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Original
<br />ProjectionProjection
<br />Category 2008-09 2009-10 Variance Percent
<br />Other 5,500 5,500 - 0.00%
<br />Water 4,804,500 4,748,869 (55,631) -1.16%
<br />Sewer 3,533,900 3,509,363 (24,537) -0.69%
<br />Interest 26,044 25,000 (1,044) -4.01%
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<br />Total 8,369,9448,288,732(81,212) -0.97%
<br />Utility Fund Expenses
<br />The Utility Fund expenses for fiscal year 2008-09 are currently estimated at $8,954,153, which is $264,299, or
<br />3.04% greater than the Fiscal Year 2008-09 budget. The expenses, by division, for the current fiscal year are
<br />shown below:
<br /> Budget Current Estimate
<br />Department 2008-09 2008-09 Variance Percent
<br />Water Production 510,774 467,669 (43,105) -8.44%
<br />Water Distribution 832,500 757,928 (74,572) -8.96%
<br />Wastewater Collection 940,468 903,571 (36,897) -3.92%
<br />Wastewater Treatment 990,983 984,941 (6,042) -0.61%
<br />Utility Billing 622,850 618,728 (4,122) -0.66%
<br />Non-departmental 4,792,279 5,221,316 429,037 8.95%
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<br />Total 8,689,8548,954,153264,299 3.04%
<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 $7,740,176, which is $949,678, or 10.93% lower than the current
<br />fiscal year. The expenses, by department, for the upcoming fiscal year are shown below:
<br /> Budget Budget
<br />Department 2008-09 2009-10 Variance Percent
<br />Water Production 510,774 555,07844,304 8.67%
<br />Water Distribution 832,500 826,370(6,130) -0.74%
<br />Wastewater Collection 940,468 962,88322,415 2.38%
<br />Wastewater Treatment 990,983 1,123,656132,673 13.39%
<br />Utility Billing 622,850 664,89042,040 6.75%
<br />Non-departmental 4,792,279 3,607,299(1,184,980) -24.73%
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<br />Total 8,689,8547,740,176(949,678) -10.93%
<br />The divisional increases are driven by normal changes in costs, which include salary adjustments. Increases in
<br />gas and oil, as well as environmental mandates account for much of the increase. The 24.73% decrease in the
<br />Non-Departmental division is attributed to the reduction in transfers for capital improvement projects.
<br />Utility Fund Overall Fund Condition
<br />The projected end-of-year working capital balance for the Utility Fund is $2,247,996, which is approximately
<br />29%, or 106 days of budgeted expenses. This is over the targeted balance of 60 to 90 days of working capital as
<br />called for in the City's Financial Management Policies as adopted by City Council. A rate model was designed to
<br />provide a plan to phase in needed rate increases to cover operations and rebuild working capital, fiscal year 2008
<br />was the final phase of the rate increases. In addition to rebuilding working capital, which the City has been
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