Agenda Packets - 1993/11/01 - Laserfiche WebLink

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Materials and supplies are 7.02% of the operating costs of the Water Utility. The • materials and supplies budget for 1994 is 12.03% less than that of 1993. A more conservative estimate for street patching material in the event of water.main breaks is the primary reason for this decrease. Contractual Services are 23.86% of the operating costs of the Water Utility. Budgeted contractual services for 1994 are 0.95% less than the amount budgeted for 1993. In Administration, increases have been budgeted for meter readers which is more in line with actual costs than the 1993 Budget and for a contracted increase in the cost of auditing services. Reductions in Operating Contractual Services offset the Administration increases: a more conservative approach to budgeting of electricity was taken with a resultant decrease of $7,797 in the amount budgeted. Additional-Federal arrd-State mandated waterduaatysts have driven up the contractual services budget over the past few years. These tests include: 1) federally mandated testing for lead test content in water at the customers tap and 2) preliminary testing of other proposed drinking water contaminants or proposed changes of maximum contaminant levels (MCL's) of drinking water. Depreciation expense is $20,569 more than that of 1993. This increase is due to the construction of a new water treatment plant and a water tower. The policy of the Council is to budget depreciation expense only on assets acquired with funds of the Water Utility. No depreciation is budgeted on assets acquired from contributions. The City's assets acquired from contributions are mostly water mains which were • financed by special assessments to benefitted properties. The City's policy is to use that method of financing for the replacement of those assets. Capital Outlay is budgeted at $16,150. This is $21,100 less than the $37,250 budgeted in 1993. The amount budgeted for Capital Outlay may vary greatly from year to year and is dependent on the item(s) being replaced. Capital Outlay items are based upon: 1) a Vehicle and Equipment Replacement Plan adopted by the Council and updated on an annual basis, and 2) upon the City's Long Term Water & Sewer Systems Maintenance and Capital Improvements Plan adopted in 1983. A schedule of budgeted 1994 Capital Outlay items is provided below. Further details may be found in the Capital Improvements Budget. CAPITAL OUTLAY Administration Check protector/signer $ 750 (Cost to be share by General, Water, & Sewer Funds) • Fixed asset software $1,000 (Cost to be share by General, Water, & Sewer Funds)