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budget schedules. The consolidation of the utility capital needs is expected to bring the utility <br />operations as a whole into greater focus. Decisions regarding rates, capital and working reserves can be <br />made with greater clarity as to their comprehensive impacts. <br /> <br />Proposed closing and distribution of assets: <br /> <br /> <br />(1) The Water / Sewer Utility Fund would receive funds equivalent to nine years of annual water <br />production costs currently being absorbed by the Water Filtration Fund (outside of water rates). <br />The nine year period allows for the rates to increase at a reasonable pace to absorb the water <br />production operating costs. This will allow the utility fund to maintain a favorable amount of <br />working capital for bond rating purposes. Additionally, the bonds currently being paid by Utility <br />operations cash flow will be retired in nine years (2024). Upon the retirement of these bonds <br />the utility fund transfer to the new Utility Infrastructure can increase by $157,000. Therefore <br />the dollars funded now will flow to the Utility Infrastructure fund as a capital funding source in <br />the future. <br />(2) The Public Works building houses the Utility Infrastructure fund’s fleet and heavy equipment. <br />Therefore a distribution supporting approximately 35% of the Public Works building 2017-2033 <br />improvements is proposed. <br />(3) The Capital Equipment Fund budget currently has budgeted $400,000 in transfers for the water <br />Filtration fund from 2016-2019. Therefore that is the amount being proposed for distribution. <br />(4) Similar to above, the General fund is scheduled to receive $200,000 from 2016-2019. To <br />accommodate the elimination of the annual Water Filtration transfer the General Fund levy will <br />absorb the impact over 2018-2022. See table below for illustration <br /> <br /> <br />(5) The balance of the Walter Filtration assets will be used to establish the Utilities Infrastructure <br />Fund. These assets comprise of $895,601 in cash and $1,009,960 in inter-fund loan receivables. <br /> <br /> <br />Water Filtration at 1/1/2016 4,173,703 235,498 <br />Distribution: <br />Water / Sewer Utility Fund (1)1,486,867 235,498 <br />Building Improvement Fund (2)181,275 <br />Capital Equipment Fund (3)400,000 <br />General Fund (4)200,000 <br />New Utility Infrastructure Fund (5)1,905,561 <br />4,173,703 235,498 <br />Monetary <br />Assets <br />Fixed <br />Assets