12-14-2015 Councill Packet - Laserfiche WebLink

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Check/Site Exam Fees are increasing $25,000 (16.7%), and Police Service Contract revenue is increasing $72,650 (3.4%). There are two revenues that are decreasing significantly. The first is Court Fines, which are decreasing $28,000 (-24.3%). The other significant decrease in the Drug Task Force Distribution ($30,000), which will not be received in 2016, has been removed from the budget. Special Revenue Funds The special revenue funds that budgets are adopted for are the Park Fund, The Drug Forfeiture Fund, and the TIF Fund. Special revenue funds by definition have a primary source of revenue that is dedicated for a specific purpose. In the Park Fund the primary revenue source is park dedication fees collected from developers. By state law, these funds must be used for parkland acquisition and development. The Drug Forfeiture Fund receives its primary funding from the Police Department’s drug and alcohol enforcement activities. The funds must be used for drug and alcohol related activities. The TIF Fund is used to account for revenues related to the Orono Woods Senior Housing Development. Debt Service Levies The 2015 levy for debt service is $754,980 which is slightly lower than the 2014 amount of $755,500. This levy is used to pay the debt service on the City’s outstanding bonds. Enterprise Funds The Water, Sewer, Stormwater, and Recycling Funds are designed to account for the business type activities of the City. These funds do not receive any property tax revenue. As part of the 2016 fee schedule, the following rate increases were proposed: Water 11%; Sewer 4%, Stormwater 5%, and Recycling by 10%. These rates will be effective upon approval of the 2016 Fee Schedule. Water The water fund has historically been operating at a loss. Because depreciation is a non-cash expenditure, the fund has had a positive operating cash flow since 2009. In most years, the operating loss has been covered by the revenue received from antenna leases on the water towers. Due to consolidations in the cellular industry and changing technologies, the lease revenue is not guaranteed to continue indefinitely. As presented, the operating budget for 2016 will have an operating loss. The revenue amount is calculated using the four year average for consumption and an 11% rate increase. The operating expenditure budget is decreasing by $1,337 (-0.23%). The operating transfers include $55,000 to the debt fund supporting the Casco Point Bonds and $103,000 for debt service on the 2014 Water Bonds. 2016 capital expenditures as identified in the CIP include a monitoring software upgrade, drilling well #4, expansion of the northern distribution system, inspection and maintenance of well #1, and replacement of the West Lafeyette main. The 2016 capital expenditures total $1,080,000. The funds current cash balance including the bond proceeds is $1,445,562. The costs associated with the northern system expansion will eventually be recovered from developers.