2002-08-12 CC Worksession - Laserfiche WebLink

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City of Centerville March 29, 2002 Page Nine Enterprise Funds Water Fund The results of the operations and cash position of the Water fund for the past three years are as follows: Percent Percent Percent 2001 of Total 2000 of Total 1999 of Total Charges for services $ 184,481 100.0% $ 146,321 100.0% $ 119,627 100.0% Operating expenses 154.722 83.9 85.511 58.4 94.208 78.8 Operating income 29,759 16.1 60,810 41.6 25,419 21.2 Nonoperating income 165.916 89.9 129.134 ~ 223 .681 187.0 Net income before transfer $ 195.675 ~% $ 189 944 129.9% $ 249 ] 00 2082% Cash balance, December 31 $ 1.264 755 $ 1.093 ]45 $ 902.433 Bonds payable $ 267 000 $ 294 OQQ $ 324.000 The hook-up fees generate revenue for expansion of the system. These fees contributed to the majority of the large cash balance. The rates currently appear adequate and are at a level sufficient to provide for the operation of the system, but the City should evaluate them annually. Sewer Fund The results of operations and cash position of the Sewer fund for the past three years are as follows: Percent Percent Percent 2001 of Total 2000 of Total 1999 of Total Charges for services $ 202,121 100.0 % $ 181,415 100.0% $ 148,870 100.0% Operating expenses 188.248 ----2li 214.089 118.0 240.347 161.5 Operating income 13,873 6.9 (32,674 ) (18.0) (91,477) (61.5) Nonoperating income 187.036 ~ 215.656 118.9 348.897 234.4 Net income $ 200.909 ~% $ 182 982 100.9 % ~7 420 172.9 % Cash balance, December 31 $ 1818.376 $ 1.669.7]2 $ I 473 267 Bonds payable $ 333 000 $ 366 000 $ 396 000 The Sewer cash also is very high compared with operating expenses but large hook-up fees have also been a major factor in the increase. The operations before hook-up fees have been at a loss for several years until 2001. It is important that the City review rates to ensure that the revenue is high enough to cover operating expenses. As mentioned in the Water fund analysis, the hook-up fees should be used for the expansion of the system.