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<br />City's Equity in System <br /> 12 Months <br /> Ended <br /> August 31 Fiscal Year Ended September 30, <br /> 1988 1987 1986 1985 1984 <br /> (Unaudited) <br />Waterworks and Sewer <br />System $16,168,008 $15,188,496 $ 9,405,599 $ 8,133,675 $7,906,648 <br />Less Reserve for <br />Deprecia tion 4,361,217 3,827,096 3,303,473 3,361,469 3,172,712 <br />$11,806,791 $11,361,400 $ 6,102,126 $ 4,77 2,206 $4,733,936 <br />Plus Construction Fund 761,641 646,487 4,838,885 3,834,936 196,687 <br />Net Plant $12,568,432 $12,007,887 $10,941,011 $ 8,607,142 $4,930,623 <br />Plus Net Working Capita! 2,046,456 .2,145,391 1,816,827 2,831,553 2,821,919 <br />Tota! $14,614,888 $14,153,278 $12,757,838 $11 ,438,695 $7,752,542 <br />Revenue Bond Debt $ 4,060,000 $ 2,740,000 $ 2,685,000 $ 2,755,000 $2,785,000 <br />Less Interest and <br />Sinking Fund and <br />Reserve Fund 906,841 567,586 404,366 405,116 404,787 <br />Net Revenue Debt $ 3,153,159 $ 2,172,414 $ 2,280,634 $ 2,349,884 $2,380,21.3 <br />City's Equity in System $11,461,729 $11,980,864 $10,477,204 $ 9,088,8Jl $5,372,329 <br />Percentage City's 69.3096 <br />Equity in System 78.4396 84.6596 82. 1296 79.46% <br />FinanciaJ Administration <br /> <br />The financial administration of the City is vested in the Department of Finance. The Department of <br />Finance operates under the Director of Finance, who is appointed by the City Manager. Required <br />activities of the Department of Finance are control, custody and disbursement of City funds, assessment <br />and collection of taxes and issuance of licenses. Other activities of the department include data <br />processing, utility billing and collections, internal service fund operation, annual budget preparation and <br />interim and annual financial reports. <br /> <br />Financial Policies <br /> <br />Basis of Accounting... The City's accounting records of the governmental fund revenues and <br />expenditures are recognized on the modified accrual basis. Revenues are recognized int he accounting <br />period in which they are available and measurable. Expenditures are recognized in the accounting period <br />in which the fund liabiJity is incurred, if measurable, except for unmatured interest on general long-term <br />debt. <br /> <br />The accrual basis of account is utilized by proprietary funds. Under the accrual basis of accounting, <br />revenues are recognized in the accounting period in which they are earned and become mesurable. <br />Expenses are recorded in the accounting period incurred, if measurable. <br /> <br />General Fund Balance <br /> <br />The City policy is to maintain surplus and unencumbered fund equal to three (3) months of expendi tures in <br />the General Fund. This aJlows the City to avoid interim borrowing pending tax receipts. <br /> <br />Debt Service Fund Balance. . . (COpy TO COME) <br /> <br />Use of Bond Proceeds, Grants, etc. . . The City's policy is to use bond proceeds, grants, revenue sharing or <br />other non-recurring revenues for capital expenditures only. Such revenues are never to be used to fund <br />City operations. <br /> <br />- 13 - <br />