Agenda - Council - 12/09/1997 - Laserfiche WebLink

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Sewer Utility_ Fund It is estimated that total revenues for t998 will be $463,876 which includes interest earnings of $20,000. These revenue projections also incorporate 10% rate increases [$48.30/qtr. to $53.15/qtr] that are being proposed at this meeting and would become effective January 1, 1998. Expenditures are estimated to be at $452,329 which includes depreciation (non-cash) of $163,000. This results in a budgeted operating profit of $I 1,547, which is a bit more than' break even, and continues to slowly decrease the deficit in retained earnings. The biggest portion of the expenses in the Sewer Utility Fund is the fees paid to the Metropolitan Counil Environmental Services [MCES] for transportation and treatment of sewage. The flow from the city is not metered so an estimate is used and billed accordingly. If at the end of the year, after monitoring the flow sites, the MCES determines that the flow was higher or lower than the estimate, a credit or bill is sent to the City. In past years, this adjustment was made two years later, although a new system wilt allow them to remain current to within one quarter. The impact of this billing change means 1998 will become the "catch-up" year. The estimate for 1996 was tow by $39,160 and the 1997 estimate is expected to be low by $42,180. This results in an additional $81,340 that must be collected over and above the estimated mount for the 1998 flow. The attached budget incorporates the 1996 shortage only. The 1997 estimated shortage will be adjusted during 1998 at which another rate increase will most likely be necessary. This budget also includes an approximate 5% rate increase from the MCES and attributes to the rate incrase being proposed as a part of this budget. ,Street.Light Utility. Fund The Street Light Utility Fund was established late in 1992 and meant to account for billings to property owners and payment of electric,~l service charges for subdivision street lights that are required in all new urban subdivisions.//A pre-established rate of $8.25 per quarter was set in conjunction with the developers payin~ for the first three years of operation and maintenance. The rate therefore will remain the same until all amortization of the developer paid operation and maintenance monies are exhausted. At that point the cost of providing the service may be charged in full to the residents receiving the benefits. During 1997 the City Council approved the installation of additional priority. The amount incorporated into this budget is based on $4.40 per year for each residential property. The associated costs include the cost of operation and maintenance as well as depreciation. / As with the Water and Sewer Utility Funds, the revenue projections for 1998 are based o~ 100// additions to the system for subdivision lights. It is anticipated that total revenues for 1998'-will be approximately $62,423 which includes interest earnings of $3,800. Expenditures are estimated to be at $42,l 00 which includes depreciation (non-cash) of $8,600. I I I I I I I I I I I I I I I I I