I-1 - Preliminary Official Statement - UR Loan Agreement

The City’s total receipts for governmental activities decreased 60.0%, or approximately $6,757,000, from the prior year. The total cost of all programs and services increased approximately $2,026,000, or 35.2%, with no new programs added this year. The significant decrease in receipts was primarily the result of less proceeds received from the issuance of general obligation bonds and capital grants. The City decreased property tax rates for fiscal year 2019 an average of .02%. This decrease, and an increase in total assessed valuation raised the City’s property tax receipts, including tax increment financing, approximately $495,000 in fiscal year 2019. Based on increases in the total assessed valuation, property tax receipts are budgeted to increase an additional $244,000 next year. The cost of all governmental activities this year was approximately $7.775 million compared to approximately $5.750 million last year. However, as shown in the Statement of Activities and Net Position on pages 18-19, the amount taxpayers ultimately financed for these activities was approximately $6.389 million because some of the cost was paid by those directly benefiting from the programs (approximately $547,000) or by other governments and organizations which subsidized certain programs with grants, contributions and restricted interest (approximately $840,000). The City paid for the remaining “public benefit” portion of governmental activities with property tax (some of which could only be used for certain programs) and with other receipts, such as interest and miscellaneous receipts. Overall, the City’s governmental activities program receipts, including intergovernmental aid and fees for service, decreased in fiscal year 2019 from approximately $2,727,000 to approximately $1,386,000, principally due to a Department of Transportation RISE grant received in fiscal year 2018 to construct street, water system, storm water drainage, sanitary sewer system, sidewalk improvements and installing street lighting and street signalization. Changes in Cash Basis Net Position of Business Type Activities Year ended June 30, 2019 2018 Receipts: Program receipts: Charges for service: Water $ 734,648 652,373 Sewer 860,307 760,747 Recycling 258,604 83,998 General receipts: Bond proceeds 3,673,761 2,508,556 Other general receipts 18,076 22,198 Total receipts 5,545,396 4,027,872 Disbursements: Water 663,874 531,289 Sewer 5,204,381 2,983,671 Recycling 236,169 73,253 Total disbursements 6,104,424 3,588,213 Change in cash basis net position before transfers (559,028) 439,659 Transfers, net 313,290 (192) Change in cash basis net position (245,738) 439,467 Cash basis net position beginning of year 1,637,342 1,197,875 Cash basis net position end of year $ 1,391,604 1,637,342 11