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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 />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 />Expenses and Program Revenues — Governmental Activities
<br />Genera
<br />Government
<br />Pub is Suety
<br />IIIIIIIIIIProg
<br />I...{ ghw,yv &
<br />Street~
<br />rn Revenues
<br />Cuulltuure &
<br />Recreatiion
<br />IIIIIIIIII Iii:xpenses
<br />lii:conorniic. Interest & hiiscalll
<br />Develloprnent Charges
<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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