HomeMy WebLinkAbout2001-053 Council Resolution•
Council member
move its adoption:
WHEREAS,
WHEREAS,
WHEREAS,
WHEREAS,
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introduced the following resolution and
CITY OF LINO LAKES
RESOLUTION NO. 2001-53
RESOLUTION DESIGNATING ANNUAL DEPRECIATION
IN WATER AND SEWER FUNDS
the City Council from time to time reviews and revises the water and sewer utility
rates charged by the City, and
the City Council recognizes that it is fiscally prudent to recover all costs of operating
the water and sewer systems, including future replacement of system infrastructure
and equipment, through the water and sewer utility rate structure, and
the City Council adopted Resolutions 01 -05 and 01 -19 setting water and sewer utility
rates for 2001 -03, and
such utility rates include the cost of future replacement of system infrastructure and
equipment in the amount of the annual expense for depreciation of Water and
Sewer Fund fixed assets, and
WHEREAS, the City Council desires to designate such system infrastructure replacement costs
on an annual basis.
NOW, THEREFORE BE IT RESOLVED by the City Council of Lino Lakes, that the amount of the
annual depreciation expense recorded in the Water and Sewer Funds shall be designated each
year for the future replacement of system infrastructure and equipment, and that the designation
will accumulate from year to year. For the year 2001 this designation shall be prorated from April
1, 2001. This designation will be reduced only for the cost of replacement of system infrastructure
and equipment as scheduled or needed.
Adopted by the City Council of Lino Lakes this 9th day of April, 2001.
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Ry- el Gaustad, CMC City Clerk
John PH)n, Ma Jo Mayor
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Ti,) motion for the adoption of the foregoing resolution was duly seconded by Council Member
(` " 'et L_- and upon vote being taken thereon, the following voted in favor thereof:
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The following voted against same:
Where upon said resolution was declared duly passed and adopted.
AGENDA ITEM 3A
STAFF ORIGINATOR Al Rolek
MEETING DATE 4/9/01
TOPIC Resolution No. 2001 -53 Designating Annual Depreciation
In Water And Sewer Funds
VOTE REQUIRED Simple Majority
BACKGROUND
When the City Council adopted resolutions 01 -05 and 01 -19 setting sewer and water rates it
requested that staff prepare a resolution which would designate amounts collected for system
replacement costs (annual depreciation) for that specific purpose. In response to this request,
Staff has prepared draft Resolution 01 -53 which states the rationale for including these
amounts in the rates and designates the annual depreciation for future replacement of system
infrastructure and equipment. This amount would accumulate from year to year. Since the
rates do not take effect until April, the designation for 2001 will be prorated from April 1 of this
year. The resolution also states that this designated amount will be reduced only by scheduled
or needed infrastructure or equipment replacement.
OPTIONS
1. Adopt Resolution 2001 -53 designating annual depreciation in the Water and Sewer
funds.
2. Refer back to Staff for further consideration.
3. Deny Resolution 2001 -53.
RECOMMENDATION
Option 1
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