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for these funds on the full accrual method which means recognizing total depreciation, whether
<br />on City or developer installed systems. This is what staff has attempted to do in preparing the
<br />proposed 2001 Enterprise Fund Budgets. The estimated total revenues for 2001 on the Water
<br />Utility Fund will be approximately $609,168, which includes interest earnings of $120,000.
<br />Residents will be charged $21.90/quarter for water sales in 2001, a 5% increase over the 2000
<br />rate of $20.85. The rate increase will offset the additional expenditures for the operation of a
<br />second water tower and well #5. Expenditures are estimated to be at $490,736, which includes
<br />depreciation (non-cash) of $227,73. This results in a budgeted operating income for 2001 of
<br />$118,432 and would increase the retained earnings accordingly. The estimated total revenues for
<br />2001 on the Sewer Utility Fund will be $594,560, which includes interest earnings of $40,000.
<br />These revenue projections incorporate a rate increase, effective January 1, 2001, of 2 percent
<br />with rates increasing from $56.93/quarter per residential account to $58.07 per quarter.
<br />Expenditures are estimated to be at $543,509, which includes depreciation (non-cash) of
<br />$188,00. This results in a budgeted operating profit of $51,051, which continues to slowly
<br />decrease the deficit in retained earnings. The Street Light Utility Fund was established late in
<br />1992, and was meant to account for billings to property owners and payment of electrical service
<br />charges for subdivision street lights that are required in all new urban subdivisions. During
<br />1997, the City Council approved the installation of additional priority. The amount incorporated
<br />into this budget is based on $4.80 per year for each residential property. The associated costs
<br />include the cost of operation and maintenance as well as depreciation. It is anticipated that total
<br />revenues for 2001 will be approximately $87,022, which includes interest earnings of $4,500.
<br />Expenditures are estimated to be at $61,590, which includes depreciation (non-cash) of $13,740.
<br />With the closure of the landfill in 1993, the primary funding source for the curbside recycling
<br />program was lost. A rate of $3.05 per quarter was adopted at the August 22, 1994 Council
<br />meeting, with an effective date beginning with the first quarter of 1995. It is anticipated that
<br />total revenues will be approximately $160,605 and include County grants of $31,000 and
<br />estimated interest earnings of $500. These revenues projection also incorporate rate increase
<br />from $4.98/quarter to $5.34/quarter that were adopted on December 14, 1999, and charged to
<br />residents for the periods of 2000 and 2001. Expenditures are estimated to be $153,2000 and
<br />include the costs to administer the curbside recycling program and two clean-up days during
<br />2001. This activity, as proposed, results in an increase in retained earnings of $7,405. It is
<br />anticipated that total revenues for 2001 for the Storm Water Utility Fund will be $336,000, which
<br />includes interest earnings of $2,000. This Fund was created in 2000 to maintain drainage
<br />problems throughout the City. Expenditures are estimated to be at $324,970 which includes
<br />depreciation (non-cash) of $183,615. This results in a budgeted operating profit of $11,030. It
<br />was noted that this budget represents "operating" expenditures only. The total costs of the storm
<br />utility projects are capitalized and expensed yearly under the depreciation line item.
<br />
<br />Motion by Mayor Gamec, seconded by Councilmember Zimmerman to recommend that City
<br />Council adopt the resolution Adopting the 2001 Enterprise Fund Budgets.
<br />
<br />Motion carried. Voting Yes: Mayor Gamec, Councilmembers Zimmerman, Anderson,
<br />Hendriksen, and Kurak. Voting No: None.
<br />
<br />Finance Committee/January 23, 2001
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