ACFR - FY2021 FINAL 5-13-22 USE THIS ONE - Flipbook - Page 40
Business-Type Activities
Business-type activities increased the City’s net position in 2021 by $2,235,485. The difference in net position
results from an increase in charges for services of $72,562, and capital grants and contributions increase by
$850,606, which includes the sale of the land at $1,061,664, with a profit of $674,502. Miscellaneous revenues
increased by $54,651, offset by a $66,565 decrease in changes in investment income. The expense also
decreased by $668,181 compared to the fiscal year 2020.
Figure 3: Revenue – Business -Type Activities
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 cover the cost of operations. The City implemented a rate
increase effective June 1, 2021, resulting in an annual 2.5% increase to cover operations following five years.
A Water utility rates study needs to be performed every five years as a part of a five-year economic review of
City development. Table 6 shows a change in business-type activities compared to the previous fiscal year.
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