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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, 2023, presented both by classification and by fund:
<br />Enterprise Funds Change in Financial Position
<br />Net Position
<br />as of December 31,
<br />2023 2022
<br />Change
<br />Net position of enterprise funds
<br />Total by classification
<br />Net investment in capital assets $ 71,932,644 $ 63,486,708 $ 8,445,936
<br />Unrestricted 44,232,074 43,879,636 352,438
<br />Total enterprise funds $ 116,164,718 $ 107,366,344 $ 8,798,374
<br />Total by fund
<br />Water Utility
<br />Sewer Utility
<br />Street Light Utility
<br />Recycling Utility
<br />Storm Water Utility
<br />$ 60,839,740 $ 55,298,323 $ 5,541,417
<br />33,335,502 31,521,187 1,814,315
<br />1,872,786 1,774,396 98,390
<br />416,700 415,620 1,080
<br />19,699,990 18,356,818 1,343,172
<br />Total enterprise funds $ 116,164,718 $ 107,366,344 $ 8,798,374
<br />In total, the net position of the City's enterprise funds increased by $8,798,374 during the year ended
<br />December 31, 2023. The increase in net position is due in part from investment earnings increasing by
<br />$8,083,219. Developer contributions and connection fees, along with an increase in utility rates and
<br />consumption billed also contributed to the overall growth in net position.
<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 increase reported in the unrestricted portion of net position.
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