Agenda - Council - 06/08/2021 - Laserfiche WebLink

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GOVERNMENT -WIDE FINANCIAL ANALYSIS (CONTINUED) Investment earnings decreased $87,299. The city is required per the Governmental Accounting Standards Board to reflect most investments at fair value as of December 31 st of the current year. The city reflects any changes in fair value against interest earnings. Property tax collections saw an increase of $850,560 or 7% which was attributed to the city increasing their 2020 tax levy by almost 6% over the 2019 adopted levy. The city implemented franchise fees in October 2020, generating a one -quarter franchise fee collection of $423,045. General grants and contributions increased $2,048,316 which was attributed to the city receiving Coronavirus Relief Funds. Transfers in the amount of $6,229,699 was attributed to funding for the new public works campus from the Water Utility, Sewer Utility, Street Light Utility and Storm Water Utility. The general government function experienced a $501,327 expense increase due largely to Covid pandemic expenses. An increase in personnel costs in the police and fire departments contributed to the $624,132 increase in public safety. Highways and streets expense decreased by $414,426 due to reduced spending for road improvements in 2020. The economic development function was added in 2020 to record the $481,858 write- down to fair value for land held for resale in the COR area. Business -Type Activities — Business -type activities, which are the City's utility operations of water, sewer, street light, recycling, and storm water, decreased the City's net position by $1,833,570. Key elements of this decrease are as follows. • Revenues exceeded expenses before transfers by $4,396,129, with this excess decreasing $988,751 from the prior year. • Charges for services increased $441,313 from the prior year. This is primarily due to an increase in utility rates. • Capital grants and contributions decreased by $912,872 from the prior year. This is primarily due to a reduction in capital contributions from developers for water and sewer utility improvements. • Investment earnings decreased $70,323. The city is required per the Governmental Accounting Standards Board to reflect most investments at fair value as of December 31 st of the current year. The city reflects any changes in fair value against interest earnings. • Transfers out in the amount of $6,229,699 was attributed to funding for the new public works campus. Governmental Activities — The following graph illustrates the City's governmental activities: 7,000,000 6,000,000 5,000,000 4,000,000 3,000,000 2,000,000 1,000,000 Expenses and Program Revenues — Governmental Activities 1 1I II .1 ■ ■ General Public Safety Highways & Culture & Economic Interest & Government Streets Recreation Development Fiscal Charges • Program Revenues • Expenses The graph clearly reflects 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