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The City maintains several enterprise funds to account for services the City provides that are financed
<br />primarily through fees charged to those utilizing the service. This section of the report provides you with
<br />an overview of the financial trends and activities of the City's enterprise funds, which includes the Water
<br />Utility, Sewer Utility, Street Light Utility, Recycling Utility, and Storm Water Utility Funds.
<br />The utility funds comprise a considerable portion of the City's activities. These funds significantly help to
<br />defray overhead and administrative costs and provide additional support to general government operations
<br />by way of annual transfers. We understand that the City is proactive in reviewing these activities on an
<br />ongoing basis and we want to reiterate the importance of continually monitoring these operations. Over
<br />the years, we have emphasized to our city clients the importance of these utility operations being
<br />self - sustaining, preventing additional burdens on general government funds. This would include the
<br />accumulation of net position for future capital improvements and to provide a cushion in the event of a
<br />negative trend in operations.
<br />ENTERPRISE FUNDS FINANCIAL POSITION
<br />ENTERPRISE FUNDS OVERVIEW
<br />The following table summarizes the changes in the financial position of the City's enterprise funds during
<br />the year ended December 31, 2013, presented both by classification and by fund:
<br />Total — enterprise funds
<br />Total — enterprise funds
<br />Enterprise Funds Change in Financial Position
<br />Net Position
<br />as of December 31, Increase
<br />2013 2012 (Decrease)
<br />Net position of enterprise funds
<br />Total by classification
<br />Net investment in capital assets $ 50,494,576 $ 50,843,868 $ (349,292)
<br />Unrestricted 28,969,730 27,486,732 1,482,998
<br />$ 79,464,306 $ 78,330,600 $ 1,133,706
<br />Total by fund
<br />Water Utility $ 40,111,622 $ 39,262,115 $ 849,507
<br />Sewer Utility 26,756,476 26,660,606 95,870
<br />Street Light Utility 1,660,540 1,673,212 (12,672)
<br />Recycling Utility 327,622 271,232 56,390
<br />Storm Water Utility 10,608,046 10,463,435 144,611
<br />$ 79,464,306 $ 78,330,600 $ 1,133,706
<br />In total, the net position of the City's enterprise funds increased by $1,133,706 during the year ended
<br />December 31, 2013. Increases for capital contributions and positive operating results overall contributed
<br />to the total enterprise funds increase. Depreciation expense on capital assets in excess of current year
<br />additions reduced the overall net investment in capital assets in enterprise fund operations.
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