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Honorable Mayor and Members of the City Council
<br />City of Link Lakes
<br />Page 24
<br />Table of Sewer Fund Revenues and Expenses (Continued):
<br />Operating revenue:
<br />Charges for services
<br />Other revenue
<br />Total operating revenue
<br />1998 % of Sales 1997 % of Sales
<br />$ 668,779
<br />50,612
<br />719,391
<br />93.0% $ 585,149
<br />7.0% 43,387
<br />100.0% 628,536
<br />93.1%
<br />6.9%
<br />100.0%
<br />Operating expenses:
<br />Personal services 88,419 12.3% 79,130 12.6%
<br />Materials and supplies 4,844 0.7% 7,626 1.2%
<br />Contractual services 28,981 4.0% 45,621 7.3%
<br />Repair and maintenance 175,033 24.3% 17,918 2.9%
<br />MCES sewer charges 326,619 45.4% 297,202 47.3%
<br />Depreciation on Purchased assets 8,618 1.2% 5,241 0.8%
<br />Utilities 24,750 3.4% 45,468 7.2%
<br />Other 3,369 0.5% 1,254 0.2%
<br />Total operating expenses 660,633 91.8% 499,460 79.5%
<br />Net income from operations 58,758
<br />8.2% 129,076 20.5%
<br />Other income:
<br />Investment eamings 24,894 3.5% 18,437 2.9%
<br />Special assessments 283 0.0% 6 0.0%
<br />Total other income 25,177 3.5% 18,443 2.9%
<br />Net income (loss) before operating transfers 83,935 11.7% 147,519 23.5%
<br />Operating transfer to Capital Projects Fund (90,000) -12.5% 0.0%
<br />Net income (loss) (6,065) -0.8% 147,519 23,5%
<br />Retained earnings (deficit)
<br />Beginning balance, as previously stated 669,899 522,380
<br />Prior period adjustment (2,331) -
<br />Beginning balance, as restated 667,568 522,380
<br />Retained earnings - December 31 $ 661,503 $ 669,899
<br />Depreciation on Contributed assets
<br />excluded above
<br />196,639 196,639
<br />• Operating Revenue increased significantly because of the combination of additional users and a
<br />rate increase in 1998.
<br />• Operating expenses increased substantially in 1998. This is due in part to repairs done on the
<br />Lakes Addition Sewer Lines and increases the amounts paid to the MCES for the treatment of
<br />sewage flows.
<br />• An Operating Transfer was made from the Sewer 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.
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