12-06-2021 Council Packet - Laserfiche WebLink

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AGENDA ITEM operating interest expense is for the interest on the 2014 Water Bonds. 2022 capital expenditures as identified in the 2022 CIP include a water main replacements and work at the south water plant. The 2022 capital expenditures total $798,440. ARPA funding is being utilized for $500,000 of the capital expenditures. The Water Fund’s anticipated cash balance for the fund at the end of 2022 is $742,000. b. Sewer. 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. The single largest expense for the sewer fund is the Met Council disposal charges. The five years have seen increases in the amounts of $37,410 (9.5%), $41,276 (9.6%), $82,147 (17.4%), $64,035 (11.5%) and $81,200 (13.1%) respectively. For the 2022 budget, the Met Council charges will remain flat. The total operating expenditure budget is increasing by $72,100 (3.79%) The majority of this increase is for wages and benefits. 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 three years. Upcoming capital expenditures can be covered by the fund’s current cash balances. Projects identified in the CIP for 2021 include: Annual sewer rehabilitation ($150,000), an additional generator ($25,000), grinder station rehabs ($35,000), lift station updates ($120,000), additional road project adjustments ($76,500), sewer meter installation into Long Lake ($60,000), and force main replacements (355,200) for a total of $821,700. ARPA funding is being utilized for $355,200 of the capital expenditures. The anticipated cash balance for the fund at the end of 2022 is $1,800,000. c. 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. Potential CIP projects in 2022 include: Navarre Parking Lot ($35,000), North Shore Drive Ravine ($96,000), Road Projects ($208,300), and Storm Sewer Improvements ($100,000). The capital expenditures total $459,300. The anticipated cash balance for the fund at the end of 2022 is $1,500,000. d. Recycling. The recycling funds major expenditure line is for contracted recycling charges. The current contract with Waste Management is increasing 4%. The Recycled Materials has weakened in the past few years since 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 2020 is $70,382. e. 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. The current cash balance of the fund is $169,102. 9. 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.