06-25-1990 Council Packet - Laserfiche WebLink

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Citizens of the City of Orono May 18, 1990 Enterprise Funds Enterprise Funds are used to account for financial resources used in providing self-supporting public services in which most of the costs Involved are paid in the form of charges by the users of the services. Except for ownership, Enterprise Funds bear a close resemblance to privately owned utility or service enterprises. The City owns and operates a water utility, sewer utility, and a public golf course. Water Operating Fund The Water Operating Fund accounts for the provision of water services to the residents of the City who have water service available. All activi ties necessary to provide such services are accounted for in this fund, including administration, operations, maintenance, billing, and collection. The summary of operations for 1989 and 1988 is as follows: 1989 1988 -Operating revenue $165,041 $185,832 -€(^"erating expenses 195,859 177,618 -Operating Income (Loss)$(30,818)$ 8,214 Operating loss for 1989 does not include nonoperating revenue of $2A,752 or nonoperating expenses of $19,287. Operating income for 1988 does not include nonoperating revenue of $5,650 and nonoperating expenses of $1,222. Retained earnings as of December 31, 1989, were $133,174, which represents an increase of $5,979 from 1988, net of the effects of depre ciation on contributed assets and of nonoperating items. Sewer Operating Fund The Sewer Operating Fund accounts for the provision of sewer services to the residents of the City who have sanitary sewer service available. All activities necessary to provide such services are accounted for in this fund, including administration, operations, maintenance, billing, and collection. The summary of operations for 1989 and 1988 is as follows: 1989 1988 MM Operating revenue $401,693 $402,337 Operating expenses 430,322 452,319 Operating Loss $(28,629) $(49,982) -8-