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CITY OF RAMSEY, MINNESOTA <br />NOTES TO FINANCIAL STATEMENTS <br />December 31,1997 <br />Note 14. RESERVES AND DESIGNATED FUND EQUITY (continued) <br />General Fund - <br />Compensated absences designation for $182,291 represents the estimated long-term liability for <br />compensated absences. <br />Working capital designation for $1,610,135 provides for cash flow needs based on an amount equal to <br />50% of the General Fund budgeted operating expenditures for the upcoming year less amounts reserved <br />for prepaid items. <br />Debt Service Funds - <br />Debt Service designation represents fund balances which are presently committed to provide financial <br />resources to pay principal and interest on the City's bonded debt. <br />Capital Project Funds - <br />Capital project designation for $171,511 is designated for approved 1998 street maintenance programs. <br />' Note 15. ENTERPRISE FUND INFORMATION <br />The City maintains Water Utility, Sewer Utility, Street Light, and Recycling Utility Enterprise Funds. A <br />schedule of changes in contributed capital during 1997 is as follows: <br />Water Sewer Street <br />Utility Utility Light. Total <br />Contributed capital, January 1, 1997 8,348,825 7,745,721 107,983 16,202,529 <br />Add current capital contributions 740,168 348,298 10,000 1,098,466 <br />Less contributed capital deletions (622,251) (188,272) - (810,523) <br />Contributed Capital, December 31,1997 $8,466,742 $7,905,747 $117,983 $16,490,472 <br />Segment information pertinent to the enterprise funds is reflected below: <br />Water Sewer Street Recycling <br />Utility Utility Light Utility Total <br />Operating Revenue $ 348,331 $ 326,705 $ 53,710 $ 102,008 $ 830,754 <br />Depreciation Expense $ 150,800 $ 155,600 $ 7,951 $ - $ 314,351 <br />Operating Income $ 40,093 $ 1,792 $ 16,806 $ 26,468 $ 85,159 <br />Operating Transfers (Out) $ (7,000) $ (4,000) $ (1,500) $ (1,000) $ (13,500) <br />Net Income $ 151,026 $ 30,850 $ 19,768 $ 25,829 $ 227,473 <br />Property, Plant, and <br />Equipment Additions $ 740,168 $ 353,346 $ 19,503 $ - $ 1,113,017 <br />Net Working Capital $ 2,700,296 $ 946,850 $ 76,985 $ 56,942 $ 3,781,073 <br />Total Assets $ 8,956,827 $ 7,799,726 $ 233,383 $ 58,685 $ 17,048,621 <br />Total Equity $ 8,948,191 $ 7,766,903 $ 210,616 $ 56,942 $ 16,982,652 <br />-28- <br />