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ENTERPRISE FUNDS OVERVIEW
<br />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 />Sewer, Street Light, Recycling, and Storm Water Utility Funds.
<br />The utility funds comprise a considerable portion of the City's activities. These funds help to defray
<br />overhead and administrative costs and provide additional support to general government operations by
<br />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 governmental 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 />The following table summarizes the changes in the financial position of the City's enterprise funds during
<br />the year ended December 31, 2015, presented both by classification and by fund:
<br />Enterprise Funds Change in Financial Position
<br />Net position of enterprise funds
<br />Total by classification
<br />Net investment in capital assets
<br />Unrestricted
<br />Total — enterprise funds
<br />Total by fund
<br />Water Utility
<br />Sewer Utility
<br />Street Light Utility
<br />Recycling Utility
<br />Storm Water Utility
<br />Total — enterprise funds
<br />Net Position
<br />as of December 31,
<br />2015 2014
<br />$ 49,340,145
<br />34,206,676
<br />$ 83,546,821
<br />$ 42,754,778
<br />27,542,246
<br />1,744,350
<br />400,034
<br />11,105,413
<br />$ 83,546,821
<br />$ 50,427,367
<br />30,915,832
<br />$ 81,343,199
<br />$ 41,291,148
<br />27,138,024
<br />1,717,792
<br />380,483
<br />10,815,752
<br />$ 81,343,199
<br />Increase
<br />(Decrease)
<br />$ (1,087,222)
<br />3,290,844
<br />$ 2,203,622
<br />$ 1,463,630
<br />404,222
<br />26,558
<br />19,551
<br />289,661
<br />$ 2,203,622
<br />In total, the net position of the City's enterprise funds increased by $2,203,622 during the year ended
<br />December 31, 2015. Capital contribution receipts and positive operating results contributed to the total
<br />overall increase in enterprise funds. Depreciation expense on capital assets in excess of current year
<br />additions reduced the overall net investment in capital assets in enterprise fund operations. The change in
<br />accounting principle for pensions, as mentioned earlier, reduced beginning net position by $362,017.
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