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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 include 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. We understand that the City is
<br />proactive in reviewing these activities on an ongoing basis and we want to reiterate the importance of
<br />continually monitoring these operations. Over the years, we have emphasized to our city clients the
<br />importance of these utility operations being self-sustaining, preventing additional burdens on general
<br />governmental funds. This would include the accumulation of net position for future capital improvements
<br />and to provide a cushion in the event of a 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, 2022, presented both by classification and by fund:
<br />Enterprise Funds Change in Financial Position
<br />Net Position
<br />as of December 31,
<br />2022
<br />2021 Change
<br />Net position of enterprise funds
<br />Total by classification
<br />Net investment in capital assets $ 63,486,708 $ 57,940,442 $ 5,546,266
<br />Unrestricted 43,879,636 48,126,205 (4,246,569)
<br />Total enterprise funds $ 107,366,344 $ 106,066,647 $ 1,299,697
<br />Total by fund
<br />Water Utility $ 55,298,323 $ 55,720,428 $ (422,105)
<br />Sewer Utility 31,521,187 31,436,866 84,321
<br />Street Light Utility 1,774,396 1,752,929 21,467
<br />Recycling Utility 415,620 425,477 (9,857)
<br />Storm Water Utility 18,356,818 16,730,947 1,625,871
<br />Total enterprise funds $ 107,366,344 $ 106,066,647 $ 1,299,697
<br />In total, the net position of the City's enterprise funds increased by $1,299,697 during the year ended
<br />December 31, 2022. The increase in net position is primarily from connection fees and capital
<br />contributions recognized in the current year.
<br />The increase in the net investment in capital assets portion of net position includes the City's use of
<br />resources for infrastructure improvements in the current year, along with contributions from developers,
<br />which was partially offset by current year depreciation. The City's use of resources for infrastructure
<br />reduced the unrestricted portion of net position. The unrestricted portion of net position was also
<br />negatively impacted by the market adjustment on investments recognized in the current year that more
<br />than offset the current year increase from operations.
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