12-09-2019 Council Packet - Laserfiche WebLink

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AGENDA ITEM The total operating expenditure budget is increasing by $172,025 (9.92%) The major increases are the previously mentioned MCES charges ($64,035), repairs and maintenance for I&I reduction ($50,000), the Fleet Service Charge ($16,500), and Intergovernmental Services ($20,700). The operating transfer of $115,000 is to cover the sewer improvements that were part of the Casco Point project and will continue for another four years. Upcoming capital expenditures can be covered by the fund's current cash balances. Projects identified in the CIP for 2020 include: Annual sewer rehabilitation ($290,000), additional generators ($150,000), grinder station ($20,000), lift station updates ($120,000), additional road project adjustments ($55,000), and force main replacement for CSAH 15/19 ($180,000), for a total of $815,000. The anticipated cash balance for the fund at the end of 2019 is $1,387,422. Stormwater 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 the larger Stormwater projects that will be required in the future. The attached five- year projection assumes a 10% annual increase. Potential CIP projects in 2020 include: Smith and Lyman Avenues ($25,575), Livingston and Navarre Avenues ($20,000), Windjammer ($7,000), Rest Point Lane ($5,565), Togo Road ($91,000), Fox Street — Orono Orchard to East End ($28,000), East long Lake Road N ($127,000), and Storm Sewer Improvements ($100,000). The capital expenditures total $40,140. The anticipated cash balance for the fund at the end of 2019 is $613,288. Recycling The recycling funds major expenditure line is for contracted recycling charges. The current contract with Waste Management is increasing 62%. The Recycled Materials offset that the City was receiving in 2017 has not been being paid since 2018. The offset is based on the market for recycled materials which weakened it 2018. The full time wages that are charged to the fund represent 10% of the City Clerks wages. The anticipated cash balance for the fund at the end of 2019 is $70,382. Cable The Cable funds projected revenues are based on current subscriber information and rates. The line item for Internet/Other communications covers the costs associated with streaming and online access of council meetings. It has been increased to pay for the increased cost of our fiber internet connection. Revenue for the fund is in the from franchise fees that are set by the City's franchise agreement with Mediacom. Capital Expenditures in 2020 will include upgrades to the presentation equipment in the Council Chambers. The current cash balance of the fund is $169,102. Construction Funds The City does not adopt formal budgets for construction funds. Possible projects for these funds can be found in the CIP. The CIP is a planning tool only; approval of the CIP not approve or authorize any purchases. The projects identified in it will require individual approval from the Council before they can be started. Capital Improvement Plan In 2012 the City formally adopted a Capital Improvement Plan (CIP). In order to keep the CIP useful, it Prepared By:.MRU Reviewed By: JJV Approved By: �bV