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Consent # ~ !I <br />REVIEW AND ADOPT 2010 ENTERPRISE FUND BUDGETS <br />By: Diana Lund, Finance Officer <br />Background: <br />Enclosed for your review are the Proposed 2010 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 />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 2010 <br />Enterprise Fund Budgets. <br />Funding Source: <br />Budgets are supported by fees collected for the respective utility. <br />Staff Recommendation: <br />Approve attached Resolution # 10-01-XXX Adopting the 2010 Enterprise Fund Budgets, <br />and <br />Approve attached Resolution #10-O1-XXX Amending the 2009 Enterprise Fund Budgets, <br />Council Action: <br />Motion to recommend Council adopt Resolution #10-O1-x:XX Adopting the 2010 Enterprise <br />Fund Budgets, <br />and <br />Motion to recommend Council adopt Resolution # 10-01-XXX Amending the 2009 Enterprise <br />Fund Budgets. <br />Reviewed By: <br />City Administrator: <br />Consent: 1/26/10 <br />