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Some items to note that are either new or have never been charged to this fund are as follows: * Salary charges for City Engineer(208 hours) and Finance Officer (83 hours) * Vehicle expenses and fuel costs * Purchase of 90 hydrant flags (1 st of 2 years worth of purchases) * Welt #1 Inspections ( 1st year of 7 year cycle) * Transfer to the General Fund for unidentifmble direct charges While the addition of these several items create an operating loss, most are necessary to effectively operate and maintain a water utility system that is currently on the books at a cost of approximately $3.7 million dollars. Recognizing these costs is also essential when determining our rate structure. It should also be noted that duhng 1992 the City incorporated the Water Access Charge (WAC) for future demand on the system for expansion and modification. The status of that restricted capital account at December 31, 1993 was $239,900 and is estimated to increase to $552,400 during 1994. This increase is based on the 252 additions as well and incorporating the rate increase that went into effect on January 1, 1994. The capital items outlined on the notes are all items that were approved during the normal 1994 budgeting process. No additional items are being requested for 1994. Sewer Utility Fund It is estimated that total revenues for 1994 will be $166,300 which includes interest earnings of $7,500. These revenue projections incorporate the rate increases that were adopted September 14, 1993 and became effective January, 1, 1994 and utilize the 252 projected additions to the system. Expenditures are estimated to be at $163,587 which includes depreciation (non-cash) of $78,640. This results in a budgeted operating profit of $2,713 which is considerably more than the actual operating losses for 1993 and 1992 of $11,284 and $43,494 respectively. Some items to note that are either new or have never been charged to this fund are as follows: * Salary charges for Parks/Utilities Supervisor, Maintenance Workers, City Engineer(208 hours) and Finance Officer (83 hours) * Supplies and vehicle expenses and costs * Costs to jet clean/televise sewers (1/10th of the system) * Costs to provide preventative maintenance on the lift station * Transfer to the General l~und for unidentifiable direct charges As stated earlier, the Sewer Utility Fund had never been charged in the past for some of the costs that will now be allocated directly. Charging these costs directly is necessary to effectively operate and maintain a sewer utility system that is currently on the books at a cost of approximately $4.2 million doliars. Recognizing these costs is also essential when determining our rate structure. The major item to consider in determine the rate structure for the Sewer Utility Fund is the charges by the MWCC. There was a tremendous increase from 1993 to 1994, mostly due to additions to the system. I attended a 1995 pre-budget meeting held by the MWCC and they are currently estimating that the charges for t995 will increase by about 7.82%. This type of increase will have a tremendous impact on our rate structure in 1995 and future years when combined with the additions to the system. As with the WAC charge in the Water Utility Fund, there was a new "Mministrative fee" attached to the mandatory MWCC SAC charge during 1993. These monies are restricted for future expansion and modifications to the system. The status of that restricted capital at December 31, 1993 was $5,550 and is estimate to increase to $43,050 during 1994. This increase is based on the 252 additions as well and incorporating the rate increase that went into effect on January 1, 1994. The capital items outlined on the notes are all items that were approved during the normal I994 d2budgeting process. No additional items are being requested for 1994.