10-06-2014 WS - Laserfiche WebLink

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Item No: 5 Meeting Date: October 6, 2014 Type of Business: Work Session Administrator Review: _____ City of Mounds View Staff Report To: Honorable Mayor and City Council From: Mark Beer, Finance Director Item Title/Subject: Other Funds Budgets for 2015 Attached are the budgets for the Other Funds (Special Revenue, Debt Service, Capital Projects, and Enterprise) for your consideration. The Council has had several opportunities to review the General Fund and will again in November or December. The Special Revenue, Debt Service, Capital Projects, and Enterprise funds have not been reviewed. Enterprise Funds The City continues to have low utility rates based on rate studies the City participates in and staff has shared with the City Council. Staff advocates a policy of nominal increases to maintain the infrastructure rather than larger increases with greater intervals between increases. The Water fund anticipates an increase in base user charges by a dime which will add about $8 per year for the average home. The increase is based on continuing maintenance costs that were deferred in past years and recent major infrastructure improvements. The five year plan projects the need for a fifteen cent base rate increase in 2016 and 2017 and a dime increase in the base rate for 2018 and 2019. The Sewer fund anticipates a 6% increase in user charges which will add $17 to a residential utility bill. Met Council Environmental Services (MCES) waste charges increased by .12% in 2015 but have significantly increased in the past along with deferred maintenance. Future increases of 6% for 2016 and 2017 and 4% for 2018 and 2019 will help stabilize the sewer fund. The Storm Water fund does not require an increase in 2015. The Storm Water fund does not anticipate a rate increase until 2018 and 2019. This will begin to fund the sediment removal from Silver View pond that will occur in 2026. The City will be exploring the possibility of slip lining some of the storm sewers to extend their lives in the coming years and that could impact future rates also. The Street Light Fund anticipates a $.25 per quarter increase in 2015 thru 2019 to offset higher electrical and trailway lighting and maintenance costs. Capital Projects Funds There are a number of capital projects that are anticipated to occur in 2015, the most prominent are the street project for Area H, Mustang Drive storm water improvements and mill and overlay project, trail segments 6 and 11, and Groveland Park improvements. Future funding of the Special Projects Fund will need to be considered. There is a $10,000 transfer budgeted in the General Fund for 2015. 1