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HomeMy WebLinkAbout#02 - Utility BudgetsSTAFF REPORT DATE: November 14, 2017 AGENDA ITEM: 2018 Utility Budgets TO: Mayor and Council SUBMITTED BY: Kristina Handt, City Administrator BACKGROUND: The Finance Committee has been working on developing the 2018 utility (water, sewer, storm water) budgets for the last few months. Council reviewed them briefly during a joint meeting in August. The Finance Committee finalized their recommendations for the utility budgets at their October meeting. ISSUE BEFORE COUNCIL: Does Council have any questions about the proposed budgets? What changes would Council like to make to the budget before final adoption? PROPOSAL DETAILS/ANALYSIS: A copy of the budget are included in your packet. The revenues for the funds are based off of the Utility Financial Management Plan presented by Northland last month. These assumptions are based upon the increased rates recommended in the report as well. Water Expenses: • Water Meter and Supplies: includes the purchase of 250 meters to continue the meter change out program to address old and failing meters • Small Tools & Equipment: includes $3k for a generator for water tower #3 • Legal Services: increase due to reassignment of 3M litigation costs • Contract Services: contract for updating well head protection program as required by the state and contract for finance director services • Software Support: new finance software upgrades approved last month by Council as well as ongoing IT costs • Water Utility: expect to be off Oakdale water by January so no costs proposed for this line item • Capital Outlay: utility vehicle replacement and watermain oversizing costs • Depreciation: removed since CIP costs account for it Sewer Expenses: • Small Tools & Equipment: reduced from last draft to remove all but necessary equipment for confined space maintenance tasks • Contract Services: finance director contract • Software Support: new finance software upgrades approved last month by Council as well as ongoing IT costs • Sewer Utility-Met Council: this is the cities operations charge. Increase is due to increase in customer volume • Capital Outlay: utility vehicle replacement (1/2 in water) and sewer main oversizing costs • Depreciation: removed since CIP costs account for it Storm Water Expenses: • Contract Services: finance director contract • Software Support: new finance software upgrades approved last month by Council as well as ongoing IT costs • Street Sweeping: 2nd street sweeping added • Capital Outlay: surface water plan required with Comp Plan update • Depreciation: removed since CIP costs account for it OPTIONS: Discuss draft budgets and provide direction to staff before bringing to a regular Council meeting for adoption. ATTACHMENT: • Draft 2018 Water, Sewer and Storm Water Budgets CITY OF LAKE ELMO 2018 PROPOSED BUDGET Utility Funds - Water, Sewer and Storm - November 14, 2017 1 Adopted 2017 to 2015 2016 2017 2017 2017 2018 Proposed 2018 Account Number Description Actual Actual Adopted YTD - Sept. 30 Projected Proposed Percent Change Comments 601 Water Fund Water Fund Revenues: 601-000-0000-33422 PERA Pension Revenue - 525 - - - - #DIV/0! 601-000-0000-33426 Miscellaneous State Grants - 3,433,298 - - - - #DIV/0! 601-000-0000-36100 Special Assessments - 11,334 16,950 9,320 16,950 111,077 555.32%Per Northland schedule - 10-3-17 601-000-0000-36205 Refunds and Reimbursements - - - 62 62 - #DIV/0! 601-000-0000-36210 Interest on Investments 26,985 13,987 20,000 - 20,000 20,000 0.00%$2M at 1% 601-000-0000-37100 Water Sales 440,322 275,019 543,689 360,314 489,139 597,769 9.95%Per Northland schedule - 10-3-17 601-000-0000-37120 Bulk Water 1,241 5,423 2,000 448 2,000 2,000 0.00% 601-000-0000-37140 Water Access Revenue 66,000 979,500 1,509,000 1,231,400 1,509,000 960,000 -36.38%Per Northland schedule - 10-3-17 601-000-0000-37150 Water Connections - Municipal 1,237,500 244,500 369,000 338,147 369,000 320,000 -13.28%Per Northland schedule - 10-3-17 601-000-0000-37170 Meter Sales 55,435 244,260 68,000 90,867 100,000 87,500 28.68%250 unit at $350. 601-000-0000-37180 Tower Rent 49,742 52,526 - - - - #DIV/0!Moved to G.F for 2017 601-000-0000-39210 Transfer In - (59,872) - - - - #DIV/0! Total Water Fund Revenues:1,877,225$ 5,200,500$ 2,528,639$ 2,030,558$ 2,506,151$ 2,098,346$ -17.02% Water Fund Expenses: Personnel 601-494-9400-41010 Full-time Salaries 92,578 127,902 144,184 88,793 92,426 105,194 -27.04%On call pay of $1667 in Proj. '17 and $4K in '18 Safety Clothing Allowance - - - - 193 193 #DIV/0!Boots 601-494-9400-41210 PERA Contributions 8,615 15,792 10,814 6,652 6,807 7,590 -29.81% 601-494-9400-41220 FICA Contributions 5,498 7,346 9,012 5,322 5,706 6,497 -27.91% 601-494-9400-41230 Medicare Contributions 1,286 1,718 2,091 1,245 1,340 1,525 -27.07% 601-494-9400-41300 Insurance 18,199 29,467 28,837 14,429 19,894 23,170 -19.65% 601-494-9400-41301 Unemployment Insurance - - - - 1,093 683 #DIV/0!16 weeks in 2017 and 10 weeks in 2018 at 10% 601-494-9400-41510 Workers Compensation 2,472 1,904 5,767 3,980 5,526 5,884 2.03% Total Personnel 128,647$ 184,130$ 200,705$ 120,421$ 132,985$ 150,736$ -24.90% Materials and Supplies 601-494-9400-42000 Office Supplies 1,933 771 700 579 700 800 14.29% 601-494-9400-42030 Printed Forms 239 499 750 247 550 750 0.00% 601-494-9400-42150 Operating Supplies - - - - - 1,000 #DIV/0! 601-494-9400-42160 Chemicals 1,473 3,157 13,000 3,587 10,000 13,000 0.00% 601-494-9400-42210 Repair/Maint. Supplies 25,257 25,014 25,000 2,080 20,000 26,000 4.00%Water meters 601-494-9400-42300 Water Meters & Supplies 82,343 105,477 85,000 117,435 125,000 132,000 55.29%Replace 200 meters but order 250. 601-494-9400-44375 Personal Protective Equipment - - - - - 800 #DIV/0! 601-494-9400-42400 Small Tools & Minor Equipment 5,016 3,955 5,000 1,908 3,500 8,300 66.00%$3K -Gen. WT #3. Total Materials and Supplies 116,263$ 138,874$ 129,450$ 125,836$ 159,750$ 182,650$ 41.10% Charges and Services 601-494-9400-43030 Engineering Services 14,725 - 20,000 14,909 20,000 20,000 0.00% 601-494-9400-43040 Legal Services 388 2,323 5,000 93,738 125,000 155,000 3000.00%3M litigation moved from General Fund. 601-494-9400-43150 Contract Services 16,305 7,459 14,000 20,622 40,000 47,400 238.57%Wellhead protection and Acctg. 10% 601-494-9400-43180 Software Support 4,774 5,556 9,600 10,088 16,479 37,133 286.81%New fin. soft $40K alloc.to 3 Funds. IT costs 601-494-9400-43210 Telephone 775 793 800 504 800 800 0.00% 601-494-9400-43220 Postage 2,500 1,800 1,880 (1,322) 750 2,000 6.38% 601-494-9400-43310 Mileage - 189 - - - - #DIV/0! 601-494-9400-43610 Insurance 6,799 8,975 10,000 9,322 10,000 12,000 20.00% 601-494-9400-43810 Electric Utility 33,410 34,392 30,000 35,523 45,000 45,000 50.00% 601-494-9400-43820 Water Utility 107,029 144,932 - 177,093 210,000 - #DIV/0!Agreement ends w/ City of Oakdale 601-494-9400-44030 Repairs\Maint Imp Not Bldgs 7,116 8,617 10,000 4,735 8,000 20,000 100.00%$10K Wash tower #2 Repairs/Maint. Equip.- - - - - 8,000 #DIV/0!$2.5K generator maint. Repairs\Maint Imp Bldgs - - - - - 2,000 #DIV/0!replace locks Equipment Rental - - - - - 1,000 #DIV/0! 601-494-9400-44370 Conferences & Training 460 103 1,500 1,118 1,500 2,000 33.33% Total Charges and Services 194,281$ 215,140$ 102,780$ 366,330$ 477,529$ 352,333$ 242.80% Capital Outlay 601-494-9400-45300 Improvments Other Than Bldgs 42 - - 22,430 22,430 137,500 #DIV/0!Util Veh $32.5K, WM Over $105K Total Capital Outlay 42$ -$ -$ 22,430$ 22,430$ 137,500$ #DIV/0! Miscellaneous and Non-operating 601-494-9400-43320 Depreciation Expense 557,626 612,353 598,971 - - - -100.00%Removed as Cap. Imp. Plan costs account for it. CITY OF LAKE ELMO 2018 PROPOSED BUDGET Utility Funds - Water, Sewer and Storm - November 14, 2017 2 Adopted 2017 to 2015 2016 2017 2017 2017 2018 Proposed 2018 Account Number Description Actual Actual Adopted YTD - Sept. 30 Projected Proposed Percent Change Comments 601-494-9400-44300 Miscellaneous 188 3,178 2,000 2,423 2,600 2,000 0.00% 601-494-9400-46010 Bond Principal 0 - - 279,663 485,000 710,000 #DIV/0!Per Northland schedule - 10-3-17 601-494-9400-46110 Bond Interest 351,742 241,142 273,321 235,319 273,321 300,775 10.04%Per Northland schedule - 10-3-17 601-494-9400-46200 Fiscal Agent Fees - Bond Payments 1,189 16,014 800 180 800 856 7.00%Per Northland schedule - 10-3-17 601-494-9400-46250 Fiscal Agent Fees - Bond Issuance (11,720) - 53,811 - - - -100.00% 601-494-9400-47200 Transfer Out - 40,427 - - - - #DIV/0! Total Misc. and Non-operating 899,025$ 913,113$ 928,903$ 517,584$ 761,721$ 1,013,631$ 9.12% Total Water Fund Expenses:1,338,258$ 1,451,257$ 1,361,838$ 1,152,601$ 1,554,415$ 1,836,850$ 34.88% Total Water Fund Revs. Over/(Under) Expenses:538,967$ 3,749,243$ 1,166,801$ 877,957$ 951,736$ 261,496$ -77.59% 602 Sewer Fund Sewer Fund Revenues: 602-000-0000-36100 Special Assessments - 21,073 62,133 33,535 62,133 77,874 25.33%Per Northland schedule - 10-3-17 602-000-0000-36210 Interest on Investments 9,929 14,584 12,699 - 15,000 20,000 57.49%$2M at 1% 602-000-0000-37200 Sewer Sales 61,920 120,974 177,228 96,416 177,228 247,599 39.71%Per Northland schedule - 10-3-17 602-000-0000-37220 SAC Early Pay discount/revenue 3,227 8,474 - 5,168 5,800 5,800 #DIV/0!Based on averages 602-000-0000-37240 Sewer Connecton Fee Revenue 63,000 803,000 1,462,000 1,267,620 1,462,000 908,700 -37.85%Per Northland schedule - 10-3-17 602-000-0000-37250 Sewer Connection Fees Regional - - - - - - #DIV/0!Pass-through of approx $21K 602-000-0000-37260 Sewer Connection Fees Municipal 1,394,920 383,500 466,500 388,480 466,500 345,500 -25.94%Per Northland schedule - 10-3-17 Total Sewer Fund Revenues:1,532,996$ 1,351,605$ 2,180,560$ 1,791,219$ 2,188,661$ 1,605,473$ -26.37% Sewer Fund Expenses: Personnel 602-495-9450-41010 Full-time Salaries 37,161 39,678 65,606 21,398 59,670 66,250 0.98%On call pay of $1667 in Proj. '17 and $4K in '18 Safety Clothing Allowance - - - - 123 123 #DIV/0!Boots 602-495-9450-41210 PERA Contributions 3,453 4,270 4,920 1,600 4,350 4,669 -5.10% 602-495-9450-41220 FICA Contributions 2,254 1,987 4,068 1,282 3,652 4,058 -0.25% 602-495-9450-41230 Medicare Contributions 527 464 951 300 865 961 1.05% 602-495-9450-41300 Insurance 6,217 8,352 13,121 5,342 10,345 11,263 -14.16% Unemployment Insurance - - - - 546 342 #DIV/0!16 weeks in 2017 and 10 weeks in 2018 at 5% 602-495-9450-41510 Workers Compensation 1,663 989 2,625 2,004 3,032 3,274 24.72% Total Personnel 51,274$ 55,739$ 91,291$ 31,926$ 82,583$ 90,940$ -0.39% Materials and Supplies 602-495-9450-42270 Repair/Maint. Supplies 1,910 5,873 1,000 1,214 1,200 4,000 300.00% Office Supplies - - - - - 800 #DIV/0! Operating Suppies - - - - - 1,000 #DIV/0! Personal Protective Equipment - - - - - 800 #DIV/0! 602-495-9450-42400 Small Tools & Minor Equipment (984) 2,860 500 2,344 2,800 5,500 1000.00% Total Materials and Supplies 926$ 8,732$ 1,500$ 3,558$ 4,000$ 12,100$ 706.67% Charges and Services 602-495-9450-43030 Engineering Services 14,511 - 20,000 4,429 8,000 20,000 0.00% 602-495-9450-43150 Contract Services 3,085 8,059 5,000 32,200 37,000 21,400 328.00%Acctg Contract - 10% 602-495-9450-43180 Software Support 4,071 4,591 6,000 10,088 18,479 33,533 458.89%New fin. soft $40K alloc.to 3 Funds. IT costs 602-495-9450-43210 Telephone 992 1,008 1,500 828 1,000 1,500 0.00% 602-495-9450-43220 Postage - - 1,175 - 1,175 0.00% 602-495-9450-43310 Mileage - - 100 - - -100.00% 602-495-9450-43610 Insurance 185 581 2,000 603 1,000 2,000 0.00% 602-495-9450-43810 Electric Utility 4,621 5,125 5,000 3,985 5,000 5,500 10.00% 602-495-9450-43820 Sewer Utility - Met Council 17,592 16,621 44,514 34,814 44,514 92,140 106.99% Repairs/Maint. Equip.- - - - - 4,500 #DIV/0!$2.5K generator maint Equipment Rental - - - - - 1,000 #DIV/0! 602-495-9450-44030 Repairs\Maint Imp Not Bldgs 1,131 1,391 1,200 31,835 33,000 1,200 0.00% 602-495-9450-44370 Conferences & Training 23 80 1,500 3,285 3,600 2,000 33.33% Total Charges and Services 46,212$ 37,456$ 87,989$ 122,068$ 151,593$ 185,948$ 111.33% Capital Outlay602-495-9450-45300 Improvements Other Than Bldgs - - - - 1,289,000 85,000 #DIV/0!Util Veh - $32.5K, Sewer Oversizing - $52.5K Total Capital Outlay -$ -$ -$ -$ 1,289,000$ 85,000$ #DIV/0! CITY OF LAKE ELMO 2018 PROPOSED BUDGET Utility Funds - Water, Sewer and Storm - November 14, 2017 3 Adopted 2017 to 2015 2016 2017 2017 2017 2018 Proposed 2018 Account Number Description Actual Actual Adopted YTD - Sept. 30 Projected Proposed Percent Change Comments Miscellaneous and Non-operating 602-495-9450-43320 Depreciation Expense 42,224 132,265 86,561 - - - -100.00%Removed as Cap. Imp. Plan costs account for it. 602-495-9450-44300 Miscellaneous Expenses - 26,036 300 310 310 300 0.00% 602-495-9450-46010 Bond Principal 0 - - 220,000 220,000 275,000 #DIV/0!Per Northland schedule - 10-3-17 602-495-9450-46110 Bond Interest 107,089 116,715 85,337 124,318 124,318 195,324 128.89%Per Northland schedule - 10-3-17 602-495-9450-46250 Fiscal Agent Fees (3,587) 3,707 42,313 - - - -100.00% 602-495-9450-47200 Transfer Out - 102,678 - - - - #DIV/0! Total Misc. and Non-operating 145,726$ 381,401$ 214,511$ 344,628$ 344,628$ 470,624$ 119.39% Total Sewer Fund Expenses:244,139$ 483,328$ 395,291$ 502,179$ 1,871,805$ 844,611$ 113.67% Total Sewer Fund Revs. Over/(Under) Expenses:1,288,857$ 868,277$ 1,785,269$ 1,289,039$ 316,856$ 760,862$ -57.38% 603 Storm Water Fund Storm Water Fund Revenues: 603-000-0000-36100 Special Assessments - - 5,000 - - - -100.00%Per Northland schedule - 10-3-17 603-000-0000-36210 Interest on Investment 2,844 15,933 2,603 - 14,000 7,000 168.92%$700K at 1% 603-000-0000-37100 Surface Water Utility Sales 219,127 185,858 282,360 185,598 282,360 283,587 0.43%Per Northland schedule - 10-3-17 603-000-0000-37140 SW Review Fee Revenue - 27,375 29,375 29,350 35,000 29,375 0.00% Total Storm Water Fund Revenues:221,971$ 229,166$ 319,338$ 214,948$ 331,360$ 319,962$ 0.20% Storm Water Fund Expenses: Personnel 603-496-9500-41010 Full-time Salaries 23,599 20,591 36,630 10,174 31,384 34,273 -6.43% Safety Clothing Allowance - - - - 53 53 #DIV/0!Boots 603-496-9500-41210 PERA Contributions 2,179 2,408 2,747 756 2,354 2,570 -6.44% 603-496-9500-41220 FICA Contributions 1,378 1,129 2,271 602 1,922 2,099 -7.57% 603-496-9500-41230 Medicare Contributions 322 264 531 141 455 497 -6.40% 603-496-9500-41300 Insurance 8,209 5,856 7,326 5,165 6,887 6,794 -7.26% Unemployment Insurance - - - - 546 342 #DIV/0!16 weeks in 2017 and 10 weeks in 2018 at 5% 603-496-9500-41510 Workers' Compensation 221 - 1,465 1,150 1,290 1,361 -7.10% Total Personnel 35,908$ 30,247$ 50,970$ 17,988$ 44,891$ 47,989$ -5.85% Materials and Supplies 603-496-9500-42000 Office Supplies 1,933 499 500 247 500 800 60.00% 603-496-9500-42270 Repair/Maint. Maint Supplies 551 3,972 1,000 44 750 2,000 100.00% Operating Supplies - - - - - 1,000 #DIV/0! Personal Protective Equipment - - - - - 800 #DIV/0!603-496-9500-42400 Small Tools & Minor Equipment 200 - 1,000 329 1,000 3,500 250.00% Total Materials and Supplies 2,685$ 4,471$ 2,500$ 620$ 2,250$ 8,100$ 224.00% Charges and Services 603-496-9500-43030 Engineering Services 20,332 11,827 20,000 4,875 8,000 20,000 0.00% 603-496-9500-43150 Contract Services 9,941 2,400 10,000 7,270 20,000 17,200 72.00%Acctg Contract - 5% 603-496-9500-43180 Software Support 3,617 4,067 8,400 5,426 15,140 15,500 84.52%IT cost allocation too. 603-496-9500-43220 Postage 1,500 1,800 1,645 - 700 2,000 21.58% 603-496-9500-43610 Insurance - - 1,500 - 1,500 1,500 0.00% 603-496-9500-44010 Street Sweeping 10,438 10,318 20,000 14,842 18,000 25,000 25.00%Add a 2nd street sweeping. Repairs/Maint Equip - - - - - 1,000 #DIV/0! 603-496-9500-44030 Repairs/Maint Not Bldg - 1,368 3,000 - 2,000 3,000 0.00% Equipment Rental - - - - - 1,000 #DIV/0! 603-496-9500-44370 Conferences & Training 2,265 2,500 2,500 1,250 1,000 2,500 0.00% Total Charges and Services 48,094$ 34,280$ 67,045$ 33,662$ 66,340$ 88,700$ 32.30% Capital Outlay 603-496-9500-45300 Improvements Other Than Bldgs - - 20,000 - 20,000 40,000 100.00%Surface water plan. Total Capital Outlay -$ -$ 20,000$ -$ 20,000$ 40,000$ 100.00% Miscellaneous and Non-operating 603-496-9500-43320 Depreciation Expense 15,963 15,963 85,090 - -100.00%Removed as Cap. Imp. Plan costs account for it. 603-496-9500-44300 Miscellaneous Expenses - 20,577 400 677 1,000 2,000 400.00% 603-496-9500-46010 Bond Principal - - - - - 160,000 #DIV/0!Per Northland schedule - 10-3-17 603-496-9500-46110 Bond Interest - 44,765 62,171 62,171 62,171 58,294 -6.24%Per Northland schedule - 10-3-17 Total Misc. and Non-operating 15,963$ 81,305$ 147,661$ 62,848$ 63,171$ 220,294$ 49.19% CITY OF LAKE ELMO 2018 PROPOSED BUDGET Utility Funds - Water, Sewer and Storm - November 14, 2017 4 Adopted 2017 to 2015 2016 2017 2017 2017 2018 Proposed 2018 Account Number Description Actual Actual Adopted YTD - Sept. 30 Projected Proposed Percent Change Comments Total Storm Water Fund Expenses:102,649$ 150,303$ 288,176$ 115,119$ 196,652$ 405,082$ 40.57% Total Storm Water Fund Revs. Over/(Under) Expenses:119,322$ 78,863$ 31,162$ 99,829$ 134,708$ (85,120)$ -373.15%