The City’s governmental activities net position increased $12.40 million. The City’s net position is made up of three components: Net investment in capital assets; restricted net position; and unrestricted net position. For governmental activities, unrestricted net position, which represents the part of net position that can be used to finance day-to-day operations, accounted for 19 percent of the overall total net position. Unrestricted net position decreased $14.85 million from $155.76 million in 2024 to $140.91 million in 2025, and restricted net position increased from $175.95 million to $189.10 million, an increase of $13.15 million. The increase in unrestricted net position was primarily driven by increases in sales tax revenues and reductions in program expenses across all government activities. Total charges for services increased from $39.35 million in 2024 compared to $41.93 million in 2025, an increase of $2.58 million; and transient occupancy tax increased from $23.02 million in 2024 to $23.88 million in 2025, representing an increase of $861.33 thousand. Investment earnings saw a decrease of $1.40 million from 2024 to 2025 as interest rates remained elevated throughout the year with a slight downward trend toward the end of fiscal year 2025.

The increase of $13.15 million in restricted net position was due to restricted special projects decreasing by $17.54 million from the prior year, while restricted capital projects funds increased by $30.69 million. During the year, construction on major projects continued; including work on Fire Station 102, and the City's new Library facility, in addition to continuation of the annual street resurfacing program, and the Walk n Roll PD construction. Investment in capital assets in governmental activities increased by $14.10 million, slightly over 6 percent of the total balance.

The City's governmental activities total assets and deferred outflow of resources combined decreased $2.82 million from $849.56 million in 2024 to $846.74 million in 2025. The primary increases to total assets during the fiscal year over prior year were in the City's Capital Assets which increased by $4.91 million over prior year, which was offset by a reduction of restricted cash balances with a fiscal agent from prior year of $8.95 million.

Total governmental activities liabilities and deferred inflows combined decreased by $15.21 million from $104.06 million in 2024 to $88.85 million in 2025. A decrease of $14.93 million in total liabilities for the fiscal year was mainly attributable to a pension liability decrease of $1.85 million, accounts payable decrease of $10.80 million, and decrease of $1.98 million in bonds, notes, lease, SBITA, claims and compensated absences liabilities.

The net position of the business-type activities recognized a decrease of $1.77 million, from $79.51 million during 2024 to $77.73 million during 2025.

Total assets in the business-type activities increased by $700 thousand from $87.16 million in 2024 to $87.86 million in 2025.