5.8.
| CC Regular Session |
| Meeting Date: | 01/23/2024 |
| Primary Strategic Plan Initiative: | {ud_pd7} |
Information
Title
Adopt Resolution #24-031 Adopting 2024 Enterprise Fund Budgets
Purpose/Background:
Annually, the ity adopts Enterprise Fund budgets related to Water, Sewer, Street Lighting, Recycling and Storm Drainage utilities. These five services are billed out quarterly via the utility bill and the budgets reflect the expected revenue to be generated and the offsetting operating expenditures that these revenues support.
Enclosed for your review are the 2024 Enterprise Fund Budgets which cover the Water Utility Fund, Sewer Utility Fund, Street Light Utility Fund, Recycling Utility Fund and Storm Water Utility Fund. While formal budgets are required to be prepared and adopted annually for the General Fund, this is not the case for Enterprise funds.
In order to establish fair rates for all the utilities that the City operates, it is necessary to determine the actual cost of providing those utilities to the residents. An important factor in these costs is the recovery of depreciation through the rate structures. We are required to keep the accounting for these funds on the full accrual method, which means recognizing the total depreciation, whether on City or developer installed systems. This is what we have attempted to do in preparing the attached Proposed 2024 Enterprise Fund Budgets.
Enclosed for your review are the 2024 Enterprise Fund Budgets which cover the Water Utility Fund, Sewer Utility Fund, Street Light Utility Fund, Recycling Utility Fund and Storm Water Utility Fund. While formal budgets are required to be prepared and adopted annually for the General Fund, this is not the case for Enterprise funds.
In order to establish fair rates for all the utilities that the City operates, it is necessary to determine the actual cost of providing those utilities to the residents. An important factor in these costs is the recovery of depreciation through the rate structures. We are required to keep the accounting for these funds on the full accrual method, which means recognizing the total depreciation, whether on City or developer installed systems. This is what we have attempted to do in preparing the attached Proposed 2024 Enterprise Fund Budgets.
Notification:
The water & storm water revenue rates reflect a 5% increase and sewer a 10% increase. These rates were adopted as part of the 2024 Schedule of Rates, Fees and Charges for the City.
Funding Source:
The respective utility bill collections fund the respective utility budget.
Recommendation:
The recommendation for the Adoption of the 2024 Enterprise Fund budgets is to approve Resolution #24-031, noting that the budget is an outline of how the revenues generated from the utility bill will be used in daily operations.
Action:
Motion to adopt Resolution #24-031 Adopting the 2024 Enterprise Fund Budgets.
Attachments
Form Review
| Inbox | Reviewed By | Date |
|---|---|---|
| Brian Hagen | Kathy Schmitz | 01/18/2024 09:27 AM |
- Form Started By:
- Diana Lund
- Started On:
- 01/14/2024 09:24 AM
- Final Approval Date:
- 01/18/2024