Agenda Packets - 2011/10/03 - Laserfiche WebLink

Home Browse Search

Item No: 3 Meeting Date: October 3, 2011 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 2012 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 significant costs associated with the planned maintenance of the water tower in 2012 and a number of capital related items from the five year financial plan. The five year plan projects the need for a dime increase in 2013 and 2014 and nickel increases in the base rates for 2015 and 2016. The Sewer fund anticipates a 4% increase in user charges which will add $10 to a residential utility bill. Met Council Environmental Services (MCES) waste charges will not increase in 2012 but have significantly increased in the past and we have not kept pace with the increases, future increases of 4% for 2013 thru 2016 will help stabilize the sewer fund. The Storm Water fund and the Street Light funds do not require increases in 2012. The Storm Water fund does not anticipate a rate increase for 2013 thru 2016. 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. The Street Light Fund anticipates a $.25 per quarter increase in 2013 and 2016 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 2012, the most prominent are the street project for Area E, Mustang Drive stormwater and mill and overlay project, roof repairs for the Community Center and Well #1 buildings, Community Center HVAC improvements, replace playground equipment at Silverview Park, and possibly some trailway improvements.