2004 Annual Comprehensive Financial Report

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Figure 7 presents the cost of each of the City's four largest general government programs - police, public works, library and parks and recreation - as well as each program's net cost (total cost less fees generated by the activities and intergovernmental grants and contributions). The net cost shows the financial burden that was placed on the City's taxpayers by each of these functions. ■ The cost of all governmental activities this year was $15.6 million. ■ Programs expenses exceeded revenues by $11.9 million. ■ Those who benefited directly from the programs paid $2.7 million. ■ The City paid for the "public benefit" portion with $15.0 million in taxes. Figure 7 City of Louisville Net Cost of Governmental Activities (millions) Total Cost of Services Net Cost of Services 2003 2004 2003 2004 Police $ 3.3 $ 3.5 $ (3.0) $ (3.3) Public works 2.5 2.7 (1.9) (1.8) Library 0.9 0.9 (0.9) (0.9) Parks and recreation 3.8 3.9 (1.9) (2.1) Other 3.5 4.6 (2.8) (3.8) Total $ 14.0 $ 15.6 $ (10.5) $ (11.9) (Note 1: Amounts in the Management's Discussion and Analysis agree with amounts reported in the Statement of Net Assets in the Basic Financial Statement section of the CAFR.) Business -type Activities Revenues of the City's business -type activities decreased to $6.9 million or $1.1 from 2003 and expenses increased $.3 miilion to $7.3 million. Factors contributing to these results included: ■ The increase in the expenses was due primarily to increases in administration and treatment plant expenses in the water and wastewater funds due primarily from increases in the fixed costs of maintenance and utilities. ■ Decreases in revenues were due to a reduction in commercial building which generated water and sewer tap revenues and excessive rainfall in the summer of 2004 lowering charges for water services. 18