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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, 2018, presented both by classification and by fund: <br />Enterprise Funds Change in Financial Position <br />Net Position <br />as of December 31, Increase <br />2018 2017 (Decrease) <br />Net position of enterprise funds <br />Total by classification <br />Net investment in capital assets $ 53,653,338 $ 53,855,285 $ (201,947) <br />Unrestricted 43,024,292 38,306,851 4,717,441 <br />Total — enterprise funds $ 96,677,630 $ 92,162,136 $ 4,515,494 <br />Total by fund <br />Water Utility <br />Sewer Utility <br />Street Light Utility <br />Recycling Utility <br />Storm Water Utility <br />$ 49,832,678 $ 47,254,551 $ 2,578,127 <br />30,823,058 29,676,700 1,146,358 <br />1,853,352 1,802,365 50,987 <br />405,416 403,189 2,227 <br />13,763,126 13,025,331 737,795 <br />Total — enterprise funds $ 96,677,630 $ 92,162,136 $ 4,515,494 <br />In total, the net position of the City's enterprise funds increased by $4,515,494 as presented in the table <br />above. Capital contributions recognized and positive operating results contributed to the total overall <br />increase in net position within the City's enterprise funds. <br />-13- <br />