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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, 2024, 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 />Storm Water Utility <br />Total enterprise funds <br />Net Position <br />as of December 31, <br />2024 2023 <br />$ 95,749,335 <br />32,212,510 <br />$ 71,932,644 <br />44,232,074 <br />$ 127,961,845 $ 116,164,718 <br />$ 76,068,276 <br />27,859,546 <br />2,038,066 <br />416,994 <br />21,578,963 <br />$ 60,839,740 <br />33,335,502 <br />1,872,786 <br />416,700 <br />19,699,990 <br />$ 127,961,845 $ 116,164,718 <br />Change <br />$ 23,816,691 <br />(12,019,564) <br />$ 11,797,127 <br />$ 15,228,536 <br />(5,475,956) <br />165,280 <br />294 <br />1,878,973 <br />$ 11,797,127 <br />In total, the net position of the City's enterprise funds increased by $11,797,127 during the year ended <br />December 31, 2024, which is $2,998,753 more than the prior year increase in net position. Additional <br />capital grants, developer contributions, and connection fees, all contributed to the overall growth in net <br />position. <br />The increase in the net investment in capital assets portion of net position includes the City's use of <br />unrestricted resources for infrastructure improvements in the current year, along with contributions from <br />developers, which was partially offset by current year depreciation. <br />-12- <br />