5.18.
| CC Regular Session |
| Meeting Date: | 12/09/2025 |
| Primary Strategic Plan Initiative: | {ud_pd8} |
Title:
Adopt Resolution #25-291 Adopting 2025 Enterprise Fund Budgets
Purpose/Background:
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 2026 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 the 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 2026 Enterprise Fund Budgets.
Enclosed for your review are the 2026 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 the 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 2026 Enterprise Fund Budgets.
Notification:
The water revenue rates reflect a 6% increase, sewer 6%, and storm drainage a 15% increase. These rates were adopted as part of the 2026 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 2026 Enterprise Fund budgets is to approve Resolution #25-291 noting that the budget is an outline of how the revenues generated from the utility bill will be used in daily operations.
Outcome/Action:
Motion to adopt Resolution #25-291 Adopting the 2026 Enterprise Fund Budgets.
Attachments
Form Review
| Inbox | Reviewed By | Date |
|---|---|---|
| Brian Hagen | Brian Hagen | 12/04/2025 01:19 PM |
- Form Started By:
- Diana Lund
- Started On:
- 12/02/2025 08:47 AM
- Final Approval Date:
- 12/04/2025