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<br /> <br />Item 6.7.a. <br /> <br />MEMORANDUM <br /> <br />FROM: <br /> <br />Mayor and Council <br /> <br />Pat Klaers, City Admi:W~~ <br />November IS, 2004 <br /> <br />TO: <br /> <br />DATE: <br /> <br />SUBJECT: <br /> <br />Consider Enterprise Fund Budgets <br /> <br />The city has three enterprise funds under its management. These funds are the garbage <br />collection/recycling program, the municipal liquor operations, and the wastewater treatment <br />system (WWTS). Attached for your review and consideration are the details for these three <br />programs. Additional comments on these programs are offered below. <br /> <br />MUNICIPAL LlOUOR OPERATION <br />The municipal liquor store is a very important financial resource for the city. In 2005 the city <br />will transfer $195,000 from the liquor store to the general fund to help finance general <br />municipal services. Additionally, for the past ten years the city has transferred approximately <br />$38,000 per year out of the liquor store fund to help pay for the 1993 City Hall building <br />project and this will continue until the debt is paid off. <br /> <br />The biggest change in the 2005 municipal liquor operations budget is that a second store is <br />planned to be constructed and in business by the end of the year. Construction of <br />Westbound is an exciting challenge. Westbound will be located in the northwest quadrant of <br />the Highway 10 and Joplin Avenue signalized intersection. It will take awhile (a year or <br />more) to get a true sense of the operating expenditures and revenues with two stores. In fact, <br />the new store will only be open for a few months in 2005, so when we do the budget next <br />year we will still have no real track record to use as a basis for the 2006 budget. <br /> <br />There are minimal changes being projected in the municipal liquor operations budget as <br />Westbound will only be open for a few months in 2005. With the addition of this second <br />store, one additional full-time employee is anticipated to be hired in 2005. Expenditures will <br />be slightly higher in 2005 based on a second srore being opened. However, with a srore not <br />scheduled to be opened until October 2005, the overall revenues and expenditures are both <br />very similar in 2005 as compared to the adopted 2004 budget. <br /> <br />S:\FINAIVCE\BUDGET\2004Budge!forPaffina\ENIFLWDS. DOC <br />