3.2. SR 11-29-1993 - Laserfiche WebLink

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rei -\) ( )j ety of J'j Ell{ ITEM 3.2. TO: FROM: MAYOR & CITY COUNCIL PAT KLAERS, CIT~J~~STRATOR NOVEMBER 23, 199~ "./~ DATE: t SUBJECT: ENTERPRISE FUNDS BUDGET The City has three enterprise funds under its control. These budgets are for the Liquor Store, the Wastewater Treatment System (WWTS), and the Garbage Collection Program. The City Council has approved these budgets in the past by consensus, or sometimes by formal motion. No formal action is necessary as the revenues generated in these self-sustaining funds generally dictate the level of operating expenses that is necessary and appropriate. Even though no formal action is necessary by the City Council, it is always good policy for the City Council to review and comment on these enterprise fund budgets. . The Liquor Store has generated a surplus of revenues over expenditures in the past few years. These profits have been funneled into the General Fund in order to offset operating expenses on a city-wide basis. Some funds are retained within the Liquor Store reserve for cash flow and inventory purposes. Additionally, after all the transfers have taken place, the City attempts to move $75,000 annually into a designated reserve for a second future liquor store. In addition to the transfer in to the City General Fund for City operating expenses, the Liquor Store also puts money into the General Fund to help finance the Fire Department building expansion and the new City Hall facility. One item of note in the Liquor Store budget in 1994 is the designation of some funds for a possible expansion of the existing liquor store. This possible project will have to be closely evaluated in terms of its cost versus the benefits of a slightly larger facility. At this time, it just seems prudent to include some monies in the budget for this possible expenditure. . The WWTS budget generally has sufficient revenues to meet its operating expenditures. There is an increase in the need to place monies into the plant replacement reserves and the revenues available the past few years have not been sufficient in order for the City to move forward with the plant expansion as soon as desired. It is a goal of the City to expand the plant and have this project completed in 1996. This issue will need a great deal of discussion by the Council in the next few months and will include a discussion on a possible rate increase. The Garbage Collection Program began in 1990. The billing for this program was shifted to the Utilities Department in 1993. P.O. Box 490 · 13065 Orono Parkway · Elk River, MN 55330 · (612) 441-7420 · Fax: (612) 441-7425