City Council Agenda and Packet 2012 10 09 SP

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• The 2012 budget assumes a 6.0% rate (not revenue) increase in water user fees and a 4.0% rate (not revenue) increase in wastewater user fees. Staff recommends maintaining storm water user fees at their current levels for 2013. • The Public Works Department is currently planning, with the help of a consultant, a comprehensive utility rate study for early 2013. • The reserves of the Combined Utility Fund are significant, estimated to be nearly $11.2 million, or 61% of annual expenses, including capital, by the end of 2013. • The Combined Utility Funds will provide 50% of the funding needed in 2012 ($75,000 for design) and 2013 ($3,247,300 for construction) for the City Services Facility 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 2012 -2016 include: • Sludge Treatment/Handling (2013 -2014, $6.2 million) • Waterline and Sewer Line Replacement (2013 -2017, $2.6 million) • 3 MG Tank (2013, $1.4 million) • Marshall Lake Multi -Level Outlet & Evaluation (2013 -2014, $1.1 million) • Windy Gap Expense & Debt Service (2013 -2017, $1.9 million) • North Clearwell Upgrade (2015, $1.3 million) • Wastewater Plant Upgrade — Design & Debt Service (2013 -2017, $3.1 million) • 75% of BNSF Railroad Underpass /North Drainage (2013 -2014, $825,000) • Waterline Replacement (2012 -2016, $890,000) • $100,000 each in the Water and Wastewater Utility Funds to provide funding in 2012 to implement Citywide Information Technology infrastructure and applications that are likely to be identified by the IT Strategic Plan review that is currently underway. The graph below illustrates the long -term financial forecast for the Combined Utility Funds. This forecast is part of the City's Long -Term Financial Plan and includes the same assumptions as the General Fund for salaries and wages and employee benefits. 25,00.0.000 20,000,000 15, 000, 000 10,000,000 5,000,000 Combined Utility Funds Forecast Loan Proceeds - C WRPDA Water Note Includes City Services and Sludge Tre.atmentlHandlin0 Debt Service and 44a ter Rights Accpuisition l° Cf° o° o°44 4° o� o 4° o off° e 4 C+I E3 ^ fle 4 �Ret•enue •Expenclitures Reserves 14