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Utility Fund Expenses
<br />The Utility Fund expenses for fiscal year 2005-06 are currently estimated at $6,556,360, which is $217,711, or 3.21%
<br />lower than our original budget. The expenses, by division, for the current fiscal year are shown below:
<br /> BudgetCurrent Estimate
<br />Department 2005-062005-06Variance Percent
<br />
<br />Water Production 444,823435,020(9,803) -2.20%
<br />Water Distribution 692,376687,093(5,283) -0.76%
<br />Wastewater Collection 790,535739,566(50,969) -6.45%
<br />Wastewater Treatment 876,287903,50227,215 3.11%
<br />Utility Billing 781,201613,791(167,410) -21.43%
<br />3,177,388 (11,461) -0.36%
<br />Non-departmental 3,188,849
<br />Total 6,774,0716,556,360(217,711) -3.21%
<br />The first four of the six divisions listed above are accounted for under the Public Works Department with the
<br />remaining two falling under the Finance Department.
<br />The expenses for the new year are budgeted at $6,798,512, which is $24,441, or 0.36% higher than the current fiscal
<br />year. The expenses, by department, for the current fiscal year are shown below:
<br /> BudgetBudget
<br />Department 2005-062006-07Variance Percent
<br />
<br />Water Production 444,823444,820(3) 0.00%
<br />Water Distribution 692,376719,52427,148 3.92%
<br />Wastewater Collection 790,535766,421(24,114) -3.05%
<br />Wastewater Treatment 876,287903,50227,215 3.11%
<br />Utility Billing 781,201613,791(167,410) -21.43%
<br />3,350,454 161,605 5.07%
<br />Non-departmental 3,188,849
<br />Total 6,774,0716,798,51224,441 0.36%
<br />The divisional increases are driven by normal changes in costs, which include salary adjustments. The 21.43%
<br />decrease in the Utility Billing division is mainly attributed to the deletion of three (3) meter reader positions due to the
<br />implementation of the automated meter reading project. The increase in Non-departmental is mainly due to the
<br />increase in the transfer to the Utility Capital Improvements Fund.
<br />Utility Fund Overall Fund Condition
<br />The projected end-of-year working capital balance for the Utility Fund is $747,205, which is approximately 11%, or
<br />40 days of budgeted expenses. This is under the targeted balance of 60 to 90 days of working capital as called for in
<br />the City's Financial Management Policies as adopted by City Council. A rate model was designed to provide a plan to
<br />phase in the needed rate increases to cover operations and rebuild working capital. FY 2007 is the second year in a
<br />planned three year phase-in to remedy this issue.
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