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<br />. <br /> <br />. <br /> <br />REVIEW AND ADOPT 2007 ENTERPRISE FUND BUDGETS <br />By: Diana Lund, Finance Officer <br /> <br />Background: <br /> <br />C-IO <br /> <br />Enclosed for your review are the Proposed 20076 Enterprise Fund Budgets which cover the <br />Water Utility FUnd, Sewer Utility Fund, Street Light Utility Fund, Recycling Utility Fund and <br />Storm Water Utility Fund. While formal budgets are required to be prepared and adopted <br />annually for the General Fund, this is not the case for Enterprise funds. <br /> <br />In order to establish fair rates for all of the utilities that the City operates, it is necessary to <br />determine the actual cost of providing those utilities to the. residents. Due to the relatively <br />"young age" of the City's utility system, it is extremely difficult to immediately realize profits, <br />but it is important that any losses in cthe first years of operation be representative of what the <br />system actually costs. An important factor in these costs is the'recovery of depreciation through <br />the rate structures. Weare required to keep the accounting for these funds on the full accrual <br />method which means recognizing total depreciation, whether on City or developer installed <br />systems. This is ~ what we have attempted to do in preparing the attached Proposed 2007 <br />Enterprise Fund Budgets. ' <br /> <br />Staff Recommendation: <br /> <br />Approve attached Resolution #07-01-XXX Adopting the 2007 Enterprise Fund Budgets, <br /> <br />and <br /> <br />Approve attached Resolution #07-01-XXX Amending the 2006 Enterprise Fund Budg~ts, <br /> <br />Council Action: <br /> <br />Motion to recommend Council adopt Resolution #07-0l-XXX Adopting the 2007 Enterprise <br />Fund Budgets, <br /> <br />and <br /> <br />Motion to recommend Council adopt Resolution #07-01-XXX Amending the 2006 Enterprise <br />Fund Budgets. <br /> <br />. CC: 1/9/07 <br /> <br />-107- <br />