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• ITEM: Enterprise Fund Utility Fees SUBMITTED BY: Roland Olson, Finance Director Heather Worthington, City Administrator EXPLANATION: Summary: We have two enterprise funds: 1. Storm Drainage Fund 2. Sanitary Sewer Fund WORKSHOP H1 11 /2/05 Each year in our CAFR (Comprehensive Annual Financial Report) there is a "Statement of Revenues, Expenses, and Changes in Fund Net Assets" that presents the revenues and expenses of each of these funds. This statement summarizes the Operating Income or Loss of each of these two enterprise funds. Attached are the statements for the years ending 2004 and 2003. • Storm Drainage Fund: • The Storm Sewer Fund is operating in the red and will eventually zero out sometime in 2006 or 2007. The only reason it has not been completely depleted before now was the large transfer made to the Storm Drainage fund about 5 years ago to pre-fund the Curtiss Field drainage pond improvements. The Curtiss Field pond improvements were completed in 2004. Any remaining balance of these funds will be used up with the storm water improvements being made in 2006 as part of the Hamline/Hoyt road and storm sewer project. • There are increasing unfunded federal and state mandates for storm sewer maintenance and control (including NPDES) passed on to the cities that add substantial costs to the storm drainage costs today, and those will only become more onerous in the future as those mandates are adjusted through regulatory and court action. • The last increase was 49 cents per quarter in 2001. The fee increased from $3.25 a quarter up to $3.74 a quarter ($14.96/year). Sanitary Sewer Fund • No fee increase for at least 10 years. • Our current fee is $35 every quarter for a residential household. The few commercial businesses in Falcon Heights are billed on usage based on water meter readings. •