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Item # 6.4. <br /> <br />iver <br /> <br />TO: <br /> <br />MEMORANDUM <br /> <br />Mayor and City Council <br /> <br />FROM: Pat Klaers, City Ad~m~i~'strator <br />DATE: November 24, 199~t~ <br />SUBJECT: Budgets for the City Enterprise <br /> Funds <br /> <br />The City Council has three enterprise funds under its management. These <br />enterprise funds are for the Liquor Store, Waste Water Treatment System <br />(WWTS), and the Garbage Collection Program. Attached for your review are <br />the details of these three enterprise budgets as projected for 1998 activities. <br />The City Council should review, discuss and (as appropriate) make changes <br />to these budgets and then consider a motion to approve these budgets for <br />1998. <br /> <br />The Garbage Collection Program began in 1990. In 1993 the billing <br />responsibilities for this program shifted to the Elk River Municipal Utilities. <br />Historically almost all of this budget (between 96 and 97 percent) is for the <br />fees that are paid to the three garbage collection firms that provide services <br />to the city and for the disposal of waste at the Refuse Derived Fuel (RDF) <br />plant, which is the designated destination by ordinance for the garbage. The <br />city offers three different garbage collection options to the residents and also <br />offers recycling to the residents on a bi-weekly basis. <br /> <br />In October, 1996, the city and the garbage haulers renegotiated a three year <br />contract. In this contract the change was made whereby the city only pays <br />the hauler for their collection services and the city directly pays for disposal <br />fees to the RDF plant. This change in city payments (we used to pay the <br />hauler for total services and the hauler in turn paid for disposal charges at <br />the RDF plant) was done in part due to the County implementing a county- <br />wide fee on households of $20 per year for waste management services. This <br />new fee by the County, along with the new renegotiated contract, allowed the <br />city to reduce its garbage rates in 1997 so that the Elk River households saw <br />no net change in their waste management expenses. However, it should be <br />noted that now Elk River households pay their waste management fee mostly <br />to the city with its monthly utility bill and partly to the County ($20 with the <br />tax bill). <br /> <br />13065 Orono Parkway · P.O. Box 490 · Elk River, MN 55330 · TDD & Phone: (612) 441-7420 · Fax: (612) 441-7425 <br /> <br /> <br />