12-9-2024 CC Agenda Packet - Laserfiche WebLink

Home Browse Search

Date: December 9, 2024 Item: 11 Presenter: Maggie Jin, Finance Director Section: Consent Agenda Title: Adopt 2025 Enterprise Fund Budgets - Resolution 7539 1.Purpose: The purpose of this agenda item is to approve the 2025 Enterprise Fund Budgets. 2.Background: Staff has been working on the 2025 Enterprise Fund budgets since June. As part of the budget process, the Budget Committee met on August 15th and updates to the whole council was presented at the August 26th work session. The Water, Sewer, Stormwater, Recycling, Golf Course, and Cable Funds are designed to account for the business type activities of the City. These funds do not receive any property tax revenue. The goal for the Enterprise funds is to be fully funded by rates without depending on special assessments for infrastructure improvements or for years of operating loss. On the revenue side of the budget, the utility rates are approved annually as part of the fee schedule. The utility rates are increasing by the following percentage: Water 2%; Sewer 2%, Stormwater 1%, and Recycling by 4%. Additionally, based on the area (North, South, Wayzata, or Long Lake), the sewer and water will be charged accordingly. The utility rates are included as part of the 2025 fee schedule and budget. Cable fund revenue is generated by franchise fees. Golf Course revenue is generated by the fees and service charges from users. A. Water Fund. The water expenditure budget overall is increasing by $29,400 (2.1%). The biggest increase is in Personal Service for wages and in Professional Service for IT and fleet service. The operating budget for 2025 will have a gain of $443,100. The overall change in fund balance is anticipated to be $120,887 after capital expenditures. Projects identified in the CIP for 2025 include: water system work that is aligned with road projects ($900), watermain replacement project at Kelly Ave ($200,000), and Navarre Water Plant control upgrade ($110,000). B. Sewer Fund. In past 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 Metropolitan Council Environmental Services disposal charges, making up 33% of the Sewer Fund operating budget. The operating expenditure budget is increasing by $26,260 (1.2%). The majority of this increase is for wages and benefits and depreciation expenditure. The total overall expenditure budget is decreasing by $563,040 (-19.23%) due to the decrease in operating transfers. Projects identified in the CIP for 2024 include: Sewer Rehabilitation ($300,000), sanitary line adjustments in correlation with road projects ($41,100), Lift Station #27 rehabilitation ($60,000), and Life Station #4 rehabilitation ($70,000). AGENDA ITEM 262