Minutes - Council - 12/09/1997 - Laserfiche WebLink

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developer installed systems. Some assumptions have been made that affect the manner in which we have prepared the attached budgets. It was budgeted in the General Fund that 100 new residential homes would be built during 1998. The assumption was made that all 100 would be urban additions, therefore, this is the number that was utilized in preparing the budgets. Costs that can be attributable to both the Water and Sewer Utility Funds are being split 80% to the Water Utility Fund and 20% to the Sewer Utility Fund, with all other costs charged to the identifiable funds. Ms. Hart continued that utilizing 100 new additions to the system for 1998, it is estimated that total revenues for 1998 will be approximately $466,038, which includes interest earnings of $90,000. These revenue projections do not include a rate increase for 1998. Expenditures are estimated to be at $366,306 which includes depreciation (non-cash) of $160,000. This results in a budgeted operating income for 1998 of $99,732 and would increase the retained earnings accordingly. Capital outlay type items, such as watermain looping and extensions of services will be dealt with during early 1998, when the capital improvement program is developed. Ms. Hart further estimated that total revenues for 1998 for the Sewer Utility Fund will be $463,876, which includes interest earnings of $20,000. These projections also incorporate 10% rate increases that are proposed to be effective January 1, 1998. Expenditures are estimated to be at $452,329 which includes depreciation (non-cash) of $163,000. This results in a budgeted operating profit of$11,547, which is a bit more than break even, and continues to slowly decrease the deficit in retained earnings. She summarized the Street Light Utility Fund, stating it was established late in 1992, and meant to account for billings to property owners and payment of electrical services charges for subdivision street lights that are required in all new urban subdivisions. The revenue projections for 1998 are based on 100 additions to the system for subdivision lights. It is anticipated that total revenues for 1998 will be approximately $62,423 which includes interest earnings of $3,800. Expenditures are estimated to be at $42,100 which includes depreciation (non-cash) of $8,600. Ms. Hart went on to the Recycling Utility Fund. With the closure of the landfill in 1993, the primary funding source for the curbside 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. This rate has not been increased since, but with the recent negotiation of the recycling contract and enhanced services, it will be necessary to increase the rates accordingly. Additions to the system have been estimated to be 100, so as to be comparable to all other projections for services that depend on household additions in the City. It is anticipated that total revenues will be approximately $130,044 and include County grants of $40,000 and estimated interest earnings of $700. These revenue projections also incorporate rate increase from $3.05/quarter to $4.00/quarter that are being proposed at this meeting and would become effective January 1, 1998. Expenditures are estimated to be $121,789 and include the costs to administer the curbside recycling program and two clean-up days during 1998. This activity, as proposed, results in an increase in retained earnings of $8,255. Ms. Hart noted that also attached to the case is a resolution amending the 1997 activity. She reported that this is primarily a "housekeeping" item and is done on an annual basis. Motion by Councilmember Beahen and seconded by Councilmember Zimmerman to adopt Resolution #97-12-343 adopting the 1998 Enterprise Fund Budgets. Motion carried. Voting Yes: Mayor Gamec, Councilmembers Beahen, Zimmerman, Beyer and Haas Steffen. Voting No: None. City Council/December 9, 1997 Page 14 of 18