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<br /> <br />Item 6.7. <br /> <br />MEMORANDUM <br /> <br />TO: Mayor and City Council <br /> <br />FROM: Lori Johnson, Finance and Administrative Services <br />Directorllnterim City Administrator <br /> <br />DATE: December 5, 2005 <br /> <br />SUBJECT: 2006 Enterprise Budgets <br /> <br />A summary of the enterprise fund budgets was included in the Truth in Taxation hearing <br />presentation and the budget details were included in the attachments for that item. The <br />enterprise fund budgets include wastewater treatment, liquor operations, and garbage <br />collection. Each of these budgets is funded through revenue collections for service or sales. <br />Below is a description of the highlights and changes for each: <br /> <br />Wastewater Treatment <br />Revenues are projected to increase due to new customers resulting in increased flow. As has <br />been the case in the past, rates are proposed to increase three percent to keep up with <br />inflationary increases in operating costs. Previously, this increase was approved by a separate <br />resolution. This year the increase was included in the city's fee schedule with all other fees. <br />Other revenues include sewer access charges for new connections to the system. The SAC <br />amount for 2006 was previously increased by the Council and was also included in the city's <br />fee schedule. <br /> <br />Expenditures have increased mainly because of additional capital ouday costs. Several lift <br />stations are scheduled for major improvements and security lights are proposed to be added <br />at all lift station locations. Operating costs increased including fuel and utility line items <br />because of significant increases in prices. <br /> <br />Liquor Operations <br />This is the first full year budget for Westbound which has been open since this October. <br />Because no reliable sales or expense data are available yet, the Westbound budget is based on <br />sales projections and estimated operating expenses. The Northbound budget has been <br />adjusted for the very slight sales decrease expected because of Westbound and for the new <br />allocation of employees and shared expenses such as advertising. The combined net profit <br />for both stores is $333,600. Westbound is projected to have a net profit of $34,850. <br /> <br />S:\Council\Lori\2005\Enterprise budgets.doc <br />