Agenda - Council - 06/28/2016 - Laserfiche WebLink

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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 $2,565,639. Key elements of this increase are as follows. • Revenues exceeded expenses before transfers by $2,689,639, increasing $691,246 from the prior year. • Capital grants and contributions increased $1,084,028 from the prior year. This is primarily due to capital contributions related to the Parkview apartment building in the COR. • Investment earnings decreased $485,238. The city is required per the Governmental Accounting Standards Board to reflect all investments at market value as of December 31st of the current year. The city reflects any changes in market value against interest earnings. The continuation of low interest rates has resulted in the decrease in earnings. Governmental Activities — The following graph illustrates the City's governmental activities: Expenses and Program Revenues — Governmental Activities 12,000,000 10,000,000 8,000,000 6,000,000 4,000,000 2,000,000 I mi 11 General Public Safety Highways & Culture & Interest & Fiscal Government Streets Recreation Charges • Program Revenues • Expenses The increase in program revenue, as was previously noted, was attributed to the contribution received from the Residence at the COR apartment building. Without this one-time funding, the graph would more clearly reflect the need for property taxes to supplement the governmental activities of the City. The trend of property taxes shows an increasing reliance on this source of revenue. 31