COMMITTEE OF THE WHOLE Packet - 10/13/2020Unapproved
CITY OF MUSKEGO
FINANCE COMMITTEE MINUTES
September 22, 2020
5:15 PM
City Hall, W182 S8200 Racine Avenue
CALL TO ORDER
Mayor Petfalski called the meeting to order at 5:15 p.m.
PLEDGE OF ALLEGIANCE
Those present recited the Pledge of Allegiance.
ROLL CALL
Present: Committee Members Alderpersons Wolfe, Kubacki, and Madden. Also
present: Alderpersons Terrence, Kapusta, Hammel, and Engelhardt, Public Works and
Development Director Kroeger, Lead Planner Trzebiatowski, Library Director Larson,
Finance and Administration Director Mueller, Finance and Administration Assistant
Director Mustapich, City Attorney Warchol, Deputy Clerk Blenski, and Administrative
Assistant Crisp.
PUBLIC MEETING NOTICE
Ms. Crisp stated that the meeting was noticed in accordance with the open meeting
law.
APPROVAL OF MINUTES – September 8, 2020
Alderperson Wolfe moved to approve. Alderperson Madden seconded;
motion carried.
LICENSE APPROVAL
Recommend Approval of Operator Licenses
Alderperson Kubacki moved to recommend approval of an Operator License
for Benjamin Angst, Jennifer Craycraft, Mark Dorn, Amanda Feest, Nicole
Khoury, Stephanie Kosmatka, Katie Lederhaus, Ariana Schmidt, and Natalie
Stublaski. Alderperson Wolfe seconded; motion carried.
Recommend Approval of a "Class A" License for Kwik Trip, Inc. d/b/a Kwik Trip 1080,
S63 W13510 Janesville Road, Steven Ward Agent
Alderperson Madden moved to recommend approval. Alderperson Kubacki
seconded; motion carried.
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September 22, 2020
Packet Page 1
Finance Committee Minutes 2
September 22, 2020
Recommend Approval of Outside Dance Permit for Tail Spin Bar & Grill, S64 W18295
Martin Drive, October 1, 2, 8, 15, 22 and 29 - 6:00 pm to 9:00 pm and October 17 -
11:00 am to 9:00 pm
Alderperson Wolfe moved to recommend approval. Alderperson Kubacki
seconded; motion carried.
Recommend Approval of Outside Dance Permit and Amendment to Licensed Premise
for Parkland Lodge LLC (d/b/a Lucky's at the Lodge), S74 W17096 Janesville Road,
October 4, 2020 - 11:00 am to 8:00 pm
Alderperson Wolfe moved to recommend approval. Alderperson Madden
seconded; motion carried.
Recommend Approval of Outside Dance Permit for Marx Pioneer Inn, W180 S7800
Pioneer Drive, October 31, 2020 - 2:00 pm to 10 pm.
Alderperson Wolfe moved to recommend approval. Alderperson Kubacki
seconded; motion carried.
NEW BUSINESS
Recommend Approval of an Amendment to the Intermunicipal Agreement between the
Town of Norway Sanitary District No. 1 and the City of Muskego
Alderperson Madden moved to recommend approval. Alderperson Kubacki
seconded; motion carried
Recommend Approval for Timothy Dillett Developer’s Agreement
Alderperson Kubacki moved to recommend approval. Alderperson Madden
seconded; motion carried.
VOUCHER APPROVAL
Utility Vouchers
Alderperson Wolfe made a motion to approve Utility Vouchers in the amount
of $49,418.44. Alderperson Madden seconded; motion carried.
General Fund Vouchers
Alderperson Wolfe made a motion to approve General Fund Vouchers in the
amount of $259,599.62. Alderperson Kubacki seconded; motion carried.
Debt Service
Alderperson Wolfe made a motion to approve Tax Vouchers in the amount of
$3,085,077.63. Alderperson Madden seconded; motion carried.
Wire Transfers for Payroll/Invoice Transmittals
Alderperson Wolfe made a motion to approve Wire Transfers for
Payroll/Invoice Transmittals in the amount of $352,485.26. Alderperson
Kubacki seconded; motion carried.
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September 22, 2020
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Finance Committee Minutes 3
September 22, 2020
FINANCE DIRECTOR’S REPORT
None
COMMUNICATONS AND OTHER BUSINESS AS AUTHORIZED BY LAW
None
ADJOURNMENT
Alderperson Wolfe made a motion to adjourn at 5:21 p.m. Alderperson
Kubacki seconded; motion carried.
Minutes taken and transcribed by Christine Crisp.
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September 22, 2020
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CITY OF MUSKEGO
BUDGET UPDATES & PROPOSED APPROPRIATIONS
FOR CALENDAR YEAR 2021
General Operating Budget:
Impact to
Description Account #Current Budget
Increase/(Decrease)
Revenues:
Transportation Aids 100.04.51.01.4132 101,908$
State Shared Revenue 100.09.80.00.4121 (186)$
State Video Service Provider Aid 100.09.80.00.4124 29,731$
Transfer from CDA Fund (reverse 87.1% was $190,355) 100.20.00.00.8265 (165,805)$
Interest on Investments (offset per 9/22 CC adj)100.01.06.00.4531 63,045$
Net Budget Revenue Increase/(Decrease)28,693$
Expenditures:
Little Lake District (per Resolution #080-2019)100.05.06.00.6052 (1,402)$
2.5% Health Insurance Premium Increase (remove)100.xx.xx.xx.5203 30,095$
Net Budget Expenditure Increase/(Decrease)28,693$
Balanced Budget Adjustments (0)$
Special Revenue Budget:
Revenues:
Transfer from TIF Residual/Capital Improvement Fund 202.20.00.00.8220 230,000$
-$
Net Budget Revenue Increase/(Decrease)230,000$
Expenditures:
Athletic Fields - MNSD Lighting 202.08.94.74.6533 230,000$
Transfer to Park Dedication 220.30.00.00.9202 230,000$
Net Budget Expenditure Increase/(Decrease)460,000$
Budget Adjustments (230,000)$
Capital Expenditure Budget:
Revenues:
Surplus Fund Balance 410.20.00.00.8001 30,000$
Transfer from Landfill Fund 410.20.00.00.8210 43,500$
Net Budget Revenue Increase/(Decrease)73,500$
Expenditures:
Pick-up Truck Replacement (2019 carryover)410.08.93.51.6507 63,500$
Old Town Hall Roof (shared cost)410.08.90.06.6567 10,000$
Former Police Department Building 410.08.91.20.6550 -$
Net Budget Expenditure Increase/(Decrease)73,500$
Budget Adjustments -$ Page 1 of 1
Finalize 2021 Capital and Operating Budgets
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Sewer Utility
Proposed
2021 Budget
Distributed
Tuesday, October 13Th, 2020
W182 S8200 Racine Avenue, Muskego, WI 53150
Waukesha County, Wisconsin
(262) 679-4100
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Schedule Page
Statement of income and expense 1 1-2
Schedule of operating supplies & services 2 3
Schedule of capital outlay 3 4
Schedule of changes in utility working capital:
2020 Projected Budget 4 5
2021 Proposed Budget 5 6
Schedule of construction funds 6 7
Sewer Fund Definitions 7 8
CONTENTS
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Schedule 1
Page 1
2020 2021 2021 $ Change % Change
2019 Aug. 31, 2020 2020 Adopted Proposed Adopted From 2020 From 2020
Actual Actual Projected Budget Budget Budget Budget Budget
Operating revenues
Sewer service charges $ 6,065,375 3,133,477 6,265,000 6,272,500 6,285,000 - 12,500 0.20%
Miscellaneous revenues 11,937 3,935 8,450 10,750 10,500 - (250) -2.33%
Total operating revenues 6,077,312 3,137,412 6,273,450 6,283,250 6,295,500 - 12,250 0.19%
Operating expenses
Operation and maintenance:
Milwaukee Metropolitan Sewerage District:
Capital charge 3,785,158 3,836,352 3,836,352 3,793,049 3,633,028 - (160,021) -4.22%
User charge 1,335,706 675,698 1,363,354 1,340,000 1,385,421 - 45,421 3.39%
Town of Norway -
Capital charge - - - - - - - 0.00%
User charge 223,417 151,849 250,000 300,000 300,000 - - 0.00%
Supervision and labor 479,136 263,307 470,000 485,869 513,898 - 28,029 5.77%
Supplies and expense 42,742 35,079 45,000 47,000 49,000 - 2,000 4.26%
Maintenance:-
Amortization - - - - - - -
Odor control - - 20,000 40,000 40,000 - - 0.00%
Building and structures 22,872 4,182 15,000 17,500 17,000 - (500) -2.86%
General plant safety equipment 2,171 4,189 7,000 7,000 7,500 - 500 7.14%
Sewerage collection system 122,560 64,362 120,000 125,000 125,000 - - 0.00%
I & I reduction - - 100,000 100,000 100,000 - - 0.00%
Electricity 166,212 85,702 150,000 150,000 160,000 - 10,000 6.67%
Transportation expense 15,439 3,760 15,000 20,000 20,000 - - 0.00%
6,195,414 5,124,481 6,391,706 6,425,418 6,350,847 - (74,571) -1.16%
Customers' account expenses:
Accounting and collection 59,804 42,877 60,000 61,455 58,961 - (2,494) -4.06%
Meter expense 37,698 - 38,000 33,655 40,000 - 6,345 0.00%
97,502 42,877 98,000 95,110 98,961 - 3,851 4.05%
General expenses:
Office Salaries 65,442 42,930 65,200 66,655 64,561 - (2,094) -3.14%
Employee pensions and benefits 287,613 141,410 239,720 251,523 278,689 - 27,166 10.80%
Unemployment compensation - - - 2,000 2,000 - - 0.00%
Office supplies and expenses 73,948 38,281 73,600 84,185 81,650 - (2,535) -3.01%
Outside services 88,235 40,663 68,500 129,139 144,850 - 15,711 12.17%
515,239 263,284 447,020 533,502 571,750 - 38,248 7.17%
Total operation and maintenance 6,808,154 5,430,641 6,936,726 7,054,030 7,021,559 - (32,471) -0.46%
Depreciation 817,523 - 900,000 $1,100,000 $950,000 - (150,000) -13.64%
Total operating expenses 7,625,677 5,430,641 7,836,726 8,154,030 7,971,559 - (182,471) -2.24%
Net operating income (loss)
(forward)(1,548,366) (2,293,230) (1,563,276) (1,870,780) (1,676,059) - 194,721 -10.41%
CITY OF MUSKEGO SEWER UTILITY
STATEMENT OF INCOME AND EXPENSE
2021 BUDGET
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Schedule 1
Page 2
2020 2021 2021 $ Change % Change
2019 Aug. 31, 2020 2020 Adopted Proposed Adopted From 2020 From 2020
Actual Actual Projected Budget Budget Budget Budget Budget
Net operating income (loss)
(forwarded)$ (1,548,366) (2,293,230) (1,563,276) (1,870,780) (1,676,059) - 194,721 -10.41%
Add non-operating income
Interest from investments 351,221 21,519 300,000 285,000 285,000 - - 0.00%
MMSD I&I Subsidy - - - 250,000 500,000 - 250,000 100.00%
Interest income on RCA's and special assessments 25,834 37,214 37,214 21,000 25,700 - 4,700 22.38%
Sewer Connection Fees 27,000 8,500 25,000 30,000 25,000 - (5,000) -16.67%
Total non-operating income 404,054 67,233 362,214 586,000 835,700 - 249,700 42.61%
Income before non-operating expenses (1,144,311) (2,225,997) (1,201,062) (1,284,780) (840,359) - 444,421 -34.59%
Deduct non-operating expenses
I&I MMSD Program - - - 250,000 500,000 - 250,000 100.00%
Total non-operating expenses - - - 250,000 500,000 - 250,000 #DIV/0!
Net income (loss) before capital contributions $ (1,144,311) (2,225,997) (1,201,062) (1,534,780) (1,340,359) - 194,421 -12.67%
CITY OF MUSKEGO SEWER UTILITY
STATEMENT OF INCOME AND EXPENSE (Concluded)
2021 BUDGET
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Schedule 2
Page 3
2020 2021 2021
2019 Aug. 31, 2020 2020 Adopted Proposed Adopted
Actual Actual Projected Budget Budget Budget
Operation and maintenance:
Supplies and expense:
Operating supplies $ 9,598 6,686 10,000 10,000 12,000 -
26,144 21,393 28,000 30,000 30,000 -
Water expense 7,000 7,000 7,000 7,000 7,000 -
$ 42,742 35,079 45,000 47,000 49,000 -
General expense
Office supplies and expenses:
Supplies $ 11,350 6,075 10,000 10,000 10,000 -
Other general expense 1,389 1,754 2,000 1,000 1,500 -
Telephone and communications 9,398 2,811 7,000 10,075 10,500 -
Insurance 47,340 24,300 48,600 53,110 49,650 -
Computer expense 4,472 3,341 6,000 10,000 10,000 -
$ 73,948 38,281 73,600 84,185 81,650 -
Outside services:
City administrative charge $ 29,831 15,237 25,000 30,474 30,000 -
Accounting 5,000 - 5,500 5,750 6,000 -
Legal - - - 5,000 5,000 -
Engineering 46,442 22,388 $33,000 $21,500 $27,500 $0
Other outside services 6,962 3,039 5,000 5,000 6,000 -
City Building/Equipment Contribution $0 $0 $0 $61,415 $70,350 $0
Computer software modification $0 - - - - -
$ 88,235 40,663 68,500 129,139 144,850 -
CITY OF MUSKEGO SEWER UTILITY
DETAILED SCHEDULE OF OPERATING SUPPLIES & OUTSIDE SERVICES
2021 BUDGET
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Schedule 3
Page 4
2020
Estimated 2020 2021 2021
Total Adopted Proposed Adopted
Description Funding Cost Budget Budget Budget
1.2020 Capital Projects
Lift Station Upgrades (C )70,000 70,000
Truck (Water & Sewer)(C )16,734 19,000
Skid-Steer Loader Trailer (Water & Sewer) (C )4,757 5,000
Lift Station #8 (C )256,905 -
- -
$ 348,397 94,000 - -
2.2021 Capital Projects
Lift Station Upgrades (C )- - 50,000 -
Apollo Building - Pavement & Gutters (C )- - 90,000 -
Truck (Water & Sewer)(C )27,500 -
Replacement Truck (accident Water & Sewer)(C )- - 20,000 -
- - - -
$- - 187,500 -
$ 348,397 94,000 187,500 -
Note A: Anticipated to be financed with available construction funds
Note B: Anticipated to be financed with borrowings
Note C: Finance with working capital
Note D: Finance with replacement funds
Note E: Finance with reserve capacity assessment funds
Note F: Reimbursement from MMSD
Note G: Reimbursement from Franklin
Grand Total
CITY OF MUSKEGO SEWER UTILITY
SCHEDULE OF CAPITAL OUTLAY
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Schedule 4
Page 5
Non-TIF
Operation Reserve
and Special Equipment Capacity
Maintenance Redemption Replacement Assessment Construction 2020
Fund Fund Fund Fund Fund Total Budget
Funds provided
Net income (loss) for the year $ (1,201,062) - - - - (1,201,062) (1,473,365)
Add charges to income not requiring funds:
Depreciation 900,000 - - - - 900,000 1,100,000
Amortization:
Debt discount - - - - - -
Manhole Rehabilitation - - - - - - -
MMSD Funding - 250,000
Less:
Paid to utility for implicit cash subsidy - - - - - - -
Funds provided from operations (301,062) - - - - (301,062) (123,365)
Increases in:
Collection of special assessments 4,494 - - 405,000 - 409,494 404,500
Other contributed capital collections - - - - - - -
Total funds provided (296,568) - - 405,000 - 108,432 281,135
Funds applied
Principal payments on debt - - - - - - -
Capital outlay (Schedule 6)- - - - 348,397 348,397 94,000
Total funds applied - - - - 348,397 348,397 94,000
Interfund transfers - net
Interest earnings (10,000) - 10,000 - - - -
Equipment replacement (26,350) - 26,350 - - - -
Sewer Connection fees (25,000) - - 25,000 - - -
Transfer to Construction Fund (348,397) - - - 348,397 - -
Funds used for debt retirement - - - - - - -
Transfer for debt retirement reserve - - - - - - -
RCA funds used to finance MMSD capital charge - - - - - - -
Total transfers (409,747) - 36,350 25,000 348,397 - -
Increase (decrease) in working capital (706,315) - 36,350 430,000 - (239,965) 187,135
Working capital, beginning of year 5,026,419 - 906,466 8,347,557 - 14,280,442 13,280,635
Working capital, end of year $4,320,104 - 942,816 8,777,557 - 14,040,477 13,467,770
Budgeted Working Capital, end of year $5,257,565 - 975,677 7,234,528 - 13,467,770
CITY OF MUSKEGO SEWER UTILITY
SCHEDULE OF CHANGES IN UTILITY WORKING CAPITAL
2020 PROJECTED
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Schedule 5
Page 6
Non-TIF
Operation Reserve
and Special Equipment Capacity
Maintenance Redemption Replacement Assessment Construction
Fund Fund Fund Fund Fund Total
Funds provided
From operations:
Net income (loss) for the year $ (1,340,359) - - - - (1,340,359)
Add charges to income not requiring funds:
Depreciation 950,000 - - - - 950,000
Amortization:
Debt discount - - - -
Manhole Rehabilitation and Mapping Projects 70,350 - - - - 70,350
MMSD Funding 500,000 - 250,000
Less:
Other - Implicit Cash Subsidy to Water Utility - - - - - -
Funds provided from operations 179,991 - - - - 179,991
Increases in:
Collection of special assessments 4,500 - - 400,000 - 404,500
Other contributed capital collection- RCA Landfill - - - - - -
Total funds provided 184,491 - - 400,000 - 584,491
Funds applied
Principal payments on debt - - - - - -
Capital outlay (Schedule 6 for Construction Fund)- - - - 187,500 187,500
Total funds applied - - - - 187,500 187,500
Interfund transfers - net
Interest earnings (9,500) - 9,500 - - -
Equipment replacement (26,350) - 26,350 - - -
Sewer Connection fees (25,000) - - 25,000 - -
Transfer to Construction Fund (187,500) - - - 187,500 -
Transfer for debt retirement reserve - - - - - -
RCA funds used to finance MMSD capital charge - - - - - -
Total transfers (248,350) - 35,850 25,000 187,500 -
Increase (decrease) in working capital (63,859) - 35,850 425,000 - 396,991
Working capital, beginning of year 4,320,104 - 942,816 8,777,557 - 14,040,477
Working capital, end of year $ 4,256,245 - 978,666 9,202,557 - 14,437,468
-1.48% 0.00% 3.80% 4.84% 0.00% 2.83%
CITY OF MUSKEGO SEWER UTILITY
SCHEDULE OF CHANGES IN UTILITY WORKING CAPITAL
2021 BUDGET
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Schedule 6
Page 7
Actual 2020 Projected 2021 Projected
Balance Projected Balance Projected Balance
Project 12/31/2019 Revenues Costs Transfers 12/31/2020 Revenues Costs Transfers 12/31/2020
Debt issue and working capital funds:-
Vehicles & Equipment - - 16,735 16,735 - - 47,500 47,500 -
Lift Station Upgrades - - 326,905 326,905 - - 50,000 50,000 -
Building - Pavement & Gutters - - - - - - 90,000 90,000 -
Bobcat Skid-Loader - - 4,757 4,757 - - - - -
Transfer from replacement funds - - - - - - - - -
Transfer from working capital funds - 348,397 - (348,397) - 187,500 - (187,500) -
Transfer from reserve capacity assessment funds - - - - - - - - -
MMSD Funding - - - - - - - - -
Unallocated debt proceeds - - - - - - - - -
Interest earnings - - - - - - - - -
TOTAL $- 348,397 348,397 - - 187,500 187,500 - -
SCHEDULE OF CONSTRUCTION FUNDS
PROJECTED 2020 AND 2021
CITY OF MUSKEGO SEWER UTILITY
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Schedule 7
Page 8
FUND DESCRIPTION
Operations and Maintenance Required to fund, at a minimum, 3 months of operations and maintenance costs.
Special Redemption Accounts as a reserve for a percentage of annual principal and interest payments, as
required by the debt covenants.
Equipment Replacement Fund Used for significant mechanical equipment replacements as required by the DNR.
Non-TIF - RCA Includes reserves established to account for capacity assessment levies restricted to
finance related capital and/or debt service costs.
Construction Accounts for borrowed funds or interfund transfers from working capital to cover the cost of
capital projects.
MMSD Capital Charge Funding 77.83% = Utility rates & 22.17% = Reserve Capacity Assessments (Prior to 2007, 27.83% was
funded by positive tax increments from TID's #2-#7)
CITY OF MUSKEGO SEWER UTILITY
WORKING CAPITAL FUND DESCRIPTIONS
2021 BUDGET
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Water Utility
Proposed
2021 Budget
Distributed
Tuesday, October 13Th, 2020
W182 S8200 Racine Avenue, Muskego, WI 53150
Waukesha County, Wisconsin
(262) 679-4100
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Schedule Page
Statement of income and expense 1 1
Schedule of operation and maintenance expenses 2 2 - 3
Schedule of capital outlay 3 4
Schedule of changes in utility working capital
2020 Budget 4 5
2021 Budget 5 6
Schedule of contruction funds 6 7
Water Fund Definitions 4 8
CONTENTS
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Schedule 1
Page 1
2020 2021 2021 $ Change % Change
2019 Aug 31, 2020 2020 Adopted Proposed Adopted From 2020 From 2020
Actual Actual Projected Budget Budget Budget Budget Budget
Operating revenue
Sales of water:
Sales to general customers $1,363,016 720,334 1,375,400 $1,381,520 $1,391,820 $0 10,300 0.75%
Private fire protection 48,565 24,557 48,750 45,750 49,000 $0 3,250 7.10%
Public fire protection 495,398 88,526 510,000 508,000 515,000 $0 7,000 1.38%
Other operating revenue 51,879 $19,930 46,250 $55,750 53,500 $0 (2,250) -4.04%
Rental of Water property - tower lease 108,606 39,420 114,000 114,000 119,000 $0 5,000 4.39%
Total operating revenue 2,067,464 892,768 2,094,400 2,105,020 2,128,320 - 23,300 1.11%
Operating expenses
Operation and maintenance:
Source of supply expense 14,258 1,585 4,175 9,797 9,971 - 174 1.77%
Pumping expense 171,301 84,780 172,810 179,529 187,658 - 8,129 4.53%
Water treatment expense 36,088 25,069 36,150 36,612 39,597 - 2,985 8.15%
Transmission and distribution expense 232,818 104,252 197,420 230,365 241,070 - 10,706 4.65%
Customer accounts expense 33,550 19,734 32,010 31,109 34,778 - 3,669 11.79%
Administrative expense 447,961 299,237 415,525 476,006 468,224 - (7,782) -1.63%
Total operation and maintenance expenses 935,977 534,657 858,090 963,417 981,298 - 17,881 1.86%
Depreciation 851,412 - 855,000 835,000 860,000 $0 25,000 2.99%
Taxes 510,322 18,464 519,150 549,078 530,360 $0 (18,717) -3.41%
Total operating expenses 2,297,711 553,120 2,232,240 2,347,495 2,371,658 - 24,163 1.03%
Net operating income (loss)(230,247) 339,647 (137,840) (242,475) (243,338) - (863) -0.36%
Add non-operating income - interest 50,589 22,814 46,067 51,261 39,134 $0 (12,127) -23.66%
Income before non-operating expenses (179,658) 362,461 (91,773) (191,214) (204,204) - (12,990) -6.79%
Deduct non-operating expenses
Interest on advances from municipality and revenue bonds 111,173 44,354 86,845 86,845 80,373 $0 (6,472) -7.45%
Total non-operating expenses 111,173 44,354 86,845 86,845 80,373 - (6,472) -7.45%
Net income (loss) before capital contributions $ (290,832) 318,107 (178,618) (278,059) (284,577) - (6,518) -2.34%
CITY OF MUSKEGO WATER PUBLIC UTILITY
STATEMENT OF INCOME AND EXPENSE
2021 BUDGET
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Schedule 2
Page 2
2020 2021 Proposed Budget
2019 Aug 31, 2020 2020 Adopted Other
Actual Actual Projected Budget Labor Expenses Total
Source of supply:
Operation labor $ 948 472 925 2,197 2,171 - 2,171
Operating supplies and expenses 2,671 1,106 2,250 2,600 - 2,800 2,800
Maintenance of water source plant 10,640 7 1,000 5,000 - 5,000 5,000
Total source of supply 14,258 1,585 4,175 9,797 2,171 7,800 9,971
Pumping expenses:
Operation labor 52,025 20,956 46,300 51,659 57,921 - 57,921
Fuel or power purchased 95,888 47,256 100,000 100,000 - 105,000 105,000
Operation supplies and expense 2,103 1,851 2,050 1,600 - 2,100 2,100
Maintenance of pumping plant 21,286 14,716 24,460 26,271 20,637 2,000 22,637
Total pumping expenses 171,301 84,780 172,810 179,529 78,558 109,100 187,658
Water treatment expenses:
Operation labor 1,168 601 $1,150 3,834 2,793 - 2,793
Chemicals 30,263 15,529 27,000 27,500 - 27,500 27,500
Operating supplies and expenses 1,452 979 1,500 5,000 - 5,000 5,000
Maintenance of water treatment plant 3,205 7,960 6,500 277 4,304 - 4,304
Total water treatment expenses $ 36,088 25,069 36,150 36,612 7,097 32,500 39,597
CITY OF MUSKEGO WATER PUBLIC UTILITY
DETAILED SCHEDULE OF OPERATION AND MAINTENANCE EXPENSES
2021 BUDGET
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Schedule 2
Page 3
2020 2021 Proposed Budget
2019 Aug 31, 2020 2020 Adopted Other
Actual Actual Projected Budget Labor Expenses Total
Transmission and distribution expenses:
Operation labor $ 55,689 27,530 55,100 61,685 61,617 - 61,617
Operation supplies and expenses 14,483 13,059 21,500 21,750 - 22,250 22,250
Maintenance of distribution reservoirs 2,096 1,470 16,470 25,203 278 25,000 25,278
Maintenance of mains 61,493 7,213 32,500 46,055 8,687 31,000 39,687
Maintenance of services $48,109 $7,230 $12,200 $33,429 $2,721 31,000 33,721
Maintenance of meters 7,012 6,782 8,000 4,774 5,616 3,000 8,616
Maintenance of hydrants 43,253 39,812 50,000 35,807 25,682 22,500 48,182
Maintenance of other plant 683 1,157 1,650 1,661 1,420 300 1,720
Total transmission
and distribution expenses 232,818 104,252 197,420 230,365 106,020 135,050 241,070
Customer account expenses:
Meter reading labor 4,021 2,510 4,035 3,496 5,084 - 5,084
Accounting and collecting labor 14,696 7,387 11,875 13,013 13,593 - 13,593
Supplies and expense 14,833 9,837 16,100 14,600 - 16,100 16,100
Total customer account expenses 33,550 19,734 32,010 31,109 18,678 16,100 34,778
Administrative and general expenses:
Administrative and general salaries $131,119 $118,659 $144,900 141,907 139,406 - 139,406
Office supplies and expenses 94,174 29,375 50,000 99,985 - 93,850 93,850
Payroll clearing/sick/vacation/holiday - 28,020 - - - - -
Outside services 40,560 32,209 53,000 75,000 - 56,000 56,000
Property insurance - - - - - - -
Injuries & Damages 16,300 8,350 16,350 19,865 - 19,700 19,700
Employee pensions and benefits 148,900 76,377 135,475 117,948 - 138,468 138,468
Miscellaneous general expenses 3,801 1,267 4,800 7,300 - 7,300 7,300
Transportation expense 13,107 4,980 11,000 14,000 - 13,500 13,500
Maintenance of general plant & Contingency - - - - - - -
Total administrative and
general expenses 447,961 299,237 415,525 476,006 139,406 328,818 468,224
Total operation and
maintenance expenses $ 935,977 534,657 858,090 963,417 351,930 629,368 981,298
CITY OF MUSKEGO WATER PUBLIC UTILITY
DETAILED SCHEDULE OF OPERATION AND MAINTENANCE EXPENSES (Concluded)
2021 BUDGET
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Schedule 3
Page 4
Estimated
2020 2020 2021 2021
Total Adopted Proposed Adopted
Funding Cost Budget Budget Budget
1.2020 Capital Additions:
Meters (B) 150,000 150,000
Truck (Water & Sewer)(B) 16,734 19,000
Bobcat Skid-Steer Loader Trailer (Water & Sewer)(B) 4,757 5,000
Well Rehap (B) 200,000 200,000
Water Study (carryover)(B) 336 -
$ 371,827 374,000 - -
2.2021 Capital Additions:
Meters (B) 150,000 -
Truck (Water & Sewer)(B) 20,000 -
Replacement Truck (accident Water & Sewer)(B) 27,500 -
Well Rehap (B) 150,000 -
Apollo Building - Pavement & Gutters (B) 90,000 -
Scada (B) 35,640 -
- - 473,140 -
Grand Total $ 371,827 374,000 473,140 -
Notes:
(A) - Financed by borrowings.
(B) - Financed by working capital / Depreciation Fund
(C) - Anticipated to be financed by a Sewer Utility Subsidy
(D) - Anticipated to be financed by a stimulus grant
(E) - Anticipated to be financed by assessments
CITY OF MUSKEGO WATER PUBLIC UTILITY
SCHEDULE OF CAPITAL OUTLAY COSTS
PROJECTED 2020 AND 2021 BUDGET
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Schedule 4
Page 5
Operation
and Debt
Maintenance Construction Depreciation Service 2020
Fund Fund Fund Fund Total Budget
Funds provided
From operations:
Net income (loss) for year $ (178,618) - - - (178,618) (277,817)
Add charges to income not
requiring funds:
Depreciation 725,000 - 20,000 110,000 855,000 835,000
Amortization - - - 86,845 86,845 86,845
Transfer working capital to other funds (371,827) 371,827 - - - -
Proceeds from borrowing/stimulas grant - - - - - -
Receipts from utility for implicit cash subsidy - - - -
Increases in collection of - - - - - -
special assessments and WCA's - - - 60,646 60,646 40,000
Total funds provided (applied)174,555 371,827 20,000 257,491 823,873 684,028
Funds applied
Principal payments on debt - - - 236,956 236,956 236,656
Capital outlay 371,827 - 371,827 374,000
Paid to utility for implicit cash subsidy - - - - - -
Total funds applied - 371,827 - 236,956 608,783 610,656
Interfund transfers - interest earnings (16,500) - 6,750 9,750 - -
Increase (decrease) in
working capital 158,055 - 26,750 30,285 215,090 73,372
Working capital, beginning of year 375,879 - 448,765 616,498 1,441,142 1,294,185
Working capital, end of year $ 533,934 - 475,515 646,783 1,656,232 1,367,557
CITY OF MUSKEGO WATER PUBLIC UTILITY
SCHEDULE OF CHANGES IN UTILITY WORKING CAPITAL
2020 PROJECTED
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Schedule 5
Page 6
Operation
and Debt
Maintenance Construction Depreciation Service
Fund Fund Fund Fund Total
Funds provided
From operations:
Net income (loss) for year $ (284,577) - - - (284,577)
Add charges to income not
requiring funds:
Depreciation 775,000 - 20,000 65,000 860,000
Amortization - - - 80,373 80,373
Amortization on water tower - - - - -
Transfer working capital to other funds (473,140) 473,140 - - -
Implicit cash subsidy from Sewer Utility - -
Proceeds from borrowing - - - - -
Increases in collection of
special assessments - - - 50,000 50,000
Total funds provided (applied)17,283 473,140 20,000 195,373 705,796
Funds applied
Principal payments on debt - - - 266,805 266,805
Capital outlay 473,140 - 473,140
Paid to utility for implicit cash subsidy - - - - -
Total funds applied - 473,140 - 266,805 739,945
Interfund transfers - interest earnings (11,495) - 4,875 6,620 -
Increase (decrease) in
working capital 5,788 - 24,875 (64,812) (34,149)
Working capital, beginning of year 533,934 - 475,515 646,783 1,656,232
Working capital, end of year $539,722 - 500,390 581,971 1,622,083
1.08% #DIV/0! 5.23% -10.02% -2.06%
CITY OF MUSKEGO WATER PUBLIC UTILITY
SCHEDULE OF CHANGES IN UTILITY WORKING CAPITAL
2021 BUDGET
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Schedule 6
Page 7
Actual Projected Projected
Balance 2020 Balance 2021 Balance
Project 12/31/19 Revenues Costs Transfers 12/31/20 Revenues Costs Transfers 12/31/21
Meters - - 150,000 150,000 - - 150,000 150,000 -
Transportation Equipment - - 16,734 16,734 - - 47,500 47,500 -
Apollo Building - - - - - - 90,000 90,000 -
Skid Loader - - 4,757 4,757 - - - - -
Scada Maintenance - - - - - - 35,640 35,640 -
Well Rehab - - 200,000 200,000 - - 150,000 150,000 -
Water Study - - 336 336 - - - - -
Transfer from working capital (includes MNSD reimbursements)- 371,827 - (371,827) - 473,140 - (473,140) -
Transfer from depreciation fund - - -
Future Projects - - - - - - - - -
Subsidy from Sewer Utility - - - - - - - - -
Proceeds from borrowing - Net Refunding - - - - - - - - -
Unallocated debt proceeds and interest earnings - - - - - - - - -
-
Total $- 371,827 371,827 - - 473,140 473,140 - -
PROJECTED 2020 AND 2021
CITY OF MUSKEGO WATER PUBLIC UTILITY
SCHEDULE OF CONSTRUCTION FUNDS
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Schedule 7
Page 8
FUND DESCRIPTION
Operations and Maintenance Recommended to fund 3 months of operations and maintenance costs.
Construction Accounts for borrowed funds or interfund transfers from working capital to cover the cost of
capital projects.
Depreciation Is available for the acquisition of capital equipment not financed by a revenue bond issue.
Debt Service Accounts as a reserve for a required percentage of the annual principal and interest payments on
the outstanding debt.
CITY OF MUSKEGO WATER UTILITY
WORKING CAPITAL FUND DESCRIPTIONS
2021 BUDGET
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