1988 CAFR - Laserfiche WebLink

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SEWER AND WATER ENTERPRISE FUND. An enterprise fund is used to account for financial resources used in providing self- supporting public services in which most of the costs involved are paid in the form of charges by the users of the services. Except for ownership, enterprise funds bear a close resemblance to privately owned utility or service enterprises. During 1988 sewer and water improvements totaling $91,406, financed by special assessments, were completed and capitalized in the Water and Sewer Fund. This contribution to the Water and Sewer Fund has been recorded as contributed capital within the fund equity section of the balance sheet. Future expansion of the distribution system, supported by special assessments, will be recorded in a similar manner. The following is a summary of the operations of the fund for both 1988 and 1987: Operating revenues Operating expenses Op. Income (loss) 1988 Favorable 1988 1987 (Unfavorable) $58,217 $17,261 $40,956 (91.388) (73.200) ($18.188) ($33,171) ($55,939) $22.768 The total accounts served within the City's water and sewer district increased by 54% during 1988; this increased customer base raised operating revenues and expenditures. In addition, the drought conditions that existed during 1988 significantly increased City water consumption overall. Retained earnings as of December 31, 1988 were $135,413 which represents a decrease of $15,460. This decrease resulted from the operating Toss. TRUST AND AGENCY FUNDS. Assets held by the City in a trustee or agent capacity for individuals, private organizations, other governments, or other funds are accounted for in the Trust and Agency Funds. The City's trust funds are classified as expendable trust funds; they are accounted for in essentially the same manner as governmental funds. Landfill Trust Fund This fund is maintained by the City to account for certain landfill related revenues to be used for expenditures the City may incur relating to the landfill or for improvements providing a benefit to the entire City. The Landfill Trust Fund balance as of December 31, 1988 was $2,044,018 which is a decrease of $91,217 from 1987. During 1988 $503,939 was transferred to other funds for capital expenditures in the areas of civil defense, fire protection, and park improvements. xi