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Item No: 3 Meeting Date: October 4, 2009 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: All Funds Budgets for 2011 Attached are the budgets for all funds (General, Special Revenue, Debt Service, Capital Projects, and Enterprise) for your consideration. The Council has had an opportunity to review the General Fund. The Special Revenue, Debt Service, Capital Projects, and Enterprise funds have not been reviewed. Last year staff split up the various budgets and we tackled them on two different dates. Since Council wants to have a meeting dedicated to just budget discussions staff is providing all City budgets in advance of the meeting on October 18th at 6:30 pm in the conference room. 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 2011 and a number of capital related items from the five year financial plan. The five year plan projects the need for nickel increases in the base rates for the years 2012 thru 2014. The Sewer fund anticipates a 6% increase in user charges which will add $14 to a residential utility bill. Met Council Environmental Services (MCES) waste charges have increased significantly over the last three years (20.54%) and we have not kept pace with the increases, future increases of 6% for 2012 thru 2015 will help stabilize the sewer fund. The MCES rate increase is flat for 2011. The Storm Water fund and the Street Light funds do not require increases in 2011. The Storm Water fund does not anticipate a rate increase for 2012 thru 2015. 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 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 2011, the most prominent are the street project for Area D, Lambert Park Building, roof repairs for numerous buildings, generator for the lift stations and permanent City Hall generator, and possibly Mustang Drive.