2011 BUDGET - Laserfiche WebLink

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Water, Wastewater, and Storm Water Utility Funds • Total Water Utility Fund expenses are budgeted to decline by nearly $350,000 in 2011 from 2010 estimates, mainly due to a reduction in capital outlay. Wastewater Utility Fund expenses are budgeted to decline by approximately $1.4 million in 2011 from 2010 estimates due to a reduction in capital outlay and the transfers made in 2010 to the Golf Course Fund. The 2011 budget includes a 5% rate increase in water usage fees and a 5% rate increase in wastewater usage fees, and a 25 -cent increase, from $3.00 to $3.25, in monthly storm water fees for single family accounts and a proportionate increase for all other accounts. • The current reserves of the Combined Utility Fund are significant, estimated to be $7.5 million, or 83% of annual expenses, by the end of 2011. However, as shown in the chart below, reserves are expected to decline over the next few years due to funding for large capital projects. We will be reviewing with the City Council's Water Committee, and ultimately the entire City Council, the anticipated Facilities Plan and whether it is appropriate to conduct a rate study in the near future to ensure we maintain adequate reserves for anticipated projects and unanticipated events. • The Combined Utility Funds will provide 50% of the funding needed in 2011 ($50,000 for design) and 2012 ($1,700,000 for construction) for the City Shops Remodel project. This is consistent with the level of equipment and staff devoted to Water, Wastewater, and Storm Water operations and maintenance that is currently and will continue to be stored and based at that facility. • Other major capital projects funded from the Combined Utility Funds in 2011 -2015 include: o Windy Gap Expense & Debt Service (2011 -2015, $1,750,000) o Water and Sewer Line Replacements (2011 -2015, $1,735,000) o Water Rights Acquisitions (2011 -2015, $1,270,000) o North Louisville Drainage (2011 -2013, $990,000) o Drainage Way "A -2" (2011 -2012, $900,000) • The following graph illustrates the long -term financial forecast for the Combined Utility Fund. This forecast is part of the City's Long -Term Financial Plan and includes the same assumptions as the General Fund for sales tax revenue, salaries and wages, and employee benefits. 20.000.000 15.000,000 10,000.000 5,000.000 Combined Utility Funds Forecast Loan Proceeds - C WRPDA Water Note Debt Service and Water City Shops 8 Rights Acquisition Radio Read Drainageway Meter Project Projects \) ti ti ti ti ti ti ti 1 ti ti ti ti ti 1 ti - Revenue - Expenditures Reserves Debt Service on Windy Gap Firming Project Begins in 2013 8