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Storm Water Utility Fund <br />It was estimated that total revenues for 2002 would be $334,750. This Fund was created in 2000, <br />to maintain drainage problems throughout the City. Expenditures are estimated to be at <br />$295,498, which includes depreciation (non-cash) of $195,000. This results in a budgeted <br />operating profit of $39,252. It was noted that this budget represents "operating" expenditures <br />only. The total costs of the storm utility projects are capitalized and expensed yearly under the <br />depreciation line item. <br /> <br />Finance Officer Lund noted that a resolution amending the 2001 activity would need to be <br />adopted as well. <br /> <br />Councilmember Hendriksen questioned the reasoning for the proposed increases. <br /> <br />Councilmember Kurak inquired as to why the water utility fund was being increased. <br /> <br />Finance Officer Lund explained that the water utility fund was increasing due to the addition of a <br />second water tower, additional water lines being added to the City, and consideration of the new <br />developments coming into the City. <br /> <br />Councilmember Kurak stated that when a development comes into the City they typically pay for <br />the extension of City sewer and water and questioned why new developments would impact the <br />fees. <br /> <br />Finance Officer Lund explained that the developer pays for the lines to be extended to the <br />development, but the City depreciates the lines in case they ever need to be replaced in the future. <br /> <br />Councilmember Zimmerman inquired if payment for water flushing as well as any repairs to the <br />waterlines comes out of the water utility fund. <br /> <br />Finance Officer Lund replied yes. <br /> <br />Motion by Mayor Gamec, seconded by Councilmember Zimmerman, to recommend that the City <br />Council adopt the resolution Adopting the 2002 Enterprise Fund Budgets. <br /> <br />Motion carried. Voting Yes: Mayor Gamec, Councilmembers Zimmerman, Anderson, and <br />Hendriksen. Voting No: Councilmember Kurak. <br /> <br />Motion by Mayor Gamec, seconded by Councilmember Kurak, to recommend that the City <br />Council adopt the resolution Amending the 2001 Enterprise Fund Budgets. <br /> <br />Motion carried. Voting Yes: Mayor Gamec, Councilmembers Kurak, Anderson, Hendriksen, <br />and Zimmerman. Voting No: None. <br /> <br />Finance Committee/February 12, 2002 <br /> Page 3 of 7 <br /> <br /> <br />