ACFR - FY2020 5-28-21 FINAL - Flipbook - Page 33
Business-Type Activities
Business activities changed the City’s net position by $647,892 in comparison with a change in a net position
of $750,017 in the prior year. The change in net position is the result of an increase in charges for services of
$355,499, and capital grants and contributions increased by $139,526. Expense also increased $584,214 as
compared to fiscal year 2019.
Figure 3: Revenue – Business -Type Activities
Revenues by Source Business - Type Activities
Capital Grants and
Contributions
11.91%
Investment Income
0.84%
Miscellaneous Revenues
0.67%
Charges for Services
86.58%
Charges for Services
Capital Grants and Contributions
Investment Income
Miscellaneous revenues
The most significant revenue for business-type activities is Charges for Services. This is a characteristic trait
of enterprise funds that the charges for services are to cover the cost of operations. The City implemented a
rate increase effective June 1, 2017, resulting in a one-time increase of 6% for utility capital projects and a 1.7%
increase to cover operations for the following five years. In fiscal year 2021 a water utility rates study needs to
be performed as a part of a five year economic review of City development. Table 6 shows significant change
in miscellaneous revenue in comparison with previous fiscal year. Miscellaneous revenues include current
year permits charges and other miscellaneous revenues - $136,309. In addition to regular water billing in 2020,
Public Works received an $18,000 check from Blue Lake community for overflowing lake maintenance.
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