10-28-2019 Council Work Session Packet

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A total of $335,855 of capital expenditures are identified in the 2019 draft CIP include: Valve Replacements ($166,000) and the replacement of the water main at CSAH15/19. In order to fund infrastructure improvements without using special assessments or tax support, the water rates will need to increase significantly. Information on utility rates for all of the Enterprise Funds are included with the utility rates memo. The Water Fund's current cash balance is $217,004. Sewer Fund In 2018 the Sewer Fund experienced an operating gain of $116,218. When non-operating revenues like interest earnings and connection fees are added, the fund experienced a net profit of $155,000. The expenditure budget information was provided to the Council as part of the August 26th work session. The expenditure budget is increasing by $171,025 (9.9%). $108,225 of the increase is in the Other Expenses Category. Specific line items increasing are MCES-Sewer, Depreciation, and Intergovernmental Services. The increased MCES charges are based on the metered flow into the Met Council sewer mains. The recent string of wet summers has resulted in significant I&I in the system and as a result, the City's MCES charges have increased from $359,863 in 2013 to $619,395 in 2020. This is a 72% increase in the largest single line item and it will likely increase significantly again in 2021. Intergovernmental Services are charges from Long Lake and Wayzata for properties connected to their utility systems. The other significant increase is the line for I&I reduction; this is increasing by $50,000. Personal services are increasing by $3,750 which is the result of an increase in contract wages and in the City's insurance benefit contribution. A total of $744,000 of capital expenditures are identified in the 2020 draft CIP include: Sewer Rehabilitation ($290,000); a Generator for Lift Station #3 and #13 ($150,000); Lift Station #19 and #30 Rehabilitation ($120,000); Windjammer Road Main Rehabilitation ($24,750) and the replacement of the force main at CSAH15/19 ($180,000). In order to fund infrastructure improvements without using special assessments or tax support, the water rates will need to increase. Information on utility rates for all of the Enterprise Funds are included with the utility rates memo. Storm Water The Stormwater Fund is for the most part project based. Operating expenditures are mainly limited to engineering associated with NPDES, SWPPP and other state and federal requirements. Public Works time and materials spent on culvert cleaning/replacement are also charged to this fund. The purpose of this fund is to collect money for future Stormwater projects. The funds current cash balance is $580,000. Potential CIP projects in 2020 include: Projects in Conjunction with Road Projects ($128,925), Casco Point Park Outlet — SWMP 0-1 ($58,000), Casco Point Park Bioretention Basin — SWMP CB - 1 ($55,000), South Casco Point Road Sump ($36,000), East long Lake Road N ($102,000), Storm Sewer Improvements ($200,000). Recyclin2 The Recycling Fund expenditure budget is increasing by $79,670 (59.2%). Its major expenditure line is for contracted recycling charges. The newly approved contract with Waste Management is