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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
<br /> as of December 31, Increase
<br /> 2015 2014 (Decrease)
<br /> Net position of enterprise funds
<br /> Total by classification
<br /> Net investment in capital assets $ 49,340,145 $ 50,427,367 $ (1,087,222)
<br /> Unrestricted 34,206,676 30,915,832 3,290,844
<br /> Total—enterprise funds $ 83,546,821 $ 81,343,199 $ 2,203,622
<br /> Total by fund
<br /> Water Utility $ 42,754,778 $ 41,291,148 $ 1,463,630
<br /> Sewer Utility 27,542,246 27,138,024 404,222
<br /> Street Light Utility 1,744,350 1,717,792 26,558
<br /> Recycling Utility 400,034 380,483 19,551
<br /> Storm Water Utility 11,105,413 10,815,752 289,661
<br /> Total—enterprise funds $ 83,546,821 $ 81,343,199 $ 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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