2019-2020 Biennial Operating & Capital Budget

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The projected fund balance at the end of 2024 is approximately $2.5 million. Staff believes this is above the level needed to adequately mitigate any revenue shortfalls or expenditure overages. Consolidated Utility Fund The Consolidated Utility Fund is a combination of the Water Utility Fund, Wastewater Utility Fund, and Storm Water Utility Fund. Incorporating the revenue assumptions, the operating expenditure targets, interfund transfer projections, and the Capital Improvements Plan into the long-term financial planning model results in the following graph, which summarizes a history and six -year projection of revenue, expenditures, and reserves (defined as working capital) for the Utility Fund 50..000..000 45,000..000 40,000,000 3.5,000..000 30..000..000 25..000..000 20,000..000 15,000,aQa 10,400,400 5.110..000 Consolidated Utility Fund I� a i • a 200E 2009 2010 2011 2012 2013 2014 2015 2015 2017 2018 2019 2020 2021 2022 2023 2024 Revenue Expenditures m►Working Capital Minimum The City's Reserve Policy for the Utility Funds states, The minimum working capital for the Water, Wastewater, and Storm Water Utility Funds shall be maintained at or above 25% of current operating expenses, as measured on the City's budgetary basis. For purpose of this policy, operating expenses are defined as all budgetary -basis expenses, excluding interfund transfers and capital outlay. The Consolidated Utility Fund reserves are expected to remain well above the 25% minimum level defined by policy. In addition, all the individual utility funds are expected to remain in full compliance with the reserve policy. The following table summarizes the projected rate increases from 2019 through 2024 for each of the utility services. 19