Agenda - Council - 01/08/2008 - Laserfiche WebLink

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e.on~en..-t:."IIt 13 REVIEW AND ADOPT 2008 ENTERPRISE FUND BUDGETS By: Diana Lund, Finance Officer Background: Enclosed for your review are the Proposed 2008 Enterprise Fund Budgets which cover the Water Utility Fund, Sewer Utility Fund, Street Light Utility Fund, Recycling Utility Fund and Storm Water 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. 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 relatively "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 first 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. Weare 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. This is what we have attempted to do in preparing the attached Proposed 2008 Enterprise Fund Budgets. Funding Source: Budgets are supported by fees collected for the respective utility. Staff Recommendation: Approve attached Resolution #08-01-XXX Adopting the 2008 Enterprise Fund Budgets, and Approve attached Resolution #08-01-XXX Amending the 2007 Enterprise Fund Budgets, Council Action: Motion to recommend Council adopt Resolution #08-01-XXX Adopting the 2008 Enterprise Fund Budgets, and Motion to recommend Council adopt Resolution #08-01-XXX Amending the 2007 Enterprise Fund Budgets. -115-