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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 />2020 and 2019: <br />Net (expense) revenue <br />Governmental activities <br />General government <br />Public safety <br />Highways and streets <br />Culture and recreation <br />Economic development <br />Interest and fiscal charges <br />Business -type activities <br />Water utility <br />Sewer utility <br />Street light utility <br />Recycling utility <br />Storm water utility <br />Total net (expense) revenue <br />General revenues <br />Property taxes <br />Franchise fees <br />General grants and contributions <br />Investment earnings <br />Gain on sale of capital assets <br />Total general revenues 18,651,374 15,493,131 <br />2020 2019 <br />Expenses <br />$ 5,640,679 <br />6,468,397 <br />4,028,294 <br />1,917,228 <br />481,858 <br />839,444 <br />1,657,356 <br />1,723,238 <br />169,463 <br />366,764 <br />777,252 <br />Program <br />Revenues <br />$ 1,473,207 <br />1,555,090 <br />4,203,434 <br />444,218 <br />3,379,710 <br />2,258,630 <br />216,545 <br />366,164 <br />1,477,351 <br />$ 24,069,973 $ 15,374,349 <br />Net Change <br />$ (4,167,472) <br />(4,913,307) <br />175,140 <br />(1,473,010) <br />(481,858) <br />(839,444) <br />1,722,354 <br />535,392 <br />47,082 <br />(600) <br />700,099 <br />Net Change <br />$ (3,428,684) <br />(4,356,156) <br />(1,890,207) <br />(732,939) <br />(845,651) <br />2,272,274 <br />722,969 <br />45,550 <br />6,958 <br />875,004 <br />(8,695,624) (7,330,882) <br />13,744,948 12,894,388 <br />423,045 <br />2,053,933 5,617 <br />2,427,076 2,584,698 <br />2,372 8,428 <br />Change in net position $ 9,955,750 $ 8,162,249 <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 />The increase in general grants and contributions reflects the federal CRF grant received in 2020. The net <br />change in highways and streets, when compared to prior year, was largely due to an increase in capital <br />grants received to finance street projects of the City. The economic development function was added in <br />the current year and will be used moving forward to record the City's spending for economic <br />development purposes. <br />-17- <br />