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GOVERNMENT -WIDE FINANCIAL ANALYSIS (CONTINUED) Investment earnings increased $543,803. 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 $510,088 or 4% which was attributed to the city increasing their 2019 tax levy by almost 5% over the 2018 adopted levy and development in the COR increasing tax increment collected. The public safety function experienced a $676,368 expense increase due largely to an increase in personnel costs in the police and fire departments. Highways and streets expense increased by $251,325 due to the reimbursement to Anoka County Transit for its final payment of the Northstar Rail Stop. 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 $5,891,374. Key elements of this increase are as follows. • Revenues exceeded expenses before transfers by $5,384,880, with this excess increasing $731,886 from the prior year. • Charges for services decreased $1,737,902 from the prior year. This is primarily due to decreased water usage as a result of significant rainfall during the year and the reporting of developer connection fees under capital grants and contributions. • Capital grants and contributions increased by $1,690,020 from the prior year. This is primarily due to an increase in capital contributions from developers for water utility improvements and the revised reporting of moving such collections from charges for services. • Investment earnings increased $812,072. 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: 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 Cenera Goovernrr ent f'uut. Iliac S atety 111 Ii gk way., & Cuulltuure & Interest & roscalll Street~ RecreatiIon Charges IIIIIIIIII Program Revenues 11111111111 Iii:xpenses 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