1999-05-26 - Laserfiche WebLink

Home Browse Search

O� City of Centerville 96t) April e I, 1999 fight Page Eight Enterprise Funds Water Fund The results of the operations and cash position of the Water Fund the past three years are as follows: 1998 1997 1996 Charges for services $ 91,428 $ 63,400 $ 67,421 Operating expenses 123.515 103.839 68.659 Operating Income (loss) before Hook -up fees (32,087) (40,439) (1,238) Hook -up Fees 279.539 109.411 57 030 Operating Income $ 247.452 $ 68.972 $ 55,792 Cash balance, December 31 $ 776,273 $ 458.975 $ 375,754 Although the cash balance is 628% of operating expenses, there still are bond proceeds totalling about $110,000 that have not been spent yet. Also, the operations are at a loss before hook -up fees are added. This indicates the rates need to be reviewed since hook -up fees will not always be at current levels. The hook -up fees generate revenue for expansion of the system. These fees have contributed to the majority of the large cash balance. Sewer Fund The results of operations and cash position of the Sewer Fund the past three years are as follows: 1998 1997 1996 Charges for services $ 137,573 $ 122,245 $ 121,255 Operating expenses 295,890 149.708 177,571 Operating Income (loss) before Hook -up Fees (158,317) (27,463) (56,316) Hook -up Fees 371,177 115,918 100,558 Operating Income $ 212 860 $ 88,455 $ 44,242 Cash balance, December 31 $1.215.614 $ 829,230 $ 705.162 The Sewer Cash also is very high compared with operating expenses but factors that affect the future cash flow needs are present. The Sewer Fund also has unspent bond proceeds, that total $140,000. Large hook -up fees have also been a major factor in the increase. The operating loss before hook -up fees increased dramatically from 1997 to 1998 due to MCES charges increasing 152 %. This has a large impact on revenue from operations. Rates need to be reviewed given the increase in expenditures. As mentioned in the Water fund analysis, the hook -up fees should be used for the expansion of the system. Other items Reclassification entries During the audit several entries were required to get revenue and expenditures in the correct funds. We understand the turnover in the finance position had a lot to do with it but now is a good time to give careful consideration to where items should be coded.