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<br />I <br />I <br />I <br />I <br />I <br />I <br />I <br />I <br />I <br />I <br />I <br />I <br />I <br />I <br />I <br />I <br />I <br />I <br />I <br /> <br />Appendix F. Included on the list is the description of the property, <br />acquisition date, estimated service life, cost, and accumulated depreciation. <br />The facilities and equipment are well maintained. <br /> <br />In 1986, the Water Department owned about $58.5 million of fixed assets. The <br />net value after depreciation was about $48.2 million. The amount outstanding <br />on general obligation water bonds was about $22.4 million. <br /> <br />4.0 FINANCIAL STATUS <br /> <br />The diversity of city services and the necessity of assuring legal compliance <br />preclude recording and summarizing all financial activity of the city in a <br />single account entity. Therefore, the accounting system used by the City of <br />Greeley combines several fiscal units which are accounted for in separate <br />funds. For the Water and Sewer Department, three separate funds have been <br />estab1ished--the water fund, sewer fund, and sewer lagoon fund. Only the <br />water fund will be discussed in this report. <br /> <br />The water fund is a proprietary fund which is used to provide water service to <br />the residents of the City. The fund is self-sustaining and self-supporting by <br />relying completely on user charges. The water fund is administered by the <br />Water Department. All acti vi ti es necessary to provi de treated water to the <br />City's water customers are supported by thi s fund, i ncl udi ng admi ni strati on, <br />operati ons, mai ntenance, fi nanci ng and debt servi ce, and bill i ng and revenue <br />collection. <br /> <br />The schedule of water general obligation bond coverage for the last ten fiscal <br />years is presented on Table 11.1. The column in the table representing the <br />net revenue available for debt service is derived from the gross revenues, <br />less expenses excluding debt service. The ratio of the net revenue available <br />for debt servi ce to the debt servi ce requi rement has exceeded 1. 5 over the <br />last five years. In 1986, the debt service requirement was about $2.6 <br />million. This compares favorably with net revenues of $4.1 million. The <br />di fference between net revenue and debt servi ce requi rements is p1 aced in <br />reserve accounts for replacement of depreciated capital assets. <br /> <br />1231 H <br /> <br />-lL <br />