Agenda Packets - 1984/04/09 - Laserfiche WebLink

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MEMO TO: Mayor and City Council FROM: Finance Director -Treasurer 8rager DATE: April 12, 1984 RE: 1983 WATER & SEWER SYSTEM MAINTEI4ANCE & CAPITAL IMPROVEMENT PROGRAM PROJECT'S SUMMARY Table W-3, Water System Maintenance and Imprnvement Schedule, contained in the above referenced report, lists $107,300 of projects which were planned for 1983, Exhibit 10 of the same report shows the planned financing for the planned projects. Planned sources of funding were: budgeted annual maintenance allowance, $42,500; loan from Special Projects Fund, $40,000; and a transfer from the Water Systems Contributions Fund, $24,800. As may be seen on the attached schedule expenses for water system maintenance activities during 1983 were $66,956. This is well under planned expenditures of $107,300. As a consequence, Council authorization was not sought for interfund loans or transfers nor were any made. The only actual cash in the Water Fund for the program is that which was collected through the annual maintenance allowance. In these circumstances a comparison of actual expenses to planned or budgeted is not meaningful because planned revenues were not realized. The $66,956 expended in 1983 for scheduled maintenance activities includes some projects which should not be charged against the maintenance allowance monies collected in 1983. The 1983 operating budget included repair of a well. Therefore, $13,110 expended for Well Number 6 service should not be charged against the maintenance allowance. The Water Treatment Study was authorized in 1982 and financing was to come from the fund's retained earnings. Thus, $19,804 expended for the Study should not be charged against the monies collected for the maintenance allowance. Subtracting those two items from the $66,956 expended for maintenance leaves $34,042 to be charged against the maintenance allowance. The 1983 Water Fund budget dedicated $0.1130 per 1,000 gallons of water sold for maintenance. $44,198 was actually collected on sales of 391,133,000 gallons of water. Additionally $23,458 of expected investment income was budgeted to begin paying back interfund loans. This amount should be dedicated to maintenance activities even though the loans weren't made in 1983. The reason being that rates were set in anticipation of a loan being made and therefore if unused the monies should be dedicated to future maintenance activities. In total $67,656 were collected during 1983 for maintenance activities. As previously mentioned $34,042 of maintenance activities were performed in 1983 which should be charged to maintenance funds collected. A balance of $33,614 is left for future maintenance activities.