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<br />GOVERNMENT-WIDE FINANCIAL STATEMENTS
<br />
<br />In addition to fund-based information, the current reporting model for governmental entities also requires
<br />the inclusion of two government-wide financial statements designed to present a clear picture of the City
<br />as a single, unified entity. These government-wide financial statements provide information on the total
<br />cost of delivering services, including capital assets and long-term liabilities.
<br />
<br />STATEMENT OF NET POSITION
<br />
<br />The Statement of Net Position essentially tells you what your city owns and owes at a given point in time,
<br />the last day of the fiscal year. Theoretically, net position represents the resources the City has leftover to
<br />use for providing services after its debts are settled. However, those resources are not always in spendable
<br />form, or there may be restrictions on how some of those resources can be used. Therefore, net position is
<br />divided into three components: investment in capital assets, restricted, and unrestricted.
<br />
<br />The following table presents the components of the City’s net position as of December 31, 202 1 and
<br />2020, for governmental activities and business-type activities (utility fund operations):
<br />
<br />2021 2020 Change
<br />Net position
<br />Governmental activities
<br />Net investment in capital assets 27,474,959$ 26,418,066$ 1,056,893$
<br />Restricted 1,220,301 1,137,740 82,561
<br />Unrestricted 10,799,339 10,534,206 265,133
<br />Total governmental activities 39,494,599 38,090,012 1,404,587
<br />Business-type activities
<br />Net investment in capital assets 18,373,335 17,248,962 1,124,373
<br />Unrestricted 3,921,634 3,000,493 921,141
<br />Total business-type activities 22,294,969 20,249,455 2,045,514
<br />Total net position 61,789,568$ 58,339,467$ 3,450,101$
<br />As of December 31,
<br />
<br />Net position for governmental activities increased by $1,404,587 in 2021, as presented above. The
<br />investment in capital assets increased $1,056,893 this year, mainly due to the amount of construction
<br />activity in the current year. The remaining change in this category of net position typically depends on the
<br />relationship of the rate at which the City is adding capital assets, the rate capital assets are being
<br />depreciated, and how the City finances the purchase and construction of capital assets. The restricted
<br />portion of net position increased $82,561, due to increases in the amounts restricted for tax increment
<br />purposes. The increase in unrestricted net position is due to the positive operations of the City, with an
<br />increase in charges for services and capital grants and contributions.
<br />
<br />The change in net position for business-type activities is consistent with our earlier discussion of the
<br />utility operations, which are presented under the same, full accrual basis of accounting.
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