4.8. SR 11-18-2002 - Laserfiche WebLink

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MEMORANDUM TO: FROM: DATE: Mayor and Council Pat Klaers, City Adminis~/~/~ November 18, 2002 SUBJECT: Enterprise Fund Budgets Item # 4,~ The city has three enterprise funds under its management. These funds are the garbage collection/recycling program, the municipal liquor store, and the wastewater treatment system (WWTS). Attached for your review and consideration are the details for these three budgets. Garbage Collection/Recycling Program This program began in November 1990 for all residential properties of four units or less. The billing and collection for this program is done by the Elk River Municipal Utilities. In 1999, the City Council approved a rate reduction for our residential customers. This rate reduction was based on the newly negotiated contract with the haulers. This five-year hauler contract expires in October 2004. In late 2000 the city entered into a long-term contract with the county for disposal of garbage ro the Refuse-Derived Fuel (RDF) plant. This contract established disposal fees at $45 per ton through April 2008. Throughout the 1990's the city accumulated a larger than needed fund balance in the garbage enterprise fund. For the past few years monies have been taken out of this reserve fund to balance the operating budget. The plan was to keep the collection rates low to the homeowners and to use the reserves until it reached about $70,000 and then adjust rates in order to have the program operate on a breakeven basis. The 2003 budget calls for $35,800 of reserve funds to be used and then to adjust the collection fees effective for July. By using the reserves until July the fund will get reduced about $70,000, which is sufficient monies for one month cash flow activities. The recommended rate increase of one dollar per month per household increase is "across the board" for all container sizes and service options. The monthly fees since January 2000 are as follows: S / tffnance / Bu4get / Entjknds