MANAGEMENT’S DISCUSSION AND ANALYSIS

Governmental Activities

Please note that public safety expenses of $7,796,665 represent 64% of the total governmental expenses. The next most significant program expense is general government, which totals $1,892,285 or 15.6% of the total.

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.

Cost of Program Services

The Statement of Activities shows the cost of program services and the charges for services and grants offsetting those services. Table 3 shows, for governmental and business-type activities, the combined total cost of services and the combined net cost of services; that is, it identifies the cost of these services supported by tax revenue.

This information was taken from the Statement of Activities on pages 15 and 16.