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City of Elk River
<br />Financial Analysis
<br />Sewer Operations
<br />The following graph illustrates the current operations of the Sewer Fund for the past five years.
<br />Operating income is shown with and without depreciation below.
<br />Operating revenue increased $116,707, or 4.6%, from 2021 with increased rates. Operating expenses
<br />increased by $234,289, or 6.9%, due in large part to a higher pension expense recognized along with
<br />greater supply and utility costs. The net effect of the increased revenues and expenses is an operating
<br />loss of $1,018,061 for the year. When not including depreciation and amortization of capital assets in the
<br />calculation, the Sewer Fund had an operating income of $623,383.
<br />Enterprise funds may be used to account for any activity in which a fee is charged. It is not required to
<br />have the fee support the entire activity; however, the basic premise in establishing an enterprise fund is
<br />that the activity will be operated similar to a business. Therefore, it is expected the enterprise fund
<br />would at least be able to meet its obligations currently and into the future.
<br />Sewer Operations
<br />P, n
<br />$3,000,000
<br />$2,000,000
<br />$1,000,000
<br />$(1,000,000)
<br />$(2,000,000)
<br />2018
<br />2019
<br />2020
<br />2021
<br />2022
<br />■ Operating Revenues
<br />$2,246,794
<br />$2,383,196
<br />$2,481,522
<br />$2,517,025
<br />$2,633,732
<br />■ Operating Expenses
<br />3,251,292
<br />3,305,817
<br />3,344,218
<br />3,417,504
<br />3,651,793
<br />® Operating Income without
<br />Depreciation/Amortization
<br />634,963
<br />721,838
<br />773,717
<br />739,615
<br />623,383
<br />■Operating Loss
<br />(1,004,498)
<br />(922,621)
<br />(862,696)
<br />(900,479)
<br />(1,018,061)
<br />13
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