2022 Management Letter - Laserfiche WebLink

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-17- STATEMENT OF ACTIVITIES The Statement of Activities tracks the City’s yearly revenues and expenses, as well as any other transactions that increase or reduce total net position. These amounts represent the full cost of providing services. The Statement of Activities provides a more comprehensive measure than just the amount of cash that changed hands, as reflected in the fund-based financial statements. This statement includes the cost of supplies used, depreciation of long-lived capital assets, and other accrual-based expenses. The following table presents the change in the net position of the City for the years ended December 31, 2022 and 2021: 2021 Program Expenses Revenues Net Change Net Change Net (expense) revenue Governmental activities General government 257,267$ 42,473$ (214,794)$ (167,335)$ Public safety 120,607 – (120,607) (111,465) Public works 108,020 48,832 (59,188) (89,475) Conservation and development 74,471 16,548 (57,923) (142,943) Interest on long-term debt 31,222 – (31,222) (33,633) Business-type activities Water 63,955 26,330 (37,625) (3,907) Sewer 64,472 61,942 (2,530) 1,721 Total net (expense) revenue 720,014$ 196,125$ (523,889) (547,037) General revenues Property taxes and franchise fees 572,118 543,912 Grants and contributions not restricted 27 34,012 Investment earnings (charges)(46,172) (6,222) Other revenues 972 222 Total general revenues 526,945 571,924 Change in net position 3,056$ 24,887$ 2022 One of the goals of this statement is to provide a side-by-side comparison to illustrate the difference in the way the City’s governmental and business-type operations are financed. The table clearly illustrates the dependence of the City’s governmental operations on general revenues, such as property taxes and unrestricted grants. It also shows if the City’s business-type activities are generating sufficient revenues (service charges and program specific grants) to cover expenses.