Adopt Resolution #16-03-045 Amending 2015 Enterprise Fund Budgets and Adopt Resolution #16-03-046 Adopting 2016 Enterprise Fund Budgets

 
 

Purpose:  Annually the city 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 Proposed 2016 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.  Included in the 2016 Storm Water Utility Fund is the purchase of a new street sweeper.  Purchase of capital assets are recorded directly to the balance sheet of an enterprise fund and annual depreciation only is reflected in the expenditure section of the Storm Water Utility Fund Budget  This item was included in the capital listing that was presented to the City Council during the 2016 budget worksessions.  Also attached to this case is a resolution amending the 2015 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. In order to establish fair rates for all of 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 total depreciation, whether on City or developer installed systems. This is what we have attempted to do in preparing the attached Proposed 2016 Enterprise Fund Budgets.

As the activity has already occurred for year 2015, the only recommendation in regard to the amended budget is to approve Resolution #16-03-045 Amending the 2015 Enterprise budgets.

The recommendation for the Adoption of the 2016 Enterprise budgets is to approve Resolution #16-03-046 noting that the budget is an outline of how the revenues generated from the utility bill will be used in daily operations.  The utility rates for each utility has already been adopted as part of the city's annual schedule of rates, fees and charges.
 

Motion to adopt Resolution #16-03-045 Amending the 2015 Enterprise Fund Budgets

and

Motion to adopt Resolution #16-03-046 Adopting the 2016 Enterprise Fund Budgets.