Adopt Resolution #22-016 Adopting 2022 Enterprise Fund Budgets

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 2022 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 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 2022 Enterprise Fund Budgets.

The recommendation for the Adoption of the 2022 Enterprise budgets is to approve Resolution #22-016 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 #22-016 Adopting the 2022 Enterprise Fund Budgets.