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HomeMy WebLinkAboutEnterprise Funds FY14 budget work session_2 Commission Memorandum REPORT TO: Honorable Mayor and City Commission FROM: Anna Rosenberry, Administrative Services Director Chris Kukulski, City Manager SUBJECT: Fiscal Year 2014 (FY14) Budget Work Session – Enterprise Funds MEETING DATE: June 24, 2013 AGENDA ITEM TYPE: Work Session RECOMMENDATION: Listen to staff presentations, ask questions, give direction, as you see fit. BACKGROUND: This budget work session is intended for discussion and questions. The budget will be adopted during the Final Budget Hearing, scheduled for Monday, July 1, 2013. Tonight we will be going over the details of the budgets for our Enterprise Funds: 1. Water Fund (including Water Impact Fees) 2. Wastewater Fund (including Wastewater Impact Fees) 3. Storm Water Fund 4. Solid Waste Fund 5. Parking Fund All five funds are self-supporting operations, paid for with user fees. • We are recommending rate increases for Water (3% each year) and Wastewater (3% each year) Funds, and will be asking the Commission to adopt two-year rate resolutions in at the July 22nd meeting. (The public notice requirements for these rate hearings will need to begin on June 26th.) • Last year, a two-year rate resolution was adopted for the Storm Water Fund that included a ~4.5% rate increase for FY14. • The Solid Waste Fund budget was prepared with a “status quo” operation model and no rate increases included. Based on the operations report that was received from our consultant, the Commission may decide to change rates and make other significant changes to the FY14 budgets for Garbage Collection & Curb-side Recycling. This will be discussed later on the Commission agenda tonight. FISCAL EFFECTS: Although the Final Budget adoption has far-reaching fiscal effects, there are no immediate fiscal effects as a result of this work session. Attachments: Budget Discussion Worksheets Water Rate Study FY14-FY18 7 Wastewater Rate Study FY14-FY18 Revised CM Recommended Budget page 167 “Solid Waste Collection” Revised CM Recommended Budget page 170 “Solid Waste Recycling” Report compiled on: June 13, 2013 8 June 24, 2013 - Budget Discussion Sheets 1 Water & Sewer Rates In 2006, HDR Engineering completed Comprehensive 5-Year Water and Wastewater rate studies that included Cost-of- Service studies for all of our rate classes, as well as financial requirements for funding the systems. Since that time, we have been updating the 5-year finanical requirements models and adopting two-year rate resolutions. This year we updated the models for the next 5 year period (FY14-FY18.) This process helps us smooth rate increases that might fluctuate due to weather, changing consumption, and other factors. The Full Water Rate Study and Wastewater Rate Study for FY14-FY18 are attached at the back of this memo. We will be talking with the Commision about hiring a consultant to complete new Comprehensive Rate Studies for both systems in the coming year (FY15). With both of the systems having completed substantial plant expansion projects, and our increased amount of pipe replacements, a new analysis of how costs are assigned to customer classes would be helpful. Until that work is completed, we recommend making across-the-board increases to our existing rates for each cusomter class (Residential, Commercial, etc.) Water Rates: We are recommending a 3% increase in Water Rates for FY14 and FY15. These increses will help continue to fund the operations and capital improvements that are necessary for the system, and bring reserve levels very close to our target amount by FY18. The Rate Study includes plans to fund the FY14 personnel request for a Water Conservation Specialist, and adds one Water Operations crew member in FY15. Excerpt from Exhibit 9: Water Fund Rate Requirements Budgeted FY13 FY14 FY15 FY16 FY17 FY18 REQUIRED RATE ADJUSTMENT CUMULATIVE - 3.0%6.1%9.3%12.6%15.9% Proposed Rate Adjustment - ANNUALLY 4.5%3.0%3.0%3.0%3.0%3.0% Additional Revenue beyond Current Levels 193,707.10$ 397,123.99$ 610,619.92$ 834,577.57$ 1,069,391.93$ Average Residential Customer (10 CF, 3/4" Meter)38.43$ 40.16$ 41.36$ 42.61$ 43.88$ 45.20$ With Rate Increase 1.73 1.20$ 1.24$ 1.28$ 1.32$ 1.36$ 40.16$ 41.36$ 42.61$ 43.88$ 45.20$ 46.56$ Projected 9 June 24, 2013 - Budget Discussion Sheets 2 Excerpt from Exhibit 8: Wastewater Rates: We are recommending a 3% increase in Wastewater Rates for FY14 and FY15. Similar to the Water Rates, these increses will help continue to fund the operations and capital improvements that are necessary for the system, and bring reserve levels closer to our target amount by FY18. The Rate Study includes plans to fund the FY14 personnel requests (Share of Public Works Technician, and the full-time Wastewater Operations position). Excerpt from Exhibit 9 Reserves Recap Budgeted FY13 FY14 FY15 FY16 FY17 FY18 Water Fund Operating & Capital Reserve Beginning Balance 5,041,229.00 5,487,549.92 5,002,963.17 5,412,913.99 6,172,558.96 6,936,244.53 Add: Operating Revenues 6,739,692.00 6,962,938.41 7,108,789.07 7,205,193.73 7,309,498.20 7,456,528.17 Add: Additional Rate Revenue - 193,707.10 397,123.99 610,619.92 834,577.57 1,069,391.93 Less: Operating Expenditures (4,390,941.00) (4,196,713.00) (4,387,620.62) (4,536,112.06) (4,692,623.58) (4,832,599.40) Less: Capital Expenditures (1,741,514.00) (1,356,665.00) (1,380,220.00) (1,191,935.00) (1,359,645.00) (1,174,950.00) Less: Debt Service Payment (160,916.08) (689,530.27) (1,328,121.62) (1,328,121.62) (1,328,121.62) (1,328,121.62) Less: Funding of Debt Service Reserve (1,398,324.00) - - - Ending Balance - Water Fund 5,487,549.92 5,002,963.17 5,412,913.99 6,172,558.96 6,936,244.53 8,126,493.60 Ending Balance - Debt Service Reserve 1,398,324.00 1,398,324.00 1,398,324.00 1,398,324.00 1,398,324.00 Operating & Capital Reserve Target 8,145,637.89 8,121,691.97 8,145,228.53 8,163,535.69 8,182,831.63 8,200,088.93 45 O&M 541,348.89 517,402.97 540,939.53 559,246.69 578,542.63 595,799.93 Annual Deprec 7,604,289.00 7,604,289.00 7,604,289.00 7,604,289.00 7,604,289.00 7,604,289.00 Projected Wastewater Fund Rate Requirements Budgeted FY13 FY14 FY15 FY16 FY17 FY18 Proposed Rate Adjustment 6.0%3.0%3.0%3.0%3.0%3.0% Additional Revenue beyond Current Revenues 201,779.85$ 413,815.73$ 636,346.29$ 869,776.09$ 1,114,516.58$ Bond Coverage Ratio Average Residential Customer (10 CF, 3/4" Meter)41.55$ 44.04$ 45.36$ 46.73$ 48.13$ 49.57$ With Rate Increase 2.49$ 1.32$ 1.36$ 1.40$ 1.44$ 1.49$ 44.04$ 45.36$ 46.73$ 48.13$ 49.57$ 51.06$ Projected 10 June 24, 2013 - Budget Discussion Sheets 3 Excerpt from Exhibit 8 Reserves Recap Budgeted FY13 FY14 FY15 FY16 FY17 FY18 Wastewater Fund Operating & Capital Reserve Beginning Balance 1,496,429.00 2,365,020.00 2,789,557.26 3,105,752.47 2,281,470.43 3,933,781.64 Add: Operating Revenues 6,800,607.00 6,892,866.41 7,033,672.72 7,173,135.66 7,316,338.87 7,462,396.55 Add: Additional Rate Revenue - 201,779.85 413,815.73 636,346.29 869,776.09 1,114,516.58 Add: Grant Revenues - - - - - - Less: Operating Expenditures (4,482,736.00) (5,000,979.00) (5,022,313.25) (4,981,083.98) (5,230,623.75) (5,426,244.89) Less: Capital Expenditures (1,040,000.00) (1,251,650.00) (1,691,500.00) (3,235,200.00) (885,700.00) (1,045,850.00) Less: Debt Service Payment (1,237,480.00) (1,237,480.00) (1,237,480.00) (1,237,480.00) (1,237,480.00) (1,237,480.00) Plus: Impact Fee Debt Payment 828,200.00 820,000.00 820,000.00 820,000.00 820,000.00 820,000.00 Ending Balance - Wastewater Fund 2,365,020.00 2,789,557.26 3,105,752.47 2,281,470.43 3,933,781.64 5,621,119.88 Ending Balance - Debt Service Reserve 1,237,480.00 1,237,480.00 1,237,480.00 1,237,480.00 1,237,480.00 1,237,480.00 Operating & Capital Reserve Target 6,113,570.08 6,177,463.05 6,180,093.30 6,175,010.24 6,205,775.42 6,229,893.10 45 O&M 552,666.08 616,559.05 619,189.30 614,106.24 644,871.42 668,989.10 Annual Deprec 5,560,904.00 5,560,904.00 5,560,904.00 5,560,904.00 5,560,904.00 5,560,904.00 Projected 11 June 24, 2013 - Budget Discussion Sheets 4 Water Fund - FY14 Budget Worksheet Both the Water Plant and the Water Operations Divisions are paid for by the Water Fund. Water Plant information begins on page 149 of the City Manager’s (CM) Recommended Budget document. Water Operations information begins on page 153 of the CM Recommended Budget document. Water Fund – FY14 Expenditure Total $6.1 Million The Water Fund is an enterprise fund that supports the operations of water treatment and distribution. It is a self-funded utility; the primary source of revenue is from water customer payments. The proposed budget for FY14 is as follows: Personnel: The FY14 budget proposes adding a full time (1.0 FTE) Water Conservation Specialist. This position would be responsible for expanding the City’s water conservation programs, as outlined by the Integrated Water Resource Plan. Personnel & Benefits 29% Operating 41% Capital 17% Debt Service 13% Water Fund - FY14 12 June 24, 2013 - Budget Discussion Sheets 5 Capital Projects: With the construction of the new Water Plant (expected to be completed in December) entirely budget in previous years, Capital Projects are lower than prior years and account for 12% of the Water Fund budget this year. Water Fund Capital Projects Include: CIP W04 Water Pipe Annual Projects $ 974,165 CIP W03 Engineering Design for Rehab $ 22,500 CIP W24 Fixed Base Meter Read System $ 60,000 Total $ 1,056,665 Water Fund – FY14 Revenues Total $7.1 Million Rates: The CM Recommended Budget is based on a 3% increase in water rates. In addition to rate increases, Water Sales and Impact Fee collections affect the Funds finances. a. Water sales had declined in FY09 & FY10, due weather changes (drought ending,) conservation efforts, and the local economy. With May and June still unaccounted for, we are trending ahead of our estimate for FY13, thanks to strong water sales in the summer of 2012. Annually, the months of July through October reflect the weather-related water sales changes. In wet years, we will see flat or declining sales; in dry years (e.g. FY08) we will see expanded sales. The chart below shows water sales for those months during the past 5 years. b. Water Impact Fees are accounted for in a separate fund for budgeting purposes. However, because of the tie between the current Plant construction project and water customer rates, the amount of Water Impact Fee collections is an important factor. Our rate models for FY12-16 assumed higher estimates of Impact Fee Revenues than we had seen in previous years. That estimate played-out and continues to surge, with FY13 Year to Date collections at $1.6 Million. 13 June 24, 2013 - Budget Discussion Sheets 6 c. Purchase of Water Rights have been included in our rate models, with $200,000 per year in utility money to purchase water rights. This recent policy change is meant to be in addition to the current “Cash in Lieu of Water Rights” program related to annexations and development projects. 14 Date: 6/11/2013 FY14 Water Fund FY14 CM RECOMMENDED BUDGET DESCRIPTION FY14 CM RECOMMENDED BUDGET ADDITIONAL EARNINGS $31,720.00 ADMINISTRATIVE OVERHEAD $646,481.00 ADVERTISING $6,000.00 BOOKS & REFERENCE MTRLS $1,900.00 CHEMICALS $240,000.00 CLOTHING & UNIFORMS $7,600.00 COMPUTER SUPPLIES $3,700.00 COMPUTERS & SERVERS < $5K $11,500.00 CONSULTANTS & PROF SERV $95,400.00 DUES & CERTIFICATIONS $9,434.00 ELECTRICITY $120,000.00 F.I.C.A.$85,217.00 GASOLINE AND OIL $42,500.00 GENERAL $618,880.00 GOODS PURCHSD FOR RESALE $112,052.00 HEALTH/DENTAL INSURANCE $215,306.00 IMP:INFRASTRUCTURE+IMPROV $996,665.00 IN-STATE $14,200.00 INSURANCE $208,222.00 INTEREST $408,991.00 INTERNET $12,000.00 LIFE INSURANCE $809.00 LONGEVITY $12,843.00 M&E:COMPUTER HARDWARE $60,000.00 MAINTENANCE CONTRACTS $24,354.00 MEDICAL SERVICES $2,600.00 NATURAL GAS $78,000.00 OFFICE SUPPLIES $8,850.00 OUT-OF-STATE $16,250.00 OVERTIME $50,456.00 PERS $97,668.00 POSTAGE $25,300.00 PRINCIPAL $377,708.00 PROPANE GAS FOR BUILDINGS $5,000.00 REFUSE DISPOSAL $2,500.00 REGULAR EARNINGS $1,190,885.00 RENTS & LEASES $4,500.00 REPAIR & MAINT - OTHER $24,000.00 REPAIR & MAINT- BUILDINGS $4,000.00 REPAIR & MAINT- EQUIPMENT $51,700.00 ROAD SUPPLIES $9,000.00 Water Fund Budget Summary with Chart.imr 15 Date: 6/11/2013 FY14 Water Fund FY14 CM RECOMMENDED BUDGET DESCRIPTION FY14 CM RECOMMENDED BUDGET SHIPPING & HANDLING $500.00 SMALL EQUIPMENT AND TOOLS $4,500.00 SUBSCRIPTIONS $550.00 TAXES & ASSESSMENTS $7,900.00 TELEPHONE $11,380.00 UNEMPLOYMENT TAX $3,257.00 VEH MAINT FUND ALLOCATION $24,936.00 VEHICLE SUPPLIES $7,000.00 WATER SERVICE $20,000.00 WORKERS' COMP $42,486.00 TOTAL $6,056,700.00 Water Fund Budget Summary with Chart.imr 16 June 24, 2013 - Budget Discussion Sheets 7 Wastewater Fund – FY14 Budget Worksheet Both the Water Reclamation Facility (WRF) and the Wastewater Operations Divisions are paid for by the Wastewater Fund. Water Reclamation Facility information begins on page 161 of the City Manager’s Recommended Budget document. Wastewater Operations information begins on page 157 of the City Manager’s Recommended Budget document. Wastewater Fund - FY14 Expenditure Total $7.6 Million The Wastewater Fund is an enterprise fund that supports the operations of water treatment and distribution. It is a self-funded utility; the primary source of revenue is from wastewater customer payments. The proposed expenditure budget for FY14 is as follows: Personnel: The FY14 budget for the Water Reclamation Facility (WRF) proposes adding a seasonal staff position for grounds keeping (0.5 FTE) and a seasonal staff position for dredge operations (0.6 FTE). The FY14 Wastewater Operations budget includes the addition of 1.0 FTE Wastewater Operations Service Worker, and the funding of 1/3 of the Public Works Technician position. Contracted Services: The Solvent Site Remediation Project is paid for by sewer customers. We have incorporated the new estimates for the clean-up and monitoring, as prepared by our consultants. The FY14 budget includes $565,365 for unreimbursed expenses related to the active bio-remediation and monitoring of the site. We have included this amount budgeted for contracted services, as it will be delivered by a number of vendors currently working under contract. 17 June 24, 2013 - Budget Discussion Sheets 8 Capital Projects: The Wastewater fund’s capital projects include: Wastewater Fund Capital Projects Include: CIP WW08 - Wastewater Pipe Annual Projects $ 1,003,150 CIP WW07 -Wastewater Pipe Engineering/Design $ 22,500 CIP WW02 - 1 Ton Truck with Hoist $ 45,000 CIP WW32 - Replace Lift #1 Pump (WRF) $ 19,000 CIP WW32 - Fishing Access Latrine (WRF) $ 10,000 Cityworks Site License Share (WRF) $ 12,000 CIP WW30- New Digestor Draft Tube Mixer (WRF) $ 42,000 Total $ 1,153,650 Wastewater Fund - FY14 Revenues Total $7.1 Million The CM Recommended Budget includes the 3% rate increase for all customer classes. Unlike water rates, wastewater rates do NOT see the fluctuation related to summer weather watering. Wastewater rates are based on a customer’s “winter-quarter average” water consumption. Wastewater Impact Fees are accounted for in a separate fund for accounting purposes. And, because of the tie between the WRF Plant construction project and wastewater customer rates, the amount of Wastewater Impact Fee collections is an important factor. Like with Water rates, we increased our estimates of Wastewater Impact Fee revenues for FY12 and FY13. And, like with Water Impact Fees, that estimate has been significantly exceeded for actual revenues in FY13 year-to-date. 18 Date: 6/16/2013 FY14 Wastewater Fund FY14 CM RECOMMENDED BUDGET DESCRIPTION FY14 CMRECOMMENDED BUDGET ADDITIONAL EARNINGS $29,564.00 ADMINISTRATIVE OVERHEAD $533,226.00 ADVERTISING $1,300.00 BONDS $1,200,000.00 BOOKS & REFERENCE MTRLS $700.00 CHEMICALS $157,000.00 CLOTHING & UNIFORMS $5,600.00 COMPUTER SUPPLIES $3,650.00 COMPUTERS & SERVERS < $5K $2,000.00 CONSULTANTS & PROF SERV $585,365.00 DUES & CERTIFICATIONS $2,342.00 DUES & SUBSCRIPTIONS $2,642.00 ELECTRICITY $390,500.00 ENGINEERS $110,000.00 F.I.C.A. $122,051.00 GASOLINE AND OIL $65,000.00 GENERAL $246,680.00 HEALTH/DENTAL INSURANCE $338,876.00 IMP:INFRASTRUCTURE+IMPROV $1,025,650.00 IN-STATE $12,450.00 INSURANCE $160,918.00 INTERNET $7,500.00 JANITORIAL CONTRACTS $11,500.00 LIFE INSURANCE $1,161.00 LONGEVITY $22,202.00 M&E:COMPUTER SOFTWARE $12,000.00 M&E:MACH+EQUIP/HEAVY TRUK $71,000.00 MAINTENANCE CONTRACTS $40,200.00 MEDICAL SERVICES $3,000.00 NATURAL GAS $49,750.00 OFFICE SUPPLIES $6,900.00 OUT-OF-STATE $15,750.00 OVERTIME $57,168.00 PERS $139,412.00 PERSONAL COMPUTERS $8,000.00 POSTAGE $19,300.00 REFUSE DISPOSAL $26,500.00 REGULAR EARNINGS $1,629,931.00 RENTS & LEASES $18,500.00 REPAIR & MAINT - OTHER $31,000.00 0 400,000 800,000 1,200,000 1,600,000 ADDITIONAL EARNINGS ADMINISTRATIVE OVERHEAD ADVERTISING BONDS BOOKS & REFERENCE MTRLS CHEMICALS CLOTHING & UNIFORMS COMPUTER SUPPLIES COMPUTERS & SERVERS < $5K CONSULTANTS & PROF SERV DUES & CERTIFICATIONS DUES & SUBSCRIPTIONS ELECTRICITY ENGINEERS F.I.C.A. GASOLINE AND OIL GENERAL HEALTH/DENTAL INSURANCE IMP:INFRASTRUCTURE+IMPROV IN-STATE INSURANCE INTERNET JANITORIAL CONTRACTS LIFE INSURANCE LONGEVITY M&E:COMPUTER SOFTWARE M&E:MACH+EQUIP/HEAVY TRUK MAINTENANCE CONTRACTS MEDICAL SERVICES NATURAL GAS OFFICE SUPPLIES OUT-OF-STATE OVERTIME PERS PERSONAL COMPUTERS POSTAGE REFUSE DISPOSAL REGULAR EARNINGS RENTS & LEASES REPAIR & MAINT - OTHER REPAIR & MAINT- BUILDINGS REPAIR & MAINT- EQUIPMENT ROAD SUPPLIES SEWER SERVICE SHIPPING & HANDLING SMALL EQUIPMENT AND TOOLS SUBSCRIPTIONS TAXES & ASSESSMENTS TELEPHONE UNEMPLOYMENT TAX VEH MAINT FUND ALLOCATION VEH:AUTOS + LIGHT TRUCKS VEHICLE SUPPLIES WATER SERVICE WORKERS' COMP Wastewater Fund - Operations & Plant FY14 Budget Request 19 Date: 6/16/2013 FY14 Wastewater Fund FY14 CM RECOMMENDED BUDGET DESCRIPTION FY14 CMRECOMMENDED BUDGET REPAIR & MAINT- EQUIPMENT $70,500.00 ROAD SUPPLIES $12,500.00 SEWER SERVICE $800.00 SHIPPING & HANDLING $900.00 SMALL EQUIPMENT AND TOOLS $13,400.00 SUBSCRIPTIONS $700.00 TAXES & ASSESSMENTS $29,000.00 TELEPHONE $8,380.00 UNEMPLOYMENT TAX $4,628.00 VEH MAINT FUND ALLOCATION $12,685.00 VEH:AUTOS + LIGHT TRUCKS $45,000.00 VEHICLE SUPPLIES $5,400.00 WATER SERVICE $3,800.00 WORKERS' COMP $68,969.00 TOTAL $7,562,950.00 20 June 24, 2013 - Budget Discussion Sheets 9 Storm Water Fund This is the City’s newest enterprise fund/utility. It was created in FY13, with rates adopted for the FY13 and FY14 Years. Storm Water program information begins on page 146 of the CM Recommended Budget document. We are proceeding according to the plan established last year. Mapping efforts continue. This summer, the new TV Van is being used to assess the condition of the storm water underground system. The van retro-fit was funded and completed in FY13, and will prove critical to expanding our understanding and planning for future utility projects. Because of our need to fund the TV Van retro-fit in FY13 ($130,000), there was a budget deficit in the first year of the utility. That amount will be recovered in the rates collected in FY14. Personnel: As anticipated last year, we have included the costs of 1/3 Public Works Technician position to assist with the sampling and permit compliance related to the Storm Water system. Capital: There is no capital budgeted in FY14. Customer Charges will increase by ~4.5% in FY14, as already adopted. The majority of customers will pay $1.75 per month for the Storm Water utility in FY14 Storm Water Fund FY13 Budget FY14 CM Recommended Revenues: 225,000$ 236,250$ Expenditures:(247,140)$ (125,586)$ Surplus/Deficit:(22,140)$ 110,664$ METHOD B Per Meter Per Month, by Meter Size (similar to current Water Base Charge) Size:Factor Count Charge/Month 5/8"1.00 9,875 1.67$ 1.75$ 1.86$ 1.97$ 2.09$ 1"1.32 449 2.21$ 2.32$ 2.46$ 2.61$ 2.76$ 1 1/2"2.08 176 3.48$ 3.65$ 3.87$ 4.10$ 4.35$ 2"3.03 64 5.06$ 5.31$ 5.63$ 5.97$ 6.32$ 3"5.24 8 8.74$ 9.18$ 9.73$ 10.31$ 10.93$ 4"8.40 10 14.02$ 14.72$ 15.60$ 16.54$ 17.53$ 6"15.66 2 26.12$ 27.43$ 29.07$ 30.82$ 32.67$ 8"24.75 2 41.30$ 43.37$ 45.97$ 48.73$ 51.65$ 10,586 21 Date: 6/16/2013 FY14 Storm Water Fund FY14 CM RECOMMENDED BUDGET DESCRIPTION FY14 CMRECOMMENDED BUDGET REGULAR EARNINGS $72,688.00 COMPUTER SUPPLIES $15,556.00 HEALTH/DENTAL INSURANCE $6,684.00 GENERAL $5,400.00 MAINTENANCE CONTRACTS $5,287.00 F.I.C.A. $4,054.00 IN-STATE $3,620.00 PERS $3,424.00 GASOLINE AND OIL $3,000.00 SMALL EQUIPMENT AND TOOLS $2,000.00 OUT-OF-STATE $1,500.00 WORKERS' COMP $1,211.00 TELEPHONE $960.00 UNEMPLOYMENT TAX $167.00 LIFE INSURANCE $35.00 TOTAL $125,586.00 0 20,000 40,000 60,000 80,000 REGULAR EARNINGS COMPUTER SUPPLIES HEALTH/DENTALINSURANCE GENERAL MAINTENANCECONTRACTS F.I.C.A. IN-STATE PERS GASOLINE AND OIL SMALL EQUIPMENTAND TOOLS OUT-OF-STATE WORKERS' COMP TELEPHONE UNEMPLOYMENT TAX LIFE INSURANCE Storm Water Fund FY14 Budget Request 22 June 24, 2013 - Budget Discussion Sheets 10 Solid Waste Fund – FY14 Budget Worksheet The Solid Waste Fund accounts for our garbage collection and recycling divisions. Solid Waste Collection information begins on page 165 of the CM Recommended Budget Document, and Recycling begins on page 168. Due to an error in the Financial Information (which was incorrectly combined in the Budget Document), we are attaching Corrected Page 167 and Corrected Page 170. The Commission will be hearing recommendations for future garbage collection and recycling program operations. For CM Recommended Budget development, we kept the status quo for both charges and services provided. This can be changed prior to Final Budget adoption, or mid-year with administrative budget amendments, in order to affect any of the consultants recommendations. Solid Waste Fund - FY14 Revenues Total $2.55 Million Solid Waste Fund - FY14 Expenditures Total $3 Million 23 June 24, 2013 - Budget Discussion Sheets 11 Capital Items: Total $659,984 • CIP SW27 – Replacement of Front Load Truck $250,000 • CIP SW28 – Replacement of Side Load Truck $275,000 • CIP SW26 – Side Load Packer Replacement (postponed in FY13) $134,984 24 June 24, 2013 - Budget Discussion Sheets 12 Parking Fund – FY14 Budget Worksheet The Parking Enterprise Fund is managed by the city’s Parking Commission. Their budget is developed with the help of the Parking Manger and approved by the City Commission. The Parking budget discussion begins on page 135 of the CM Recommended Budget Document. The Budget Highlights should read: “In FY14: Parking enforcement gained 1 FTE from the Police Department” (It will be corrected for inclusion in the final document.) This change will consolidate city- wide parking enforcement officers (those that are now sworn police officers) under the Parking Manager’s supervision. The Parking Fund will receive ticket revenue from the tickets this position writes. Parking Fund - FY14 Revenues Total $558,500 The Parking Fund’s largest source of revenue is also the most unpredictable source: Fines & Forfeitures. These are the revenues derived from parking tickets issued to those that violate parking regulations. Parking Fund - FY14 Expenditures Total $487,111 25 June 24, 2013 - Budget Discussion Sheets 13 26 Date: 6/11/2013 FY14 Parking Fund FY14 CM RECOMMENDED BUDGET DESCRIPTION FY14 CM RECOMMENDED BUDGET ADMINISTRATIVE OVERHEAD $60,000.00 ADVERTISING $500.00 CLOTHING & UNIFORMS $1,200.00 COMPUTER SUPPLIES $250.00 CONSULTANTS & PROF SERV $3,000.00 ELECTRICITY $22,000.00 F.I.C.A.$12,236.00 GASOLINE AND OIL $4,900.00 GENERAL $50,700.00 HEALTH/DENTAL INSURANCE $51,390.00 IN-STATE $500.00 INSURANCE $13,000.00 JANITORIAL CONTRACTS $12,000.00 LIFE INSURANCE $174.00 MAINTENANCE CONTRACTS $5,500.00 NATURAL GAS $1,000.00 OFFICE SUPPLIES $4,100.00 OUT-OF-STATE $3,000.00 PERS $17,165.00 POSTAGE $9,000.00 REFUSE DISPOSAL $100.00 REGULAR EARNINGS $176,834.00 REPAIR & MAINT - OTHER $3,500.00 REPAIR & MAINT- BUILDINGS $1,500.00 REPAIR & MAINT- EQUIPMENT $3,000.00 ROAD SUPPLIES $125.00 SEWER SERVICE $1,000.00 STORM WATER $100.00 TAXES & ASSESSMENTS $4,500.00 TELEPHONE $4,450.00 UNEMPLOYMENT TAX $533.00 UTILITIES / INTERNET $1,500.00 VEH MAINT FUND ALLOCATION $750.00 VEHICLE SUPPLIES $750.00 WATER SERVICE $1,550.00 WORKER'S COMP $6,304.00 TOTAL $478,111.00 Parking Fund Budget Summary with Chart.imr 27 DRAFTWater Rate Revenue Requirements FY14‐FY18FactorsCity of BozemanWater Rate StudyExhibit 1Escalation FactorsBudgetedFY13 FY14 FY15 FY16 FY17 FY18RevenuesRates ‐ Acct Growth1.0% 2.0% 2.0% 2.0% 2.0% 2.0%Other Revenues1.0% 1.0% 1.0% 1.0% 2.0% 2.0%Interest Income0.75% 1.0% 1.0% 1.5% 1.5% 2.0%ExpensesUtilities3.0% 3.0% 3.0% 3.0% 3.0% 3.0%Labor3.9% 2.0% 2.5% 2.5% 2.5% 2.5%Benefits ‐ Medical10.0% 8.0% 8.0% 8.0% 8.0% 8.0%Materials & Supplies3.0% 3.0% 3.0% 3.0% 3.0% 3.0%Chemicals10.0% 10.0% 10.0% 10.0% 10.0% 10.0%Electricity8.0% 8.0% 8.0% 8.0% 8.0% 8.0%Natural Gas5.0% 5.0% 5.0% 5.0% 5.0% 5.0%Gas & Oil8.0% 8.0% 8.0% 8.0% 8.0% 8.0%Equipment3.0% 5.0% 5.0% 5.0% 5.0% 5.0%Miscellaneous2.0% 3.0% 3.0% 3.0% 3.0% 3.0%Debt ServiceRevenue Bond (Outstanding)Term in Years202020202020Rate5.50%New SRF LoanTerm in Years202020202020Rate3.75% 3.00% 3.00% 3.00% 3.00% 3.00%Projected6/16/201328 DRAFTWater Rate Revenue Requirements FY14‐FY18RevenuesCity of BozemanWater Rate StudyExhibit 2RevenuesActuals BudgetedFY12 FY13 FY14 FY15 FY16 FY17 FY18Rate RevenuesRate Revenues6,426,858.00          6,368,949.00      6,496,327.98      6,626,254.54       6,758,779.63      6,893,955.22      7,031,834.33      Unmetered Sales2,505.00                 2,550.00              2,575.50              2,601.26               2,627.27              2,679.81              2,733.41              Low Income Discount(13,075.00)              (12,000.00)          (12,000.00)          (12,000.00)           (12,000.00)          (12,000.00)          (12,000.00)          ACH Discount(30,851.00)              (30,000.00)          (30,000.00)          (30,000.00)           (30,000.00)          (30,000.00)          (30,000.00)          Total Rate Revenue6,385,437.00          6,329,499.00      6,456,903.48      6,586,855.79       6,719,406.90      6,854,635.04      6,992,567.74      Other RevenuesSales of Water Materials74,679.00               55,000.00            100,000.00         101,000.00          102,010.00         104,050.20         106,131.20         Hydrant Fees159,338.00             137,713.00         139,090.13         140,481.03          141,885.84         144,723.56         147,618.03         Interest Income142,875.00             105,000.00         94,000.00            105,778.00          65,470.00            26,140.00            26,662.80            Refunds & Reimb2,528.00                 1,030.00              1,040.30              1,050.70               1,061.21              1,082.43              1,104.08              Hookup Charges28,824.00               20,000.00            30,000.00            30,300.00             30,603.00            31,215.06            31,839.36            Other/Grants 87,830.00               45,450.00            95,904.50            96,863.55             97,832.18            99,788.82            101,784.60         Late Charges26,937.00               24,000.00            24,000.00            24,240.00             24,482.40            24,972.05            25,471.49            Hang Tag Charges26,100.00               22,000.00            22,000.00            22,220.00             22,442.20            22,891.04            23,348.86            Total Other Revenue549,111.00             410,193.00         506,034.93         521,933.28          485,786.83         454,863.17         463,960.43         Operating Revenues6,934,548.00          6,739,692.00      6,962,938.41      7,108,789.07       7,205,193.73      7,309,498.20      7,456,528.17      Other: Contributed Capital564,404.00            ‐                        Cash in Lieu of Water Rights113,676.00            ‐                       Grand Total7,612,628.00         6,739,692.00     6,962,938.41     7,108,789.07      7,205,193.73     7,309,498.20     7,456,528.17     Projected6/16/201329 DRAFTWater Rate Revenue Requirements FY14‐FY18Operating ExpendituresCity of BozemanWater Rate StudyExhibit 3Operating ExpendituresActuals BudgetedFY12 FY13 FY14 FY15 FY16 FY17 FY18Water PlantWater Treatment Plant OpsPersonnel574,485.00       576,055.00     687,012.00     704,187.30     721,791.98     719,836.78     737,832.70     FY14 ‐ 2FTE's, 2 Months StartupBenefits ‐ Medical87,740.00          96,681.00        105,681.00     114,135.48     123,266.32     133,127.62     143,777.83     FY14 ‐ 1 FTE Water Consv Spec.Overtime34,224.00          26,583.00        26,583.00        26,583.00        26,583.00         26,583.00        26,583.00        Total Personnel696,449.00       699,319.00     819,276.00     655,730.00     655,730.00     655,730.00     655,730.00     Operations725,551.00       949,118.00     920,532.00     948,147.96     976,592.40     1,005,890.17  1,036,066.88  Chemicals165,111.00       160,000.00     240,000.00     264,000.00     290,400.00     319,440.00     351,384.00     Gas & Oil8,147.00            10,500.00        10,500.00        11,340.00        12,247.20         13,226.98        14,285.13        Electricity49,041.00          60,000.00        80,000.00        86,400.00        93,312.00         100,776.96     108,839.12     Natural Gas32,186.00          50,000.00        70,000.00        73,500.00        77,175.00         81,033.75        85,085.44        Total Operations980,036.00       1,229,618.00  1,321,032.00  1,383,387.96  1,449,726.60  1,520,367.86  1,595,660.56  Water OperationsWater OperationsPersonnel1,027,255.00    1,051,558.00  769,843.00     829,089.08     849,816.30     871,061.71     892,838.25     +1 FTE in FY15Benefits ‐ Medical172,211.00       187,374.00     88,805.00        107,909.40     116,542.15     125,865.52     135,934.77     +1 FTE in FY15Overtime11,673.00          23,873.00        23,873.00        23,873.00        23,873.00         23,873.00        23,873.00        Total Personnel1,211,139.00    1,262,805.00  761,973.00     960,871.48     990,231.45     1,020,800.23  1,052,646.02  Operations682,349.00       690,246.00     766,357.00     789,347.71     813,028.14     837,418.99     837,418.99     Chemicals‐                      ‐                    ‐                    ‐                    ‐                     ‐                    ‐                    Gas & Oil31,298.00          30,000.00        32,000.00        34,560.00        37,324.80         40,310.78        43,535.65        Electricity45,008.00          40,000.00        40,000.00        43,200.00        46,656.00         50,388.48        54,419.56        Natural Gas7,049.00            8,000.00          8,000.00          8,400.00          8,820.00           9,261.00          9,724.05          Total Operations765,704.00       768,246.00     786,357.00     875,507.71     905,828.94     937,379.25     945,098.24     Utility LocatesPersonnel‐                      ‐                    ‐                    ‐                    ‐                     ‐                    ‐                    Benefits ‐ Medical‐                      ‐                    ‐                    ‐                    ‐                     ‐                    ‐                    Overtime‐                      ‐                    ‐                    ‐                    ‐                     ‐                    ‐                    Total Personnel‐                      ‐                    ‐                    ‐                    ‐                     ‐                    ‐                    Operations7,443.00            7,250.00          7,450.00          7,673.50          7,903.71           8,140.82          8,385.04          Total Operations7,443.00            7,250.00          7,450.00          7,673.50          7,903.71           8,140.82          8,385.04          Water ServicesOperations27,433.00          35,000.00        35,000.00        37,800.00        40,824.00         44,089.92        47,617.11        Total Operations27,433.00          35,000.00        35,000.00        37,800.00        40,824.00         44,089.92        47,617.11        Projected6/16/201330 DRAFTWater Rate Revenue Requirements FY14‐FY18Operating ExpendituresMeter ReadingPersonnel112,007.00       60,549.00        106,955.00     109,628.88     112,369.60     115,178.84     118,058.31     Benefits ‐ Medical23,388.00          14,304.00        20,820.00        22,485.60        24,284.45         26,227.20        28,325.38        Overtime 2,775.00             ‐                    ‐                    2,775.00          2,775.00           2,775.00          2,775.00          Total Personnel138,170.00       74,853.00        127,775.00     134,889.48     139,429.04     144,181.04     149,158.69     Operations162,833.00       228,850.00     230,350.00     237,260.50     244,378.32     251,709.66     259,260.95     Chemicals‐                      ‐                    Gas & Oil‐                      ‐                    Electricity‐                      ‐                    Natural Gas‐                      ‐                    Total Operations162,833.00       228,850.00     230,350.00     237,260.50     244,378.32     251,709.66     259,260.95     HydrantsOperations11,051.00          50,000.00        50,000.00        54,000.00        58,320.00         62,985.60        68,024.45        Total Operations11,051.00          50,000.00        50,000.00        54,000.00        58,320.00         62,985.60        68,024.45        ValvesOperations17,760.00          15,000.00        17,500.00        18,900.00        20,412.00         22,044.96        23,808.56        Total Operations17,760.00          15,000.00        17,500.00        18,900.00        20,412.00         22,044.96        23,808.56        Main RepairsOperations7,279.00            20,000.00        20,000.00        21,600.00        23,328.00         25,194.24        27,209.78        Total Operations7,279.00            20,000.00        20,000.00        21,600.00        23,328.00         25,194.24        27,209.78        Grand Total Operating Expenses 4,025,297.00   4,390,941.00 4,176,713.00 4,387,620.62 4,536,112.06 4,692,623.58 4,832,599.40 ck figreport11470790 67191545933687capital & debt7451297 23282131843364diff(5,804.00)          ‐                   (86,390.00)      Past Rate Study Amounts4,164,685.00   4,310,839.00 4,452,120.00 4,600,743.00 4,733,825.00 diff139,388.00      (80,102.00)     275,407.00    213,122.38    197,712.94    6/16/201331 DRAFTWater Rate Revenue Requirements FY14‐FY18Capital Expenditures ‐ Wat FundCity of BozemanWater Rate StudyExhibit 4Capital Expenditures ‐ Water FundActuals BudgetedFY12FY13FY14FY15FY16FY17FY18Totals   ‐                   ‐                   ‐                   ‐                    ‐                     Water OperationsW03 ‐ Bi Annual Eng‐                    22,500.00        22,500.00        22,500.00        22,500.00        22,500.00        W04 ‐ BiAnnual Upgrades968,400.00      1,205,720.00   974,165.00      1,147,720        969,435            1,097,145        952,450            W12 ‐ 1 Ton Truck with Hoist46,794.00        WW23 ‐ Mini Excavator & Trailer (Share)25,000.00        PW02 ‐ Laurel Glen Shop (Carryover)72,432.00        78,000.00        W16 ‐ Backhoe (Carryover)96,000.00        GF99 ‐ IBM i5 Replacement2,040.00          W15 ‐ Meter Van17,432.00        W24 ‐ Fixed Base Meter Read System90,000.00        60,000.00        W26 ‐ Internal Pipeline Assmt of Sourdough50,000.00        W25 ‐ Replacement Vehicle (Plant)40,000.00        W27 ‐ ReEngineering the Lyman Tank Liner50,000.00        PW01 ‐ Shops Facilty Expansion Plan‐                    10,000.00        ***Water Right Purchase***200,000.00      200,000.00      200,000.00      200,000.00      200,000.00      200,000.00      200,000.00      Grand Total ‐ Capital Expenditures for Water Fund1,260,304.00  1,741,514.00  1,356,665.00  1,380,220.00  1,191,935.00  1,359,645.00  1,174,950.00  Less:  Funding Sources other than RatesGrants‐                    ‐                    ‐                    ‐                     ‐                    ‐                    ‐                    ‐                     Cash on Hand‐                    ‐                    ‐                    ‐                     ‐                     SRF Loan‐                    ‐                    ‐                    ‐                     ‐                    ‐                    ‐                    ‐                      ‐                    Total Funding Sources other than Rates‐                    ‐                    ‐                    ‐                     ‐                    ‐                    ‐                    Rate Revenues Required for CIP1,260,304.00   1,741,514.00   1,356,665.00   1,380,220.00   1,191,935.00   1,359,645.00   1,174,950.00   Projected6/16/201332 DRAFTWater Rate Revenue Requirements FY14‐FY18Capital Expenditures ‐ ImpactCity of BozemanWater Rate StudyExhibit 5Capital Expenditures ‐ Water Impact Fee FundActuals BudgetedFY12FY13FY14FY15FY16FY17FY18TotalsWater PlantW07 ‐ WTP Construction‐                     WIF‐04 Lyman Improvements (FY08 CIP Carryover)WIF‐01 Sourdough Creek damWIF‐09 Water Supply/Storage Expansion StudyWIF‐08 WTP Debt Service2,750,295.00  884,427.00      902,115.00       920,158.00      Grand Total ‐ Water Impact Fee Fund‐                   ‐                   ‐                   ‐                    ‐                   ‐                   ‐                   Projected6/16/201333 DRAFTWater Rate Revenue Requirements FY14‐FY18WTP ConstructionCity of BozemanWater Rate StudyExhibit 6Water Treatment Plant Construction ProjectActuals BudgetedFY12FY13FY14FY15FY16FY17FY18WTP  Water Fund‐                     ‐                     ‐                     Impact Fees‐                     ‐                     ‐                     Grand Total ‐ Project Costs‐                    ‐                    ‐                         ‐                     ‐                    ‐                    ‐                    Projected34 DRAFTWater Rate Revenue Requirements FY14‐FY18Debt ServiceCity of BozemanWater Rate StudyExhibit 7Water Fund Debt ServiceActuals BudgetedFY12 FY13 FY14 FY15 FY16 FY17 FY18WTP SRF LoanDebt Service Estimated Payments160,916.08$    $689,530.27 $1,328,121.62 $1,328,121.62 $1,328,121.62 $1,328,121.62Grand Total Debt Service‐                   160,916.08     $689,530.27$1,328,121.62 $1,328,121.62 $1,328,121.62 $1,328,121.62Projected35 DRAFTWater Rate Revenue Requirements FY14‐FY18Reserve RecapCity of BozemanWater Rate StudyExhibit 8Reserves RecapBudgetedFY13 FY14 FY15 FY16 FY17 FY18Water FundOperating & Capital ReserveBeginning Balance5,041,229.00  5,487,549.92    5,022,963.17    5,432,913.99     6,192,558.96      6,956,244.53    Add:  Operating Revenues6,739,692.00  6,962,938.41    7,108,789.07    7,205,193.73     7,309,498.20      7,456,528.17    Add:  Additional Rate Revenue‐                    193,707.10       397,123.99        610,619.92        834,577.57         1,069,391.93    Less:  Operating Expenditures(4,390,941.00) (4,176,713.00)   (4,387,620.62)   (4,536,112.06)    (4,692,623.58)    (4,832,599.40)   Less:  Capital Expenditures(1,741,514.00) (1,356,665.00)   (1,380,220.00)   (1,191,935.00)    (1,359,645.00)    (1,174,950.00)   Less:  Debt Service Payment(160,916.08)    (689,530.27)      (1,328,121.62)   (1,328,121.62)    (1,328,121.62)    (1,328,121.62)   Less:  Funding of Debt Service Reserve(1,398,324.00)   ‐                       ‐                      ‐                       Ending Balance ‐ Water Fund5,487,549.92  5,022,963.17    5,432,913.99    6,192,558.96     6,956,244.53      8,146,493.60  Ending Balance  ‐ Debt Service Reserve1,398,324.00    1,398,324.00    1,398,324.00     1,398,324.00      1,398,324.00   Operating & Capital Reserve Target8,145,637.89 8,119,226.22   8,145,228.53   8,163,535.69    8,182,831.63     8,200,088.93   45 O&M541,348.89     514,937.22       540,939.53       559,246.69        578,542.63        595,799.93       Annual Deprec7,604,289.00 7,604,289.00   7,604,289.00    7,604,289.00    7,604,289.00     7,604,289.00  Water Impact Fee FundBeginning Balance5,000,000.00  2,774,710.00    874,415.00        839,988.00        787,873.00         717,715.00       Add:  Impact Fee Revenues850,000.00     850,000.00       850,000.00        850,000.00        850,000.00         850,000.00       Add: SRF Loan Proceeds‐                    ‐                      ‐                       ‐                      ‐                       ‐                      Less:  Capital Expenditures‐                    ‐                      ‐                       ‐                      ‐                       ‐                      Less:  Debt Service(3,075,290.00) (2,750,295.00)   (884,427.00)      (902,115.00)       (920,158.00)        ‐                    Ending Balance ‐ Water Impact Fees2,774,710.00  874,415.00       839,988.00        787,873.00        717,715.00         1,567,715.00  Projected36 DRAFTWater Rate Revenue Requirements FY14‐FY18Rate RequirementsCity of BozemanWater Rate StudyExhibit 9Water Fund Rate RequirementsActuals BudgetedFY12 FY13 FY14 FY15 FY16 FY17 FY18RevenuesWater Sales6,385,437.00   6,329,499.00  6,456,903.48  6,586,855.79    6,719,406.90     6,854,635.04      6,992,567.74  Other Revenues549,111.00       410,193.00      506,034.93      521,933.28        485,786.83        454,863.17         463,960.43      Total Revenues6,934,548.00   6,739,692.00  6,962,938.41  7,108,789.07    7,205,193.73     7,309,498.20      7,456,528.17  ExpensesO&M ExpensesWater Treatment Plant Ops1,676,485.00   1,928,937.00  2,140,308.00  2,039,117.96    2,105,456.60     2,176,097.86      2,251,390.56  Water Operations1,976,843.00   2,031,051.00  1,548,330.00  1,836,379.19    1,896,060.40     1,958,179.48      1,997,744.26  Utility Locates7,443.00           7,250.00          7,450.00          7,673.50            7,903.71             8,140.82              8,385.04          Water Services27,433.00         35,000.00        35,000.00        37,800.00          40,824.00           44,089.92           47,617.11        Meter Reading301,003.00       303,703.00      358,125.00      372,149.98        383,807.36        395,890.71         408,419.64      Hydrants 11,051.00         50,000.00        50,000.00        54,000.00          58,320.00           62,985.60           68,024.45        Valves 17,760.00         15,000.00        17,500.00        18,900.00          20,412.00           22,044.96           23,808.56        Main Repairs7,279.00           20,000.00        20,000.00        21,600.00          23,328.00           25,194.24           27,209.78        Debt Service  New Plant Debt Service160,916.08      689,530.27      1,328,121.62    1,328,121.62     1,328,121.62      1,328,121.62  Rates Dedicated to CIP1,260,304.00   1,741,514.00  1,356,665.00  1,380,220.00    1,191,935.00     1,359,645.00      1,174,950.00  Total Expenses5,285,601.00   6,293,371.08  6,222,908.27  7,095,962.24    7,056,168.68     7,380,390.20      7,335,671.03  Balance or (Deficiency) of Funds1,648,947.00   446,320.92      740,030.14      12,826.83          149,025.05        (70,892.00)          120,857.14      Proposed Rate Adjustment ‐ ANNUALLY4.5%3.0% 3.0% 3.0% 3.0% 3.0%Additional Revenue beyond Current Levels 193,707.10$    397,123.99$     610,619.92$       834,577.57$        1,069,391.93$ Debt Service Coverage RatioMinimum:  1.25n/a2.35                  2.47                    2.60                     2.78                 Average Residential Customer (10 CF, 3/4" Meter)38.43$              40.16$              41.36$              42.61$                 43.88$                  45.20$              With Rate Increase1.73                  1.20$                 1.24$                 1.28$                   1.32$                    1.36$                 40.16$              41.36$              42.61$              43.88$                 45.20$                  46.56$              Projected37 DRAFT FactorsCity of BozemanWastewater Rate Study ‐ FY14 thru FY18Exhibit 1Escalation FactorsBudgetedFY13 FY14 FY15 FY16 FY17 FY18RevenuesRates ‐ Acct Growth1.0% 2.0% 2.0% 2.0% 2.0% 2.0%Other Revenues1.0% 1.0% 1.0% 1.0% 2.0% 2.0%Interest Income1.0% 1.0% 1.0% 1.0% 1.0% 1.0%ExpensesUtilities3.0% 3.0% 3.0% 3.0% 3.0% 3.0%Labor1.0% 2.0% 2.5% 2.5% 3.0% 3.5%Benefits ‐ Medical5.0% 10.0% 10.0% 10.0% 10.0% 10.0%Materials & Supplies3.0% 3.0% 3.0% 3.0% 3.0% 3.0%Chemicals10.0% 10.0% 10.0% 10.0% 10.0% 10.0%Electricity8.0% 8.0% 8.0% 8.0% 8.0% 8.0%Natural Gas5.0% 5.0% 5.0% 5.0% 5.0% 5.0%Gas & Oil8.0% 8.0% 8.0% 8.0% 8.0% 8.0%Equipment3.0% 5.0% 5.0% 5.0% 5.0% 5.0%Miscellaneous3.0% 3.0% 3.0% 3.0% 3.0% 3.0%Debt ServiceRevenue Bond (Outstanding)Term in Years202020202020Rate5.50%New SRF LoanTerm in Years202020202020Rate3.75% 3.75% 3.75% 3.75% 3.75% 3.75%Projected6/16/201338 DRAFTUpdated Rate Study FY14‐FY18RevenuesCity of BozemanWastewater Rate StudyExhibit 2RevenuesActuals BudgetedFY12 FY13 FY14 FY15 FY16 FY17 FY18Rate RevenuesRate Revenues6,345,773.00          6,610,554.00      6,742,765.08      6,877,620.38       7,015,172.79      7,155,476.25      7,298,585.77      Unmetered Sales25,148.00               23,000.00            23,230.00            23,462.30             23,696.92            24,170.86            24,654.28            Low Income Discount(14,543.00)              (13,000.00)          (15,000.00)          (10,000.00)           (10,000.00)          (10,000.00)          (10,000.00)          ACH Discount‐                           ‐                        (25,000.00)          (25,000.00)           (25,000.00)          (25,000.00)          (25,000.00)          Total Rate Revenue6,356,378.00          6,620,554.00      6,725,995.08      6,866,082.68       7,003,869.71      7,144,647.11      7,288,240.05      Other RevenuesSewer Hookup Charges370.00                     2,020.00              500.00                 505.00                  510.05                 520.25                 530.66                 Sale of Sewer Materials770.00                     3,030.00              3,060.30              3,090.90               3,121.81              3,184.25              3,247.93              Interest Income125,437.00             102,000.00         95,000.00            95,000.00             95,950.00            96,909.50            97,878.60            Refunds & Reimb79,966.00               30,603.00            30,909.03            31,218.12             31,530.30            32,160.91            32,804.13            Lift Stations15,456.00               17,000.00            17,000.00            17,170.00             17,341.70            17,688.53            18,042.30            Extra Strength Surcharge12,428.00               20,200.00            20,402.00            20,606.02             20,812.08            21,228.32            21,652.89            Other 12,942.00               5,200.00               ‐                         ‐                         ‐                         ‐                         ‐                        Sales 129.00                      ‐                         ‐                         ‐                         ‐                         ‐                         ‐                        Total Other Revenue247,498.00             180,053.00         166,871.33         167,590.04          169,265.94         171,691.76         174,156.50         Operating Revenues6,603,876.00          6,800,607.00      6,892,866.41      7,033,672.72       7,173,135.66      7,316,338.87      7,462,396.55      Other: Contributed Capital‐                          ‐                        Grants‐                          ‐                       Loan Proceeds719,347.00            ‐                       Grand Total7,323,223.00         6,800,607.00     6,892,866.41     7,033,672.72      7,173,135.66     7,316,338.87     7,462,396.55     Previous Study Numbers:6,387,504.00          6,822,414.17      7,283,935.00      7,838,177.00       8,428,068.00      Projected6/16/201339 DRAFTUpdated Rate Study FY14‐FY18Operating ExpendituresCity of BozemanWastewater Rate StudyExhibit 3Operating ExpendituresActuals BudgetedFY12FY13FY14FY15FY16FY17FY18Wastewater OperationsWastewater OperationsPersonnel518,118.00       624,569.00     1,075,575.00  1,102,464.38  1,130,025.98  1,163,926.76  1,204,664.20  +1FTE FY14, 1/3 FTE TechBenefits ‐ Medical75,924.00          72,804.00        188,586.00     207,444.60     228,189.06     251,007.97     276,108.76     +1FTE FY14, 1/3 FTE TechOvertime4,015.00            17,398.00        17,398.00        17,398.00        17,398.00         17,398.00        17,398.00        Total Personnel598,057.00       714,771.00     1,213,689.00  1,327,306.98  1,375,613.04  1,432,332.73  1,498,170.96  Operations498,914.00       535,113.00     562,681.00     579,561.43     596,948.27     614,856.72     633,302.42     ***Solvent Site ACTIVE Remediation 357,308.00      663,819.00           565,365.00    294,145.39    68,330.57        111,991.88    78,737.89       Chemicals 2,085.00            1,000.00          2,000.00          2,200.00          2,420.00           2,662.00          2,928.20          Gas & Oil17,989.00          20,000.00        22,000.00        23,760.00        25,660.80         27,713.66        29,930.76        Electricity17,793.00          20,500.00        20,500.00        22,140.00        23,911.20         25,824.10        27,890.02        Natural Gas8,333.00            9,750.00          9,750.00          10,237.50        10,749.38         11,286.84        11,851.19        Total Operations902,422.00       1,250,182.00  1,182,296.00  932,044.32     728,020.22     794,335.20     784,640.48     Utility LocatesPersonnel‐                      ‐                    ‐                    ‐                    ‐                     ‐                    ‐                    Benefits ‐ Medical‐                      ‐                    ‐                    ‐                    ‐                     ‐                    ‐                    Overtime‐                      ‐                    ‐                    ‐                    ‐                     ‐                    ‐                    Total Personnel‐                      ‐                    ‐                    ‐                    ‐                     ‐                    ‐                    Operations2,238.00            3,900.00          4,400.00          4,532.00          4,667.96           4,808.00          4,952.24          Chemicals‐                      ‐                    ‐                    ‐                    ‐                     ‐                    ‐                    Gas & Oil‐                      ‐                    ‐                    ‐                    ‐                     ‐                    ‐                    Electricity‐                      ‐                    ‐                    ‐                    ‐                     ‐                    ‐                    Natural Gas‐                      ‐                    ‐                    ‐                    ‐                     ‐                    ‐                    Total Operations2,238.00            3,900.00          4,400.00          4,532.00          4,667.96           4,808.00          4,952.24          Wastewater ServicesOperations3,831.00            8,000.00          5,000.00          5,150.00          5,304.50           5,463.64          5,627.54          Total Operations3,831.00            8,000.00          5,000.00          5,150.00          5,304.50           5,463.64          5,627.54          ManholesOperations6,347.00            25,000.00        25,000.00        27,000.00        29,160.00         31,492.80        34,012.22        Total Operations6,347.00            25,000.00        25,000.00        27,000.00        29,160.00         31,492.80        34,012.22        TelevisingOperations716.00               8,100.00          9,100.00          9,373.00          9,654.19           9,943.82          10,242.13        Total Operations716.00               8,100.00          9,100.00          9,373.00          9,654.19           9,943.82          10,242.13        Main RepairsProjected6/16/201340 DRAFTUpdated Rate Study FY14‐FY18Operating ExpendituresOperations205.00               8,000.00          5,000.00          5,400.00          5,832.00           6,298.56          6,802.44          Total Operations205.00               8,000.00          5,000.00          5,400.00          5,832.00           6,298.56          6,802.44          Wastewater PlantWastewater Plant Operations+Standby Begin FY14Personnel726,527.00       728,900.00     864,708.00     886,325.70     908,483.84     935,738.36     968,489.20     FY14 ‐ 1 FTE 1/3 Public Works TecBenefits ‐ Medical128,191.00       140,036.00     130,463.00     143,509.30     157,860.23     173,646.25     191,010.88     Overtime 36,358.00          39,770.00        39,770.00        39,770.00        39,770.00         39,770.00        39,770.00        Total Personnel891,076.00       908,706.00     983,551.00     1,069,605.00  1,106,114.07  1,149,154.61  1,199,270.08  Operations622,727.00       679,401.00     701,342.00     722,382.26     744,053.73     766,375.34     789,366.60     Chemicals 49,628.00          60,000.00        60,000.00        66,000.00        72,600.00         79,860.00        87,846.00        Gas & Oil4,104.00            9,000.00          11,000.00        11,880.00        12,830.40         13,856.83        14,965.38        Electricity 354,254.00       360,000.00     370,000.00     399,600.00     431,568.00     466,093.44     503,380.92     Natural Gas71,794.00          24,000.00        40,000.00        42,000.00        44,100.00         46,305.00        48,620.25        Total Operations1,102,507.00    1,132,401.00  1,182,342.00  1,241,862.26  1,305,152.13  1,372,490.61  1,444,179.14  LaboratoryPersonnel106,857.00       108,934.00     111,112.68     113,890.50     116,737.76     120,239.89     124,448.29     Benefits ‐ Medical17,212.00          18,857.00        18,775.00        20,652.50        22,717.75         24,989.53        27,488.48        Overtime6,644.00            ‐                    ‐                    ‐                    ‐                     ‐                    ‐                    Total Personnel130,713.00       127,791.00     131,476.00     134,543.00     139,455.51     145,229.42     151,936.77     Operations54,785.00          47,800.00        55,200.00        56,856.00        58,561.68         60,318.53        62,128.09        Total Operations28,978.00          40,400.00        55,200.00        56,856.00        58,561.68         60,318.53        62,128.09        Slude InjectionPersonnel5,462.00            5,201.00          5,305.02          5,437.65          5,573.59           5,740.79          5,941.72          Benefits ‐ Medical967.00               1,058.00          1,052.00          1,157.20          1,272.92           1,400.21          1,540.23          Overtime431.00               376.00             435.00             435.00             435.00              435.00             435.00             Total Personnel6,860.00            6,635.00          6,925.00          7,029.85          7,281.51           7,576.01          7,916.96          Operations34,392.00          60,350.00        68,500.00        70,555.00        72,671.65         74,851.80        77,097.35        Chemicals‐                      152,000.00     95,000.00        95,000.00        95,000.00         95,000.00        95,000.00        Gas & Oil28,203.00          30,000.00        32,000.00        34,560.00        37,324.80         40,310.78        43,535.65        Electricity‐                      ‐                    ‐                    ‐                    ‐                     ‐                    ‐                    Natural Gas‐                      ‐                    ‐                    ‐                    ‐                     ‐                    ‐                    Total Operations62,595.00          242,350.00     195,500.00     200,115.00     204,996.45     210,162.58     215,633.00     PreTreatmentOperations1,276.00            6,500.00          6,695.00          6,895.85          7,102.73           7,315.81          7,535.28          Total Operations1,276.00            6,500.00          6,500.00          6,895.85          7,102.73           7,315.81          7,535.28          Grand Total Operating Expenses 3,737,616.00   4,482,736.00 5,000,979.00 5,022,313.25 4,981,083.98 5,230,623.75 5,426,244.89   6/16/201341 DRAFTUpdated Rate Study FY14‐FY18Capital Expend ‐ WWat FundCity of BozemanWastewater Rate StudyExhibit 4Capital Expenditures ‐ Wastewater FundActuals BudgetedFY12FY13FY14FY15FY16FY17FY18Wastewater PlantWW27 ‐ Watershed Study and Stream Modeling60,000.00        60,000.00        60,000.00          60,000.00        60,000.00          WW29 ‐ Energy Recover (Methane Co‐Gen)50,000.00        350,000.00      2,200,000.00      WW30 ‐ Replace Digester Mixers42,000.00          WW31 ‐ Repalce Lift #1 Pump19,000.00          WW32 ‐ WRF Fishing Access Latrine10,000.00         Wastewater OperationsWW02 ‐ 1 ton truck with hoist45,000.00        WW03 ‐ 1/2 ton flex fuel truckWW07 ‐ Biannual Project Engineering22,500.00        22,500.00        22,500.00          22,500.00        22,500.00        WW08 ‐ Biannual Project Construction1,003,150.00   914,000.00      952,700.00        803,200.00      963,350.00      WW17 ‐ TV van replacementWW21 ‐ Flusher truck replacementPW02 ‐ Laurel Glen Shops AnnexPW01 ‐ Shops Facility Expansion Plan10,000.00        WW26 ‐ Vac truck replacement335,000.00      WW27 ‐ SKID STEER VEHICLEWW23 ‐ MINI EXCAVATOR & TRAILER ***Unidentified CIP***Grand Total ‐ Capital Expenditures for Wastewater Fun237,291.00     1,040,000.00  1,251,650.00  1,691,500.00  3,235,200.00    885,700.00     1,045,850.00  Less:  Funding Sources other than RatesGrants‐                    ‐                    ‐                     Cash on Hand‐                    ‐                    ‐                     SRF Loan‐                    ‐                    ‐                       net of SRF Loan to ReserveTotal Funding Sources other than Rates‐                    ‐                    ‐                    ‐                     ‐                      ‐                    ‐                    Rate Revenues Dedicated to CIP237,291.00      1,040,000.00   1,251,650.00   1,691,500.00   3,235,200.00    885,700.00      1,045,850.00   Projected6/16/201342 DRAFTUpdated Rate Study FY14‐FY18Capital Expenditures ‐ ImpactCity of BozemanWastewater Rate StudyExhibit 5Capital Expenditures ‐ Wastewater Impact Fee FundActuals BudgetedFY12FY13FY14FY15FY16FY17FY18TotalsWastewater PlantWWIF00 ‐ WRF Phase I Debt Service 828,200.00     836,482.00     853,212.00     870,276.00     887,681.00     89,655.00       4,365,506.00   Grand Total ‐ Water Impact Fee Fund‐                   828,200.00     836,482.00     853,212.00     870,276.00     887,681.00     89,655.00       Projected6/16/201343 DRAFTUpdated Rate Study FY14‐FY18Debt ServiceCity of BozemanWastewater Rate StudyExhibit 7Wastewater Fund Debt ServiceActuals BudgetedFY12 FY13 FY14 FY15 FY16 FY17 FY18WRF SRF LoanSummary of All Loans1,237,480.00$ 1,237,480.00$ 1,237,480.00$  1,237,480.00$ 1,237,480.00$    $1,237,480.00 Grand Total Debt Service‐                    1,237,480.00 1,237,480.00 1,237,480.00   1,237,480.00 1,237,480.00    1,237,480.00   Projected44 DRAFTUpdated Rate Study FY14‐FY18Rate RequirementsCity of BozemanWastewater Rate StudyExhibit 9Wastewater Fund Rate RequirementsBudgetedFY13FY14FY15FY16FY17FY18RevenuesWastewater Services6,620,554.00  6,725,995.08  6,866,082.68  7,003,869.71     7,144,647.11      7,288,240.05  Other Revenues180,053.00      166,871.33      167,590.04      169,265.94          171,691.76         174,156.50      Total Revenues6,800,607.00  6,892,866.41  7,033,672.72  7,173,135.66      7,316,338.87      7,462,396.55  ExpensesO&M ExpensesWastewater Operations1,964,953.00  2,395,985.00  2,259,351.30  2,103,633.26     2,226,667.93      2,282,811.44  Utility Locates3,900.00          4,400.00          4,532.00          4,667.96              4,808.00              4,952.24          Wastewater Services8,000.00          5,000.00          5,150.00          5,304.50              5,463.64              5,627.54          Manholes25,000.00        25,000.00        27,000.00        29,160.00            31,492.80            34,012.22        Televising8,100.00          9,100.00          9,373.00          9,654.19              9,943.82              10,242.13        Main Repairs8,000.00          5,000.00          5,400.00          5,832.00              6,298.56              6,802.44          Wastewater Plant Operations2,041,107.00  2,165,893.00  2,311,467.26  2,411,266.20      2,521,645.22      2,643,449.22  Laboratory168,191.00      186,676.00      191,399.00      198,017.19          205,547.95         214,064.85      Slude Injection248,985.00      202,425.00      207,144.85      212,277.96          217,738.59         223,549.96      Debt Service1,237,480.00  1,237,480.00  1,237,480.00  1,237,480.00      1,237,480.00      1,237,480.00    Plus:  Impact Fees Dedicated to Debt Svc(828,200.00)    (820,000.00)    (820,000.00)    (820,000.00)        (820,000.00)        (820,000.00)    Rates Dedicated to CIP1,040,000.00  1,251,650.00  1,691,500.00  3,235,200.00      885,700.00         1,045,850.00  Total Expenses5,925,516.00  6,668,609.00  7,129,797.40  8,632,493.26      6,532,786.50      6,888,842.05  Balance or (Deficiency) of Funds875,091.00      224,257.41      (96,124.67)       (1,459,357.60)     783,552.37         573,554.50      Proposed Rate Adjustment6.0%3.0%3.0%3.0%3.0%3.0%Additional Revenue beyond Current Revenues201,779.85$     413,815.73$     636,346.29$       869,776.09$        1,114,516.58$ Bond Coverage RatioAverage Residential Customer (10 CF, 3/4" Meter)41.55$               44.04$               45.36$                46.73$                  48.13$                  49.57$               With Rate Increase2.49$                 1.32$                 1.36$                  1.40$                    1.44$                     1.49$                 44.04$               45.36$               46.73$                48.13$                  49.57$                  51.06$               Projected45 DRAFTUpdated Rate Study FY14‐FY18Reserve RecapCity of BozemanWastewater Rate StudyExhibit 8Reserves RecapBudgetedFY13 FY14 FY15 FY16 FY17 FY18Wastewater FundOperating & Capital ReserveBeginning Balance1,496,429.00  2,365,020.00   2,789,557.26  3,105,752.47     2,281,470.43      3,933,781.64    Add:  Operating Revenues6,800,607.00  6,892,866.41   7,033,672.72  7,173,135.66     7,316,338.87      7,462,396.55    Add:  Additional Rate Revenue‐                    201,779.85       413,815.73     636,346.29        869,776.09         1,114,516.58    Add:  Grant Revenues‐                    ‐                     ‐                     ‐                      ‐                       ‐                      Less:  Operating Expenditures(4,482,736.00) (5,000,979.00)  (5,022,313.25) (4,981,083.98)    (5,230,623.75)    (5,426,244.89)   Less:  Capital Expenditures(1,040,000.00) (1,251,650.00)  (1,691,500.00) (3,235,200.00)    (885,700.00)        (1,045,850.00)   Less:  Debt Service Payment(1,237,480.00) (1,237,480.00)  (1,237,480.00) (1,237,480.00)    (1,237,480.00)    (1,237,480.00)   Plus:  Impact Fee Debt Payment828,200.00     820,000.00       820,000.00     820,000.00        820,000.00         820,000.00     Ending Balance ‐ Wastewater Fund2,365,020.00  2,789,557.26   3,105,752.47  2,281,470.43     3,933,781.64      5,621,119.88  Ending Balance  ‐ Debt Service Reserve 1,237,480.00  1,237,480.00   1,237,480.00  1,237,480.00     1,237,480.00      1,237,480.00   Operating & Capital Reserve Target6,113,570.08 6,177,463.05  6,180,093.30 6,175,010.24    6,205,775.42     6,229,893.10   45 O&M552,666.08     616,559.05      619,189.30     614,106.24        644,871.42        668,989.10       Annual Deprec5,560,904.00 5,560,904.00   5,560,904.00 5,560,904.00    5,560,904.00     5,560,904.00  Wastewater Impact Fee FundBeginning Balance264,000.00     255,800.00       272,282.00     297,129.00        338,903.00         397,882.00       Add:  Impact Fee Revenues820,000.00     836,482.00       844,847.00     861,774.00        878,979.00         896,558.00       Add: SRF Loan Proceeds‐                    ‐                     ‐                     ‐                      ‐                       ‐                      Less:  Debt Service(828,200.00)    (820,000.00)     (820,000.00)    (820,000.00)       (820,000.00)        (820,000.00)     ‐                    Ending Balance ‐ Wastewater Impact Fees255,800.00     272,282.00       297,129.00     338,903.00        397,882.00         474,440.00     Projected46 Department:SOLID WASTE COLLECTION Activity:Public Service Department Expenditures by Category Department Expenditures by Division Department Expenditures by Fund FINANCIAL INFORMATION Category FY12 Actual FY13 Budget FY14 CM Rec $ Change % Change 2.77%$1,005,220 $1,033,039Salaries & Benefits $943,466 $27,819 9.09%$1,114,678 $1,215,963Operating $1,472,463 $101,285 #Div/0!$0 $659,984Capital $62,103 $659,984 0.00%$0 $0Debt Service $0 $0 0.00%$0 $0Transfers $0 $0 Totals $2,478,032 $2,119,898 $2,908,986 $ Change % ChangeFY12 Actual FY13 Budget FY14 CM RecDivision 5810 Solid Waste Collection $789,088 37.22%$2,478,032 $2,119,898 $2,908,986 Totals $2,478,032 $2,119,898 $2,908,986 % Change$ ChangeFundFY13 Budget FY14 CM RecFY12 Actual 640 Solid Waste Fund $789,088 37.22%$2,478,032 $2,119,898 $2,908,986 Totals $2,478,032 $2,119,898 $2,908,986 47 Department:SOLID WASTE RECYCLING Activity:Public Service Department Expenditures by Category Department Expenditures by Division Department Expenditures by Fund FINANCIAL INFORMATION Category FY12 Actual FY13 Budget FY14 CM Rec $ Change % Change ‐7.29%$55,798 $51,730Salaries & Benefits $58,261 ($4,068) ‐2.53%$43,550 $42,450Operating $63,368 ($1,100) ‐100.00%$70,000 $0Capital $0 ($70,000) 0.00%$0 $0Debt Service $0 $0 0.00%$0 $0Transfers $0 $0 Totals $121,629 $169,348 $94,180 $ Change % ChangeFY12 Actual FY13 Budget FY14 CM RecDivision 5820 Recycling ($75,168)‐44.39%$121,629 $169,348 $94,180 Totals $121,629 $169,348 $94,180 % Change$ ChangeFundFY13 Budget FY14 CM RecFY12 Actual 640 Solid Waste Fund ($75,168)‐44.39%$121,629 $169,348 $94,180 Totals $121,629 $169,348 $94,180 48