Minutes - Council - 12/13/1994 - Laserfiche WebLink

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1995. Street Light Utility Fund: Ms. Hart stated that thc Street Light Utility Fund was established late in 1992 and meant to account for billings to property owners and payment of electrical service charges for subdivision street lights that are required in all new urban subdivisions. A pm-established rate of $8.25 per quarter was set in conjunction with the developers paying for thc first three years of operation and maintenance. The rate, therefore, will remain the same until all amortization of the developer-paid operation and maintenance monies arc exhausted. At that point thc cost of providing thc service may be charged in full to thc residents receiving thc benefits. Ms. Hart stated that also incorporated into this fund will be the addition of subdivision street lighting that has been petitioned for and installed. During 1994, street lights wcrc petitioned for and installed in Pine Cove Addition. These revenues will be incorporated into this budget utilizing the $13.65 per quarter that was established through the feasibility study. Ms. Hart stated that as with the Water and Sewer Utility Funds, thc revenue projections for 1995 are based on 180 additions to the system, it is anticipated that total revenues for 1995 will be approximately $30,631, which includes interest earnings of $3,500. Expenditures are estimated to be at $13,300, which includes depreciation (non-cash) of $2,500. This results in a budgeted operating income, for 1995, of $17,331 and increases retained earnings to approximately $63,239. Recycling Utility Fund: Ms. Hart explained that with the closure of the landfill in 1993, the primary funding source for thc curbside recycling program was lost. Since that time, we have reviewed and analyzed the alternatives to funding the program and it was determined that a direct charge to all residential properties, via the utility bill, was the appropriate method to fund the program. A rate of $3.05 per quarter was adopted at the August 22, 1994 Council meeting, with an effective date beginning with the fa'st quarter of 1995. During the process of setting the rate, the additions to the system had been estimated to be 180, so as to be comparable to all other projections for services that depend on household additions in the City. It is anticipated that total revenues will be approximately $95,000, and include County grants of $35,000 and estimated interest earnings of $3,000. Expenditures are estimated to be $93,425, and include the costs to administer the curbside recycling program and two clean-up days during 1995. This activity, as proposed, results in a retained earnings balance of $1,575. Motion by Councilmember Peterson and seconded by Councilmember Hardin to adopt Resolution g94--12-262 adopting the 1995 Enterprise Fund Budgets. Motion carried. Voting Yes: Mayor Oilbertson, Councilmembers Peterson, Hardin and Zimmerman. Voting No: Councilmembers Beyer (she is opposed to one part of this). Case #$: Adopt 1995 Economic Development Authority Operating Budget Finance Officer Hart stated that this is the second year a formal budget will be used for economic development activities financed by the Economic Development Authority. The financing sources for these operations include l~ansfers from the tax increment districts and interest earnings. Additional revenues from land sales could be recognized in 1995, but due to the speculative nature, are not budgeted for. Ms. Hart informed Council that this budget includes expenditures for salary costs of various levels of City Staff, costs associated with the Economic Development Commission (these costs had formerly been shown in the General Fund) and allowances for economic development programs, including participation at the annual Game Fair, business expo and entry signs into the City. She noted that this budget has been revised somewhat from its initial presentation to Council. The revisions included refinement of certain revenues and the elimination of the lease payment to the City's General Fund for the rental of the metal Public Works building. City Council/December 13, 1994 Page 8 of 19