10-12-2022 Workshop Packet - Laserfiche WebLink

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0 20,000 40,000 60,000 80,000 100,000 120,000 140,000 160,000 180,000 0 20,000 40,000 60,000 80,000 100,000 120,000 140,000 160,000 180,000 2021 Actual 2022 Est 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 Fund BalanceRevenues and Expenditures10% Fund (408) Revenues Expenditures Fund Balance V. Water/Sewer Replacement Fund (604) Background: This fund is used to account for funds set aside from the City’s water and sewer operating utilities to be used for future equipment replacement and capital costs for the City’s utilities. Source of Funds: The Fund receives an annual operating transfer from the Water Enterprise Fund & Sewer Enterprise Fund. Significant Highlights in Future Years: Large meter replacements are included ranging $30,000 to $39,143 per year starting in 2023. A sewer slip‐lining project is in included in 2024 at $250,000. A Met Council I/I grant has been included for this project at $50,000. Fund Outlook: The fund includes the debt service payment for the public works facility. Initially the debt service payment was structured to be financed through a tax levy. Since the tax levy has been eliminated there has been a major shift in the financial burden to the Water (Fund 601) and Sewer fund (Fund 602), since transfers from these funds are the main source of revenues for the Water/Sewer replacement fund (Fund 604). It is essential that the City will closely monitor the Water and Sewer fund to ensure that it can continue to finance the Water/Sewer replacement fund to meet its capital infrastructure needs and the future debt service payments. The debt will not be retired until 2034. A rate study was completed in 2020. The rate study identified increases of 3% to 4% per year would be needed in the water and sewer funds in order to fund the operations, debt service, and capital outlay. The water tower is scheduled to be painted in 2034 which is the large expenditure.