499 <br />142,260,253 <br />NetPosition- ending <br />$ 65,052,136 $ <br />64,610,193 <br />$ 81,343,199 $ <br />79,464,306 <br />$ 146,395,335 $ <br />144,074,499 <br />Governmental Activities - Governmental activities account for $441,943 of the increase in the City's net <br />position. The general government function experienced a $352,098 increase (approx. 9 percent) in expenses. <br />The increase in general governmental expenses was due to additional costs related to personnel services. <br />Highway and Street expenses decreased $951,708 or 18% as a result of a reduction in non -capitalized street <br />project costs. <br />Investment earnings increased $1,392,368. The city is required per the Governmental Accounting Standards <br />Board to reflect all investments at market value as of December 31St of the current year. The city reflects any <br />changes in market value against interest earnings. The investment market was more favorable in 2014 resulting <br />in a significant positive change in interest earnings. Operating grants and contributions decreased $795,151 or <br />67% due to a reduction in relevant projects and their respective grant funding. <br />Page 30 <br />