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<br />~.IO <br /> <br />REVIEW AND ADOPT 2009 ENTERPRISE FUND BUDGETS <br />By: Diana Lund; Finance Officer <br /> <br />Background: <br /> <br />Enclosed for your review are the Proposed 2009 Enterprise Fund Budgets which cover the Water <br />Utility Fund, Sewer Utility Fund, Street Light Utility Fund, Recycling Utility Fund and Storm <br />Water Utility Fund. While formal budgets are required to be prepared and adopted, <br />annually for the General Fund, this is not the case for Enterprise funds: ' <br /> <br />In order to establish fair rates for all of the utilities that the City operates, it is necessary to <br />, determine the actual cost of providing those utilities to the residents. Due to the relatively <br />"young age" of the City's utility system, it is extremely difficult to immediately realize profits, <br />but it is important that any losses in the first years of operation be representative of what the <br />system actually costs. An important factor in these costs is the recovery of depreciation through <br />the rate structures. We are required to keep the' accounting for these funds on the full accrual <br />method which means recognizing total depreciation, whether on City, or developer installed <br />systems. This is what we have attempted to do in preparing the attached Proposed 2009 <br />Enterprise Fund Budgets. <br /> <br />Funding Source: <br />Budgets are supported by fees collected for the respective utility. <br /> <br />Staff Recommendation: <br /> <br />Approve attached Resolution #09-02-XXX Adopting the 2009 Enterprise Fund Budgets, <br /> <br />and <br /> <br />Approve attached Resolution #09-02-XXX Amending the 2008 Enterprise Fund Budgets, <br /> <br />Council Action: <br /> <br />Motion to recommend Couno-il adopt Resolution #09-02-XXX Adopting the' 2009 Enterprise <br />Fund Budgets, <br /> <br />and <br /> <br />Motion to recommend Council adopt Resolution #09-02-XXXAmending the 2008 Enterprise <br />Fund Budgets. <br /> <br />Reviewed By: . · n <br /> <br />City Administrator: %b'~ <br />Finance Officer I <br /> <br />-77-"- <br />