11/05/2012 Council Packet - Laserfiche WebLink

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WS — Item 4 WORK SESSION STAFF REPORT Work Session Item No. 4 Date: November 5. 2012 To: City Council From: Al Rolek Re: Review of 2013 Proposed Budget Background Staff has prepared the attached 2013 proposals for the Water, Sewer and Recreation Program funds. The proposed Water Fund budget, which funds the operations of the water utility, is $1,176,197. This is $363,442 lower than the 2012 budget due to the retirement of the 2006F Utility Revenue Bonds. The proposed Sewer Fund budget, which funds operations of the sanitary sewer utility, is $1,732,237. This is $107,951 more than the 2012 budget primarily due to an increase in the MCES sewage treatment charges. These budgets are entirely funded through utility fees and are balanced, when needed, with utility fund balances. A utility rate study is currently being undertaken and results of the study, along with recommended rate adjustments, will be presented at a future Council work session. The Recreation Program Special Revenue fund is established and budgeted to finance recreation programs provided through the City. The activities of this fund art financed entirely through recreation program fees. As directed by the City Council, the fees for 2013 will generate an additional $10,000 to offset support staff expenses now financed through the General fund. The Recreation Program fund budget projects a $9,120 surplus after the General fund offset. At the October work session the Council was asked to provide any additional budget suggestions through emails directed to City Administrator Karlson. Mr. Karlson will be prepared to present those suggestions as the 2013 budget discussion continues. The City Council approved the preliminary 2013 levy on September 10. The 2013 proposed 2013 General fund budget is $8,791,385, which is $371,053 less than the 2012 budget. Requested Council Direction Staff is looking for further City Council direction on the proposed 2013 budgets in preparation for presenting a final budget at the December 10 Truth in Taxation hearing. Attachments 2013 Proposed Water Fund budget • 2013 Proposed Sewer Fund budget 2013 Proposed Recreation Program Special Revenue Fund budget