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Finance Committee Meeting Date: 02/26/2013 By: Diana Lund, Finance Information Title: Amend 2012 Enterprise Budgets and Adopt 2013 Enterprise Fund Budgets Background: Enclosed for your review are the Proposed 2013 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. Also attached to this case is a resolution amending the 2012 activity. This is primarily a "housekeeping" item and is done on an annual basis. The projections through the end of the year are based on actual activity. 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. 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. This is what we have attempted to do in preparing the attached Proposed 2013 Enterprise Fund Budgets. Recommendation: Approve attached Resolution #13 -02 -048 Amending the 2012 Enterprise Fund Budgets, and Approve attached Resolution #13 -02 -049 Adopting to 2013 Enterprise Fund Budgets, Funding Source: Not Applicable Council Action: 4. 1.