08/15/94 Staff Budget - Laserfiche WebLink

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Capital Improvements: Mr. Jankowski stated that in 1995, he anticipates a capital expense for the water system - creating a second feed to the area of JR's, etc. The entire area is supplied .by ~ main down Waco Street. He is proposing creating second legs to River's Bend 3rd along Highway g47 hooking up to Amber Ridge, or a main down 149th Lane N.W. to Amber Ridge. The water main to service the AEC site is $400,000. He stated we are proposing putting a main down Sunwood Drive at $165,000. Interconnect with the City of Anoka - they plan to extend a water main down the south side of County Road #116. If we put in another water connect, we can increase the amount of supply we purchase from the City of Anoka. The water connect with Anoka is $30,000. The total public improvement project would be $695,000. Councilmcmber Hardin inquired how these would be funded. Mr. Schroeder stated through the Amber Ridge TIF and AEC TIF; Sunwood Drive could be TIF, too. Sewer - Ms. Hart stated it is 1% of MWCC. Sewer service MWCC from $65,772 to $117,432. We will see a higher increase in the sewer than water. She summarized some of the charges. Project revenues - $223,530. Mr. Boos talked about sewer expense. He stated thc money is to jet dean and televise 1/10 of thc system. This is necessary maintenance activity and provides protection from sewer backup. He stated other expenses, such as personnel, miscellaneous, gas and operating supplies, postage, training, are all self-explanatory. Ms. Hart stated that building and structure repairs have increased because of recent expenses in this area. Depreciation - fixed assets - same as with water. Transfers of $2,000 - minimal overhead costs - beginning deficits $171,301. Operating revenue - $223,530, operating expense - $220,877 and deficit $168,648. We are slowly pulling out of deficit and are accumulating cash. Contributed capital - a little over $4 million. Mr. Gromberg asked if there should be something under building and structure, such as repair for water for unthawing lines, to which Mr. Boos replied that rarely happens. CIP for sewer - Mr. Jankowski stated there is only one project; the extension of sewer interceptor to service AEC property for $1.1 million. Ms. Hart stated this is paid through various funding sources - TIF and the sewer fund. We have not issued revenue bonds against our system. We are still a step ahead of other cities. We continue to monitor rates annually and semi-annually. Discussion ensued regarding water, wells, etc. Mr. Schroeder stated if we had not had the opportunity with the interconnect, we would be talking about that now. Ms. Hart stated that WAC, etc. was to help us get some of thc money. EDA - Ms. Hart talked about revenues - interest earnings - $7,500 - a little paid up. Real revenues are 10 percent Administrative fees on TIF districts - $91,166. She anticipated about $110,000 for TIF. EDA revenues - $117,500. Rental would come from EDA and go to the general fund - renter would install improvements. Staff Budget Meeting/August 15, 1994 Page 7 of 11