MANAGEMENT’S DISCUSSION AND ANALYSIS

TABLE 2-CHANGE IN NET ASSETS

Governmental Activities

Please note that public safety expenses of $6,589,191 represent 60.2% of the total governmental expenses. The next most significant program expense is public works, which totals $1,629,730 and 14.9% of the total. Interest expense of $165,407 represents only 1.5%. Interest expense was attributable to the GMA Lease Program to lease/purchase the City’s public safety vehicles and public works equipment, as well as the Certificates of Participation for the construction of the law enforcement center.

Business-Type Activities

The most significant business-type activity of the City is the Water and Sewer Department. The majority of its revenue was derived from user fees charged for product and service.