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The biggest portion of the expenses in the Sewer Utility Fund is the fees paid to the Metropolitan Counil Environmental Services [MCES] for transportation and treatment of sewage. In previous years, the flow from the city was not metered so an estimate was used and billed accordingly. If at the end of the year, after monitoring the flow sites, the MCES determined that the flow was higher or lower than the estimate, a credit or bill was sent to the City. In past years, this adjustment was made two years later, although a new system will allow them to remain current to within one quarter. The impact of this billing change means the first quarter of 1999 will become the "catch-up" quarter for the previous years. An increase of 5% for sewer service charges was adopted on December 8, 1998, but another increase will need to be made during the 1999 year to offset the Met Councils catch-up period on actual flow usage. Street Light Utility Fund The Street Light Utility Fund was established late in 1992 and meant to account for billings to property owners and payment of electrical service charges for subdivision street lights that are required in all new urban subdivisions. A pre-established rate of $8.25 per quarter was set in conjunction with the developers paying for the first three years of operation and maintenance. The rate therefore will remain the same until all amortization of the developer paid operation and maintenance monies are exhausted. At that point the cost of providing the service may be charged in full to the residents receiving the benefits. During 1997 the City Council approved the installation of additional priority. The amount incorporated into this budget is based on $4.40 per year for each residential property. The associated costs include the cost of operation and maintenance as well as depreciation. It is anticipated that total revenues for 1999 will be approximately $79,157 which includes interest earnings of $3,800. Expenditures are estimated to be at $49,520 which includes depreciation (non-cash) of $8,700. Recycling Utility Fund With the closure of the landfill in 1993, the primary funding source for the curb side recycling program was lost. A rate of $3.05 per quarter was adopted at the August 22, 1994 Council meeting, with an effective date beginning with the first quarter of 1995. It is anticipated that total revenues will be approximately $149,878 and include County grants of $42,000 and estimated interest earnings of $200. These revenue projections also incorporate rate increase from $4.00/quarter to $4.98/quarter that were adopted on December 8, 1998, and would become effective January 1, 1999 Expenditures are estimated to be $149,878 and include the costs to administer the curb side recycling program and two clean-up days during 1999. This activity, as proposed results in an increase in retained earnings of $18,217. Also attached to this case is a resolution amending the 1998 activity. This is primarily a "housekeeping" item and is done on an annual basis. The projections through the end of the year are based on actual activity.