Management Report and Recommendations 12/31/1985

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City of Lino Lakes, Minnesota Management Report, Page 31 Enterprise Fund The Enterprise Fund of the City of Lino Lakes financial statements are presented in the 1985 Annual Financial Report in Statements 16 through 18. Presented below are condensed comparative operating statements. Contributed depre- ciation has not been included in these presentations. For The Year Ended December 31, 1985 1984 Amount Percent Amount Percent Operating Income: Water billings $ 7,640 14.94% $ 6,011 13.26% Sewer billings 39,084 76.41 36,417 80.33 Other 4,428 8.65 2,909 6.41 Total operating income 51,152 100.00 45,337 100.00 Operating Expenses: Personal services 12,438 24.32 14,831 32.71 MWCC 25,954 50.74 23,866 52.64 Repairs and maintenance 3,061 5.98 4,088 9.02 Depreciation 984 1.92 838 1.85 Other 8,689 16.99 8,494 18.73 Total operating expenses 51,126 99.95 52,117 114.95 Income (Loss) From Operations 26 .05% (6,780) (14.95 %) Other Income /(Expenses): MWCC maintenance agreement 8,305 7,138 Net Income /(Loss) $ 8,331 $ 358 The operating results of the Water and Sewer Utility Fund increased by $8,000 from 1984. The increased revenue was primarily the result of increased connections to sewer and water. The City should review rates annually and make adjustments to the rates based on costs incurred and expected to be incurred. The Metropolitan Waste Control Commission (MWCC) bills the City annually on an esti- mated basis. These estimated billings are adjusted at a later date and the City is then billed the additional amount or given a refund. These estimated billings vary from year to year and may cause material variances in annual profits or losses of the utility fund. The MWCC billings for the period 1977 to 1985 were as follows: