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HomeMy WebLinkAbout15.F.5. 2004 Sewer and Storm Utility Budgets and Rates --' IS: r=. 5 . CITY OF SHAKOPEE Memorandum CONSENT TO: Mayor and Council Mark McNeill, City Administrator FROM: Gregg Voxland, Finance Director SUBJ: 2004 Sewer and Storm Utility Budgets and Rates DATE: October 10, 2003 proposed for inclusion in the 2004 Fee Schedule is no rate increase for the Sewer Fund or the Storm Fund. The city's operational budget for the two funds is similar to 2003 with increasing costs to maintain the storm drainage system. Additional wages are included in the budget to add one maintenance worker split between the two funds. The capital expenditures for the funds were reviewed with the Capital Improvement Plan. Sewer It is recommended to maintain the flow charge for sewer. The 2003 flow charge is $1.60 per thousand gallons. Forecasting is difficult due to Rahr adding back to the system and the effects of infiltration, inflow and growth. Recently Rahr has increased water use and is again using the city system more. It is proposed that the base fee of $6.00 per month would not change. Metropolitan Council is raising the treatment charge from $1,300 per million gallons to $1,340 per million gallons for an increase of 3.0%. The difference in their rate and our rate is to provide funding for the collection system and because the flow the city bills out is always smaller than the flow that Metropolitan Council bills the city due to inflow/infiltration and unknown/unauthorized use of the sanitary sewer system. Storm The financial situation for the Storm Drainage Fund has stabilized. Growth in number of accounts is helping to increase the cash balance. No change in rates is recommended at this time. The Public Works Director may want to conduct a comprehensive review of the storm utility and rate structure in 2004. Alternatives 1. Maintain rates as per above 2. Adopt different rates Recommendation Recommend is Alternative 1. Action requested Move to accept the Sewer and Storm Funds budget and direct staff to include in the 2004 Fee Schedule the same rates as 2003 at: A rate of $6.00 for the Sewer base rate and a sewer flow fee of $1.60 per 1,000 gallons of water use/flow. For the Storm Fund set a rate of $24.56 per residential equivalent factor per acre per quarter. )V Gregg Voxland Finance Director CITY OF SHAKOPEE, MINNESOTA PROFORMA OPERATING STATEMENT - SANITARY SEWER For the Year Ending December 31,2004 2001 2002 2003 2004 Actual Actual Est. Est. Operating Revenue Service Charges $ 1,839,396 $ 2,020,425 $ 2,268,000 $ 2,475,000 Other 404,065 396,420 145,200 400,000 Total 2,243,461 2,416,845 2,413,200 2,875,000 Operating Expense 6002 FT Salaries 21,381 26,329 25,000 45,000 6005 FT Overtime 1 ,482 1,072 800 800 6015 PT Salaries 121 500 500 6122 PERA 1,184 1,503 1 ,430 2,560 6124 FICA 1,633 1,941 2,010 3,540 6135 Health 4,049 8,000 8,000 6139 Post Employment Health Plan 170 340 6140 Life/L TD 135 280 6145 Dental 174 340 6170 Workcomp 914 939 970 2,000 Personnel Services 26,594 36,433 38,710 63,360 6202 Supplies 1,183 1,346 1,000 4,000 6215 Materials 16,500 16,500 6222 Motor Fuels & Lub. 1,559 1,287 1,200 1,200 6240 Equip. Maint. 7,884 4,000 4,000 6245 Utility Sys. Maint. 9,118 15,000 15,000 6310 Professional Servo 162,698 59,913 45,000 50,000 6475 Travel 1,680 6336 Printing & Repro 150 150 6350 Insurance 5,130 10,219 10,000 10,500 6369 MCES 1,200,768 1,202,817 1,060,000 1,300,000 6472 Conferences 1,864 1,000 3,000 6410 Rents 23,640 23,532 25,000 25,000 6502 Depreciation 366,088 358,413 215,000 370,000 6498 Expense Charged Back 12,000 12,000 12,000 12,000 Total Supplies/Services 1,783,864 1,679,275 1,405,850 1,811,350 Operating Income 433,003 701 ,137 968,640 1,000,290 Interest Income 739,470 728,567 368,210 300,000 Trunk Charges 266,974 353,324 228,000 250,000 Net Income $ 1,439,447 $ 1,783,028 $ 1 ,564,850 $ 1 ,550,290 CITY OF SHAKOPEE, MINNESOTA SANITARY SEWER FUND Cash Budget For the Year Ending December 31, 2004 2001 2002 2003 2004 Actual Actual Est. Est. Receipts Service Charges $ 1,839,396 $ 2,020,425 $ 2,268,000 $ 2,475,000 Trunk Charges 266,974 353,324 228,000 250,000 SAC Charges 404,065 396,420 145,200 400,000 Interest Income 739,470 728,567 368,210 300,000 AIR & AlP Change 254,667 3,249,905 3,753,403 3,009,410 3,425,000 Expenditures 6002 FT Salaries 21,381 26,329 25,000 45,000 6005 FT Overtime 1 ,482 1,072 800 800 6015 PT Salaries 121 500 500 6122 PERA 1,184 1,503 1,430 2,560 6124 FICA 1,633 1,941 2,010 3,540 6135 Health 4,049 8,000 8,000 6139 Post Employment Health Plan 170 340 6140 Life/L TD 135 280 6145 Dental 174 340 6170 Workcomp 914 939 970 2,000 Personnel Services 26,594 36,433 38,710 63,360 6202 Supplies 1,183 1,346 1,000 4,000 6215 Materials 16,500 16,500 6222 Motor Fuels & Lub. 1,559 1,287 1,200 1,200 6240 Equip. Maint. 7,884 4,000 4,000 6245 Utility Sys. Maint. 9,118 15,000 15,000 6310 Professional Servo 162,698 59,913 45,000 50,000 6475 Travel/Subsistence 1,680 6336 Printing & Repro 150 150 6350 Insurance 5,130 10,219 10,000 10,500 6369 MCES 1,200,768 1 ,202,817 1,060,000 1,300,000 6472 Conferences 1,864 1,000 3,000 6410 Rents 23,640 23,532 25,000 25,000 6498 Expense Charged Back 12,000 12,000 12,000 12,000 AlP changes Supplies & Services 1,417,776 1 ,320,862 1 ,190,850 1,441,350 6740 Capital Equip 10,000 1760 Imprvmnts/161 0 Intangible Assets Per CIP 79,605 31,468 1,345,000 3,150,000 Total 79,605 31 ,468 1,355,000 3,150,000 Total Disbursements 1,523,975 1 ,388,763 2,584,560 4,654,710 Net Cash Flow $1,725,930 $2,364,640 $424,850 ($1,229,710) Cash Balance $9,963,454 $12,328,094 $12,752,944 $11,523,234 Sanitary Sewer Fund Projected Cash Levels 2004-2009+ Capital Improvement Program City of Shakopee, Minnesota FLOW: 2004 2005 2006 2007 2008 2009 Cash Balance January 1 $ 5,617,927 $ 6,595,927 $ 7,639,887 $ 9,376,989 $ 10,338,528 $ 11,254,234 Revenue - Flow charges 1,728,000 1,797,120 1,869,005 2,021 ,516 2,102,376 2,186,471 City SAC 400,000 400,000 400,000 400,000 400,000 400,000 MCES Expenses (1,300,000) (1,417,000) (1,544,530) (1,835,056) (2,000,211 ) (2,180,230) Interest 150,000 263,840 305,600 375,080 413,540 450,170 Change in AR/AP Expenditures per List-SEWER-F Excess (Deficiency) 978,000 1,043,960 1,030,075 961,539 915,705 856,411 Balance Available 12/31 6,595,927 7,639,887 8,669,962 10,338,528 11,254,234 12,110,645 TRUNK: Cash Balance January 1 $ 274,888 $ (50,112) $ 207,388 $ 395,795 $ 677,172 $ 966,990 Revenue - Trunk Charges 250,000 257,500 265,225 281,377 289,819 298,513 Expenditures per List-SEWER-T (575,000) (350,000) Excess (Deficiency) (325,000) 257,500 (84,775) 281,377 289,819 298,513 Balance Available 12/31 (50,112) 207,388 122,613 677,172 966,990 1,265,504 BASE: Cash Balance January 1 $ 5,266,442 $ 3,176,732 $ 3,055,747 $ 3,793,225 $ 3,781,622 $ 3,605,055 Revenue - Monthly Flat Fee 540,000 558,900 578,462 619,662 641,351 663,798 Revenue - Interest 150,000 125,060 130,520 167,560 178,350 182,880 Non-Operating Income Operation Expenses (204,710) (214,946) (225,693) (248,826) (261,268) (274,331) Expenditures per List-SEWER-B (2,575,000) (590,000) (100,000) (550,000) (735,000) Excess (Deficiency) (2,089,710) (120,986) 383,289 (11,604) (176,567) 572,347 Balance Available 12/31 3,176,732 3,055,747 3,439,035 3,781,622 3,605,055 4,177,402 Total Balance 12/31 $ 9,722,547 $ 10,903,021 $ 12,231,610 $ 14,797,322 $ 15,826,279 $ 17,553,550 Accumulated Depreciation $ 3,487,105 $ 3,737,105 $ 3,987,105 $ 4,487,105 $ 4,737,105 $ 4,987,105 CITY OF SHAKOPEE, MINNESOTA PROFORMA OPERATING STATEMENT - STORM DRAINAGE For the Year Ending December 31, 2004 2001 2002 2003 2004 Actual Actual Est. Est. Operating Revenue User Fees $ 1,057,985 $ 950,936 $ 1,000,000 $ 1,100,000 Trunk Charges 402,504 1,249,705 600,000 600,000 Total 1,460,489 2,200,641 1,600,000 1,700,000 Operating Expense 6002 FT Salaries 71,743 81,874 70,900 100,000 6005 FT Overtime 6,817 5,247 6,000 6,000 6015 PT Salaries 2,600 4,439 6122 PERA 4,086 4,813 4,000 5,580 6124 FICA 5,850 6,437 5,500 7,650 6135 Health insurance 17,986 16,000 19,000 6139 Post Employment Health Plan 597 700 6140 Life/L TO 510 600 6145 Dental 768 800 6170 Workcomp 1,827 1,877 2,000 2,400 Personnel 92,923 124,548 104,400 142,730 6202 Operating Supplies 9,575 6,110 1,000 4,000 6215 Materials 3,450 1,816 2,000 2,000 6222 Motor Fuels & Lub. 1,886 1,614 2,000 2,000 6240 Equip.Maint. 12,066 14,183 20,000 20,000 6245 Utility Sys. Maint. 742 30,000 30,000 6310 Professional Serv.-Atty 10,000 5,000 6312 Engineering consultant 42,872 37,948 30,000 50,000 6327 Contractor 10,663 39,577 30,000 6350 Insurance 2,406 7,224 7,000 7,400 6410 Rents 6420 Equipment rent 11 ,466 16,119 13,000 13,000 6425 Equipment rent - IS Fund 22,344 22,344 22,340 22,340 6435 Other rents 6472 Training 3,000 6502 Depreciation 394,853 404,233 450,000 450,000 6610 Awards/Damages 5,700 6620 Property Tax/Special Assess 1,265 2,873 3,000 3,000 6498 Expenses Charged Back 12,000 12,000 12,000 12,000 Supplies & Services 531,288 566,041 632,340 623,740 Operating Income 836,278 1,510,052 863,260 933,530 Interest Income 446,775 476,027 203,450 203,450 Debt Service Interest -32,493 -28,971 -33,000 -28,000 Net Income $ 1,250,560 $1,957,108 $ 1,033,710 $ 1,108,980 CITY OF SHAKOPEE, MINNESOTA STORM DRAINAGE FUND Cash Budget For the Year Ending December 31, 2004 2001 2002 2003 2004 Actual Actual Est. Est. Receipts User Fee $ 824,653 $ 950,936 $ 1,000,000 $ 1,100,000 Trunk Charges 637,829 1,249,705 600,000 600,000 Interest Income 323,360 476,027 203,450 203,450 Contributions 434,876 Total Receipts 2,220,718 2,676,668 1 ,803,450 1,903,450 Expenditures 6002 FT Salaries 54,948 81,874 70,900 100,000 6005 FT Overtime 866 5,247 6,000 6,000 6015 PT Salaries 4,439 6122 PERA 2,891 4,813 4,000 5,580 6124 FICA 3,545 6,437 5,500 7,650 6135 Health Insurance 17,986 16,000 19,000 6139 Post Employment Health Plan 597 700 6140 Life/LTD 510 600 6145 Dental 768 800 6170 Workcomp 1,216 1,877 2,000 2,400 Personnel 63,466 124,548 104,400 142,730 6202 Operating Supplies 725 6,110 1,000 4,000 6215 Materials 1,816 2,000 2,000 6222 Motor Fuels & Lub. 1,580 1,614 2,000 2,000 6240 Equip. Maint. 21,774 14,183 20,000 20,000 6245 Utility Sys. Maint. 24,989 30,000 30,000 6310 Professional Serv.-Atty 64,205 10,000 6312 Engineering consultant 37,948 30,000 50,000 6327 Contractor 39,577 30,000 6350 Insurance 3,117 7,224 7,000 7,400 641 0 Rents 6420 Equipment rent 25,801 16,119 13,000 13,000 6425 Equipment rent - IS Fund 22,344 22,340 22,340 6435 Other rents 6472 Training 153 6610 Awards/Damages -5,699 6620 Property Tax/Special Assess 667 2,873 3,000 3,000 6849 Debt Service Interest 38,062 28,971 39,000 28,000 Charge Back 12,000 12,000 12,000 12,000 Supplies/Services 187,374 190,779 221,340 193,740 Operating income 1,969,878 2,361,341 1,477,710 1,566,980 Debt Service Principal 105,000 115,000 115,000 115,000 6740 Capital Equip Accounts Payable/Rec. Change 163,225 238,252 1760 Improvements Per CIP 49,000 259,142 2,358,500 . 775,000 Total Other 317,225 612,394 2,473,500 890,000 Net Cash Flow $ 1,652,653 $1,748,947 $ (995,790) $ 676,980 Cash Balance $6,669,026 $8,417,973 $7,422,183 $8,099,163 Storm Drainage Fund Projected Cash Levels 2004-2009+ Capital Improvement Program City of Shakopee, Minnesota TRUNK: 2004 2005 2006 2007 2008 2009 Cash Balance January 1 $ 3,387,596 $ 3,632,596 $ 3,957,596 $ 4,557,596 $ 895,096 $ 1,120,096 Revenue - Trunk Charges 600,000 600,000 600,000 600,000 600,000 600,000 Expenditures per List-Storm-T (355,000) (275,000) (4,262,500) (375,000) Excess (Deficiency) 245,000 325,000 600,000 (3,662,500) 225,000 600,000 Balance 12/31 3,632,596 3,957,596 4,557,596 895,096 1,120,096 1,720,096 BASE: Cash Balance January 1 5,714,467 6,396,761 6,802,657 7,837,238 8,195,104 9,106,242 Revenue - User Fees 1,100,000 1,188,000 1,283,040 1,385,683 1,496,538 1,616,261 Revenue - Donations 35,000 - - - - - Revenue - Interest 455,100 501,470 538,010 619,740 454,510 511,320 Operation Expenses (312,806) (331,574) (351,469) (372,557) (394,910) (418,605) AP changes Debt Service Principal (140,000) (145,000) Expenditures per List (420,000) (807,000) (435,000) (1,275,000) (645,000) (125,000) Expenditures per List - Donation (35,000) Excess (Deficiency) 682,294 405,896 1,034,581 357,866 911,137 1,583,976 Balance 12/31 6,396,761 6,802,657 7,837,238 8,195,104 9,106,242 10,690,217 Total Balance 12/31 $ 10,029,357 $ 10,760,253 $ 12,394,834 $ 9,090,200 $ 10,226,338 $ 12,410,313 Accumulated Depreciation $ 5,300,000 $ 5,700,000 $ 6,100,000 $ 6,100,000 $ 6,100,000 $ 6,100,000