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Maw <br />Honorable Mayor and Members of the City Council <br />City of Link Lakes <br />Page 23 <br />Table of Water Fund Revenues and Expenses: <br />Operating revenue: <br />Charges for services <br />Other revenue <br />Total operating revenue <br />1998 % of Sales 1997 % of Sales <br />$ 519,505 <br />66,801 <br />586,306 <br />88.6% $ 430,938 <br />11.4% 55,449 <br />100.0% 486,387 <br />Operating expenses: <br />Personal services 87,736 15.0% 75,257 <br />Materials and supplies 73,301 12.5% 90,795 <br />Contractual services 17,289 2.9% 28,423 <br />Repair and maintenance 4,979 0.8% 24,813 <br />Depreciation on purchased assets 43,443 7.4% 26,527 <br />Utilities 52,578 9.0% 50,364 <br />Other 1,983 0.3% 1,923 <br />Total operating expenses 281,309 48.0% 298,102 <br />Net income (loss) from operations <br />304,997 52.0% <br />88.6% <br />11.4% <br />100.0% <br />15.5% <br />18.7% <br />5.8% <br />5.1% <br />- 5.5% <br />10.4% <br />0.4% <br />61.3% <br />188,285 38.7% <br />Other income (expense): <br />Investment earnings 11,416 1.9% 35,387 7.3% <br />Special assessments 283 0.0% 329,399 67.7% <br />_ <br />Bond interest & paying agent fees (225,182) -38.4% (229,900) - 47.3% <br />Total other income (expense) (213,483) -36.4% 134,886 27.7% <br />Net income (loss) before operating transfers 91,514 15.6% 323,171 66.4% <br />Operating transfer to Capital Projects Fund (90,000) -15.4% 0.0% <br />Net income (loss) 1,514 0.3% 323,171 66.4% <br />Retained earnings (deficit) <br />Beginning balance, as previously stated <br />Prior period adjustment <br />Beginning balance, as restated <br />837,555 <br />(3,544) <br />834,011 <br />Residual equity transfer to Sewer Fund (655,283) <br />Retained earnings - December 31 <br />Depreciation on contributed assets <br />excluded above <br />514,384 <br />514,384 <br />$ 180,242 $ 837,555 <br />126,168 137,569 <br />• Operating Revenue increased significantly because of the combination of additional users and a <br />rate increase in 1998. <br />• Income from Operations increased because expenses were held constant while the revenue <br />increased. <br />• Other Income was down significantly because 1997 included revenues on the adoption of an <br />assessment roll for water improvements. <br />• An Operating Transfer was made from the Water Fund to the Civic Complex Construction Fund to <br />fund a portion of the construction costs. <br />• The operating expenses as presented exclude the effects of the depreciation on contributed assets. <br />These assets represent assets that were constructed using proceeds of special assessment bonds. <br />While these assets are not included as a charge against the current operations these assets will <br />need to be replaced at some point in the future when their useful life has expired. <br />