Management’s Discussion and Analysis

Summary Changes in Net Position (In thousands)

Government-type Activities

Governmental revenues increased by 13.5% or $32.8 million. Property taxes increased $41.5 million, largely due to the Governor’s Public Safety Grant Initiative (GPSGI) which reduced FY 2021 property tax by $27.9 million. Charges for services increased $11.0 million. Certain governmental activities, such as parks user fees and parking revenues, continued to experience recovery from pandemic-related declines. Revenues were higher than planned for sales tax and development fees, and there was an unplanned American Rescue Plan Act (ARPA) allocation of $6.5 million. These higher revenues were offset by a shortfall in other revenue due to unrealized accounting losses of $6.1 million on the City’s fixed-income investments.

Governmental expenses also increased by 32.3% or $64.9 million in FY 2022 compared to FY 2021. FY 2021 had a large decrease in pension expenses, $24.3 million, which significantly impacted the Fire department. Other drivers of the increase were more City services being provided following pandemic disruption, the City increased its General Fund workforce to support the significant growth experienced in enterprise funds including expansion at the Airport and Water Renewal facilities. The FY 2022 budget anticipated an increase of $10.8 million (6.5%) for 37.6 new positions. Similar to FY 2021, a higher- than- normal level of vacancies continued in FY 2022. High inflation and increased personnel costs also contributed to the FY 2022 increase.