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HomeMy WebLinkAbout11-050 Allocate Cash Between Water and Sewer 4646 Dakota Street SE Prior Lake, MN 55372 RESOLUTION 11 - 050 A RESOLUTION ALLOCATING THE 12/31/2010 CASH BALANCE BETWEEN THE WATER FUND AND THE SEWER FUND Motion By: Keeney Second By: Soukup WHEREAS, The City Council directed s taff to segregate the water and sewer operations into separate F unds beginning with the year ending 12/31/2010; and WHEREAS, Staff has analyzed the cash balance in the combined Water and Sewer Fund based on seven years of historical operational data and both the Water Operations and the Sewer Operations have each contributed approximately 50% of the revenues; and WHEREAS, The City Council recognizes that, historically, the Water Operations have significantly subsidized the Sewer Operations ; however going forward, each operation should be self supporting by the revenues it generates ; and WHEREAS, Staff has analyzed the im pact of splitting the cash balance on future utility rates of which a 50/50 split would not require an immediate rate increase for the Sewer Fund. NOW THEREFORE BE IT HEREBY RESOLVE D BY THE CITY COUNCI L OF PRIOR LAKE, , MINNESOTA as follows: 1. The recitals set forth above are incorporated herein. 2. The City Council hereby approves allocating the cash balance of the combined Water and Sewer Fund on 12/31/2010 as follows: 50% - Water Fund 50% - Sewer Fund PASSED AND ADOPTED THIS 18th DAY OF APRIL, 2 011. YES NO Myser X Myser Erickson X Erickson Hedberg X Hedberg Keeney X Keeney Soukup X Soukup ______________________________ Frank Boyles, City Manager