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ENTERPRISE FUNDS OVERVIEW <br />The City maintains several enterprise funds to account for services the City provides that are financed <br />primarily through fees charged to those utilizing the services. This section of the report provides you with <br />an overview of the financial trends and activities of the City's enterprise funds, which include the Water, <br />Sewer, Storm Water, and Street Light Funds. <br />The utility funds comprise a considerable portion of the City's activities. We understand that the City is <br />proactive in reviewing these activities on an ongoing basis and we want to reiterate the importance of <br />continually monitoring these operations. Over the years, we have emphasized to our city clients the <br />importance of these utility operations being self-sustaining, preventing additional burdens on general <br />government funds. This would include the accumulation of net position for future capital improvements <br />and to provide a cushion in the event of a negative trend in operations. <br />ENTERPRISE FUNDS FINANCIAL POSITION <br />The following table summarizes the changes in the financial position of the City's enterprise funds during <br />the year ended December 31, 2023, presented both by classification and by fund: <br />Enterprise Funds Change in Financial Position <br />Net position of enterprise funds <br />Total by classification <br />Net investment in capital assets <br />Unrestricted <br />Total enterprise funds <br />Total by fund <br />Water <br />Sewer <br />Storm Water <br />Street Light <br />Total enterprise funds <br />Net Position <br />as of December 31, <br />2023 2022 Change <br />$ 7,617,563 $ 6,630,980 $ 986,583 <br />5,088,544 5,628,694 (540,150) <br />$ 12,706,107 <br />$ 12,259,674 <br />$ 446,433 <br />$ 4,627,101 <br />$ 4,561,476 <br />$ 65,625 <br />4,630,230 <br />4,395,788 <br />234,442 <br />3,363,021 <br />3,210,921 <br />152,100 <br />85,755 <br />91,489 <br />(5,734) <br />$ 12,706,107 $ 12,259,674 $ 446,433 <br />In total, the net position of the City's enterprise funds increased by $446,433 during the year ended <br />December 31, 2023. The City's ongoing investment in Water Fund infrastructure contributed to the <br />increase in net investment in capital assets, while reducing unrestricted net position. <br />-12- <br />