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Proprietary Operations Enterprise Funds account for the financing of services to Yhe general public in which all or most of the costs involved are paid in the form of charges by the user of such service. Except for ownership, these funds closely resemble a privately-owned business. The Sanitary Sewer Fund accounCs for Che operation of the sewer system with 9,7'75 customers cunently being biil�d. The City reviews its financial position and the rate structure annually. Excess retained earnings are used to finance current operations. Rates have increased for all types of users each year since 1984 to cover increased cost from the Metropolitan Council Environmental Services (MCES). Approximately 78% of the sewer operating expenses, inciuding depreciation on the distribution system, are for sewage service provided by the MCES. Consequently, the sewer rates are in a large part determined by the MCES. Sewer raCes are calculated to generate revenues to offset depreciation on the distribution system. The distTibution system assets were originally financed by special assessments and future replacement of these assets is planned to be financed by revenues. Below is a summary of the sanitary sewer operations: ��• �� :• User Charges Other Total Operating Revenues er^tin �pencec Disposal Charge-MCES Depreeiation � Other Total Operating Expenses Operating Income (Loss) Nonoperating Revenues Net Income 1222 $3,004,492 62.839 �3 067� $2,331,731 131,336 51i.184 �2 976 251 $ 91,080 107 621 1 7 1 122� $2,993,239 58 300 $3 O51 5 9 $2,352,527 171,890 54 48 P�'i 067.899 $ (16,360) 79.977 $ 6 •617 The Water Fund accounts for the operation of the water system, with 9,733 cusComers currently being billed. The City purchases all of the water it uses from the City of St. Paul. The City reviews its financial position and the rate structure annually. 11