Agenda - Planning Commission - 02/03/2005

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Case #2: Report from Finance Committee Councilmember Elvig announced Councihnember Strommen is now chair of the Finance Committke. He noted she is the first woman chairperson in the City of Ramsey, 1) Review and Adopt 2005 Enterprise Fund Budgets Finance Officer Lund explained the proposed 2005 Enterprise Fund Budgets cover the Water Utility Fund, Sewer Utility Fund, Street Light Utility Fund, Recycling Utility Fund and Storm Water Utility Fund. 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. The City is 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 has been attemp~ted in preparing the Proposed 2005 Enterprise Fund Budgets, Part of this case is to amend the 2004 activity of Enterprise Fund Budgets, which is a housekeeping item. The recommendation of the Finance Committee was to adopt the 2005 Enterprise Fund Budgets and amend the 2004 Enterprise Fund budgets. 2) Review and Adopt 2005 Economic Development Authority Operating Budget Councilmember Strommen indicated this 2005 Proposed Economic Development Authority Budget is the same budget that was presented at the time of the HRA'Levy adoption in December. Also part of this case is amending the 2004 activity, which is a housekeeping item. The recommendation of the Finance Committee was to adopt the 2005 EDA Operating Budget and to amend the 2004 EDA Operating Budget.' 3) Authorize VarioUs 2005 Capital Purchases Councilmember Strommen explained this case is to authorize 2005 capital purchases listed on pages 269 to 271. The recommendation of the Finance Committee was to authorize the' capital purchases listed. Motion by Councilmember Strommen, seconded by Councilrnember Elvig, to ratify the recommendation of the Finance Committee for Cases 1 through 3 and to adopt Resolution #05- 01-013 Adopting the 2005 Enterprise Fund Budgets, adopt Resolution #05-01-014 Amending the 2004 Enterprise Fund .Budgets, adopt Resolution #05-01-015 Adopting 'the 2005 Economi'c Development Authority Operating Budget, adopt Resolution #05-01-016 Amending the 2004 Economic Development Authority Operating Budget, and approve proceeding with the purchase of the aforementioned capital outlay items included in the 2005 Adopted General Fund Budget. P62 City Council/January 11, 2005 Page 6 of 18