FY 2020 Budget

Budget Impact: The budget contained herein proposes a 4% increase in sewer charges for service in order to fund the needs of the department. The Combined Sewer Initiative (CSI) charge is scheduled to go up a $1.25 per month for a total of $16.25 per month. The revenue generated by the CSI charge is utilized to pay debt associated with the city's separation of the combined storm - sanitary sewer system. This is the last scheduled increase of the CSI charge. However, the need to raise it further will depend on the future capital needs of the system. The city's contract with Veolia North America will see a 2.75% increase for the coming fiscal year. The city recently entered into a new long term operating contract with Veolia for the operation of the plant with the operating budget approved annually as part of the city's budget process. Several capital projects are also included in this budget. Large capital projects are expensed through the Enterprise Capital Projects funds and not the Sanitary Sewer fund. The Sewer Reserve fund will transfer money to the Enterprise Capital Projects fund to make the disbursement. Information as to the specific capital projects included in this budget can be found in the Capital Projects section of this document. Revenue generated above the city's required 25% operational fund balance is generally transferred to the Sanitary Sewer Reserve fund and Wastewater Treatment Plant Reserve fund to finance future capital projects. Occasionally, sewer revenue has been transferred to the Storm Sewer Reserve fund since the two systems were combined. However, as the system becomes separated, the Storm Sewer Reserve will loose its dedicated funding stream.

Future Concerns:

As water consumption levels off or declines, the same can be said of sewer revenues, which are based off of water consumption. Therefore, increase of the rates alone, may produce little to no new revenue. As the city expands industry and housing opportunities, these are new chances to bring on new customers and increase the water consumption. The city still has sections of sewer mains that are in need of repairs and replacement. The past decade, the city has been focused solely on separating the combined sanitary and storm systems and was under an EPA consent order to do so. The City has re-negotiated the consent order with the EPA and can now start to focus on these other trouble spots.

Employees

Percent of Proprietary Expenditures (net transfers)

1

1

1

1

0

0

0

0

Actual 16/17 Actual 17/18 Budget 18/19 Budget 19/20

Sanitary Sewer 40%

Number of Employees (FTEs)

Part Time Employees

181