Agenda Packets - 2011/05/23 - Laserfiche WebLink

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Vehicle and Equipment Replacement Plan The schedule has been updated to reflect retirements and new acquisitions. The current amounts transferred to the Vehicle and Equipment Fund from the participating funds is sufficient to maintain replacement levels except for the General Fund. The General Fund amount was reduced to balance the budget in 2010 and 2011 but is systematically increased starting in 2013. Impact on Capital Projects Funds’ Cash Balances: This presents the sources and uses and impacts to cash for the Capital Improvement Program on the four capital projects funds for the five year period of this report, 2012 thru 2016. Utility Rate Studies Utility rate studies are included and there are mixed results. The storm water and street light rates can be maintained at the current level. Future rate increases will depend on the cost of electricity, additional lights, and future storm water projects that have been greatly reduced as a result of the use of infiltration basins. The water and sewer rates should be considered for an increase in 2012. The water rate is proposed to increase by a dime in 2012, which will add about $8 a year to the average bill based on 20,000 gallons per quarter. The sewer rate is proposed to be increased by 4% in 2012, which will add $10 a year to the average residential bill. Future increases will need to be considered until both funds stabilize. The need for an increase is generated by significant capital expenses during 2011 for the water fund (water tower maintenance and facility maintenance) and significant increases in disposal charges by Metropolitan Council Environmental Services. Five Year Financial Plan Adoption: The Five Year Plan is a blueprint for future years and is only one possible scenario. It is intended to be changed as priorities change and more current information becomes available. Staff welcomes Council comments and direction on any desired changes. Respectfully Submitted, Mark Beer