11-25-2013 Council Work Session Packet

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Sewer Fund In recent years the sewer fund has mostly operated at a loss. Non-operating revenues however, have consistently offset the operating losses. This has resulted in a positive operating cash flow for the fund. In 2013, the fund is projected to operate at a small profit. The proposed 2014 budget currently shows an operating loss. This includes depreciation of$265,000 which is a non-cash expenditure, so the fund will still experience a positive cash flow for the year. The major increase in expenditures is an increase in the MCES disposal charges. This line increases by $38,100(11%)for 2014; in 2013 this line item decreased by$64,000 from the previous year. The total expenditure budget is increasing $43,288 (3.34%) The revenues are calculated with a 4% increase in the sewer rates as called for in the 2009 rate study. The operating transfer is to cover the sewer improvement that were part of the Casco Point project and will continue for another eight years. Upcoming capital expenditures can be covered by the fund's current cash balances. Projects identified in the CIP for 2014 include: sewer main rehabilitation; lift station updates for LS #20, LS#18, and LS#31;a generators for lift station# 14;and portable generator to replace the 1984 Cummins generator. Total anticipated capital expenditures are$511,000. The cash balance for the fund is$3,066,143 as of October 31`n 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 the larger Stormwater projects that will be required in the future. The revenue in the attached budget is calculated with a 10%increase in the rates. This is the annual inerease required to avoid future special assessments for stormwater projects. Potential CIP projects in 2014 include: Stubb's Bay wetland restoration; Long Lake ravine stabilization; Dahl Road/North Shore Ravine Stabilization, West Lafayette Road BMP; and the Lafayette Bay Subwatershed water quality improvements. The capital expenditures total $179,000. As of the end of October the fund's cash balance is $911,295. Recvclin� The recycling fund was newly created in 2013. Its major expenditure line is for contracted recycling charges. The full time wages that are charged to the fund represent 10% of the City Clerks wages. The overtime covers Public Works wages for the annual spring clean up. Contracted recycling charges are increasing by 2.8%. The budget is being presented with a 2% increase in rates. Cable The Cable fund is new for the 2014 budget. The 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. CIP expenditures include recording equipment which will be purchased in 2013 in an amount of$35,000. Additional services will be considered for purchase in 2014 which include: Ecomment; paperless agendas; and a community bulletin board server.