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GOVERNMENT -WIDE FINANCIAL ANALYSIS (CONTINUED) Investment earnings increased $124,681. The city is required per the Governmental Accounting Standards Board to reflect most investments at fair value as of December 31st of the current year. The city reflects any changes in fair value against interest earnings. An increase in invested funds along with interest rates that have slowly began to rise, has resulted in the increase in earnings. Property tax collections saw an increase of $1,247,490 or 11% which was attributed to the city increasing their 2018 tax levy by almost 9% over the 2017 adopted levy and development in the COR increasing tax increment collected. Business -Type Activities — Business -type activities, which are the City's utility operations of water, sewer, street light, recycling, and stone water, increased the City's net position by $4,515,494. Key elements of this increase are as follows. • Revenues exceeded expenses before transfers by $4,652,994, with this excess increasing $270,993 from the prior year. • Charges for services increased $1,223,179 from the prior year. This is primarily due to an increase in utility rates and developer fees for water, sewer, and storm water utility connections. • Capital grants and contributions decreased by $957,947 from the prior year. This is primarily due to a reduction in capital contributions from developers for water, sewer, and storm water utility improvements. • Investment earnings increased $157,459. The city is required per the Governmental Accounting Standards Board to reflect most investments at fair value as of December 31st of the current year. The city reflects any changes in fair value against interest earnings. An increase in invested funds along with interest rates that have slowly began to rise, has resulted in the increase in earnings. Governmental Activities — The following graph illustrates the City's governmental activities: 6,000,000 5,000,000 4,000,000 3,000,000 2,000,000 :1.,000,000 Expenses and Program Revenues — Governmental Activities C eneraI Govei n rent PL bfic Safety Iig)ways & Streets CUDt�ui e & I:: eu eatuon IIIIIIIIII Pro ;ram I: everuues 11111111111 lExpenses Interest & V Iscai Charges 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