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z -7 <br /> MEMORANDUM <br /> DATE: November 2, 1998 <br /> TO: Mike Mornson, City Manager <br /> FROM: Roger Larson, Finance Director <br /> ITEM: UTILITY FUND/NON-OPERATING REVENUES <br /> The following is a recap of the Utility Funds water and sewer revenue for 1997. (It <br /> should be noted that other than interest earnings, non-operating revenues do-not <br /> subsidize water & sewer rates.): <br /> On page 67 of the auditor's financial statement, the information is provided: <br /> Water and Sewer Revenue $ 928,578 <br /> Expenditures $1,156,173 <br /> ($ 227,595) <br /> Non-Operating Revenues 447,204 <br /> NET INCOME $ 219,609 <br /> The format of presenting revenues, less expenditures, adding non-operating revenue is <br /> commonly used in the accounting profession. Upon review of the above information, <br /> an assumption could be made that non-operating revenues are subsidizing the water & <br /> sewer rates. <br /> However, a closer review of the numbers reveals that the revenues derived from <br /> quarterly water and sewer billings is adequate to balance the Utility Fund budget. <br /> Within the numbers presented above are revenues and expenditures which are <br /> associated with the Water Filtration Fund. Presentation of the numbers without <br /> including the Water Filtration numbers would be as follows: <br /> Water & Sewer Revenue $ 928,578 <br /> Add: <br /> Interest Earnings $ 21,856 (Water Sewer portion only) <br /> Other Income $ 3,700 <br /> Credits 29,346 <br /> Total Revenues $ 983,480 <br />