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<br />Fund Outlook:
<br />The fund includes the debt service payment for the public works facility. Initially, the debt service
<br />payment was structured to be financed through a tax levy. Since the tax levy has been eliminated, there
<br />has been a significant shift in the financial burden to the Water (Fund 601) and Sewer fund (Fund 602),
<br />since transfers from these funds are the primary source of revenues for the Water/Sewer replacement
<br />fund (Fund 604). The City must closely monitor the Water and Sewer fund to ensure that it can continue
<br />to finance the Water/Sewer replacement fund to meet its capital infrastructure needs and the future
<br />debt service payments. The debt will not be retired until 2034. It is currently projected that an increase
<br />of 10% in utility rates in 2026 for water and 8% for sewer would be needed in the water and sewer funds
<br />to fund the operations, debt service, and capital outlay. The water tower is scheduled to be painted in
<br />2034, which is the most significant expenditure in the fund. As noted below, 2034 would need additional
<br />funding to meet the budget proposed for the CIP, primarily driven by the Water Tower painting project
<br />and the Combo Sewer Machine.
<br />
<br />2026 2027 2028 2029 2030 2031 2032 2033 2034 2035
<br />Revenues $576,512 $576,125 $598,308 $610,505 $630,018 $640,137 $665,577 $687,755 $1,717,191 $751,388
<br />Expenditures $1,557,553 $467,160 $1,028,573 $716,617 $1,249,117 $538,223 $801,172 $453,807 $2,310,400 $187,500
<br />Fund Balance $1,052,473 $1,161,438 $731,173 $625,061 $5,963 $107,877 $(27,719)$206,229 $(386,980)$176,908
<br />-600,000
<br />-400,000
<br />-200,000
<br />0
<br />200,000
<br />400,000
<br />600,000
<br />800,000
<br />1,000,000
<br />1,200,000
<br />1,400,000
<br /> $-
<br /> $500,000
<br /> $1,000,000
<br /> $1,500,000
<br /> $2,000,000
<br /> $2,500,000
<br />Fund BalanceRevenues and ExpendituresWater and Sewer Capital Fund (604)
<br />Revenues Expenditures Fund Balance
<br />Staff will provide a detailed PowerPoint presentation on each of these funds at the City Council workshop.
<br />Additional information on each of the primary expenditures and possible funding sources will be discussed
<br />during the workshop, as well as examples of how each funding source will impact the City’s long-term
<br />fund balance.
<br />Attachments:
<br />1. 2026-2035 CIP Schedules all Funds
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