EXHIBIT E-1 STATEMENT OF NET ASSETS June 30, 2004 Water Wastewater Other Total Assets Current Assets: Cash and Cash Equivalents (Note 3) $ 31,717,844 $ 5,117,193 $ 35,102,877 $ 99,857 $ 72,037,771 $ 42,342,593 Accounts Receivables (Net of Allowance for Doubtful Accounts 15,796,683 9,046,766 5,992,570 425,817 31,261,836 2,376,631 Due From Other Funds (Note 4) 1,055,465 136,761 1,428,223 -- 2,620,449 -- Inventories of Materials and Supplies 16,434,792 143,099 60,714 93,372 16,731,977 4,076,607 Prepaid Expenses and Other Current Assets 1,899,000 1,324,614 1,561,719 56,604 4,841,937 918,331 Total Current Assets 66,903,784 15,768,433 44,146,103 675,650 127,493,970 49,733,560 Noncurrent Assets: Restricted Assets - Cash and Investments (Note 3) 2,811,017 350,699 5,489,225 -- 8,650,941 -- Advances To Other Funds (Notes 4) 19,605,111 19,081,068 21,534,342 -- 60,220,521 3,294,908 Deferred Expenses 8,742,741 9,213,728 8,010,316 -- 25,966,785 49,388 Capital Assets (Note 7): Land -- -- -- 8,233,390 8,233,390 98,000 Buildings and Structures -- -- -- 15,036,537 15,036,537 94,732,605 Equipment -- -- -- 5,936,957 5,936,957 59,088,087 Plant Held for Future Use 25,813 -- 207,075 -- 232,888 -- Plant-in-Service 300,515,745 253,661,482 214,044,829 -- 768,222,056 -- Completed Construction 15,574,710 14,737,598 124,667,852 -- 154,980,160 -- Less: Accumulated Depreciation (83,292,203) (70,279,082) (103,401,825) (2,181,486) (259,154,596) (85,302,535) Construction in Progress 20,652,916 23,724,477 29,571,214 1,360,328 75,308,935 8,616,968 Total Capital Assets, Net Accumulated Depreciation 253,476,981 221,844,475 265,089,145 28,385,726 768,796,327 77,233,125 Total Noncurrent Assets 284,635,850 250,489,970 300,123,028 28,385,726 863,634,574 80,577,421 Total Assets $ 351,539,634 $ 266,258,403 $ 344,269,131 $ 29,061,376 $ 991,128,544 $ 130,310,981 Liabilities: Current Liabilities Accounts Payable $ 8,862,156 $ 3,419,299 $ 3,761,706 $ 533,064 $ 16,576,225 $ 1,961,777 Accrued Liabilities 993,451 1,657,793 2,192,722 476,508 5,320,474 1,027,012 Due To Other Funds (Note 4) -- -- -- 2,309,389 2,309,389 4,894,259 Accrued Interest on Bonds Payable 5,316,802 2,861,219 3,770,741 435,584 12,384,346 2,126,253 General Obligation Bonds and Capital Leases (Note 8 4,848,809 3,823,507 2,714,368 1,706,070 13,092,754 4,855,703 Revenue Bonds Payable (Note 8) 812,928 67,890 2,850,210 -- 3,731,028 -- Compensated Absences 681,273 317,279 408,370 106,072 1,512,994 243,401 Other Liabilities and Claims Payable (Note 10 -- -- -- -- -- 5,713,070 Total Current Liabilities 21,515,419 12,146,987 15,698,117 5,566,687 54,927,210 20,821,475 Noncurrent Liabilities Liabilities to be Repaid from Restricted Assets Customers' Deposits 2,811,017 192,351 -- -- 3,003,368 -- Accreted Interest on Bonds Payable (Note 8) 734,784 1,175,552 480,705 -- 2,391,041 104,826 Deferred Revenue 9,963,963 35,777,452 18,910,058 -- 64,651,473 348,649 General Obligation Bonds and Capital Lease Liabilities (Note 8 110,530,764 85,721,341 45,436,656 17,975,499 259,664,260 12,800,635 Revenue Bonds Payable (Note 8) 114,979,949 36,207,192 101,973,457 -- 253,160,598 -- Compensated Absences 21,054 228,976 137,885 7,732 395,647 185,672 Other Liabilities and Claims Payable (Note 10 -- -- -- -- -- 16,259,724 Advances from Other Funds -- -- -- -- -- 63,515,579 Total Noncurrent Liabilities 239,041,531 159,302,864 166,938,761 17,983,231 583,266,387 93,215,085 Total Liabilities 260,556,950 171,449,851 182,636,878 23,549,918 638,193,597 114,036,560 Net Assets: Invested in Capital Assets, Net of Related Deb 24,380,764 95,199,692 117,122,974 8,704,157 245,407,587 59,471,961 Restricted for Capital Projects 2,811,017 350,699 5,489,225 -- 8,650,941 -- Unrestricted 63,790,903 (741,839) 39,020,054 (3,192,699) 98,876,419 (43,197,540) Total Net Assets $ 90,982,684 $ 94,808,552 $ 161,632,253 $ 5,511,458 $ 352,934,947 $ 16,274,421
EXHIBIT E-2 RECONCILIATION OF THE ENTERPRISE FUNDS STATEMENT OF NET ASSETS TO THE GOVERNMENT-WIDE STATEMENT OF NET ASSETS June 30, 2004 Total Enterprise Funds Internal Service Fund Allocation Stores and Transportation Divison Business-Type Activities Statement of Net Assets Assets Current Assets: Cash and Cash Equivalents (Note 3) $ 72,037,771 $ 31,487,975 $ 103,525,746 Accounts Receivables (Net of Allowance for Doubtful Accounts): 31,261,836 68 31,261,904 Due From Other Funds (Note 4) 2,620,449 -- 2,620,449 Inventories of Materials and Supplies 16,731,977 3,630,463 20,362,440 Prepaid Expenses and Other Current Assets 4,841,937 277,553 5,119,490 Total Current Assets 127,493,970 35,396,059 162,890,029 Noncurrent Assets: Restricted Assets - Cash and Investments (Note 3) 8,650,941 -- 8,650,941 Advances To Other Funds 60,220,521 (63,515,429) (3,294,908) Deferred Expenses 25,966,785 -- 25,966,785 Capital Assets (Note 7): Land 8,233,390 -- 8,233,390 Buildings and Structures 15,036,537 57,558,114 72,594,651 Equipment 5,936,957 -- 5,936,957 Plant Held for Future Use 232,888 -- 232,888 Plant-in-Service 768,222,056 -- 768,222,056 Completed Construction 154,980,160 -- 154,980,160 Less Accumulated Depreciation (259,154,596) (33,132,430) (292,287,026) Construction in Progress 75,308,935 5,135,005 80,443,940 Total Capital Assets, Net Accumulated Depreciation 768,796,327 29,560,689 798,357,016 Total Noncurrent Assets 863,634,574 (33,954,740) 829,679,834 Total Assets $ 991,128,544 $ 1,441,319 $ 992,569,863 Liabilities: Current Liabilities: Accounts Payable 16,576,225 1,211,621 17,787,846 Accrued Liabilities 5,320,474 149,624 5,470,098 Due To Other Funds (Note 4) 2,309,389 -- 2,309,389 Accrued Interest on Bonds Payable 12,384,346 -- 12,384,346 General Obligation Bonds and Capital Leases (Note 8) 13,092,754 -- 13,092,754 Revenue Bonds Payable (Note 8) 3,731,028 -- 3,731,028 Compensated Absences 1,512,994 59,498 1,572,492 Total Current Liabilities 54,927,210 1,420,743 56,347,953 Noncurrent Liabilities: Liabilities to be Repaid from Restricted Assets: Customers' Deposits 3,003,368 -- 3,003,368 Accreted Interest on Bonds Payable (Note 8) 2,391,041 -- 2,391,041 Deferred Revenue 64,651,473 97 64,651,570 General Obligation Bonds and Capital Leases (Note 8) 259,664,260 -- 259,664,260 Revenue Bonds Payable (Note 8) 253,160,598 -- 253,160,598 Compensated Absences 395,647 20,479 416,126 Total Noncurrent Liabilities 583,266,387 20,576 583,286,963 Total Liabilities 638,193,597 1,441,319 639,634,916 Net Assets: Invested in Capital Assets, Net of Related Debt 245,407,587 29,560,689 274,968,276 Restricted for Capital Projects 8,650,941 -- 8,650,941 Unrestricted 98,876,419 (29,560,689) 69,315,730 Total Net Assets $ 352,934,947 $ -- $ 352,934,947 Amounts related to interfund activity have been eliminated prior to presenting this reconciliation's amounts in Exhibit A
EXHIBIT E-3 STATEMENT OF REVENUES, EXPENSES, AND CHANGES IN THE FUND NET ASSETS Water Wastewater Other Total Operating Revenues Charges for Goods and Services $ 183,460,419 $ 44,337,554 $ 45,427,916 $ 4,522,485 $ 277,748,374 $ 41,881,405 Operating Expenses Purchased 125,943,210 -- -- -- 125,943,210 -- Intragovernmental Goods and Services Sold -- -- -- -- -- 8,098,076 Salaries and Wages 8,609,809 6,665,078 6,742,376 2,810,918 24,828,181 3,586,661 Data Processing 741,183 243,011 230,860 -- 1,215,054 106,151 Materials and Supplies 677,205 1,271,221 539,833 379,427 2,867,686 803,487 Rents and Utilities 198,284 3,523,547 2,097,985 240,382 6,060,198 2,430,888 Maintenance and Repairs 6,611,998 3,682,343 2,418,602 271,564 12,984,507 542,535 Depreciation and Amortization 9,431,215 5,258,912 7,850,736 1,416,088 23,956,951 10,319,501 Claims and Settlements -- -- -- -- -- 11,589,498 Miscellaneous Operating Expenses 17,495,946 12,550,752 14,643,562 1,209,568 45,899,828 3,841,000 Total Operating Expenses 169,708,850 33,194,864 34,523,954 6,327,947 243,755,615 41,317,797 Operating Income (Loss) 13,751,569 11,142,690 10,903,962 (1,805,462) 33,992,759 563,608 Non-Operating Revenues (Expenses) Government Subsidies 19,523 715,861 1,462,130 1,381,465 3,578,979 20,750 Interest on Long-Term Debt (12,012,393) (6,644,468) (8,293,097) (334,907) (27,284,865) (1,338,314) Interest Income 337,604 80,201 330,173 2,079 750,057 -- Interest Expense (7,382) -- -- -- (7,382) -- Amortization of Debt Discount and Expense (1,016,032) (772,255) (779,123) -- (2,567,410) -- Miscellaneous Revenue 563,155 543,156 1,766,992 172,459 3,045,762 1,886,777 Miscellaneous Expenses -- -- -- (755,745) (755,745) (223,884) Total Non-Operating Revenues (Expenses) (12,115,525) (6,077,505) (5,512,925) 465,351 (23,240,604) 345,329 Net Income (Loss) Before Transfers 1,636,044 5,065,185 5,391,037 (1,340,111) 10,752,155 908,937 Transfers In-Other Funds -- -- -- 1,375,598 1,375,598 -- Transfers Out-Other Funds (150,000) (1,238,000) (841,000) -- (2,229,000) -- Change In Net Assets 1,486,044 3,827,185 4,550,037 35,487 9,898,753 908,937 Net Assets - Beginning of Year, Restated (Note 7) 89,496,640 90,981,367 157,082,216 5,475,971 343,036,194 15,365,484 Net Assets - End of Year $ 90,982,684 $ 94,808,552 $ 161,632,253 $ 5,511,458 $ 352,934,947 $ 16,274,421
EXHIBIT E-4 RECONCILIATION OF THE ENTERPRISE FUNDS STATEMENT OF REVENUES, EXPENSES, AND CHANGES IN FUND NET ASSETS TO THE GOVERNMENT-WIDE STATEMENT OF ACTIVITIES Water Wastewater Total Operating Revenues Charges for Goods and Services $ 183,460,419 $ 44,337,554 $ 45,427,916 273,225,889 Internal Service Fund Allocation - Stores and Transportation Division 3,590,617 867,758 889,098 5,347,473 Charges for Services - Statement of Activities 187,051,036 45,205,312 46,317,014 278,573,362 Operating Expenses Purchased 125,943,210 -- -- 125,943,210 Salaries and Wages 8,609,809 6,665,078 6,742,376 22,017,263 Data Processing 741,183 243,011 230,860 1,215,054 Materials and Supplies 677,205 1,271,221 539,833 2,488,259 Rents and Utilities 198,284 3,523,547 2,097,985 5,819,816 Maintenance and Repairs 6,611,998 3,682,343 2,418,602 12,712,943 Depreciation and Amortization 9,431,215 5,258,912 7,850,736 22,540,863 Miscellaneous Operating Expenses 17,495,946 12,550,752 14,643,562 44,690,260 Total Operating Expenses 169,708,850 33,194,864 34,523,954 237,427,668 Non-Operating Expenses Interest on Long-Term Debt 12,012,393 6,644,468 8,293,097 26,949,958 Interest Expense 7,382 -- -- 7,382 Amortization of Debt Discount and Expense 1,016,032 772,255 779,123 2,567,410 Total Expenses 182,744,657 40,611,587 43,596,174 266,952,418 Internal Service Fund Allocation - Stores and Transportation Division 3,660,660 813,513 873,299 5,347,473 Reclass As Transfers to Activities - Payments In Lieu of Taxes (7,884,566) (4,901,567) (4,354,111) (17,140,244) Program Expenses - Statement of Activities $ 178,520,751 $ 36,523,533 $ 40,115,362 $ 255,159,647
EXHIBIT E-5 STATEMENTS OF CASH FLOWS Water Wastewater Other Total Cash Flows From Operating Activities Receipts from Customers $ 187,120,803 $ 43,929,784 $ 46,638,989 $ 4,252,680 $ 281,942,256 $ 42,869,098 Payments to Suppliers (149,077,585) (17,151,069) (12,071,148) (2,370,524) (180,670,326) (18,184,285) Payments to Employees (9,119,765) (6,871,913) (8,307,292) (2,844,053) (27,143,023) (9,630,706) Payments to Other Funds (7,110,866) (5,388,234) (4,798,435) -- (17,297,535) (2,250,023) Other Receipts or (Payments) 10,214,236 2,385,862 2,824,378 (682,841) 14,741,635 3,236,196 Net Cash Provided By (Used In) Operating Activities 32,026,823 16,904,430 24,286,492 (1,644,738) 71,573,007 16,040,280 Cash Flows From Noncapital Financing Activities Transfers In and Government Subsidies 19,523 715,861 1,462,130 1,375,598 3,573,112 20,750 Transfers Out - Other Funds (150,000) (1,238,000) (841,000) -- (2,229,000) -- Net Cash Provided By (Used In) Noncapital Financing Activities (130,477) (522,139) 621,130 1,375,598 1,344,112 20,750 Cash Flows From Capital and Related Financing Activities Acquisition of Capital Assets (20,924,265) (14,870,861) (15,355,521) (43,614) (51,194,261) (10,746,671) Proceeds From Bond Sale -- -- 3,730,000 -- 3,730,000 3,000,000 Repayments of Revenue and General Obligation Bond (5,371,786) (3,662,979) (9,086,770) -- (18,121,535) (3,468,377) Repayments of Notes Payables -- -- -- -- -- (2,546,773) Interest Paid on Long-Term Debt (12,067,879) (6,601,422) (8,382,138) -- (27,051,439) (950,978) Net Cash (Used In) Capital and Related Financing Activities (38,363,930) (25,135,262) (29,094,429) (43,614) (92,637,235) (14,712,799) Cash Flows From Investing Activities Interest Earned on Operating Funds 337,604 80,201 330,173 2,079 750,057 -- Interest Paid on Customers' Deposits (7,382) -- -- -- (7,382) -- Net Cash Provided By Investing Activities 330,222 80,201 330,173 2,079 742,675 -- Net Increase (Decrease) in Cash and Cash Equivalents (6,137,362) (8,672,770) (3,856,634) (310,675) (18,977,441) 1,348,231 Cash and Cash Equivalents at July 1, 2003 40,666,223 14,140,662 44,448,736 410,532 99,666,153 40,994,362 Cash and Cash Equivalents at June 30, 2004 $ 34,528,861 $ 5,467,892 $ 40,592,102 $ 99,857 $ 80,688,712 $ 42,342,593 Adjustments to Reconcile Operating Income (Loss) To Net Cash Provided By (Used In) Operating Activities Operating Income (Loss) $ 13,751,569 $ 11,142,690 $ 10,903,962 $ (1,805,462) $ 33,992,759 $ 563,608 Adjustment to Reconcile Operating Income (Loss) to Net Cash Provided By (Used In) Operating Activities Depreciation 9,431,215 5,258,912 7,850,736 1,416,088 23,956,951 10,319,501 Miscellaneous Income 552,745 543,156 1,766,993 (1,919,342) 943,552 2,053,882 (Increase) Decrease in Assets and Increase (Decrease) in Liabilities Accounts Receivable 3,464,380 (655,643) 758,706 1,016,145 4,583,588 801,531 Due From Other Funds (252,541) 109,717 1,086,242 -- 943,418 -- Due From Other Governments -- -- -- -- -- (2,437) Estimated Unbilled Service Revenues 466,652 247,874 452,367 -- 1,166,893 -- Inventories of Material and Supplies (3,594,745) (9,644) -- (11,245) (3,615,634) (174,662) Prepaid Expenses (83,926) (86,236) (240,094) (19,692) (429,948) 12,938 Deferred Expenses 8,595,881 186,687 (9,282) -- 8,773,286 96,517 Accounts Payable (2,700,411) (143,933) 1,629,648 (377,492) (1,592,188) 230,082 Accrued Liabilities (208,578) 75,625 (1,571,573) (119,936) (1,824,462) (1,070,698) Deferred Revenue 2,350,990 136,168 1,702,626 -- 4,189,784 (74,054) Customers' Deposits 186,842 192,351 -- -- 379,193 -- Due to Other Funds -- -- -- 187,639 187,639 1,017,513 Compensated Absences 66,750 (93,294) (43,839) (11,441) (81,824) (24,175) Outstanding Liabilities and Claims -- -- -- -- -- 2,290,734 Total Adjustments 18,275,254 5,761,740 13,382,530 160,724 37,580,248 15,476,672 Net Cash Provided By (Used In) Operating Activities $ 32,026,823 $ 16,904,430 $ 24,286,492 $ (1,644,738) $ 71,573,007 $ 16,040,280 Supplemental Cash Flow Information Non-cash Transactions: GO Bonds Principal payments made by City Debt Service Fund on behalf of Fun -- -- -- 1,112,730 1,112,730 -- GO Bonds Interest payments made by City Debt Service Fund on behalf of Fun -- -- -- 1,143,674 1,143,674 -- Capital Lease Principal payments made by City Debt Service Fund on behalf of Fun -- -- -- 59,222 59,222 -- Capital Lease Interest payments made by City Debt Service Fund on behalf of Fun -- -- -- 29,166 29,166 -- Capital Assets aquired on behalf of Fund -- -- -- 1,360,328 1,360,328 -- GO Bonds refunded on behalf of Fund -- -- -- 1,832,221 1,832,221 -- Debt allocation to Fund -- -- -- 3,411,371 3,411,371 --