|
GOVERNMENT -WIDE FINANCIAL ANALYSIS (CONTINUED)
<br />Governmental Activities — Governmental activities account for an $11,453,393 increase in the City's net
<br />position. Capital grants and contributions increased by $4,724,140 due to more developer contributions.
<br />Operating grants and contributions decreased by $1,008,347 as the City received $1,248,044 from the State of
<br />Minnesota in 2023 for public safety expenditures.
<br />Investment earnings decreased slightly by $31,981. The City is required per the Governmental Accounting
<br />Standards Board to reflect most investments at fair value as of December 31" of of the current year. The City
<br />reflects any changes in fair value against interest earnings. Property taxes saw an increase of $2,914,359 or 14%
<br />which was attributed to the City increasing their 2024 tax levy by approximately 11% over the 2023 adopted
<br />levy. Charges for services increased by $754,173 as the City saw an increase in building permit related activity.
<br />Expenses for the general government function increased by $297,789 due largely to personnel costs. Highways
<br />and streets expense decreased by $886,857 due to fewer improvements on state -aid funded streets. Culture and
<br />recreation increased $236,133 due largely to the addition of new personnel. The economic development function
<br />decreased by $216,772 due to a decrease of expenses in the COR area. Interest and fiscal charges had a slight
<br />increase of $58,983 for payment of debt service.
<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 $11,797,127. Key elements of this
<br />increase are as follows.
<br />• Revenues exceeded expenses before transfers by $11,102,659, with this excess increasing $2,229,861 from
<br />the prior year.
<br />• Charges for services increased by $143,390 from the prior year. This is primarily due to an increase in
<br />collections from quarterly utility billing collections related to the water and sewer utility.
<br />• Capital grants and contributions increased $3,862,770. The City received a $3.2 million dollar state grant
<br />for the construction of a water treatment plant.
<br />• Investment earnings decreased $1,207,077. 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. In 2023, the City had a large write up on
<br />investments to market value. Rates remained fairly constant in 2024 resulting in a minimal increase in
<br />write up to market value and the overall revenue reflecting true interest earnings earned.
<br />Governmental Activities — The following graph illustrates the City's governmental activities:
<br />$10,000,000
<br />$9,000,000
<br />$8,000,000
<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 />$1,000,000
<br />$-
<br />Expenses and Program Revenues — Governmental Activities
<br />1i1111.1 I -1
<br />General Public Safety Highways & Culture & Economic Interest &
<br />Government Streets Recreation Development Fiscal Charges
<br />• Program Revenues • Expenses
<br />31
<br />
|