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<br />City of F,lk River
<br />March 13, 2008
<br />Yage 1 fi
<br />Scwcr Fwtd
<br />'fhc following is a summary of operations in the Sewer fintd for the past three years:
<br /> 2005 2006 2007
<br /> Amount Percent Amount Percent Amount Percent
<br />Operating rcvcmics $ 1,261,853 100.0 % $ 1,352,647 100.0 % S 1,454,219 100.0
<br />Operating expenses 1,463,985 176.0 1.654,489 122.3 1,731,676 119.1
<br />
<br />Operating loss {202,]32} (76.0) (301,842) (22.3) (277,457) (19.1)
<br />Nonoperating revenues 1,148,891 91.U 1,]88,785 87.9 1,248,210 85.8
<br />Capital contributions 556,429 44.1 1,134,740 83.9 229,715 15.8
<br />Transfers out (33,030) (2.6) (272,175) 20.1 (35,000) (2.4)
<br />
<br />Change in nel assets $ 1,47Q 158 116.5 °/~ $ 1,749508 129.4 % $ 1 165,468 80.7
<br />
<br />Cash and investments $ 5.759,869 $ 5,537.681 $ 6.638,091
<br />Bonds payable $ ],660,000 * S 1,660,000 $ 1520 000
<br />* This is repotl net of f 996 Bonds that were refiutding in 2005 and paid from escrow in 2006.
<br /> Sewe r Fund O perations Summary
<br />$7,OOO,ODU -
<br />$6,000,000
<br />$5,000,000
<br />$4.000,000
<br />$3,000,000
<br />S2,OOQ,000
<br />S 1,000,000
<br />$-
<br />$(1,000,000)
<br />2005 2006 2007
<br />^ Operating revenues ~ Operating expenses ®Operating (oss O Change in net assets O Cash and investments
<br />The cash balance remains strong relative to operations. The nonoperating revenue is made up mainly of connection fees.
<br />This has been a larse factor in the increase in cash over the last several years. These connection fees ultimately provide
<br />for current debt service and future expansion of the system. There have been operating losses for the past four years.
<br />Depreciation expense was $852,651 in 2007; which is included in the operating expenses. We recommend the City
<br />annually evaluate rates to insure revenues are covering costs.
<br />952.II:359090 Fix 953.835.3561
<br />e H a.uenspaa.com
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