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CC Regular Session <br />Meeting Date: <br />Primary Strategic Plan Initiative: <br />5. 18. <br />12/09/2025 <br />Title: <br />Adopt Resolution #25-291 Adopting 2025 Enterprise Fund Budgets <br />Purpose/Background: <br />Annually, the City adopts Enterprise Fund budgets related to Water, Sewer, Street Lighting, Recycling and Storm <br />Drainage utilities. These five services are billed out quarterly via the utility bill and the budgets reflect the <br />expected revenue to be generated and the offsetting operating expenditures that these revenues support. <br />Enclosed for your review are the 2026 Enterprise Fund Budgets which cover the Water Utility Fund, Sewer <br />Utility Fund, Street Light Utility Fund, Recycling Utility Fund and Storm Water Utility Fund. While formal <br />budgets are required to be prepared and adopted annually for the General Fund, this is not the case for the <br />Enterprise funds. <br />In order to establish fair rates for all the utilities that the City operates, it is necessary to determine the actual cost <br />of providing those utilities to the residents. An important factor in these costs is the recovery of depreciation <br />through the rate structures. We are required to keep the accounting for these funds on the full accrual method, <br />which means recognizing the total depreciation, whether on City or developer installed systems. This is what we <br />have attempted to do in preparing the attached Proposed 2026 Enterprise Fund Budgets. <br />Notification: <br />The water revenue rates reflect a 6% increase, sewer 6%, and storm drainage a 15% increase. These rates were <br />adopted as part of the 2026 Schedule of Rates, Fees and Charges for the City. <br />Funding Source: <br />The respective utility bill collections fund the respective utility budget. <br />Recommendation: <br />The recommendation for the Adoption of the 2026 Enterprise Fund budgets is to approve Resolution #25-291 <br />noting that the budget is an outline of how the revenues generated from the utility bill will be used in daily <br />operations. <br />Outcome/Action: <br />Motion to adopt Resolution #25-291 Adopting the 2026 Enterprise Fund Budgets. <br />Reso #25-291 2026 Enterprise Budgets <br />2026 Enterprise Budgets <br />Attachments <br />Form Review <br />Inbox Reviewed By Date <br />Brian Hagen Brian Hagen 12/04/2025 01:19 PM <br />Form Started By: Diana Lund Started On: 12/02/2025 08:47 AM <br />