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GOVERNMENT-WIDE FINANCIAL ANALYSIS (CONTINUED)
<br /> Investment earnings decreased $1,199,396. The city is required per the Governmental Accounting Standards
<br /> Board to reflect most investments at fair value as of December 31st of the current year. The city reflects any
<br /> changes in fair value against interest earnings. Property tax collections saw an increase of$1,016,064 or 7%
<br /> which was attributed to the City increasing their 2021 tax levy by 4% over the 2020 adopted levy. Franchise
<br /> fees increased by$1,648,431 in 2021 as this was the first full-year that the fees were collected. General grants
<br /> and contributions decreased by$2,050,970 as the City recognized over$2 million dollars of Coronavirus Relief
<br /> Funds in 2020. Transfers decreased by$6,144,552 as the City transferred significant funds in 2020 to finance
<br /> the new public works campus from the Water Utility,Sewer Utility,Street Light Utility and Storm Water Utility.
<br /> The general government function experienced a $1,072,450 expense decrease due largely to tax increment
<br /> expenditures now included in the function of economic development. Highways and streets expense increased
<br /> by$658,122 due to an increase in depreciation expense on the new public works campus and newly constructed
<br /> roads. The economic development function increased by$1,658,409 attributed largely to the reclassification in
<br /> function from general government to economic development in the COR area.
<br /> Business-Type Activities —Business-type activities, which are the City's utility operations of water, sewer,
<br /> street light, recycling, and storm water, increased the City's net position by$5,331,213. Key elements of this
<br /> increase are as follows.
<br /> • Revenues exceeded expenses before transfers by$5,416,360,with this excess increasing$1,020,231 from
<br /> the prior year.
<br /> • Charges for services increased$765,924 from the prior year. This is primarily due to an increase in utility
<br /> rates and increase in water usage due to a lack of rainfall during the year.
<br /> • Capital grants and contributions increased by$2,073,021 from the prior year. This is primarily due to an
<br /> increase in capital contributions from developers for water, sewer and storm water utility improvements.
<br /> • Investment earnings decreased $1,612,716. The city is required per the Governmental Accounting
<br /> Standards Board to reflect most investments at fair value as of December 31st of the current year.The city
<br /> reflects any changes in fair value against interest earnings.
<br /> • Transfers out decreased significantly by$6,144,552 as previously discussed with prior year transfers for
<br /> the new public works campus in 2020.
<br /> Governmental Activities—The following graph illustrates the City's governmental activities:
<br /> Expenses and Program Revenues—Governmental Activities
<br /> 7,000,000
<br /> 6,000,000
<br /> 5,000,000
<br /> 4,000,000
<br /> 3,000,000
<br /> 2,000,000
<br /> 1,000,000 , , . , ' ■
<br /> General Public Safety Highways& Culture& Economic Interest&Fiscal
<br /> Government Streets Recreation Development Charges
<br /> ■Program Revenues ■Expenses
<br /> The graph clearly reflects the need for property taxes to supplement the governmental activities of the City. The
<br /> trend of property taxes shows an increasing reliance on this source of revenue.
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