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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 />2022 and 2021: <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 (charges) <br />Gain on sale of capital assets <br />Total general revenues <br />2022 2021 <br />Expenses <br />$ 4,967,112 <br />7,989,480 <br />5,308,212 <br />1,997,522 <br />1,096,422 <br />564,462 <br />1,895,776 <br />1,947,356 <br />172,765 <br />514,231 <br />791,605 <br />Program <br />Revenues <br />$ 2,016,068 <br />1,641,877 <br />7,715,229 <br />950,217 <br />5,022,607 <br />3,405,915 <br />230,392 <br />506,668 <br />2,484,412 <br />$ 27,244,943 $ 23,973,385 <br />Net Change <br />$ (2,951,044) <br />(6,347,603) <br />2,407,017 <br />(1,047,305) <br />(1,096,422) <br />(564,462) <br />3,126,831 <br />1,458,559 <br />57,627 <br />(7,563) <br />1,692,807 <br />Net Change <br />$ (2,837,175) <br />(4,640,295) <br />(92,682) <br />(447,714) <br />(2,140,267) <br />(883,504) <br />3,100,763 <br />1,357,364 <br />43,788 <br />(4,020) <br />1,139,379 <br />(3,271,558) (5,404,363) <br />17,637,477 14,761,012 <br />4,859 2,071,476 <br />3,644 2,963 <br />(5,221,440) (385,036) <br />22,500 22,325 <br />12,447,040 16,472,740 <br />Change in net position $ 9,175,482 $ 11,068,377 <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 taxes, unrestricted grants, <br />and unrestricted investment earnings. In contrast, the City's business -type activities tend to rely more <br />heavily on program revenues like charges for services (sales) and program -specific grants to cover <br />expenses. This is critical given the current downward pressures on the general revenue sources. <br />The change in net (expense) revenue presented in the table above, when compared to the prior year, is <br />primarily due to the amount of developer contributions and capital grants recognized from year-to-year. <br />These contributions fluctuate with the size and number of completed development projects. Negative <br />adjustments on investments in the current year reduced investment earnings compared to prior year, as <br />seen in the above table. Changes in state-wide pension plans impacted functional expenses above, <br />specifically impacting the public safety function with an increase in the current year. <br />-17- <br />