Agenda - Council - 12/10/2024 - Laserfiche WebLink

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CC Regular Session Meeting Date: Primary Strategic Plan Initiative: 6. 11. 12/10/2024 Identify and implement operational efficiencies, cost savings and additional funding sources. Title: Adopt Resolution #24-356 Adopting 2025 Enterprise Fund Budgets Purpose/Background: Annually, the City adopts Enterprise Fund budgets related to Water, Sewer, Street Lighting, Recycling and Storm Drainage utilities. These five services are billed out quarterly via the utility bill and the budgets reflect the expected revenue to be generated and the offsetting operating expenditures that these revenues support. Enclosed for your review are the 2025 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. In order to establish fair rates for all 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 the total depreciation, whether on City or developer installed systems. This is what we have attempted to do in preparing the attached Proposed 2025 Enterprise Fund Budgets. Notification: The water revenue rates reflect a 10% increase, sewer 5%, street lighting 2% and storm drainage a 15% increase. These rates were adopted as part of the 2025 Schedule of Rates, Fees and Charges for the City. Funding Source: The respective utility bill collections fund the respective utility budget. Recommendation: The recommendation for the Adoption of the 2025 Enterprise Fund budgets is to approve Resolution #24-356 noting that the budget is an outline of how the revenues generated from the utility bill will be used in daily operations. Outcome/Action: Motion to adopt Resolution #24-356 Adopting the 2025 Enterprise Fund Budgets. Attachments Reso #24-356 Adopting 2025 Enterprise Fund Budgets Form Review Inbox Reviewed By Date Brian Hagen Brian Hagen 12/05/2024 09:51 AM Form Started By: Diana Lund Started On: 11/27/2024 09:12 AM Final Approval Date: 12/05/2024