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FINANCE COMMITTEE <br />CITY OF RAMSEY <br />ANOKA COUNTY <br />STATE OF MINNESOTA <br /> <br />The Ramsey Finance Committee conducted a regular meeting on Tuesday, January 11, 2005, at <br />the Ramsey Fire Station Number I, 15050 Armstrong Boulevard NW, Ramsey, Minnesota. <br /> <br />Members Present: <br /> <br />Chairperson David Elvig <br />Councilmember Sarah Strommen <br />Councilmember Mary Jo Olson <br /> <br />Also Present: <br /> <br />Finance Officer Diana Lund <br />City Administrator James E. Norman <br /> <br />CALL TO ORDER <br /> <br />Chairperson Strommen called the regular meeting of the Finance Committee to order at 5:42 p.m. <br /> <br />CITIZEN INPUT <br /> <br />There was none. <br /> <br />COMMITTEE BUSINESS <br /> <br />Case #1: Review and Adopt 2005 Enterprise Fund Budgets <br /> <br />Finance Office Lund stated the Proposed 2005 Enterprise Fund Budgets cover the Water Utility <br />Fund, Sewer Utility Fund, Street Light Utility Fund, Recycling Utility Fund and Storm Water <br />Utility Fund. While formal budgets are required to be prepared and adopted annually for the <br />General Fund, this is not the case for Enterprise funds. In order to establish fair rates for all of <br />the utilities that the City operates, it is necessary to determine the actual cost of providing those <br />utilities to the residents. Due to the relatively young age of the City's utility system, it is <br />extremely difficult to immediately realize profits, but it is important that any losses in the first <br />years of operation be representative of what the system actually costs. An important factor in <br />these costs is the recovery of depreciation through the rate structures. The City is required to <br />keep the account for these funds on the full accrual method, which means recognizing total <br />depreciation, whether on City or developer installed systems. This is what has been attempted in <br />preparing the attached Proposed 2005 Enterprise Fund Budgets. <br /> <br />Finance Officer Lund explained one of the major expenses is the depreciation of the water lines. <br />The water and storm water fees are the only rates that go out to the public that have been <br />increased in 2005. This increase is basically contributed to personnel and to water meters needed <br />due to the growth of the City. She explained the 2004 budget must also be amended. This is <br />primarily a housekeeping item and is done on an armual basis. <br /> <br />Finance Committee/January 11, 2005 <br /> Page I of 4 <br /> <br /> <br />