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Management's Discussion and Analysis -Continued
<br />STATEMENTS OF REVENUES, EXPENSES AND CHANGES IN NET ASSETS
<br />While [he Statements of Ne[ Assets shows the change in financial position of net assets, the Statements of Revenues, Expenses
<br />and Changes in Ne[ Assets, provides answers as to the nature and source of these changes. As can be seen in Table A-2, the
<br />increase in "Operating Revenues" was the main source of [he increase in net assets of 1,630,809 in fiscal 2011. A closer
<br />examination of the individual categories affecting the source of changes in net assets is discussed below:
<br />TABLE A-2
<br />Condensed Statements of Revenues,
<br />Expenses and Changes in Net Assets
<br /> Increase
<br /> 2011 2010 (Decrease)
<br />Revenues
<br />Operating $ 30,416,803 $ 28,706,223 $ 1,710,580
<br />Nonoperating 300,813 2]8,266 82,547
<br />Total revenues 30,717,616 28,924,489 1,793,127
<br />Expenses
<br />Operating 28,421,809 27,107,250 1,314,559
<br />Nonoperating 437,259 448,818 (11,559)
<br />
<br />Total expenses 28,859,068 27,556,068 1,303,000
<br />Income before contributions and operating transfers 1,858,548 1,368,421 490,127
<br />Capital Contributions -Developer Infrastructure and Connection Fees 195,853 460,534 (264,681)
<br />Transfers from other City funds 312,823 71,655 241,168
<br />Transfers to other City funds (736,415) (682,086) (54,329)
<br />
<br />Change in net assets 1,630,809 1,218,524 412,285
<br />Net assets, January 1 47,583,084 46,364,560 1,218,524
<br />Net assets, December 31
<br />Revenues
<br />$ 49,213,893 $ 47,583,084 $ 1,630,809
<br />Table A-2 shows that operating revenue increased by 6 percent in 201 I for the Water and Electric Departments combined. This
<br />increase was a result of increased usage in the commercial sector. The increase in electric revenues offsets the water revenues
<br />being down approximately 5 percent from decreased lawn watering, due to the wet spring and mild summer.
<br />Nonoperating revenue increased 20 percent as a result of transmission rebate revenue in the Electric Department, and water tower
<br />lease revenue in the Water Department. In 2007 the Electric Utility partnered with Midwest Municipal Transmission Group
<br />(MMTG) in order to have our transmission assets recognized in the Midwest Independent System Operator (MISO) transmission
<br />market. In doing so, our transmission assets generate a revenue rebate, which in [urn helps keep our rates down. In 2011, rebates
<br />received from our 2009 Flings were approximately $5,000 per month. The Water Department is receiving lease revenue from
<br />Sprint for antennas on [he water towers. In 201 I this amount was approximately $84,000, and will continue for the duration of
<br />the multi-year contract.
<br />Between the two departments, Connection Fees increased approximately $10,000; Electric decreased approximately $30,000 and
<br />Water increased approximately $40,000.
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