Laserfiche WebLink
<br /> <br />City of Elk River <br />REQUEST FOR COUNCIL ACTION <br />Agenda Section Meeting Date <br />Worksession November 13,2006 <br />Item Description <br />Ente rise Fund Bud ets <br /> <br />Item Number <br />5.6. <br /> <br />Prepared by <br />Lori ohnson, Ci Administrator <br />Reviewed by <br /> <br />Introduction <br /> <br />This is a discussion item to review the Wastewater Treatment Plant, Liquor Operations, and Garbage <br />Service budgets. <br /> <br />Discussion <br />Attached are the proposed budgets for the city's three enterprise funds. There are no major changes in <br />any of these budgets. Dave Potvin, liquor operations manager, and Gary Leirmoe, lead wastewater <br />operator will be present to discuss the budgets in as much detail as the Council wants. Below is a brief <br />summary of each of the budgets. <br /> <br />Wastewater Treatment Plant: A user fee rate increase for 2007 was approved as part of the 2006 Master <br />Fee Schedule. The city has consistenrly approved inflationary increases on sewer rates so there are not <br />major adjustments needed to the rate structure. The user fees cover the operations of the treatment plan. <br />The sewer availability charge (SAC) funds expansion of the plant. Attached is a memo from city engineer <br />Terry Maurer recommending that the SAC increase from $3,500 to $3,700 for 2007. As Mr. Maurer <br />explains, this increase is necessary to fund the next phases of expansion that were discussed at the <br />October worksession. The proposed operating budget is slated to increase three percent. <br /> <br />Liquor Operations: Westbound Liquor completed one year of operations in October. The 2007 budget <br />reflects the estimated sales for Westbound and Northbound based on the fIrst year of operations at <br />Westbound. Northbound sales have not decreased due to customer transfers to Westbound as much as <br />originally projected. Sales at both stores have been strong. ProfIts of $233,300 will be transferred in 2007 <br />to pay for General Fund activities and to fund debt service on city buildings. <br /> <br />Garbage Collection: This budget is determined based on the number of customers, the contracts in place <br />with the haulers and tipping fees. The tipping fees and hauler contracts will not change for 2007; <br />therefore, customer rates will not change in 2007. The budget has been increased slighrly due to <br />additional customers. Staff has met with the haulers regarding their contracts. At the November 20 <br />Council meeting, Rebecca Haug will present a request from the haulers to increase the hauler payments <br />starting in 2008 and to extend the contract. <br /> <br />Financial Impact <br /> <br />s: \ Council\Lori\2006 \Enterprise Budgets.doc <br />