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provides for a second sergeant position as a promotional opportunity. Other than these improvements, staffing remains unchanged for 1997. This budget assumes that the PIR Fund will be providing for the street maintenance sealcoafing program, in total, beginning in 1997. If that change in funding does not ultimately occur during 1997, the necessary changes do not have a General Fund budgetary impact. Ms. Hart added that State Statutes require that the 1997 Levy and General Fund Budgets must be adopted at a meeting separate from the public hearing and before December 30, 1996. Motion by Mayor Hardin and seconded by Councilmember Beahen to recommend Council adopt the resolution adopting the 1996, payable 1997 Municipal Tax Levy. Motion carried. Voting Yes: Mayor Hardin, Councilmembers Beahen, Beyer, Peterson and Zimmerman. Voting No: None. Motion by Mayor Hardin and seconded by Councilmember Beahen to recommend Council adopt the 1997 City of Ramsey General Fund Operating Budget. Motion carried. Voting Yes: Mayor Hardin, Councilmembers Beahen, Beyer, Peterson and Zimmerman. Voting No: None. Case #4: Adopt 1997 Enterprise Fund Budgets Finance Officer Hart presented the Proposed 1997 Enterprise Fund Budgets which cover the Water Utility Fund, Sewer Utility Fund, Street Light Utility Fund and the Recycling Utility Fund. While formal budgets are required to be prepared and adopted annually for the General Fund, this is not the case for Enterprise Funds. She explained that in order to establish fair rates for all of the utilities that the City operates, it is necessary to determine the actual cost of providing those utilities to the residents. Due to the young age of the City's utility system, it is extremely difficult to immediately realize profits, but it is important that any losses in the fn'st years of operation be representative of what the system actually costs. An important factor in these costs is the recovery of depreciation through the rate structures. We are required to keep the accounting for these funds on the full accrual method which means recognizing total depreciation, whether on City or developer installed systems. Ms. Hart also explained some of the assumptions used for the Water and Sewer Utility Funds and added that the Street Light Utility Fund and Recycling Utility Fund will remain status quo. She suggested approval of the 1997 Enterprise Fund Budgets. Motion by Mayor Hardin and seconded by Councilmember Beahen to recommend Council adopt the resolution adopting the 1997 Enterprise Fund Budgets. Motion carried. Voting Yes: Mayor Hardin, Councilmembers Beahen, Beyer, Peterson and Zimmerman. Voting No: None. Case #5: Adopt 1997 Economic Development Authority Operating Budget Finance Officer Hart presented the 1997 Proposed Economic Development Authority Budget and explained that this is the fourth year a formal budget will be used for economic development activities financed by the FDA. She pointed out that the financing sources for these operations include transfers from the tax increment districts and interest earnings. Additional revenues from land sales could be recognized in 1997, but due to the speculative nature, are not budgeted for. The financing sources for these operations include transfers from the tax increment districts and interest earnings. This budget includes expenditures for salary costs of various levels of City staff, costs associated with the Economic Development Commission and allowances for economic development programs including participation at the annual Game Fair, business expo and entry signs into the City. Finance Committee/December 10, 1996 Page 3 of 5