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09-28-15 CC WS Agenda CITY OF SHOREWOOD 5755 COUNTRY CLUB ROAD CITY COUNCIL WORK SESSION COUNCIL CHAMBERS MONDAY, SEPTEMBER 28, 2015 6:30 P.M. AGENDA 1. CONVENE CITY COUNCIL WORK SESSION A. Roll Call Mayor Zerby _____ Labadie _____ Siakel _____ Sundberg _____ Woodruff _____ B. Review Agenda ATTACHMENTS 2. 2016 ENTERPRISE BUDGETS & CIP Finance Director’s memo 3. ADJOURN City of Shorewood Council Meeting Its Title j Subject: 2416 Enterprise Budgets & CIP Meeting Date: September 28, 2015 Prepared by: Bruce DeJong, Finance Director Reviewed by: Larry Brown, Public Works Director Attachments: Enterprise Budget Spreadsheets Enterprise CIP projects by funding source Policy Consideration: How should the City of Shorewood prepare its enterprise fund budgets for 2016? #2 MEETING TYPE Work Session Background: These budgets adequately fund all enterprise activities in 2016. There were several changes in the cost and timing of CIP projects based on updated information from Director Brown. Staff worked with Ehlers to model rates for two enterprise funds. We need to continue raising rates to keep up with cost increases for collecting and treating sewage along with new project costs related to storm water management. Both the Sewer and Storm Water funds have reasonable fund balances and no debt. The cash balance of each fund has been dropping over the past several years. The anticipated uses of the new money raised through rate increases will go to new projects planned in the next five years, support transfers to the Trail fund, and meet increased costs of existing expenditures for staffing, utilities, and professional services. Water The Water fund has had a string of poor years due to changes in the rate structure and wetter weather. Staff has reduced the projected revenue down to $500,000 to reflect recent actual collections. With the additional rain users water less in the summer. This affects our revenue most dramatically because the tiered water rates are structured with higher rates for high usage during the summer. We lose that revenue when little sprinkling is required. The fund does have a large fund balance which can sustain low revenue years for some time without needing any change in usage rates. Staff intends to maintain the existing rates until it becomes clear that the fund is not able to meet its future obligations without adjustment. Sewer These rates are sufficient to fund the operations of the sewer system and allow transfers to the Storm Water fund until its rates are sufficient to cover all of the operating and capital costs necessary for SWMPP & MS4 purposes. Staff intends to bring the proposed rates back for approval prior to the end of the year. Recycling The Recycling fund operates on basically a break -even basis. The costs of services are covered by the user fees and County grant funds. With the modified contract rates on tonight's agenda, staff will have to analyze the impact to determine if user rates can go down. Storm Water Storm water rates increase at 20% for the next several years based on the Ehlers study. This increase along with transfers in from the Sewer fund will allow us to meet our target cash balance for working capital at the end of 2018. We continue to monitor new regulations for their impact on the budget and capital plan. Staff intends to bring the proposed rates back for approval prior to the end of the year. Financial or Budget Considerations: These program expenses are feasible based on the proposed rates and financial management plan. Options: The City Council is encouraged to discuss any enterprise budget questions with staff. Recommendation / Action Requested: Staff recommends that the City Council finalize these budgets prior to adoption in December. Next Steps and Timelines: The City Administrator and Finance Director intend to discuss capital and budget items through the Truth -in- Taxation hearing in December. Connection to Vision / Mission: Adopting a prudent budget contributes to sound financial management. WATER FUND Revenue Coding: 601-00 - Expenditure Coding: 601 -00- YTD Approved Dept Actual Actual Thru Budget Request Percent Dollar REVENUES 2013 2014 August 2015 2016 Change Change 3710 Water Sales 494,201 416,328 189,716 600,000 500,000 -17% (100,000) 3610 Special Assessments 37,492 (5,684) 13,499 35,000 35,000 0% 0 3711 Permits & Connection Fees 46,020 50,665 2,386 25,000 25,000 0% 0 3620 Interest Earnings 17,887 49,475 0 25,000 25,000 0% 0 3713 Water Meter Sales 5,941 9,600 840 2,500 2,500 0% 0 3627 Antenna Space Rental 5,899 8,813 0 0 0 6% 0 Total Revenues 595,600 520,384 206,441 687,500 587,500 -15% (100,000) EXPENSES 1,308 2,154 319 1,400 1,400 0% 0 Personal Services 4,332 3,896 908 6,500 6,500 0% 0 4101 Regular Salaries 73,949 127,097 83,357 79,796 87,451 10% 7,655 4102 O.T. Salaries 8,424 5,311 2,358 3,000 3,000 0% 0 4121 PERA City Share 5,941 8,724 6,429 6,003 6,340 6% 338 4122 FICA City Share 5,899 8,813 6,099 6,334 6,690 6% 357 4131 Ins. City Share 12,784 7,748 13,460 12,726 13,998 10% 1,272 4151 Workers Compensation 881 4,585 2,167 1,500 4,378 0% 4,378 Total Personal Services 106,997 162,278 113,870 107,858 121,857 13% 13,999 Supplies 4200 Office Supplies 146 431 4208 Postage 1,308 2,154 319 1,400 1,400 0% 0 4221 Maint- Equipment 4,332 3,896 908 6,500 6,500 0% 0 4223 Maint- Buildings 760 568 - 1,000 1,000 0% 0 4240 Small Tools 606 1,179 600 600 0% 0 4245 General Supplies 13,887 10,853 6,880 12,000 12,000 0% 0 4260 Wtr Purch -Tonka Bay 2,121 2,089 1,385 3,500 3,500 0% 0 4261 Wtr Purch - Excelsior 18,267 16,879 8,236 22,000 22,000 0% 0 4262 Wtr Purch - Mtka 881 1,134 430 1,500 1,500 0% 0 4263 Wtr Purch - Chan 9,498 10,115 5,575 16,000 16,000 0% 0 4265 Water Meters 6,926 10,146 3,016 15,000 15,000 0% 0 Total Supplies 58,126 58,440 28,359 79,500 79,500 0% 0 Other Services & Charges 4301 Financial & Audit 2,250 2,500 1 2,500 2,500 0% 0 4303 Engineering 1,327 21,093 19,374 5,000 5,000 0% 0 4304 Legal Fees 56 - - - - 0 4321 Communication 663 1,196 738 2,800 8,000 186% 5,200 4331 Travel, Conf,Sch - 1,096 1,500 800 800 0% 0 4351 Print /Publish 552 543 638 1,100 1,100 0% 0 4360 Insurance-Total 8,000 10,500 - 8,000 8,000 0% 0 4394 Utilities - Amesbury 12,368 10,640 5,827 12,000 12,000 0% 0 4395 Utilities - Badger 9,270 7,186 4,072 12,500 12,500 0% 0 4396 Utilities - Boulder Bridge 21,097 18,841 10,482 20,000 20,000 0% 0 4398 Utilities - SE Area /Tower 34,917 35,514 19,748 34,000 34,000 0% 0 4400 Contractual 26,018 50,398 30,499 30,000 60,000 100% 30,000 4420 Depreciation 271,166 269,295 - 290,000 280,000 -3% (10,000) 4437 Licenses -Sales Taxes 635 7,070 533 3,000 3,000 0% 0 4440 Misc. Services 17,949 14,180 - 200 200 0% 0 4450 Bank Svc Chgs 8 - - 1,000 1,000 0% 0 Total Other Services & Charges 406,276 450,052 93,412 422,900 448,100 6% 25,200 Bond Expense 4711 Bond Interest 74,887 19,213 18,757 77,796 17,000 -78% (60,796) 4720 Fiscal Agent Fees 46,908 495 495 800 800 0% 0 Total Bond Expense 121,795 19,708 19,252 78,596 17,800 -77% (60,796) Transfers 4820 Transfers Out 12,500 - 12,500 12,500 0% 0 Total Transfers - 12,500 - 12,500 12,500 0% 0 TOTAL EXPENSES 693,194 702,978 254,893 701,354 679,757 -3% (21,597) REVENUES OVER /(UNDER) EXPENSES (97,594) (182,594) (48,452) (13,854) (92,257) SEWER FUND Revenue Coding: 611-00 - Expenditure Coding: 611-00 - Approved YTD Approved Dept Actual Actual Budget Thru Budget Request Dollar REVENUES 2013 2014 2015 August 2015 2016 Chang( 3620 Interest Earnings 14,191 41,743 25,000 25,000 0% 0 3710 Sewer Sery Charges 831,259 824,234 860,050 430,815 860,050 0% 0 3610 Sewer Chg -Cnty Coll 68,010 22,101 69,186 13,885 20,000 9% 20,000 3400 Local SAC Charges 13,200 - 6,000 2,485 50,000 0% 44,000 3712 Sewer Permits 3,060 2,700 700 1,500 14,000 1900% 13,300 Total Revenues 861,710 890,778 891,750 448,685 969,050 3% 30,050 EXPENSES Personal Services 4101 Regular Salaries 68,010 105,978 69,186 70,429 75,753 9% 6,567 4102 O.T. Salaries 3,139 2,019 2,500 2,319 2,500 0% 0 4103 Part Time Salaries - - - - 5,800 5,800 4121 PERA City Share 5,092 7,015 5,197 5,456 5,492 6% 295 4122 FICA City Share 5,093 7,347 5,484 5,375 6,239 14% 754 4131 Ins. City Share 10,293 7,748 10,787 13,460 12,072 12% 1,285 4151 Workers Compensation 3,487 2,500 1,539 3,935 1,435 Total Personal Services 91,627 133,594 95,654 98,578 111,791 17% 16,136 Supplies 4200 Office Supplies 146 - 150 217 200 33% 50 4208 Postage 1,324 2,068 1,500 217 1,500 0% 0 4221 Maint- Equipment 3,382 6 5,000 792 5,000 0% 0 4240 Small Tools 732 21 550 255 550 0% 0 4245 General Supplies 1,293 2,565 2,100 - 2,100 0% 0 Total Supplies 6,877 4,660 9,300 1,481 9,350 1% 50 Other Services & Charges 4301 Financial & Audit 2,250 2,500 2,500 - 2,500 0% 0 4303 Engineering 10,753 5,418 5,000 - 5,000 0% 0 304 Legal 1,500 130 1,500 740 1,500 0% 0 4313 Engineering - Design Stage 1,701 - 5,000 - 5,000 0% 0 4321 Communication 4,103 4,848 5,500 2,312 5,500 0% 0 4331 Travel, Conf,Sch 975 600 1,500 - 1,500 0% 0 4360 Insurance -Total 6,500 12,000 7,000 - 7,000 0% 0 4380 Utilities- Gas /Elec 5,588 6,322 7,500 3,539 7,500 0% 0 4385 MCES Service Charges 529,386 543,245 609,180 456,885 590,000 -3% (19,180) 4386 Excelsior Sewer Chg 31,676 43,172 31,000 27,801 40,000 29% 9,000 4400 Contractual 17,940 14,427 20,000 12,272 20,000 0% 0 4200 Depreciation 81,329 67,898 225,000 - 100,000 -56% (125,000) 4437 Licenses -Taxes 23 281 - 24,796 - 0 4440 Misc. Services 33,960 34,587 150 - 150 0% 0 4450 Service Charges - 28 1,500 - 1,500 0% 0 Total Other Services & Charges 727,684 735,456 922,330 528,345 787,150 -15% (135,180) Transfers 4820 Transfers to General Fund 12,500 12,500 12,500 0% 0 4820 Transfers to Storm Water 226,700 226,700 0% 0 Total Transfers 12,500 239,200 - 239,200 0% 0 TOTAL EXPENSES 826,188 886,210 1,266,484 628,404 1,147,491 -9°% (118,994) REVENUES OVER /(UNDER) EXPENSES 35,522 4,568 (374,734) (179,719) (178,441) RECYCLING; FUND Revenue Coding: 621-00 - Expenditure Coding: 621 -00- EXPENSES Personal Services YTD Approved Dept 4101 Regular Salaries Actual Actual Thru Budget Request Percent REVENUES 2013 2014 August 2015 2016 Change 3362 County Recycling Aid 22,989 31,279 13,099 23,000 23,000 0% 3362 County Park Recycling Grant 2,841 - - 475 420 -12% 3610 Special Assessment 6,363 3,997 2,688 500 443 -11% 3620 Interest Earnings 253 763 - 350 350 0% 3710 Recycling Service Charges 154,265 159,636 80,306 155,000 155,000 0% 3732 City Clean -up Fees 5,086 (174) (940) 8,000 8,000 0% Total Revenues 191,797 195,501 95,153 186,350 186,350 0% EXPENSES Personal Services 4101 Regular Salaries 69 8,881 5,642 5,410 5,796 4102 O.T. Salaries - - 887 1,000 1,000 0% 4103 Part Time Salaries 2,296 306 198 - - 4121 PERA City Share 166 580 490 475 420 -12% 4122 FICA City Share 176 539 382 500 443 -11% 4131 Ins. City Share 831 630 998 717 1,140 59% 4151 Workers Comp 1 19 - 46 Total Personal Services 3,538 10,937 8,616 8,102 8,845 9% Supplies 4200 Office Supplies - - 156 100 100 0% 4208 Postage 1,298 1,488 499 1,400 1,400 0% 4245 General Supplies 193 - - 200 200 0% Total Supplies 1,491 1,488 655 11700 1,700 0% Other Services & Charges 4400 Contractual 167,345 165,561 77,245 117,000 117,000 0% 4440 Misc. Services 9,163 470 146 8,500 8,500 0% 4450 Service Charges - - - - - Total Other Services & Charges 176,508 166,031 77,391 125,500 125,500 0% TOTAL EXPENSES 181,537 178,456 86,662 135,302 136,045 1% REVENUES OVER /(UNDER) EXPENSES 10,260 17,045 8,491 51,048 50,305 STORMWATER MANAGEMENT FUND Revenue Coding: 631-00 - Expenditure Coding: 631 -00- EXPENSES Personal Services YTD Approved Dept Actual Actual Thru Budget Request Percent Dollar REVENUES 2013 2014 August 2015 2016 Change Change 3362 Grant Proceeds - 65,825 - - - 4,115 0 3610 Special Assessments 9,321 5,256 3,291 7,400 7,400 0% 0 3620 Interest Earnings 582 3,145 - 1,200 1,200 0% 0 3670 Miscellaneous Revenue 6 - - - - 4151 0 3710 Storm Utility Charges 185,622 214,170 114,676 224,352 235,000 5% 10,648 3920 Transfers from Sewer 44,203 69,177 27,746 226,700 226,700 0% 0 Total Revenues 195,531 288,396 117,967 459,652 470,300 2% 10,648 EXPENSES TOTAL EXPENSES 107,935 203,824 48,999 176,752 182,752 3% 6,000 REVENUES OVER /(UNDER) EXPENSES 87,596 84,572 68,968 282,900 287,548 Personal Services 4101 Regular Salaries 35,089 56,042 22,458 20,523 21,673 6% 1,150 4102 O.T. Salaries 1,348 2,331 - 0 4121 PERA City Share 2,632 4,115 1,684 1,500 1,571 5% 71 4122 FICA City Share 2,644 3,860 1,560 1,570 1,658 6% 88 4131 Ins. City Share 2,490 805 1,693 2,059 2,850 38% 791 4151 Workers Comp 2,024 351 0 Total Personal Services 44,203 69,177 27,746 25,652 27,752 8% 2,100 Supplies 4200 Office Supplies 146 - 156 100 - -100% (100) 4208 Postage 1,298 1,251 499 1,400 1,400 0% 0 4421 Maint- Equipment 1,031 - - 5,500 4,500 -18% (1,000) 4240 Small Tools - - 300 300 0% 0 4245 General Supplies 706 840 - 3,000 2,000 -33% (1,000) Total Supplies 3,181 2,091 655 10,300 8,200 -20% (2,100) Other Services & Charges 4303 Engineering 13,540 19,620 19,030 20,000 20,000 0% 0 4304 Legal 518 - - 1,000 1,000 0% 0 4313 Engineering - Design Stage 5,160 169 - 5,000 5,000 0% 0 4321 Communication 331 604 352 500 500 0% 0 4351 Print /Publish 129 643 - 100 100 0% 0 4400 Contractual 4,551 17,820 1,216 71,500 71,500 0% 0 4420 Depreciation 33,802 38,850 - 34,000 40,000 18% 6,000 4433 Subscrip- Member 6,600 6,600 0% 0 4440 Misc. Services 2,520 54,846 1,100 1,100 0% 0 4450 Service Charges 4 - 1,000 1,000 0% 0 Total Other Services & Charges 60,551 132,556 20,598 140,800 146,800 4% 6,000 TOTAL EXPENSES 107,935 203,824 48,999 176,752 182,752 3% 6,000 REVENUES OVER /(UNDER) EXPENSES 87,596 84,572 68,968 282,900 287,548 'ZI C) Z> C, C, O C> 1:1 C, Cl O O O C, O O Q, O O O O Z> O O Q, 1:1 O O c� O C> (z> C> c! C� C� c> O '=� 'o :S c6 L6 c5 c� Lo �o L6 'o �j 00 �z �> *- W m I=> of C�l I=L c=� Ci C� C14 00 'r O O C> Cl Ci C=� 00 C� C> C, C0 =1 CD C) C:i Ci C=L oo O CZ> C> O C� N U') °o O O O O O Z> C, O C, C, O O O Iz, C> lz� Ot C� lz� lz� O lz:� O O O LO P O � O O Cl =1 O O O ti O U O Cl m O N O ti ri CL O O C'3 4� 0 oa C> O CZ) PW O O 0O C� => O C> �2 C) C) C::i c=i o Cl 'ZI C) Z> C, C, O C> 1:1 C, Cl O O O C, O O Q, O O O O Z> O O Q, 1:1 O O c� O C> (z> C> c! 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