Agenda Packets - 2024/05/13 - Laserfiche WebLink

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SEWER FUND At December 31, 2023, the Sewer Fund had a cash balance of $2,307,983 and total net position of $4,630,230. Of this net position total, $2,062,898 is the investment in capital assets, while $2,567,332 is unrestricted. The following graph shows the financial position of the Sanitary Sewer Fund over the past 10 years: $5,000,000 $4,000,000 $3,000,000 $2,000,000 $1,000,000 Sewer Fund Financial Position Year Ended December 31, 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 � Cash, Net of Interf ind Loans Total Net Position Operating Revenue The following graph shows the operating results of the Sanitary Sewer Fund for the last 10 years: Sewer Fund Operating Results Year Ended December 31, $2,500,000 $2,000,000 $1,500,000 $1,000,000 $500,000 $- 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 MCESCosts Other Operating Expenses Operating Revenue The major expense of the sewer operation is the charge from the Metropolitan Council Environmental Services (MCES). The main cause of the expense fluctuations from year-to-year, shown on the graph above, are generally changes made to the charges from the MCES reflecting the results of its sewer treatment operations. The Sewer Fund maintains a healthy financial position. During fiscal 2023, the Sewer Fund reported operating income of $213,288, compared to an operating income of $74,658 in fiscal 2022. The combination of an increase in user rates and a decrease in operating expenses for contractual services contributed to the change in operating income, compared to the prior year. The City should continue to review utility rates during its annual budget process to make sure an adequate, yet fair, rate is charged for the services provided. -14-