Adopt Resolution #23-036 Adopting 2023 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 2023 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 2023 Enterprise Fund Budgets.

The water & sewer revenue rates reflect a 10% increase.  These rates are a placeholder and will not be finalized until utility rates have been adopted as part of the 2023 rates and charges .  This is proposed to come before council in June 2023 once the water treatment plant bids have been finalized and the conclusion of the legislative session. 

The recommendation for the Adoption of the 2023 Enterprise Fund  budgets is to approve Resolution #23-036 noting that the budget is an outline of how the revenues generated from the utility bill will be used in daily operations.

Motion to adopt Resolution #23-036 Adopting the 2023 Enterprise Fund Budgets.