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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, 2016, 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 />Stoiin Water Utility <br />Total — enterprise funds <br />Net Position <br />as of December 31, <br />2016 2015 <br />Increase <br />(Decrease) <br />$ 51,959,594 $ 49,340,145 $ 2,619,449 <br />35,953,541 34,206,676 1,746,865 <br />$ 87,913,135 $ 83,546,821 $ 4,366,314 <br />$ 44,910,172 $ 42,754,778 $ 2,155,394 <br />28,803,181 27,542,246 1,260,935 <br />1,760,306 1,744,350 15,956 <br />408,086 400,034 8,052 <br />12,031,390 11,105,413 925,977 <br />$ 87,913,135 $ 83,546,821 $ 4,366,314 <br />In total, the net position of the City's enterprise funds increased by $4,366,314 as presented in the table <br />above. Current year operations increased equity by $2,722,521, with the remaining increase of <br />$1,643,793, due to the prior period adjustment recorded in the current year to record developer <br />contributions of capital assets received in the prior year. Capital contribution receipts and positive <br />operating results contributed to the total overall increase in enterprise funds. <br />-13- <br />