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'ity of <br /> <br />River <br /> <br />MEMORANDUM <br /> <br />Item 5.3. <br /> <br />TO: <br /> <br />FROM: <br /> <br />DATE: <br /> <br />SUBJECT: <br /> <br />Mayor & City Council <br />Pat Klaers, City Admi~h~ <br /> <br />November 17, 1998 ~ <br />Enterprise Funds <br /> <br />The City Council has three enterprise funds under its management. These <br />enterprise funds are the garbage collection program, the municipal liquor <br />store, and the wastewater treatment system (WWTS). Attached for your <br />review and consideration are the details for these three budgets. <br /> <br />The Garbage Collection Program began in November 1990. In 1993 the <br />billing responsibilities for this program shifted to the Elk River Municipal <br />Utilities. Approximately 96 percent of this budget is for fees that are paid to <br />the three garbage collection firms that are under contract to provide services <br />to the city and for the fee associated with the disposal of waste at the Refuse <br />Derived Fuel (RDF) Plant. Disposal of the waste at the RDF plant is <br />required in the city contracts. The city offers three different garbage <br />collection options to the residents and also offers recycling on a bi-weekly <br />basis. <br /> <br />In October 1996, the city and the garbage haulers renegotiated a three year <br />contract. This contract expires in October 1999. In this contract a change <br />was made from past practice whereby the city now pays for the disposal fees <br />at the RDF plant. (In the past, the hauler paid this fee and the expenses <br />were negotiated as part of their contracts.) This change was done in part due <br />to the County implementing a county wide fee on households of $20 per year <br />for waste management services in 1997. This new fee by the county along <br />with the renegotiated contract allowed the city to reduce its garbage rates in <br />1997 so that Elk River households saw no net change in their total waste <br />management expenses. Elk River households in 1997 and 1998 paid waste <br />management fees mostly to the city with their monthly utility bill and partly <br />to the county (i.e. $20 on their 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 />