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Statements of revenues,expenses and changes in net position. While the Statements of Net Position shows the change in financial
<br /> assets/deferred outflows and liabilities/deferred inflows,the Statements of Revenues,Expenses and Changes in Net Position,provides
<br /> answers as to the nature and source of these changes. As can be seen in Table A-2,revenues in excess of expenses was the main
<br /> source of the increase in net position of$2,531,445 in fiscal 2015. A closer examination of the individual categories affecting the
<br /> source of changes in net position is discussed below:
<br /> TABLE A-2
<br /> Condensed Statements of Revenues,
<br /> Expenses and Changes in Net Position
<br /> * Increase
<br /> 2015 2014 (Decrease)
<br /> Revenues
<br /> Operating $ 34,754,259 $ 33,515,012 $ 1,239,247
<br /> Nonoperating 576,984 494,455 82,529
<br /> Total revenues 35,331,243 34,009,467 1,321,776
<br /> Expenses
<br /> Operating 32,310,449 31,742,912 567,537
<br /> Nonoperating 172,912 284,129 (111,217)
<br /> Total expenses 32,483,361 32,027,041 456,320
<br /> Income before contributions and operating transfers 2,847,882 1,982,426 865,456
<br /> Capital contributions-developer infrastructure and connection fees 253,934 375,329 (121,395)
<br /> Capital contributions of asset from City 189,669 175,091 14,578
<br /> Transfers from other City funds 94,703 329,490 (234,787)
<br /> Transfers to other City funds (854,743) (822,835) (31,908)
<br /> Change in net position 2,531,445 2,039,501 491,944
<br /> Net position,January 1 53,354,433 54,016,088 (661,655)
<br /> Net position,December 31 $ 55,885,878 $ 56,055,589 $ (169,711)
<br /> *GASB Statement No.68 was implemented for the year ended December 31,2015 and required a$2,701,156 restatement of
<br /> beginning net position.Prior year amounts were not restated causing a variance in ending net position at December 31,2014 and
<br /> beginning net position on January 1,2015. See financial statement Note 6.
<br /> Revenues. Table A-2 shows that operating revenue increased by 3.7 percent in 2015 for the Electric and Water Departments
<br /> combined. The Electric Department operating revenue was impacted by the territory acquisition in September and October adding
<br /> approximately 800 residential customers and 130 commercial customers. The additional revenue resulting from these new customers
<br /> was$314,754.
<br /> Nonoperating revenue is comprised of transmission rebate revenue in the Electric Department,and water tower lease revenue in the
<br /> Water Department,as well as connection fees in both departments. Regarding transmission rebates,in 2007 the Electric Utility
<br /> partnered with Midwest Municipal Transmission Group(MMTG)in order to have our transmission assets recognized in the Midwest
<br /> Independent Transmission System Operator(MISO)market. In doing so,our transmission assets generate a revenue rebate,which in
<br /> turn helps keep our rates down. In 2015,rebates received from our 2013 filings were approximately$5,500 per month. 2014 had a
<br /> sizable catch up distribution for the Brookings transmission line,which was not repeated in 2015.The Water Department is receiving
<br /> lease revenue from Sprint and Verizon for antennas on the water towers. In 2015 this amount was approximately$158,000,and will
<br /> continue for the duration of the multi-year contracts.
<br /> Water Connection Fees decreased approximately$100,000,and Electric Connection Fees increased approximately$13,000. 2014
<br /> Connection Fees were higher with the resurgence in new construction as the economy had begun rebounding.
<br /> Total expenses. In reviewing total expenses in Table A-2 you will notice that there was an increase of 1.4 percent overall,with both
<br /> electric and water departments having marginal increases.Purchased Power is the biggest electric department expense and it was up
<br /> just under 1 percent.
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