110899 CC Ws AgP
CITY OF
SHOREWOOD
5755 COUNTRY CLUB ROAD. SHOREWOOD. MINNESOTA 55331-8927. (612) 474-3236
FAX (612) 474-0128. www.state.net/shorewood. cityhall@shorewood.state.net
MEMO
TO:
Mayor /aa~ Councilmembers
(~ OJ
Al Rol~k and Jim Hurm (JJ
November 4, 1999
FROM:
Date:
RE:
2000 Dn~.ft Utility Fund Budgets - Work Session Monday, November 8
Enclosed for your review please find drafts of the 2000 Utility Fund budgets. These
documents will be discussed at the work session on Monday night. The documents consist of
budgets for the Water Operations and Debt Service Funds, Sewer Fund, Recycling Fund, and
Stormwater Management Fund.
There were three key areas to address in preparing the b~dgets for the coming year - rates,
capital outlay and our contract for maintenance services. Basic operations for the various
utilities have changed very little in the past year. Each of the three key areas will be
discussed in more detail in the following paragraphs.
The Water Operations Fund budget includes a rate increase for 2000. This is the first
increase in rates since 1993. It is important to adjust rates at this time as basic maintenance
costs have been increasing (inflation), the amount of repairs to the system has been more than
previously anticipated, and anticipated new hookups to the system have lagged slightly. The
proposed adjustment is to increase the quarterly base rate to from $22.50 to $23.25 for the .
first 10,000 gallons consumed and from $1.45 to $1.50 per 1000 gallons consumed thereafter.
ill addition, we are proposing a second tier of $1.75 per thousand after 50,000 gallons. This
amounts to a summer seasonal rate, since few residents use more than 50,000 gallons per
quarter, and the average household consumption is 33,000 gallons per quarter. Since water
conservation is a concern, which is also being advocated by various agencies, this second tier
would serve as a means to encourage resident to conserve water during the normal high use
periods.
Also included in the Water Fund budget is the much-needed maintenance and repair various
gate valves throughout the system. Budgeted capital outlay includes reconditioning of the
pressure tank at the Woodhaven well location, which was originally scheduled for this year,
replacing the Amesbury Well pipe, and the looping of the watermain to Shorewood
Ponds/Shorewood Oaks area. Other operating costs are anticipated to be similar to this year
in most respects.
n
~.1 PRINTED ON RECYCLED PAPER
The Water Debt Service Budget anticipates revenues from special assessments, the City of
Victoria, and a transfer from the Water Operations Fund. These revenues are expected to
exceed the required debt service for the year. The excess revenues will be held in reserve for
future water debt service needs.
The Sewer Fund budget includes a decrease in the residential sewer rates from $65.00 to
$60.00 per quarter, a 7.69% reduction. Metered sewer rates would be adjusted accordingly.
Decreases in the amount paid to Metropolitan Council Environmental Services (MCES)for
treatment have made it possible to decrease the cost to our residents. MCES anticipates a
further decrease in the ensuing year. The budget includes the continuation of inflow and
infiltration (I & 1) control measures. The goal ofthe program is to ultimately reduce the
amount of flow being treated, thereby reducing our sewage treatment costs. The budget also
includes the refurbishing ofthe Shady Island and the Birch Bluff Lift Stations.. This is part
of an ongoing lift station rehabilitation program. The goal ofthe program is to refurbish our
aging lift stations at a rate of two stations per year over the next several years. A transfer to
the General Fund has been budgeted for overhead administrative costs incurred by that fund
on behalf of the Sewer operation. This was discussed as a part of the General Fund budget.
The water and sewer funds also budget for depreciation of capital assets within the systems.
Although depreciation is a non-cash expense and does not affect cash flow, it is important to
recognize it as a real operating expense for these systems.
Munitech maintains the water and sewer system for the City. The three-year contract with
Munitech expires at the end of 1999. An increase in their contract is anticipated for the
coming year. While an agreement on the contract is yet to be reached, a 6% increase has
been built into the budget for 2000. Weare continuing to explore the possibility of bringing
the maintenance of these systems in-house.
The Recycling Fund budget is substantially the same as this year. The contract cost of
recycling with E-Z will remain the same in 2000 as in 1999. Funding from Hennepin County
will continue for 2000 at about the same level. The annual spring cleanup and fall leaf drop-
off site continue to be budgeted from this fund along with corresponding revenues. No
adjustment is being proposed in the recycling fee at this time.
The Stormwater Management Fund budget includes a continuing effort toward completing
small drainage projects and repairs. As in past years, about ~ of the stormwater fees are
directed toward this effort. The remainder of the fees and the General Fund transfer are set
aside for future storm drainage projects. The budget for capital outlay is for the Gideon Glen
drainage project. Many details need to be worked out on this project, but we have budgeted
the estimated cost to the City.
We invite your feedback on these issues in addition to your comments on the budget items.
Please review the document and feel free to call us with any questions you may have. If you
have any other issues, we can research them and hopefully have some answers by meeting
time.
. FUND:
Water
MISSION:
To provide a safe, clean. uninterrupted
supply of drinking water to all City
residents connected to the City water system.
SUBFUND:
Water Operations
FUND NO: 60
DESCRIPTION OF ACTIVITY:
Responsible for operation and maintenance of five (5) well systems, including all
pumps and wellhouses, maintenence of water tower and treatment plant, and
extension of new watermain and construction of new water facilities, as necessary.
OBJECTIVES:
- Supply a safe, clean uninterrupted source of water to all connections
- Explore possibility of interconnecting with other communities
- Perform pump repair and relining of Boulder Bridge Well
HIGHLIGHTS/COMMENTS:
Revenues:
Estimated water sales based on quarterly billing at a tiered rate of $1.50 - $1.75/1,000 gallons
Connection and permit revenues estimated based on 30 new homes
Miscellaneous Income includes interest income and Cellular Antenna Space Rentals
Expenses:
Staffing:
.10 Senior Accounting Clerk
.30 Light Equipment Operator
.1 0 Receptionist/Secretary
Supplies/Materials:
Office Supplies, including billing forms and postage
Maintenance contracts for computer hardware and software
Maintenance of gate valves
Small tools and chemicals for water treatment
Support Services:
Engineering
Contract with Munitech for system maintenance - 6% increase from 1999
Training for Water Operations License
Insurance on water system
Water testing & Water Quality Reporting
Water system analysis
Charges & Fees:
Capital Outlay:
Recondition Woodhaven Pressure Tank
Replace Amesbury Well Pipe
Install Shorewood Ponds/Oaks Watermain Loop
Other:
Water Purchased from other communities
Meter purchases
Well utility charges
Transfers to Water Debt Service Fund and General Fund
Depreciation (Non-cash expense accounts for future system replacement)
1
FUND: #60 FUND: Water Operations DEPT # 80
BUDGET Actual Actual Budget YTD Sept Annual Proposed Adopted
ITEM 1997 1998 1999 1999 Est-99 2000 2000
REVENUE
Charges for Service 236,806 265,558 252,750 107,575 397,000 334,750 0
Misc. Revenue 86,126 61,030 61,167 65,727 74,820 72,700 0
TOTAL REVENUE 322,932 326,588 313.917 173,302 471.,820 407,450 0
EXPENSES
Staffing 13,749 14,748 20,440 16,087 21,117 22,223 0
Supplies/Materials 18,117 20,535 34,100 48,671 55,300 25,750 0
Support Services 75,900 64,294 67,050 56,985 70,730 71,350 0
Charges & Fees 6,631 7,220 7,000 129 129 0 0
Other 67,158 64,193 66,200 44,609 67,400 70,000 0
Capital Outlay 0 8,926 11,200 698 698 321,000 0
Transfers 40,000 40,000 42,400 42,400 42,400 45,000 0
Depreciation 91,470 125,396 140,000 96,120 140,000 140,000 0
TOTAL EXPENSES 313,025 345,312 388,390 305,699 397,774 695,323 0
SERVICE INDICATORS:
Miles of Water Line 16 16 16 16 16 16
No. of Connections 1,028 1,061 1,102 1,081 1,085 1,120
No. of Hydrants 220 220 222 222 222 222
Avg Daily Consump- gals 403,000 403,000 430,000 420,000 420,000 430,000
Water rate/1000 gals 1.45 1.45 1.45 1.45 1;45 1.50/1.75
CASH FLOW IMPACT:
Beginning Cash Balance 729,554 605,461 653,835 653,835 653,835 867,881 867,881
Revenues 322,932 326,588 313,917 173,302 471,820 407,450 0
Expenditures (313,025) (345,312) (388,390) (305,699) (397,774) (695,323) 0
Depreciation 91,470 126,799 140,000 96,120 140,000 140,000 0
Construction of Infrastructun (142,388) (49,142)
Other Cash Flow Impacts (83,082) (10,559)
Ending Cash Balance 605,461 653,835 719,362 617,558 867,881 720,008 867,881
STAFFING:
Sr. Acctg. Clerk .10 .10 .10 .10 .10 .10 .10
Lt. Equip. Oper.lForeman .10 .30 .30 .30 .30 .30 .30
Secretary/Recept .10 .10 .10 .10 .10 .10 .10
2
FUND:
Water
MISSION:
To provide for the retirement of
debt incurred to construct water
system improvements.
SUBFUND: Water Debt Service
FUND NO: 60
DESCRIPTION OF ACTIVITY:
Responsible for the accumulation of resources for the retirement of Water Fund debt, and
for the periodic payment of principal and interest.
OBJECTIVES:
HIGHLIGHTS/COMMENTS:
Revenues:
Property Tax Levy for Debt Service
Special Assessments on Water Improvements
City of Victoria Payments
Connection Charges
Interest Income
Transfers from Water Operating Fund
Expenses:
Staffing:
Supplies/Materials:
Support Services:
Charges & Fees:
Capital Outlay:
Other:
Debt service payments - Principal and interest
3
FUND: #60 FUND: Water - Debt Service DEPT # 80
BUDGET Actual Actual Budget YTD Sept Annual Proposed Adopted
ITEM 1997 1998 1999 1999 EST -99 2000 2000
REVENUE
Property Tax 15 0 0 24 24 0 0
Sp Assess/Connect Chgs 250,448 250,401 215,000 185,641 238,600 140,000 0
Misc. Revenue 96,565 54,521 51,848 51,848 51,848 49,174 0
Transfers 40,000 40,000 40,000 40,000 40,000 40,000 0
TOTAL REVENUE 387,028 344,922 306,848 2n,513 330,472 229,174 0
EXPENSES
Staffing 0 0 0 0 0 0 0
Supplies/Materials 0 0 0 0 0 0 0
Support Services 0 0 0 0 0 0 0
Charges & Fees 0 0 0 0 0 0 0
Other - Debt Service 244,334 310,085 296,235 295,934 296,235 298,021 0
Capital Outlay 0 0 0 0 0 0 0
Transfers 0 0 0 0 0 0 0
TOTAL EXPENSES 244,334 310,085 296,235 295,934 296,235 298,021 0
SERVICE INDICATORS:
Outstanding Debt, Year End 2,655,000 2,470,000 2,290,000 2,290,000 2,290,000 2,100,000 2,100,000
CASH FLOW IMPACT:
Beginning Cash Balance 326,487 469,181 504,018 504,018 504,018 538,255 538,255
Revenues 387,028 344,922 306,~ 2n,513 330,472 229,174 0
Expenditures (244,334) (310,085) (296,235) (295,934) (296,235) (298,021 ) 0
Ending Cash Balance 469,181 504,018 514,631 485,597 538,255 469,408 538,255
STAFFING:
4
FUND:
Sanitary Sewer
MISSION:
To provide a safe, sanitary sewer
service to all City residents
SUBFUND:
DEPT NO:
Sanitary Sewer
61
DESCRIPTION OF ACTIVITY:
Major activities include maintenance of sixteen (16) lift stations, and cleaning,
televising and repairing sewer mains to control inflow and infiltration. Sewage
treatment is performed by Metropolitan Council Environmental Services (MCES) and is
provided for in this area.
OBJECTIVES:
- Work with MCES to correct inflow and infiltration into the sanitary sewer system
- Work with MCES to reduce sewage treatment costs to the City
HIGHLIGHTS/COMMENTS:
Revenues:
Quarterly Sewer service charges at $60.00 per quarter
Interest revenue from investment of Sewer Fund cash balances
Other permit and connection fee revenues estimated based on 30 new homes
Expenses:
Staffing:
.10 Senior Accounting Clerk
.20 Light Equipment Operator
.10 Receptionist/Secretary
Supplies/Materials:
Office Supplies, including billing forms and postage
Maintenance contracts for computer hardware and software
Support Services:
Contract with Munitech for system maintenance
Sewer Main Cleaning
Inflow & Infiltration Control
Insurance on sewer system
Legal & engineering services
Utilities
Travel & seminars
Charges & Fees:
Charges for sewage flow into City of Excelsior trunk mains
Metropolitan Council Environmental Services sewage treatment charges
Capital Outlay:
Refurbish Shady Island and Birch Bluff Lift Stations
Transfers:
General Fund Overhead Costs
Depreciation (Non-Cash Expense accounts for future system replacement)
5
FUND: # 61 FUND: Sanitary Sewer DEPT # 82
BUDGET Actual Actual Budget YTD Sept Annual Proposed Adopted
ITEM 1997 1998 1999 1999 EST -99 2000 2000
REVENUE
Charges for Service 857,816 851,760 809,891 431,929 834,080 738,315 0
EXPENSES
Staffing 7,094 23,747 16,215 8,291 16,215 17,716 0
Supplies/Materials 6,084 5,965 12,000 13,229 15,900 12,800 0
Support Services 621,749 452,410 597,450 309,780 408,430 486,575 0
Charges & Fees 0 0 0 0 0 0 0
Capital Outlay 0 0 67,000 3,960 48,000 100,000 0
Transfers 0 0 6,000 6,000 6,000 10,000 0
Depreciation 191,393 195,394 195,000 131,616 200,000 200,000 0
TOTAL EXPENSES 826,320 677,516 893,665 472,876 694,545 827,091 0
SERVICE INDICATORS:
Miles of Sewer Line 55 56 56 57 57 57 57
No. of Connections 2,623 2,653 2,692 2,669 2,675 2,705
No. of Lift Stations 16 16 16 16 16 16 16
Sewer Charge 65.00 65.00 65.00 65.00 65.00 60.00 60.00
CASH FLOW IMPACT:
Beginning Cash Balance 1,082,948 1,297,812 1,642,334 1,642,334 1,642,334 1,981,869 1,981,869
Revenues 857,816 851,760 809,891 431,929 834,080 738,315 0
Expenditures (826,320) (677,516) (893,665) (472,876) (694,545) (827,091) 0
Depreciation 191,393 195,394 195,000 131,616 200,000 200,000
Other Cash Flow Impacts (8,025) (25,116)
Ending Cash Balance 1,297,812 1,642,334 1,753,560 1,733,003 1,981,869 2,093,093 1,981,869
STAFFING:
Sr. Acctg. Clerk .10 .10 .10 .10 .10 .10 .10
Lt. Equip. Oper./Foreman .40 .20 .20 .20 .20 .20 .20
Receptionist/Secretary .10 .10 .10 .10 .10 .10 .10
6
FUND:
Recycling
MISSION:
To provide weekly pickup of recyclables
to all City residents; provide for the annual
pickup of household and yard wastes
SUBFUND:
Recycling
FUNDNO: 62
DESCRIPTION OF ACTIVITY:
Weekly pick-up of newspaper, corrugated cardboard. recyclable plastics, glass and
metal. and other recyclable materials. Includes annual City curbside pickup of large household
items and brush, and operation of an annual brush/leaf composting drop-off site.
OBJECTIVES:
- Continue weekly pickup of recyclable materials
- Hold curbside pickup of household and yard wastes in the Spring of the year
- Provide a leaf and yard waste disposal site in Fall of the year
HIGHLIGHTS/COMMENTS:
Revenues:
County Aid is a Hennepin County grant
Charges for Service includes City Clean-up fees and a
City Recycling Fee of $1.50 per month per household
Tranfers/other includes transfers. interest income and revenue sharing from the Recycling Contractor
Expenses:
Staffing:
Miscellaneous staffing for City Clean-up and Yardwaste Disposal
Supplies/Materials:
Office Supplies
Support Services:
Recycling contract with E-Z Recycling - $2.05/household/month for 2,400 households
City Clean-up costs
7
FUND: #62 FUND: Recycling DEPT # 84
BUDGET Actual Actual Budget YTD Sept Annual Proposed Adopted
ITEM 1997 1998 1999 1999 EST -99 2000 2000
REVENUE
County Aid 21,501 21,332 20,265 21,860 21,860 22,000 0
Charges for Service 50,389 69,925 65,700 41,179 65,050 66,550 0
Transfers/other 858 1,185 900 1,035 1,500 1,000 0
TOTAL REVENUE & 72,748 92,442 86,865 64,074 88,410 89,550 0
OTHER SOURCES
EXPENSES
Staffing 571 1,424 1,526 543 1,096 1,526 0
Supplies/Materials 2,079 232 150 143 150 150 0
Support Services 70,150 78,712 83,310 65,530 83,020 84,760 0
Charges & Fees 0 0 0 0 0 0 0
Capital Outlay 0 0 0 0 0 0 0
Transfers 0 0 0 0 0 0 0
TOTAL EXPENSES 72,800 80,368 84,986 66,216 84,266 86,436 0
SERVICE INDICATORS:
Avg. mo. Participant Hshld 1,256 1,300
Avg. mo. tonage 80 70
CASH FLOW IMPACT:
Beginning Cash Balance 12,385 14,257 17 ,503 17,503 17,503 21,647 21,647
Revenues 72,748 92,442 86,865 64,074 88,410 89,550 0
Expenditures (72,800) (80,368) (84,986) (66,216) (84,266) (86,436) 0
Other Cash Flow Impacts 1,924 (8,828)
Ending Cash Balance 14,257 17,503 19,382 15,361 21,647 24,761 21,647
STAFFING:
8
FUND:
Stormwater Management
MISSION:
To provide proper surface water and
ground water management throughout
the City.
SUBFUND:
Stormwater Management
FUND NO: 63
DESCRIPTION OF ACTIVITY:
Activities include maintenance of storm sewer system, including cleaning of catch basins,
dredging of drainage ditches and retention ponds, and minor repairs to system problem areas.
Provides partial funding for larger subwatershed drainage projects.
OBJECTIVES:
HIGHLIGHTS/COMMENTS:
Revenues:
Stormwater Management Utility Charges
Misc. Revenue includes interest income and other misc. revenue
Transfers from the General Fund
Expenses:
Staffing:
.10 Senior Accounting Clerk
.10 Light Equipment Operator/Foreman
Supplies/Materials:
Drainage Correction/Maintenance Materials
Support Services:
Engineering
Contractual Services for drainage correction
Capital Outlay:
Gideon Glen Drainage Project
9
I .
, FUND: #63 FUND: Stormwater Management Utility DEPT # 85
BUDGET Actual Actual Budget YTD Sept Annual Proposed Adopted
ITEM 1997 1998 1999 1999 EST -99 2000 2000
REVENUE
Charges for Service 44,911 45,591 44,500 21,999 44,500 45,000 0
Misc. Revenue 12,932 12,889 6,500 7,719 9,500 6,500 0
Transfers 10,000 10,000 10,000 10,000 10,000 10,000 0
TOTAL REVENUE & 67,843 68,480 61,000 39,718 64,000 61,500 0
OTHER SOURCES
EXPENSES
Staffing 3,251 1,898 8,531 1,111 1,838 9,236 0
Supplies/Materials 2,278 119 4,000 1,350 2,500 4,000 0
Support Services 16,263 26,698 13,150 5,210 6,161 12,150 0
Charges & Fees 0 0 0 0 0 0 0
Capital Outlay 0 71,632 0 24,235 25,000 135,000 0
Transfers 0 0 0 0 0 0 0
TOTAL EXPENSES 21,792 100,347 25,681 31,906 35,499 160,386 0
SERVICE INDICATORS:
CASH FLOW IMPACT:
Beginning Cash Balance 189,385 233,903 199,404 199,404 199,404 227,905 227,905
Revenues 67,843 68,480 61,000 39,718 64,000 61,500 0
Expenditures (21,792) (100,347) (25,681 ) (31,906) (35,499) (160,386) 0
Other Cash Flow Impacts (1,533) (2,632) 0
Ending Cash Balance 233,903 199,404 234,723 207,216 227,905 129,019 227,905
STAFFING:
Sr. Acctg. Clerk .05 .05 .10 .10 .10 .10 .10
Lt. Equip. Oper./Foreman .10 .10 .10 .10 .10 .10 .10
10