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Both Electric and Water Department other revenues were greatly impacted with an increase in new construction activity.
<br /> Water Connection Fees increased approximately$400,000 over the prior year as a result. Non-recurring items in 2016
<br /> were the sale of the security business line for a net amount of approximately$331,000 and a transfer from the City for
<br /> water main construction of$300,000.
<br /> Total Expenses. In reviewing total expenses in Table A-2 you will notice that there was an increase of 5.5 percent
<br /> overall, with the electric department increasing 4.4 percent, and the water department increasing 0.9 percent. Purchased
<br /> Power is the biggest electric department expense and it was up 5.8 percent.
<br /> Capital Assets and Debt Administration
<br /> Capital Assets. The Utilities' investment in capital assets for its business-type activities as of December 31, 2017
<br /> amounts to $60,450,880 (net of accumulated depreciation). This investment in capital assets includes land, buildings,
<br /> improvements and equipment. A table summarizing the balances by fund follows:
<br /> Increase
<br /> 2017 2016 (Decrease)
<br /> Land $ 678,921 $ 444,435 $ 234,486
<br /> Intangible 10,375,677 9,804,951 570,726
<br /> Land Improvements 6,129 7,065 (936)
<br /> Buildings 1,931,083 2,129,112 (198,029)
<br /> Machinery and Equipment 1,598,194 1,671,535 (73,341)
<br /> Infrastructure 45,124,004 43,875,332 1,248,672
<br /> Construction in Progress 736,872 1,218,350 (481,478)
<br /> Total $ 60,450,880 $ 59,150,780 $ 1,300,100
<br /> The total increase in the Utilities' investment in capital assets for the current fiscal year was 2.2 percent.
<br /> Major capital asset events during the current fiscal year included the following:
<br /> • The Electric Department acquired additional territory that included approximately 480 customers, increasing
<br /> Infrastructure.
<br /> • The Electric Department makes a loss of revenue payment as part of the cost of the territory acquisition,
<br /> increasing Intangibles.
<br /> • Construction in progress decreased as projects started in the previous year were completed in 2017.
<br /> Additional information on the Utilities' capital assets can be found in Note 2B starting on page 36 of this report.
<br /> Long-term Debt.At year end, the Utilities had $14,738,566 in long-term debt which decreased from $15,935,407 in fiscal
<br /> 2016. The decrease is mainly due to regularly scheduled principal payments. More detailed information about the Utilities'
<br /> long-term liabilities can be found in Note 2C starting on page 37 and below:
<br /> Increase
<br /> 2017 2016 (Decrease)
<br /> G.O. Revenue Bonds $ 1,910,000 $ 2,230,000 $ (320,000)
<br /> Revenue Bonds 11,325,000 11,955,000 (630,000)
<br /> Unamortized Premium on Bonds 484,706 536,331 (51,625)
<br /> Promissory Note 1,018,860 1,214,076 (195,216)
<br /> Total $ 14,738,566 $ 15,935,407 $ (1,196,841)
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<br /> 83
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