08-01-1994 WS - Laserfiche WebLink

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Wastewater Utility_ Total Wastewater User Fees are based upon a three year average of the number of Residential Equivalent Connections(RECs) of 5,784 times the fee per REC. There was not a rate increase in 1994. Staff proposes an increase of 2.3% for 1995. This is an increase from $43 to $44 per REC. At that rate user fees of $1,017,984 are projected for 1995. Interest income of $19,732 is based on the monthly average cash balance of the fund and assumes a rate of return of 3.25%. A transfer of $31,193 from the Vehicle & Equipment Fund will help offset the purchase of the backhoe scheduled for replacement in 1995. Other revenues include billings for the discharge from a well on Long Lake Road by Williams Pipeline Company and the City's share of SAC charges. Total revenues of $1,116,826 are projected for the Wastewater Utility in 1995. Expenditures of the Wastewater Utility have been placed into three program budgets. Administration consists of utility billing activities and supervision of Wastewater operations. Utility equipment maintenance provides for the repair and maintenance of wastewater utilities, heavy equipment, and vehicles. Underground Inspection provides for the cleaning and inspection(by televising) of the City's wastewater system. Personnel services in Administration have increased substantially. This is the result of budgeting the Division secretary's salary in Administration when it had formerly been budgeted in Operations. At this time estimates of 1995 wastewater treatment costs by the MWCC are not yet available. As a result last year's costs have been budgeted and will be revised when estimates are received. Contingency of $15,000 has been budgeted for the Wastewater Utility. Past practice has been to transfer, at year end, any unused contingency to a Designation of Retained Earnings for Main Breaks. The Designated amount would be available in the event of a large and/or costly Wastewater main break. Total Expenses of the Wastewater Utility are estimated to be $1,114,750 in 1995. A projected net income of $2,076 is estimated for 1995. Golf Course The Golf Course is scheduled to open in July 1995. A projected income statement has been prepared and shows a projected net income of $0. This is based upon operations being subsidized by franchise fees, which will cover the Superintendent's salary, and a loan from the Water Fund. All of the above is per projections of Effective Golf Course Systems. In addition use of bond proceeds for capital equipment and maturation expenses have been projected for 1995. Golf Course expenses have been placed in three programs: Golf Course Operations, Club House Operations, and Practice Range Operations. These programs are described in detail in the attached program narratives. Staff will be present at the August 1 Work Session to discuss these