MANAGEMENT’S DISCUSSION AND ANALYSIS

Governmental activities total expenses were $22,413,377 at July 31, 2020, an increase of $3,424,969 over the prior year. Key elements of changes from the prior year were mainly attributable to the following functional areas: 1) Public safety expenses increased by $944,821 due to increased salaries and pandemic related expenditures; and 2) Public works expenses increased by $1,575,825 due to increased projects and capital outlay during the current year.

In addition, the most significant functional expense for governmental activity was for public safety of $11,092,290, which represents 49.90% of the total governmental expenses. The next most significant program expense is public works, which totals $5,239,662, or 23.38%, of the total.

Business-Type Activities

The most significant business-type activity of the City is the Water and Sewer Department. The City’s W ater and Sewer Department experienced a significant increase in revenues and expenses during the current year from the increased user fees charged for product and service and from the increased customer usage.

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 14 and 15.