5.3. SR 11-24-2003 - Laserfiche WebLink

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TO: FROM: DATE: SUBJECT: MEMORANDUM Mayor and City Council Pat Klaers, City Administrator November 24, 2003 Consider Enterprise Fund Budgets Item ~ 5.3. The city has three enterprise funds under its management. These funds are the garbage collection/recycling program, municipal liquor store, and the wastewater treatment system (WWTS). Attached for your review and consideration are the details for these three budgets. Additional comments on these three city operations are offered below. Garbage Collection/Recycling Program The big change with this 2004 budget is the rate increase for the customers that was approved in October 2003. It is appropriate that the garbage enterprise fund operate on a break-even basis and only have enough monies in reserve to address cash flow issues. The customer rate increase should accomplish this objective. Over the past few years, the city had subsidized customer rates in order to bring down the fund balance. The fund balance got too high due to a refund from the state and a county grant. The major activity in this program for 2004 will be the garbage hauler contract renewal. It is possible that the city will go out for competitive bids as staff has not been entirely satisfied with the customer service performance from one of the haulers. The length of the new contract and the fee to be paid to the haulers are two key issues in a new contract. The 2004 garbage collection budget is up 13.8% from the 2002 actual expenditures. This is an approximately 6.6% increase per year for t~vo years. This seems reasonable based on the residential growth we have recently been experiencing. Last year the City Council approved a recycling rebate program and a compost container giveaway program. Attached for your information is a memo from Environmental Assistant Rebecca Haug regarding the status of these programs.