HomeMy WebLinkAbout#17 Financial Management Plan for Enterprise Funds
MAYOR & COUNCIL COMMUNICATION
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DATE: October 18, 2016
REGULAR
ITEM #17
MOTION
AGENDA ITEM: Financial Management Plan for Enterprise Funds
SUBMITTED BY: Cathy Bendel, Finance Director
THROUGH: Tammy Omdal, Northland Securities
REVIEWED BY: Kristina Handt, City Administrator
Julie Fliflet, Finance Committee Chair
Tammy Omdal, Northland Securities
Bernie Bullert, TKDA
SUGGESTED ORDER OF BUSINESS:
- Introduction of Item ..............................................................…Finance Director
- Report/Presentation………… City Staff, Tammy Omdal, Northland Securities
- Questions from Council to Staff ............................................. Mayor Facilitates
- Call for Motion ............................................................... Mayor & City Council
- Discussion ....................................................................... Mayor & City Council
- Action on Motion .................................................................... Mayor Facilitates
SUMMARY AND ACTION REQUESTED: The City has retained the services of Northland
Services and TKDA to prepare a Financial Management Plan for the City of Lake Elmo
Enterprise Funds. Tammy Omdal of Northland Securities will be presenting the report to the
City Council.
BACKGROUND INFORMATION: The City approved and entered into agreements with
Northland Securities and TKDA to prepare a Financial Management Plan for the City of Lake
Elmo Enterprise Funds. Bernie Bullert from TKDA is an expert in the utility field and was
tasked with compiling a recommendation for the operational costs to be incorporated into the
model. Tammy Omdal of Northland Securities was tasked with preparing a Financial
Management Plan which would become a projection report which could be updated and shared
with the City Council on a quarterly basis. The report being presented is that report.
City Council Meeting [Consent Agenda Item #17]
October 18, 2016
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This version was shared with the Finance Committee on October 11, 2016 and some changes and
recommendations came of that review to be incorporated into the next version including the
following:
• The Finance Committee felt the 30% variance on build outs was too high. A 20% has
been recommended for future models.
• The MN DEED grant was identified as something needing to be reviewed closer to be
sure it is properly accounted for in the report.
• In past models, 100% of CIP expenses were funded through bonding. This version
assumed that any CIP items under $500k would be purchased from reserves rather than
funding through bonding to avoid interest and bonding costs since the cash balances
were strong. ($2.5M in the water fund and $2.5M in the sewer fund). The Finance
Committee will be reviewing the reserve policy for the Enterprise Funds to make a
recommendation related to the model assumptions to use related to bonding vs the use
of cash reserves for future capital purchases and the paying down of debt.
• The Inwood water system will not be completed until later in 2017 so the model will need
to be updated to reflect that the City will need to continue to purchase water from
Oakdale through the end of 2017.
• The model needs to be updated for the recent policy changes impacting fees (early
connection incentive plan, longer special assessment repayment terms and allowing
existing residents to defer connection fees).
The Finance Committee recommended that the next version be prepared with preliminary year
end 2016 information which will be ready the middle of February 2017. A draft will be
presented to the Finance Committee at their March 2017 meeting.
RECOMMENDATION: It is recommended that the City Council accept the Financial
Management Plan for the Enterprise Funds dated October 11, 2016.
ATTACHMENT:
1. Memo from Northland Securities
2. Financial Management Plan presentation
3. Detailed Financial Management Plan Report for Water, Sanitary Sewer and Storm Water
Funds (aka The Enterprise Funds)
4. TKDA Report
NorthlandSecurities,Inc. 45South7thStreet,Suite2000,Minneapolis,MN55402 Toll Free1-200-851-2920 Main612-851-5900
www.northlandsecurities.com
MemberFINRAandSIPC
MEMORANDUM
To:CathyBendel- Finance Director
From:Tammy Omdal - Northland Securities
Date:September 15, 2016
Re:Scope of Servicesfor FinancialPlanning
Thismemorandum is provided at your request. The purpose ofthis memorandum is toconfirmto
you the services Northland agreed to provide to the City of Lake Elmo(the “City”) pursuant toan
executed service agreement datedJanuary 2016 (the“Agreement”). As defined in theAgreement,
the Cityis usingthe servicesof Northland for financial planningfor the City’swater,sanitarysewer,
and storm water utility systems,includingreview ofuser chargesandrates.
Northland’s scope ofwork is based on the following factors,which were definedby the City and
outlined in the Agreement:
1.User chargesfor water, sanitary sewer, andstorm sewer service need tobe reviewedtoensure
adequate operatingrevenuesandreserves are maintained.
2.The analysis of user chargesmust consider currentandfuture capitalimprovements.
3.City is seeking to understand the pace of growth neededto cash flowthe Cityenterprise funds.
4.City desires tounderstandthe potential for loweringwater ratesin the future.
In performing this work,pursuant tothe tasks outlinedin the Agreement, Northland prepared its
own spreadsheets tomodel future estimatedfinancial performance of the utility systems. The
information providedby the City to Northland to performthisworkis outlined in theAgreement
andincludesannual financialstatements, operatingbudgets, user rate schedules, and customer data
information.
You have askedfor aresponse to the followingtwoquestions:
1.Was Northlandhired tocomplete an audit of the City of Lake Elmo’sprevious pro
forma?
-No, see Agreement.
2.Did youreviewor lookatthe City of Lake Elmo’s previous proforma as part of the
UtilityStudy youwere hiredto prepare?
-No, see Agreement.
CITY OF LAKE ELMO, MN
COST OF SERVICE STUDY FOR
WATER, SANITARY SEWER, AND
STORM WATER FUNDS
2016 REPORT
JUNE 10, 2016
PREPARED BY:
June 10, 2016
Kristina Handt
City Administrator
Cathy Bendel
Finance Director
Lake Elmo City Hall
3800 Laverne Ave N.
Lake Elmo, MN 55042
Re: Cost of Service Study for City Utility Funds
TKDA Project No. 16102.000
Dear Kristina and Cathy:
TKDA is pleased to present the City of Lake Elmo with a cost of service study for the City’s Utility Funds
to be part of an overall Financial Management Plan for said funds. TKDA was hired to analyze and
present a 10 year cost of service projection for the three utility funds. The analysis and report includes a
cost analysis of past costs and a projection for each, added staffing, and some capital investments for
the existing system. Also included were a recommendation for a work order system, a change in some
depreciation schedules, and a recommendation to use a higher projected rate of inflation for the utilities
rather than 2%.
We appreciate the opportunity to provide service to the City of Lake Elmo.
Sincerely,
Bernie Bullert
Senior Water/Wastewater Engineer
Lake Elmo Cost of Service Study
TKDA was tasked with doing a cost of service study for the water, sanitary sewer, and storm sewer utilities.
The projected 10 year costs of operations will be used to project utility rates going forward for the next 10
year period with adjustments annually based on actual costs over time. A three year actual cost history was
used, although the sanitary and storm system are small and changing in size rapidly, therefore the cost
history was not as relevant.
This report highlights all the assumptions put into the model in order to bring the cost of operations forward
over the next 10 year period. The assumptions are as follows:
1. a) Expenses are coded in two different ways. Supplies and other charges are directly coded to the
appropriate utility fund. Labor charges are prorated by staff as the percentage of their time spent
working on each utility and are subject to change.
b) Some of the citywide overhead is not charged to the utilities but is paid through general tax
revenue. These include city clerk time, city council costs, attorney costs, building costs, and
equipment cost. This may be noticeable to the customers who have well and septic systems as they
are funding some utility costs through the general tax revenue.
c) In order to charge costs accurately, a work order system should be implemented and an overhead
rate could be determined and charged as a percentage of the budget to each utility in order to
reimburse the general tax revenue.
d) Depreciation schedules looked appropriate except for water distribution pipe which was
scheduled at 30 to 33 years. The normal industry practices depreciate water distribution pipe over 75
years.
2. a) The inflation rate generally used by Lake Elmo is 2%. It was not revised for this study. However,
utilities usually experience inflation in the range of 3 to 3.5%. We would recommend the City use a
higher inflation rate for this utility rate study.
b) The water system growth in system miles over the next 10 years is projected at 5% per year.
c) The sanitary system growth in system miles over the next 10 years is projected at 50% per year.
d) The storm system growth in system miles over the next 10 years is projected at 7% per year.
e) Maintenance costs are generally related to pipe length and volume but greater emphases is placed
on the length of pipe. Therefore costs for a new system are expected to increase as the length of the
new system expands.
f) For purposes of future expenses, we used 5% for water plus inflation, 30% for sanitary plus
inflation, and 7% for storm plus inflation. The sanitary number was reduced from 50% to 30% to
maintain a more proper balance in the budget numbers for water and sanitary operational costs.
3. a) Staff does not code labor time or equipment time to jobs however, materials are charged directly
to the correct utility. A work order system will help correctly track all costs to the correct utility.
b) Not all preventative maintenance on the utility systems is currently being done. For example, the
hydrant flushing program is incomplete and there is no valve operating program on the water
system.
c) The utility staffing level of three staff members for 2016 is low when compared to other utilities
and we have increased it to 3.5 for 2017. This should allow for additional preventative maintenance.
d) Staffing added over the next 10 years is as follows:
1. ½ laborer added in 2017, .2FTE water, .2FTE sanitary, .1FTE storm
2. ½ laborer added in 2019, .2FTE water, .2FTE sanitary, .1FTE storm
3. ½ laborer added in 2022, .2FTE water, .2FTE sanitary, .FTE storm
4. ½ laborer added in 2025, .2 FTE water, .2 FTE sanitary, .1FTE storm
5. ½ billing clerk added in 2018; 40% water, 25% sanitary, 35% storm
6. ½ billing clerk added in 2022; 40% water, 25% sanitary, 35% storm
7. ½ billing clerk added in 2025; 40% water, 25% sanitary, 35% storm
e) Another ½ FTE laborer should to be added to streets based on increased street miles. That is a
suggestion but was not part of this study. A new billing system is needed and the efficiencies gained
with a new system will affect the hiring of clerical staff. The billing clerk was re-proportioned for 2017
and going forward to the three utilities based on staff recommendations. Postage and software
support were also re-proportioned to the three utilities based on staff experience. Based on a
previous staffing study of east metro suburbs completed for White Bear Township by TKDA, the
average staffing level for four similar cities was 13 staff in Public Works based on your 2025 projected
population. The additions recommended here bring utility staffing to 12. It should be able to be
slightly smaller as Lake Elmo’s systems will be new relative to other suburbs.
4. Other operational expense adjustments were made as follows:
a) $25,000 in meters was added for 2017 and 2018 to replace old water meters that should be
replaced. The balance of water meter costs is for meters for new buildings and other
maintenance replacements.
b) Water purchased from Oakdale is discontinued from the projections as Lake Elmo will end the
purchase in 2017.
c) Software support was increased across the three utilities to implement a new billing system
shown in the capital projects.
d) Insurance costs were increased for the three utilities as they expand. This insurance would be
purchased from the League of Cities.
e) The Metropolitan Council Wastewater Treatment expenses are based on projected flows. The
numbers were shifted two years because MCES uses actual flows from the last complete year to
project their next year’s bill. Therefore the 2017 charges are based on the 2015 flows.
The new operating cost projections for the next 10 year period should be a reasonable estimate of costs.
Each year after the annual accounting is complete, the costs should be compared to the projection and the
next budget cycle adjusted accordingly to align with actual costs.
City of Lake Elmo
Budget 2016
2013 2014 2015 Projected 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026
Account Number Description Actual Actual Budget Actual Budget Projected Projected Projected Projected Projected Projected Projected Projected Projected Projected
Inflation 2%2%2%2%2%2%2%2%2%
Growth Percent 5%5%5%5%5%5%5%5%5%
WATER Total Increase (percent)7%7%7%7%7%7%7%7%7%
Operating Revenues
601-000-0000-36100 Special Assessments $34,403 $116,409 $158,547 $163,405 $158,547
601-000-0000-36205 Refunds and Reimbursements $0 $0 $0 $0 $0
601-000-0000-37100 Water Sales $536,438 $383,268 $503,018 $442,428 $725,000
601-000-0000-37120 Bulk Water $2,843 $2,834 $2,000 $1,241 $2,500
601-000-0000-37170 Meter Sales $10,634 $10,150 $15,000 $55,435 $32,000
Total Operating Revenues $584,317 $512,661 $678,565 $662,509 $918,047
Operating Expenses
Personnel Services
601-494-9400-41010 Full-time Salaries $78,073 $78,893 $140,000 $91,718 $140,000 $144,184 $156,640 $168,686 $172,060 $175,501 $198,832 $202,809 $206,865 $232,037 $236,677
601-494-9400-41210 PERA Contributions $5,609 $5,686 $10,000 $6,707 $10,500 $10,814 $11,748 $12,651 $12,905 $13,163 $14,912 $15,211 $15,515 $17,403 $17,751
601-494-9400-41220 FICA Contributions $4,619 $4,757 $8,000 $5,498 $8,750 $9,012 $9,790 $10,543 $10,754 $10,969 $12,427 $12,676 $12,929 $14,502 $14,792
601-494-9400-41230 Medicare Contributions $1,080 $1,114 $1,600 $1,286 $2,030 $2,091 $2,271 $2,446 $2,495 $2,545 $2,883 $2,941 $3,000 $3,365 $3,432
601-494-9400-41300 Health\Dental Insurance $15,241 $17,836 $14,400 $15,653 $17,609 $28,837 $31,328 $33,737 $34,412 $35,100 $39,766 $40,562 $41,373 $46,407 $47,335
601-494-9400-41420 Unemployment Benefits $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
601-494-9400-41510 Workers Compensation $1,067 $3,155 $4,000 $2,072 $4,000 $5,767 $6,266 $6,747 $6,882 $7,020 $7,953 $8,112 $8,275 $9,281 $9,467
Total Personnel Services $105,689 $111,440 $178,000 $122,933 $182,889 $200,704 $218,042 $234,812 $239,508 $244,298 $276,775 $282,310 $287,956 $322,995 $329,455
Supplies
601-494-9400-42000 Office Supplies $691 $360 $500 $1,933 $500 $700 $749 $801 $858 $918 $982 $1,051 $1,124 $1,203 $1,287
601-494-9400-42030 Printed Forms $0 $375 $1,000 $239 $750 $750 $803 $859 $919 $983 $1,052 $1,126 $1,204 $1,289 $1,379
601-494-9400-42160 Chemicals $13,932 $10,713 $13,000 $1,473 $13,000 $13,000 $13,910 $14,884 $15,926 $17,040 $18,233 $19,509 $20,875 $22,336 $23,900
601-494-9400-42270 Utility System Maintenance $1,088 $5,282 $3,500 $25,257 $11,500 $25,000 $26,750 $28,623 $30,626 $32,770 $35,064 $37,518 $40,145 $42,955 $45,961
601-494-9400-42300 Water Meters & Supplies $18,716 $21,242 $50,000 $82,343 $50,000 $85,000 $90,950 $68,694 $73,503 $78,648 $84,153 $90,044 $96,347 $103,091 $110,308
601-494-9400-42400 Small Tools & Minor Equipment $5,893 $2,223 $5,500 $5,016 $3,500 $5,000 $5,350 $5,725 $6,125 $6,554 $7,013 $7,504 $8,029 $8,591 $9,192
Total Supplies $40,320 $40,195 $73,500 $116,263 $79,250 $129,450 $138,512 $119,585 $127,956 $136,913 $146,497 $156,751 $167,724 $179,465 $192,027
Other Services and Charges
601-494-9400-43030 Engineering Services $108,430 $29,614 $100,000 $14,725 $50,000 $20,000 $21,400 $22,898 $24,501 $26,216 $28,051 $30,015 $32,116 $34,364 $36,769
601-494-9400-43030 Eng Svcs-Water Syst Master Planning $0 $0 $30,000 $0 $30,000 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
601-494-9400-43040 Legal Services $4,662 $179 $5,000 $388 $5,000 $5,000 $5,350 $5,725 $6,125 $6,554 $7,013 $7,504 $8,029 $8,591 $9,192
601-494-9400-43150 Contract Services $884 $9,674 $10,000 $16,305 $13,500 $14,000 $14,980 $16,029 $17,151 $18,351 $19,636 $21,010 $22,481 $24,055 $25,738
601-494-9400-43180 Software Support $855 $17,541 $3,200 $4,774 $3,200 $9,600 $9,792 $9,988 $10,188 $10,391 $10,599 $10,811 $11,027 $11,248 $11,473
601-494-9400-43210 Telephone $550 $523 $600 $775 $600 $800 $856 $916 $980 $1,049 $1,122 $1,201 $1,285 $1,375 $1,471
601-494-9400-43220 Postage $2,500 $1,506 $3,000 $2,500 $3,000 $1,880 $2,012 $2,152 $2,303 $2,464 $2,637 $2,821 $3,019 $3,230 $3,456
601-494-9400-43320 Depreciation Expense $317,759 $416,864 $375,000 $318,805 $450,000 $0 $0 $0 $0 $0 $0 $0 $0 $0
601-494-9400-43610 Insurance $6,408 $5,432 $9,000 $6,799 $9,500 $10,000 $10,700 $11,449 $12,250 $13,108 $14,026 $15,007 $16,058 $17,182 $18,385
601-494-9400-43810 Electric Utility $27,063 $21,008 $27,000 $33,410 $27,000 $30,000 $32,100 $34,347 $36,751 $39,324 $42,077 $45,022 $48,173 $51,546 $55,154
601-494-9400-43820 Water Utility $94,457 $81,096 $100,000 $107,029 $40,000 $50,000
Repairs\Maint Imp Bldgs $0 $0 $12,000 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
601-494-9400-44030 Repairs\Maint Imp Not Bldgs $13,376 $29,791 $32,000 $7,116 $10,000 $10,000 $10,700 $11,449 $12,250 $13,108 $14,026 $15,007 $16,058 $17,182 $18,385
601-494-9400-44300 Miscellaneous $1,623 $1,245 $4,000 $188 $4,000 $2,000 $2,140 $2,290 $2,450 $2,622 $2,805 $3,001 $3,212 $3,436 $3,677
601-494-9400-44370 Conferences & Training $3,264 $1,468 $1,500 $460 $1,500 $1,500 $1,605 $1,717 $1,838 $1,966 $2,104 $2,251 $2,409 $2,577 $2,758
601-494-9400-46200 Fiscal Agent Fees $1,921 $445 $425 $694 $425 $800 $856 $916 $980 $1,049 $1,122 $1,201 $1,285 $1,375 $1,471
Total Other Services and Charges $583,752 $616,387 $712,725 $513,967 $647,725 $155,580 $112,491 $119,875 $127,767 $136,202 $145,216 $154,851 $165,150 $176,159 $187,928
Total Operating Expenses $729,761 $768,022 $964,225 $753,163 $909,864 $485,734 $469,045 $474,272 $495,231 $517,412 $568,487 $593,913 $620,831 $678,619 $709,410
Operating Income (Loss)($145,444)($255,361)($285,660)($90,654)$8,183
Nonoperating Revenues
601-000-0000-36210 Interest on Investments $2,586 $16,668 $7,000 $26,925 $18,000
601-000-0000-33419 Grants/MSA $0 $771,641 $0 $0 $0
601-000-0000-36231 Contrib. of Capital Assets $0 $0 $0 $0 $0
601-000-0000-36232 Developer Contributions $0 $0 $0 $0 $0
601-000-0000-37xxx Water Availability Charges $797,400 $1,029,000 $1,237,500 $775,000
601-000-0000-37150 Water Connections - Municipal $106,900 $50,500 $205,000 $66,000 $117,500
601-000-0000-37180 Tower Rent $46,506 $46,935 $46,000 $49,742 $46,000
601-000-0000-39210 Transfer In $0 $0 $0 $0 $0
Total Nonoperating Revenues $155,992 $1,683,144 $1,287,000 $1,380,166 $956,500
24 0 10 0
Nonoperating Expenses 17 132 130 140
30 0 5
0 0 2 0
601-494-9400-46110 Bond Interest $189,130 $306,888 $270,481 $368,465 $289,781
601-494-9400-46xxx Bonding Costs
601-494-9400-46300 Deferred Charges Amort.$0 $0 $0 $0 $0
Total Nonoperating Expenses $189,130 $306,888 $270,481 $368,465 $289,781
Change in Net Assets ($178,581)$1,120,895 $730,859 $921,047 $674,902
USE OF NET ASSETS TO BALANCE BUDGET $178,581 $0 $0 $0 $0
City of Lake Elmo
Budget 2016
2015
2013 2014 2015 Projected 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026
Account Number Description Actual Actual Budget Actual Budget Projected Projected Projected Projected Projected Projected Projected Projected Projected Projected
Inflation 2%2%2%2%2%2%2%2%2%
Growth Percent 30%30%30%30%30%30%30%30%30%
SEWER Total Increase (percent)32%32%32%32%32%32%32%32%32%
Operating Revenues
602-000-0000-36100 Special Assessments $0 $0 $1,000 $0 $1,000
602-000-0000-36100 Special Assessments-100% Proj $0 $155,481 $99,884 $99,000 $99,884
602-000-0000-37200 Sewer Sales $53,142 $46,547 $100,000 $61,920 $75,000
Total Operating Revenues $53,142 $202,028 $200,884 $160,920 $175,884
Operating Expenses
Personnel Services 2.3%
19%
602-495-9450-41010 Full-time Salaries $34,216 $33,585 $41,981 $37,638 $47,047 $65,606 $72,900 $83,272 $84,938 $86,636 $104,304 $106,390 $108,518 $127,599 $130,151
602-495-9450-41210 PERA Contributions $2,481 $2,472 $3,044 $2,689 $3,411 $4,756 $5,285 $6,037 $6,158 $6,281 $7,562 $7,713 $7,868 $9,251 $9,436
602-495-9450-41220 FICA Contributions $2,022 $2,034 $2,603 $2,254 $2,917 $4,068 $4,520 $5,163 $5,266 $5,371 $6,467 $6,596 $6,728 $7,911 $8,069
602-495-9450-41230 Medicare Contributions $473 $477 $609 $527 $682 $951 $1,057 $1,207 $1,232 $1,256 $1,512 $1,543 $1,574 $1,850 $1,887
602-495-9450-41300 Health/Dental Insurance $6,567 $6,984 $8,730 $6,138 $7,672 $13,121 $14,580 $16,654 $16,988 $17,327 $20,861 $21,278 $21,704 $25,520 $26,030
602-495-9450-41420 Unemployment Benefits $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
602-495-9450-41510 Workers Compensation $800 $1,484 $1,855 $1,392 $1,740 $2,624 $2,916 $3,331 $3,398 $3,465 $4,172 $4,256 $4,341 $5,104 $5,206
Total Personnel Services $46,558 $47,036 $58,821 $50,637 $63,469 $91,127 $101,258 $115,665 $117,978 $120,338 $144,878 $147,776 $150,731 $177,235 $180,780
Supplies
602-495-9450-42270 Utility System Maint Supplies $0 $858 $1,000 $1,910 $1,000 $1,000 $1,320 $1,742 $2,300 $3,036 $4,007 $5,290 $6,983 $9,217 $12,166
602-495-9450-42400 Small Tools & Minor Equipment $0 $117 $500 $200 $500 $500 $660 $871 $1,150 $1,518 $2,004 $2,645 $3,491 $4,609 $6,083
Total Supplies $0 $975 $1,500 $2,110 $1,500 $1,500 $1,980 $2,614 $3,450 $4,554 $6,011 $7,935 $10,474 $13,826 $18,250
Other Services and Charges
Engineering Services Inflation and
Growth 4%4%4%4%4%4%4%4%4%
602-495-9450-43030 Engineering Services $40,802 $17,408 $20,000 $14,291 $20,000 $20,000 $20,800 $21,632 $22,497 $23,397 $24,333 $25,306 $26,319 $27,371 $28,466
602-495-9450-43030 Eng Svs Sewer Syst Master Planning $0 $0 $10,000 $0 $10,000 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
602-495-9450-43150 Contract Services $15,344 $1,875 $9,500 $3,085 $9,500 $5,000 $6,600 $8,712 $11,500 $15,180 $20,037 $26,449 $34,913 $46,085 $60,832
602-495-9450-43210 Telephone $1,572 $1,184 $1,500 $992 $1,500 $1,500 $1,980 $2,614 $3,450 $4,554 $6,011 $7,935 $10,474 $13,826 $18,250
602-495-9450-43310 Mileage $0 $0 $100 $0 $100 $100 $132 $174 $230 $304 $401 $529 $698 $922 $1,217
Software Support $6,000 $6,120 $6,242 $6,367 $6,495 $6,624 $6,757 $6,892 $7,030 $7,171
Postage $1,175 $1,551 $2,047 $2,702 $3,567 $4,709 $6,216 $8,205 $10,830 $14,296
602-495-9450-43320 Depreciation Expense $8,740 $11,815 $84,200 $8,740 $84,200 $0 $0 $0 $0 $0 $0 $0 $0 $0
602-495-9450-43610 Insurance $115 $120 $2,000 $185 $2,000 $2,000 $2,640 $3,485 $4,600 $6,072 $8,015 $10,580 $13,965 $18,434 $24,333
602-495-9450-43810 Electric Utility $1,088 $3,343 $1,500 $4,621 $1,500 $5,000 $6,600 $8,712 $11,500 $15,180 $20,037 $26,449 $34,913 $46,085 $60,832
602-495-9450-43820 Sewer Utility - Met Council $14,912 $18,546 $16,500 $17,592 $16,500 $44,514 $71,172 $97,830 $163,565 $228,532 $292,960 $353,912 $416,347 $481,025 $543,076
602-495-9450-44030 Repairs\Maint Imp Not Bldgs $13,018 $837 $1,000 $1,131 $1,000 $1,200 $1,584 $2,091 $2,760 $3,643 $4,809 $6,348 $8,379 $11,060 $14,600
602-495-9450-44300 Miscellaneous Expenses $0 $0 $300 $0 $300 $300 $396 $523 $690 $911 $1,202 $1,587 $2,095 $2,765 $3,650
602-495-9450-44370 Conferences & Training $0 $572 $1,500 $23 $1,500 $1,500 $1,980 $2,614 $3,450 $4,554 $6,011 $7,935 $10,474 $13,826 $18,250
Total Other Services and Charges $95,590 $55,700 $148,100 $50,660 $148,100 $88,289 $121,555 $156,675 $233,312 $312,387 $395,150 $480,003 $573,674 $679,259 $794,972
Total Operating Expenses $142,148 $103,711 $208,421 $103,407 $213,069 $180,916 $224,793 $274,954 $354,740 $437,279 $546,040 $635,713 $734,879 $870,320 $994,002
Operating Income (Loss)($89,006)$98,317 ($7,537)$57,513 ($37,185)
Nonoperating Revenues
602-000-0000-36210 Interest on Investments $9,395 $1,430 $100 $9,929 $5,000
Lateral Benefit Fees $2,900 $29,000 $2,900 $14,500
Sewer Availability Fees $693,000 $1,206,000 $1,394,920 $590,000
602-000-0000-37260 Connection Fees Municipal $0 $17,000 $180,000 $63,000 $140,000
Total Nonoperating Revenues $9,395 $714,330 $1,415,100 $1,470,749 $749,500
24 0 10 0
Nonoperating Expenses 17 132 130 140
30 0 5
0 0 2 0
602-495-9450-46110 Bond Interest $0 $116,403 $135,372 $134,613 $105,469
Total Nonoperating Expenses $0 $116,403 $135,372 $134,613 $105,469
Change in Net Assets ($79,611)$696,244 $1,272,191 $1,393,649 $606,846
USE OF NET ASSETS TO BALANCE BUDGET $79,611 $0 $0 $0 $0
City of Lake Elmo
Budget 2016
2015 2015
2013 2014 2015 Projected 2016 to 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026
Account Number Description Actual Actual Budget Actual Budget Change Projected Projected Projected Projected Projected Projected Projected Projected Projected Projected
Inflation 2%2%2%2%2%2%2%2%2%
Growth Percent 7%7%7%7%7%7%7%7%7%
SURFACE WATER Total Increase (percent)9%9%9%9%9%9%9%9%9%
Operating Revenues
603-000-0000-36100 Special Assessment Revenue $20,168 $837 $5,000 $0 $5,000 100.0%Actively bill all delinquencies each year
603-000-0000-36200 Miscellaneous Revenue $0 $0 $0 $10,125 $0 0.0%SW permit review fee (new 1/1/15)
603-000-0000-37100 Surface Water Utility Sales $191,087 $214,915 $215,000 $220,956 $221,500 0.2%
Total Operating Revenues $211,255 $215,752 $220,000 $231,081 $226,500 2.0%
Operating Expenses
Personnel Services
603-496-9500-41010 Full-time Salaries $34,681 $31,708 $34,879 $23,522 $25,874 -10.0%$36,630 $45,738 $51,109 $52,132 $53,174 $68,034 $69,394 $70,782 $86,837 $88,574
603-496-9500-41210 PERA Contributions $2,514 $2,290 $2,519 $1,697 $1,867 -10.0%$2,656 $3,316 $3,705 $3,780 $3,855 $4,932 $5,031 $5,132 $6,296 $6,422
603-496-9500-41220 FICA Contributions $2,028 $1,857 $2,042 $1,378 $1,515 -10.0%$2,271 $2,836 $3,169 $3,232 $3,297 $4,218 $4,302 $4,388 $5,384 $5,492
603-496-9500-41230 Medicare Contributions $474 $436 $479 $322 $355 -10.0%$531 $663 $741 $756 $771 $986 $1,006 $1,026 $1,259 $1,284
603-496-9500-41300 Health/Dental Insurance $6,942 $7,641 $8,405 $7,165 $7,882 -10.0%$7,326 $9,148 $10,222 $10,426 $10,635 $13,607 $13,879 $14,156 $17,367 $17,715
603-496-9500-41420 Unemployment Benefits $0 $0 $0 $0 $0 0.0%$0 $1 $2 $3 $4 $5 $6 $7 $8 $9
603-496-9500-41510 Workers' Compensation $848 $1,312 $1,443 $221 $243 -10.0%$1,465 $1,830 $2,044 $2,085 $2,127 $2,721 $2,776 $2,831 $3,473 $3,543
Total Personnel Services $47,486 $45,243 $49,767 $34,304 $37,735 -10.0%$50,879 $63,531 $70,993 $72,414 $73,863 $94,504 $96,395 $98,323 $120,624 $123,038
Supplies
603-496-9500-42000 Office Supplies $238 $375 $200 $2,172 $375 82.7%$500 $545 $594 $648 $706 $769 $839 $914 $996 $1,086 Utility Bill paper; 2015 = new folder/stuffer (1x cost)
603-496-9500-42270 Utility System Maint Supplies $0 $411 $500 $551 $500 9.3%$1,000 $1,090 $1,188 $1,295 $1,412 $1,539 $1,677 $1,828 $1,993 $2,172
603-496-9500-42400 Small Tools & Minor Equipment $452 $299 $1,000 $200 $1,000 -400.0%$1,000 $1,090 $1,188 $1,295 $1,412 $1,539 $1,677 $1,828 $1,993 $2,172
603-496-9500-42400 Other Equipment $0 $8,422 $0 $0 $0 0.0%$0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Total Supplies $690 $9,507 $1,700 $2,924 $1,875 35.9%$2,500 $2,725 $2,970 $3,238 $3,529 $3,847 $4,193 $4,570 $4,981 $5,430
Other Services and Charges
603-496-9500-43020 Comprehensive Planning $0 $0 $3,000 $0 $3,000 100.0%$0 $0 $0 $0 $0 $0 $0 $0 $0 $0
603-496-9500-43030 Engineering Services $27,893 $21,009 $30,000 $20,332 $30,000 -47.5%$20,000 $21,800 $23,762 $25,901 $28,232 $30,772 $33,542 $36,561 $39,851 $43,438
603-496-9500-43030 Eng Svcs SW Master Planning $0 $0 $15,000 $0 $15,000 100.0%$0 $0 $0 $0 $0 $0 $0 $0 $0 $0
SW System Master Planning to be done by Focus
Eng
603-496-9500-43150 Contract Services $7,504 $9,711 $5,000 $9,941 $7,500 24.6%$10,000 $10,900 $11,881 $12,950 $14,116 $15,386 $16,771 $18,280 $19,926 $21,719 Due to use of contractor for Billing
603-496-9500-43180 Software Support $442 $3,268 $1,000 $3,617 $1,500 58.5%$8,400 $8,568 $8,739 $8,914 $9,092 $9,274 $9,460 $9,649 $9,842 $10,039
603-496-9500-43220 Postage $1,973 $1,700 $1,700 $1,500 $1,700 -13.3%$1,645 $1,793 $1,954 $2,130 $2,322 $2,531 $2,759 $3,007 $3,278 $3,573
Annual bills plus delinquency mailer cost (required to
assess)
603-496-9500-43320 Depreciation Expense $15,187 $15,963 $17,000 $15,187 $17,000 -11.9%$0 $0 $0 $0 $0 $0 $0 $0 $0
Insurance $1,500 $1,635 $1,782 $1,943 $2,117 $2,308 $2,516 $2,742 $2,989 $3,258
603-496-9500-44010 Street Sweeping $11,498 $12,403 $22,000 $10,438 $22,000 -110.8%$20,000 $21,800 $23,762 $25,901 $28,232 $30,772 $33,542 $36,561 $39,851 $43,438 Street sweeping soon to be mandated…
603-496-9500-44030 Repairs/Maint Not Bldg $0 $5,304 $1,500 $0 $1,500 100.0%$3,000 $3,270 $3,564 $3,885 $4,235 $4,616 $5,031 $5,484 $5,978 $6,516 Excavator rental
603-496-9500-44300 Miscellaneous Expenses $119 $459 $400 $0 $400 100.0%$400 $436 $475 $518 $565 $615 $671 $731 $797 $869
603-496-9500-44370 Conferences & Training $3,483 $2,225 $1,800 $2,265 $1,800 20.5%$2,500 $2,725 $2,970 $3,238 $3,529 $3,847 $4,193 $4,570 $4,981 $5,430
603-496-9500-45300 Improvements Other Than Bldgs $0 $18,190 $30,000 $0 $30,000 100.0%$20,000 $21,800 $23,762 $25,901 $28,232 $30,772 $33,542 $36,561 $39,851 $43,438
603-496-9500-45500 Vehicles $0 $5,743 $0 $0 $0 0.0%$0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Total Other Services and Charges $68,100 $95,974 $128,400 $63,281 $131,400 -107.6%$87,445 $94,727 $102,653 $111,280 $120,671 $130,895 $142,026 $154,146 $167,344 $181,716
Operating Expenses $116,275 $150,723 $179,867 $100,509 $171,010 -70.1%$140,824 $160,983 $176,616 $186,931 $198,063 $229,245 $242,614 $257,040 $292,950 $310,184
Operating Income (Loss)$94,980 $65,029 $40,133 $130,572 $55,490 57.5%
Nonoperating Revenues
603-000-0000-36205 Refunds and Reimbursements $0 $0 $0 $0 $0 0.0%
603-000-0000-36210 Interest on Investment $1,098 $1,239 $1,100 $2,844 $5,000 0.0%
603-000-0000-36231 Contrib. of Capital Assets $0 $0 $0 $0 $0 0.0%
603-000-0000-36232 Developer Contributions $0 $0 $0 $0 $0 0.0%
Total Nonoperating Revenues $1,098 $1,239 $1,100 $2,844 $5,000 0.0%
Change in Net Assets $96,078 $66,268 $41,233 $133,417 $60,490 54.7%