Adopt Resolution #15-03-058 Amending 2014 Enterprise Fund Budgets and Adopt Resolution #15-03-059 Adopting 2015 Enterprise Fund Budgets

Purpose/Background:

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 2015 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. Also attached to this case is a resolution amending the 2014 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 2015 Enterprise Fund Budgets.

As the activity has already occurred for year 2014, the only recommendation in regard to the amended budget is to approve Resolution #15-03-058 Amending the 2014 Enterprise budgets.

The recommendation for the Adoption of the 2015 Enterprise budgets is to approve Resolution #15-03-059 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 recommend the City Council adopt Resolution #15-03-058 Amending the 2014 Enterprise Fund Budgets

and

Motion to recommend the City Council adopt Resolution #15-03-059 Adopting the 2015 Enterprise Fund Budgets.