Agenda - Council - 06/25/2024 - Laserfiche WebLink

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GOVERNMENT -WIDE FINANCIAL ANALYSIS (CONTINUED) Investment earnings (charges) increased $2,848,188. 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 was able to take advantage of the rising interest rates that the Federal Reserve implemented in 2022. The City reflects any changes in fair value against interest earnings (charges). Property taxes saw an increase of $2,489,505 or 14% which was attributed to the City increasing their 2023 tax levy by approximately 11% over the 2022 adopted levy. Charges for services increased by $482,892 as the City saw an increase in building permit related activity. Expenses for the public safety function increased by $728,431 due largely to personnel costs and the purchase of police and fire vehicles that were not received in 2022 due to supply chain shortages. Highways and streets expense increased by $3,362,274 as the City issued a $10,765,000 GO Street Reconstruction Bond in late 2022 to improve the number of streets that need to be reconstructed in the City. The City completed significant street repairs in fiscal 2023. The economic development function increased by $609,024 due to an increase of expenses in the COR area. Interest and fiscal charges increased by $694,497 with more debt issued in recent years. Business -Type Activities — Business -type activities, which are the City's utility operations of water, sewer, street light, recycling, and storm water, increased the City's net position by $8,798,374. Key elements of this increase are as follows. • Revenues exceeded expenses before transfers by $8,872,798, with this excess increasing $7,479,954 from the prior year. • Charges for services increased by $760,197 from the prior year. This is primarily due to an increase in collections from quarterly utility billing collections related to the water and sewer utility. • Investment earnings increased $8,083,219. 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 (charges). In 2022, due to a large cash inflow needed for the city's proposed water treatment plant, the city's investments, due to the requirement to write down to fair value, were greatly affected by the sharp and quick increase in interest rates by the Federal Reserve. The city was able to take advantage of these improved rates in year 2023. Governmental Activities — The following graph illustrates the City's governmental activities: Expenses and Program Revenues — Governmental Activities 10,000,000 8,000,000 6,000,000 4,000,000 2,000,000 General Public Safety Highways & Culture & Economic Interest & Fiscal Government Streets Recreation Development Charges • Program Revenues • Expenses 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