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Management's Discussion and Analysis -Continued
<br />Apri19, 2009
<br />STATEMENTS OF REVENUES, EXPENSES AND CHANGES IN NET ASSETS
<br />While the Statements of Net Assets shows the change in financial position of net assets, the Statements of Revenues, Expenses
<br />and Changes in Net Assets, provides answers as to the nature and source of these changes. As can be seen in Table A-2, the
<br />"Operating Revenues" was the main source of the increase in net assets of $883,140 in fisca12008. A closer examination of the
<br />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 /> 2008 2007 (Decrease)
<br />Revenues
<br />Operating $ 24,863,364 $ 21,779,709 $ 3,083,655
<br />Nonoperating 1,089,329 2,018,854 (929,525)
<br />
<br />Total revenues 25,952,693 23,798,563 2,154,130
<br />Expenses
<br />Operating 23,762,013 20,375,601 3,386,412
<br />Nonoperating 629,927 542,823 87,104
<br />
<br />Total expenses 24,391,940 20,918,424 3,473,516
<br />
<br />Income before operating transfers 1,560,753 2,880,139 (1,319,386)
<br />Transfers to other City funds (560,636) (503,000) (57,636)
<br />
<br />Change in net assets 1,000,117 2,377,139 (1,377,022)
<br />Net assets, January 1 44,845,990 42,655,242 2,190,748
<br />Prior period adjustments (116,977) (186,391) 69,414
<br />
<br />Net assets, December 31 $ 45,729,130 $ 44,845,990 $ 883,140
<br />Revenues
<br />Table A-2 shows that operating revenue increased by 14 percent in 2008 for the Water and Electric Departments combined. This
<br />increase was due mainly to the new data centers in town. Non operating revenue decreased 46 percent as a result of the decrease
<br />in construction this year, and was expected. Specifically, on the water side, there were no contributions of infrastructure from
<br />developers in 2008, down from $293,000 in 2007. Between the two departments, Connectior. Fees were down $460,000.
<br />Total Expenses
<br />In reviewing total expenses in Table A-2 you will notice that there was an increase of 16.4 percent overall. The Electric
<br />Department experienced an increase of 18 percent in operating expenses, while the Water Department's operating expenses
<br />remained pretty consistent. The increase in operating expenses for the Electric Department mainly resulted from the purchased
<br />power increasing by $2,602,236 over 2007 or 21 percent. This increase was lazgely impacted by the total of $766,000 in Power
<br />Cost Adjustments (PCA) billed to us from our power supplier. (Prior to 2008, the lazgest accumulated PCA in a year was
<br />approximately $200,000.) Typically 100 percent of these PCAs aze passed on to the customers, but the Utilities only passed along
<br />75 percent or $580,000.
<br />-IV-
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