12-12-2022 Council Packet - Laserfiche WebLink

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AGENDA ITEM on the 2014 Water Bonds. 2023 capital expenditures as identified in the 2023 CIP include a water plant upgrades, north tower cleaning and inspection, and water valve replacements. The Water Fund’s anticipated cash balance for the fund at the end of 2023 is $1,157,150. b. Sewer. As presented, the operating budget for 2023 will have an operating income of $142,575. Net non-operating revenues and expenses increase the income to $194,175. The single largest expense for the sewer fund is the Met Council disposal charges which has increased from $394,530 in 2016 to $766,993 in 2023. This is a 94% increase and has a major impact on sewer rates. The total operating expense budget is increasing by $154,565 (7.9%) The major increases are the previously mentioned MCES charges ($62,000), Personnel Services (30,340), and Supplies ($30,340). Upcoming capital expenditures can be covered by the fund’s current cash balances. Projects identified in the CIP for 2023 include: Annual sewer rehabilitation, lift station updates, and the Tonkawa Force Main replacement. The projected cash balance for the fund at the end of 2023 is $1,176,080. 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 2023 include: Projects performs in conjunction with road projects, Navarre parking lot manholes, Cherry Place Ravine Improvements, and other Storm Water Improvements. The projected cash balance for the fund at the end of 2023 is $1,838,546. d. Recycling. The recycling funds major expenditure line is for contracted recycling charges. The current contract with Waste Management is increasing 4%. The full time wages that are charged to the fund represent 10% of the City Clerks wages. The projected cash balance for the fund at the end of 2023 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 projected cash balance of the fund at the end of 2023 is $100,000. 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. 10. Fee Schedule. The City’s fee schedule is reviewed annually as part of the budget process. A copy of the schedule with requested changes is included as exhibit F. The most impactful change will be for utility rates, with suggested increases as follows: Water – 2 %; Sewer – 2%; Storm – 2%; and Recycling 4%. The recycling increase simply passes on the increase in our contract with Waste management. The Utility rates are increasing consistent with the amounts projected in previous rate studies and continue to adequately fund infrastructure costs through the rates. Another fee that is increasing relates to various zoning applications which are increasing $50 to $375. A cost analysis of staff time is included as the last page of the fee schedule exhibit. The requirement for an