3.5. SR 11-28-1994 - Laserfiche WebLink

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A.( -\{ ( if ~lil River TO: FROM: ITEM 3.5. MEMORANDUM MAYOR & CITY COUNCIL PAT KLAERS, CITY AD DATE: NOVEMBER 28, 1994 SUBJECT: ENTERPRISE FUNDS B The City has three Enterprise funds that are under its control. These Enterprise budgets are for the Liquor Store, the Wastewater Treatment System (WWTS), and the Garbage Collection Program. The City Council should review, discuss, and change these budgets as appropriate and then approve them for 1995 activities. Generally,revenues are sufficient to offset expenditures in these budgets and these funds are somewhat self-sustaining where the level of revenues dictate the operating expenses that are allowed. '- The Liquor Store has generated a surplus of revenues over expenditures in the past few years. Most of these profits have been funneled into the General Fund in order to offset operating expenses on a city-wide basis, and to keep the City tax levy low. Mter the transfers into the General Fund have taken place, the City attempts to move most of the balance into an internally designated reserve for a second liquor store site and facility. Some funds are retained within the Liquor Store reserve for cash flow and inventory purposes. The WWTS budget has sufficient revenues to meet its operating expenditures. All of the sewer connection charges are planned to be placed into a plant replacement reserve. Total funds available for the proposed plant expansion are not yet high enough to undertake this project. Phase I of the expansion project did take place in 1994, and over $1 million of bonds were issued for this phase of the plant expansion. The balance of the plant expansion is expected to cost approximately $4.8 million and needs to be undertaken in the next few years. - The Garbage Collection Program began in 1990 and the billing for this program shifted to the Municipal Utilities in 1993. The most significant component of this budget is the fee paid to the contract haulers. The City has slightly subsidized the garbage collection budget the past few years as revenues have not met expenditures. This subsidy comes from the Landfill surcharge designated for waste abatement purposes and is due mainly to the City subsidizing the 32 gallon bi-weekly collection and for the costs associated with the addition of plastics to the recycling program. P.O. Box 490 · 13065 Orono Parkway · Elk River, MN 55330 · (612) 441-7420 · Fax: (612) 441-7425