The City of Lewisville collected $600,000 in tap fees last year. Of this amount, $400,000 covered the direct costs of connecting customers to the city’s water lines. The balance contributed to improvements in and maintenance of the overall water system. How should these fees be reported in the water utility fund’s statement of revenues, expenses, and changes in fund net position (e.g., should they be reported as operating or non-operating revenues)? How should these fees be reported on the utility’s statement of cash flows (e.g., in which category of cash flows should they be reported)? How should the fees be reported on the city’s government-wide statement of activities (e.g., as operating revenues or capital contributions)?