|
J
<br />U
<br />J
<br />3
<br />m
<br />1
<br />J
<br />■-
<br />F ' “<•
<br />M ^
<br />Sewer OPKRATiMf: PitMn
<br />Sewer revenue increased 7% in 1996, mainly due to an increase in sewer rates. While this increase in
<br />revenues reduced the operating loss by approximately the same amount, overall, the fund recognized a loss
<br />of $120,281, v'hich included a $70,000 transfer to the Water Operating Fund.
<br />Sewer 1991 1992 1993 1994 1995 1996
<br />User charges $ 3%,378 $397,159$ 397,993$ 544,471 $578,149 $ 619,169
<br />Total operating revenue $ 446,776 $402,475 $ 441,255 $ 551,963 $579,390 $ 621,235Total operating expenses (475,109)(588,328)(655,835)(647,610)(771,112)(765,045)Operating loss (28,333)(185,853)(214,580)(95.647)(191,722)(143,810)Nomiperating revenue 166,253 141,412 116,744 151,670 167,138 135,093Nonoperaung expenses
<br />Net operating transfers
<br />(74,730)(72,843)(68,531)(63.150)(67,721)(41,564)
<br />in (out)--98,912 (70,000)
<br />Net income floss)$ 63,190$(117,284)$ (67,455)$ (7,137)$(92,305)$(120,281)
<br />Depreciation on
<br />contributed assets
<br />charged to operations $ 127,264 $122,905 $ 122,905 $ 127,582 $124,052 $ 158,895
<br />Net income (loss)
<br />as a percentage of
<br />operating revenue 14.1%(29.1)% (15.3)%(1.3)%(15.9)% (I9.4)%
<br />Statewide average 4.3%(0.2)%0.7%4.1%N/A N/A
<br />Per report of the State Auditor on Revenue, Expenditures, and Debt of Minnesota Cities over 2 500
<br />m population.
<br />TJie Sewer Operating Fund had a loss before operating transfers of $50,281 for the year ended December 31,
<br />1996, compared with the loss before (grating transfers in 1995 of $92,305 (a $42,024 decrease) This
<br />improvement was caused by the rate increases implemented in 1996, and to a lesser extent by the reduced
<br />operating expenses related to reduced charges for groundwater inflow and infllU'ation.
<br />The noi^rating revenue earned by the fund is primarily interest earned on investments. These investments
<br />are for future debt service, operations, and construction expenses, therefore, it will be important for the City
<br />to keep sewer rates at an adequate level to finance annual operating expenses.
<br />-13-
|