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Water Rates <br /> Centerville's water revenues meet and exceed current operating expenses and capital project <br /> needs. These revenues provide for an annually increasing Enterprise Fund. 1997 Revenues and <br /> Costs were evaluated as follows. <br /> 1997 Water Revenue Service Charges $ 63,400 <br /> Hook -up fees 109,411 <br /> $ 172,811 <br /> 1997 Operating Costs City Expenses (89,966) <br /> Operating Net Income $ 82,845 <br /> Interest Income from Investments $ 16,650 <br /> Fund Transfers (8,650) <br /> 1996 Enterprise Fund Balance $ 398,693 <br /> 1997 Enterprise Fund Balance $ 489,538 <br /> Water Rates Evaluation, Conclusions and Recommendations: <br /> 1. Water Service Charge Revenues are less than annual operating costs, $ 63,400 versus $ <br /> 89,966. This is about a 40% shortfall. Revenue from Hook -up fees are able supplement these <br /> revenues given the current community growth. A Phase Two study should evaluate how and <br /> when to increase current quarterly service charges to meet these needs without using revenue <br /> from hook -up fees. <br /> 2. The Water Enterprise Fund has grown for many years and is expected to continue to grow <br /> over the next 10 years. Sufficient capital reserves exist to fund non - assessed City water costs. <br /> A Phase Two study should evaluate the ability of this fund to handle proposed Capital <br /> Improvements in the next 10 years. <br /> 3. There is no Water Replacement Fund. A Replacement Fund should be begun with a portion <br /> of the current funds in the Enterprise Fund. The estimated Total Replacement Value for the <br /> Water system is about $ 3,759,000. About $ 21,000 per year should be set aside to provide for <br /> a Replacement Fund. An initial Fund balance should be at about $ 200,000. A Phase Two <br /> study should evaluate how to best set up this Replacement Fund and sustain it with both <br /> hook -up fees and service charges. <br /> 3 <br />