8.1. SR 11-13-2001 - Laserfiche WebLink

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TO: FROM: DATE: MEMORANDUM Mayor and Council //~ ~ Pat Klaers, City Admij~~f~.-~ November 13, 2001 SUBJECT: Enterprise Fund Budgets Item~ 8.1. The city has three enterprise funds under its management. These funds are thc garbage collection/recycling program, the municipal liquor store, and the wastewater treatment system (WWTS). Attached for your review and consideration are the details for these three budgets. Garbage Collecdon/Rec~vclt'~g Program... This program began in November 1990. In 1993, the billing and collection responsibilities for this program shifted from the city to Elk River Municipal Utilities. In 1999, the City Council approved another rate reduction for our residential customers. This rate reduction was based on thc renegotiated contract with thc garbage haulers. This new contract is for five years and it expires in October 2004. The renegotiated contract with the haulers also provided for a new (and popular) 60-gallon container option and for weekly recycling pick-ups. This 60-gallon container is one of four main garbage collection container and service options offered to the residents. In late 2000, the city entered into a long-term contract with the county for disposal of garbage to the Refuse-Derived Fuel Plant (RI)F). This contract established disposal fees at $45 per ton through 2008. Over the past 10 years the city has accumulated a larger than needed fund balance in the garbage enterprise fund and it is appropriate to decrease this reserve. For the past two years funds have been taken out of this reserve to balance the operating budget. In 2002 it is projected that the city will use $76,250 out of this reserve. This will bring the fund balance down to approximately $100,000, which is sufficient to cover our cash flow needs.