Finance Committee Agenda and Packet 2022 05 09

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City Council Finance Committee Meeting Minutes 03/21 /22 Page 4 of 5 Wastewater Utility Fund The ending working capital for the Wastewater Utility Fund is projected to increase by approximately $318,000 to $6,800,000. This is $1,500,000 greater than last year's estimate and is mainly due to higher -than -expected revenue, an operating turnback of nearly 5%, and an unspent capital budget of $1,160,000 (66% unspent). The Financial Policies stipulate a minimum Combined Utility Fund reserve equal to 25% of annual operating expenditures. The preliminary calculation of minimum reserves for the Wastewater Utility Fund equals about $890,000. The projected ending working capital is $5,900,000 greater than the minimum reserve amount. Stormwater Utility Fund The ending working capital for the Stormwater Utility Fund is projected to increase by approximately $196,000 to $2,400,000. This is $1,700,000 greater than last year's estimate and is mainly due to an unspent capital budget of $1,810,000 (89% unspent). The Financial Policies stipulate a minimum Combined Utility Fund reserve equal to 25% of annual operating expenditures. The preliminary calculation of minimum reserves for the Stormwater Utility Fund equals about $153,000. The projected ending working capital is $2,300,000 greater than the minimum reserve amount. The statements and corresponding narrative can be located in the packet of the March 21, 2022 Finance Committee Meeting. PRELIMINARY CAPITAL IMPROVEMENTS REPORT FOR THE QUARTER AND YEAR ENDED DECEMBER 31, 2021 Kevin Watson, Finance Director, presented a preliminary 2021 Capital Improvement Program Report. Director Watson noted that these were preliminary statements presented early in order to give the Finance Committee a preliminary sense of the possible project carryforward requests from departments. The Committee discussed concerns regarding projects "morphing" from one project to a completely different project without the proper reporting. The Committee also expressed concerns about the continuing carryforward of unspent capital budgets. The report and corresponding narrative can be located in the packet of the March 21, 2022 Finance Committee Meeting. 5