City Council Agenda and Packet 2013 08 06

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City Council Budget Retreat Meeting Minutes June 27, 2013 Page 9 of 13 Council member Loo commented on the storage facility at the water treatment plant. It was noted the storage facility will be relocated to Memory Square Park. Mayor Muckle inquired about the Highway 42 Redevelopment Area utility upgrades. Economic Development Director DeJong stated it would come with development and TIF funding. Mayor Muckle inquired about the use of reuse water for watering the City parks. Public Works Director Kowar explained they are currently looking at the re-use capacity and the potential to use it in other areas, but it is not a part of the CIP Project. Parks and Recreation Director Stevens noted there are strict regulations on reuse water. SUMMARY OF CAPITAL PROJECT City Manager Fleming summarized the Capital Projects Budget. He outlined the priority for CIP Projects and the proposed funding mechanism. He noted several major projects were grouped together. Water/Wastewater Utility Fund Forecast: The Water Utility,Wastewater Utility and Storm Water Utility includes the North Water Treatment Plant Heating Upgrade and the Wastewater Plant Upgrade ($20 million dollars to be compliant with State and Federal regulations). Bonding and debt service are ways to pay for upgrades for these projects, however there will be significant increases for water and wastewater users. Public Works Director Kowar explained earlier in the year the City contracted with a consultant to perform a rate study. The 5-year CIP budget, along with a 15-year estimate, was submitted to the consultant and will be reviewed by the Utility Rate Task Force for their recommendations. Most of the water projects are maintenance items. The Storm Water System has some pieces yet to be placed, which are affected by development and the flood plain areas Finance Director Watson explained the debt service would be $11 million dollars and utility rates would be increased across the board. Public Works Director Kowar explained they have looked at measures to extend the life of the water and wastewater facilities, until bonding can be implemented to replace systems. General Fund History and Projections Forecast:City Manager Fleming reviewed the 5- year projections, which illustrated transfers in and out of the General Fund. Conservation Trust Open Space & Parks Forecast: City Manager Fleming noted there are significant Capital Improvement Projects. As the economy has improved the City will beable to acquire several large parcels of open space property. On the operational side of the budget, staff will make an analysis to see what staffing cost may be taken out of the open space funds. This would represent a true cost of maintaining open space and park land. Council member Jasiak noted there are opportunities to expand the Cottonwood Park area. 27