CCR2003231~
COMMON COUNCIL - CITY OF MUSKEGO
RESOLUTION #231-2003
APPROVAL OF 2004 SEWER UTILITY BUDGET
BE IT RESOLVED That the Common Council of the City of Muskego, upon the
recommendation of the Public Utilities Committee, does hereby approve the attached
Sewer Utility Budget for the year 2004.
BE IT FURTHER RESOLVED That the Common Council of the City of Muskego, upon
the recommendation of the Public Utilities Committee, does hereby establish the
following sewer usage rates for 2004:
Residential Users:
Single Family Home
Duplex: 3 Bedroom Unit
Duplex: 2 Bedroom Unit
Duplex: 1 Bedroom Unit
$104 per quarter/$416 per year
$1 04 per quarter
$78 per quarter
$52 per quarter
Industrial and Commercial Users (Including Multifamily with three or more units):
Based on actual metered water use:
$3.71 per 1,000 gallons plus a connection charge of $41.38 per quarter,
with a minimum charge of $416.00 per year per building.
~
i
DATED THIS 11th DAY OF NOVEMBER, 2003
SPONSORED BY:
PUBLIC UTILITIES COMMITTEE
Ald. Eric Schroeder
Ald. Rick Petfalski
Ald. Patrick Patterson
This is to certify that this is a true and accurate copy of Resolution #231-2003 which
was adopted by the Common Council of the City of Muskego.
~K.Jr7~ CI
,
-Treasurer
11/03mep
('
,----
CITY OF MUSKEGO
SEWER UTILITY BUDGET
2004
,--
,-
,,--
Statement of income and expense
Detailed schedule of operating expenses
Schedule of capital outlay
Schedule of changes in utility working capital:
2003 Projected
2004 Budget
Schedule of construction funds
Sewer Utility Special Debt Service Fund
Sewer Rate Design
~
-
CONTENTS
Schedule Paae
1 1-2
2 3
3 4
4 5
5 6
6 7
7 8
8 9
) ) Sc~ r
1.
11/04/03 CITV OF MUSKEGO SEWER U I'L..ITV
STATEMENT OF INCOME AND EXPENSE
2004 BUDGET
2003 2004 2004
2002 Aug. 31,2003 2003 Adopted Proposed Adopted Account
Actual Actual Proiected Budaet Budaet Budaet Number
Operatina revenues
Sewer service charges $ 3,001,572 1,555,097 3,115,111 3,163,116 3,280,575 3,280,575 4801/4810
Miscellaneous revenues 7,393 4,610 6,100 4,100 5,100 5,100 4820/4822/4823/4824
Total operating revenues 3,008,965 1,559,707 3,121,211 3,167,216 3,285,675 3,285,675
ODeratina expenses
Operation and maintenance:
Milwaukee Metropolitan Sewerage District:
Contract amortization 316,477 316,477 316,477 316,477 316,477 61.01.6405/6406/6407
Capital charge 1,325,308 1,343,307 1,343,307 1,325,970 1,088,076 1,088,076 61.02.6071
User charge 546,371 275,246 600,000 650,000 650,000 650,000 61.03.6072
Town of Norway
Capital charge 400,000 400,000
User charge 192,549 68,628 200,000 250,000 175,000 175,000 61.10.6068
Supervision and labor 304,963 203,373 305,059 276,862 287,511 287,511 61.11.5101/5102
Supplies and expense 9,697 10,586 15,290 16,790 18,790 18,790 Schedule 2
Maintenance:
Amortization - Odor control & manhole rehabilitation 44,231 44,231 44,055 44,231 44,231 61.16.5428
Odor control 8,576 11,182 21,000 21,000 21,000 21,000 61.16.5426
Building and structures 12,661 6,704 10,000 10,000 10,000 10,000 61.15.5415
General plant equipment (safety equipment) 914 10,000 10,000 10,000 10,000 61.15.5425
Sewerage collection system 24,979 25,069 40,000 50,000 50,000 50,000 61.16.5411
I & I reduction 8,189 509 40,000 140,000 140,000 140,000 61.16.5427
Electricity 73,249 36,602 100,000 115,000 115,000 115,000 61.20.5910
Transportation expense 12,076 8,578 9,350 9,350 9,350 9,350 61.21.5jo6
2,879,326 1,990,698 3,054,714 3,235,504 3,335,435 3,335,435
Customers' account expenses:
Accounting and collection 23,003 14,997 23,878 23,878 57,965 57,965 63.40.5101
Meter expense 21,381 28,000 28,000 28,000 28,000 63.40.5101
44,384 14,997 51,878 51,878 85,965 85,965 63.40.5101
General expenses:
Office salaries 23,003 14,997 23,878 23,878 57,965 57,965 63.40.5101
Employees' pensions and benefits 113,310 89,150 133,851 110,813 148,482 148,482 63.41.5201/5202/520315204/5229/
Unemployment compensation 2,000 2,000 2,000 2,000 63.42.6020
Office supplies and expenses 59,397 40,015 74,196 87,508 77,424 77,424 Schedule 2
Outside services 69,861 40,231 114,469 139,469 129,760 129,760 Schedule 2
265,571 184,394 348,394 363,668 415,630 415,630
Total operation and maintenance 3,189,281 2,190,089 3,454,986 3,651,051 3,837,029 3,837,030
Depreciation 807,167 844,000 817,000 886,350 886,350 64.50.6705
Total operating expenses 3,996,448 2,190,089 4,298,986 4,468,051 4,723,379 4,723,380
Net operating income (loss)
(forward) (987,483) (630,382) (1,177,775) (1,300,835) (1,437,704) (1,437,704)
) ) ')
Schedule 1
2.
CITY OF MUSKEGO SEWER UTILITY
STATEMENT OF INCOME AND EXPENSE
( concluded)
2004 BUDGET
2003 2004 2004
2002 Aug. 31,2003 2003 Adopted Proposed Adopted Account
Actual Actual Proiected Budaet Budaet Budaet Number
Net operating income (loss)
(forwarded) $ (987,483) (630,382) (1,177,775) (1,300,835) (1,437,704) (1,437,704)
Add non- eperatina income
City subsidies 665,917 663,910 663,910 662,985 544,038 544,038 4950
Interest from investments 339,052 64,572 233,500 236,165 217,164 217,164 4531/4910
Total non-operating income 1,004,969 728,482 897,410 899,150 761,202 761,202
Income before non-operating expenses 17,486 98,100 (280,365) (401,684) (676,502) (676,502)
Deduct non-operatina eXDenses
Interest charges on long-term debt 427,995 240,200 480,400 480,400 455,646 455,646 65.60.7010
Amortization of debt discount 26,311 25,932 27,500 25,471 25,471 65.61.7015
Amortization of extraordinary property losses 65.62.6401
T ota! non-operating expenses 454,306 240,200 506,332 507,900 481,117 481,117
Net income (loss) before capital contributions $ (436,820) (142,099) (786,697) (909,584) (1,157,619) (1,157,619)
) ) )
Schedule 2
3.
11/04/03 CITY OF MUSKEGO SEWER UTILITY
DETAILED SCHEDULE OF OPERATING EXPENSES
2004 BUDGET
2003 2004 2004
2002 Aug. 31, 2003 2003 Adopted Proposed Adopted Account
Actual Actual Projected Budget Budget Budget Number
Operation and maintenance:
Supplies and expense:
Operating supplies $ 2,294 1,092 2,290 2,290 2,290 2,290 61.12.5702
Chemicals 7,033 9,494 10,000 10,000 12,000 12,000 61.12.5750
Water expense 370 3,000 4,500 4,500 4,500 61.22.5915
$ 9,697 10,586 15,290 16,790 18,790 18,790
General expense
Office supplies and expenses:
Supplies $ 7,600 3,875 6,000 7,794 5,729 5,729 63.42.5701
Other general expense 2,543 302 2,000 3,000 3,000 3,000 63.42.6056
Telephone and communications 11,439 6,867 21,760 21,760 22,445 22,445 63.42.5430/5606
Insurance 28,264 24,046 34,945 45,463 36,692 36,692 63.42.610216101/6104
Contingency 67.00.6601
Computer expense 9,550 4,925 9,491 9,491 9,558 9,558 63.42.5509
$ 59,396 40,015 74,196 87,508 77,424 77,424
Outside services:
City administrative charge $ 20,991 16,303 33,969 33,969 23,389 23,389 63.43.6057
Accounting 12,685 8,500 20,500 20,500 20,500 20,500 63.43.5810
Legal 12,970 5,214 20,000 40,000 40,000 40,000 63.43.5805
Engineering 14,404 2,813 30,000 30,000 30,000 30,000 63.43.5815
Other outside services 8,811 7,401 10,000 10,000 10,000 10,000 63.43.5801
Amortization - mapping 63.43.5824
Computer software modification 5,000 5,871 5,871 63.43.5509
$ 69,861 40,231 114,469 139,469 129,760 129,760
')
11/04/03 CITY OF MUSKEGO SEWER UTILITY
SCHEDULE OF CAPITAL OUTLAY
AIC#
2003
Estimated
Total
~ost
2004
Proposed
Budget Description
1. 2000 Prolects:
Sewer Camera Equipment
GIS Mapping
Generator North Shore Lift Station
North Cape / Ryan
Manhole Rehab
(A)
(A)
(A)
(A)
(A)
ì
Schedule 3
4.
2004
Adopted
Budget
$
2. 2002 Prolects
Janesville Box Culvert (A) $ 6,762 135,215 135,215
McShance Underground Storage Unit (B &C) 983,289 100,000 100,000
$ 990,051 235,215 235,215
3. 2003 Proiects
Martin Drive extension (A) $ 40,202 29,798 29,798
Truck (A) 31,191 23,500 23,500
Oversizing on land purchase (A) 10,000 10,000
$ 63,298 63,298 71,393
4. 2004 Proiects
Chamberlain Hill Oversizing
NW Sewer Study
20/20 Facility plan
Future projects
$ 16,826
(C)
(C)
(C)
(C)
16,826
85,500
50,000
50,000
50,000
235,500
Note A: Anticipated to be financed with available construction funds
Note B: Anticipated to be financed with 2002 borrowing
Note C: Finance with working capital______-------
85,500
50,000
50,000
50,000
235,500
) -1edUle 4
11/04/03 cITY OF MUSKEGO SEWER UTILITY
SCHEDULE OF CHANGES IN UTILITY WORKING CAPITAL
2003 PROJECTED
2003 Proj ected
Operation
and Special Equipment
Maintenance Redemption Replacement Construction 2003
Fund Fund Fund Fund Total Budaet
Funds provided
From operations:
Net income (loss) for the year $ (786,697) (786,697) (909,584)
Add charges to income not requiring funds:
Depreciation 844,000 844,000 817,000
Amortization:
MMSD contract 316,477 316,477 316,477
Debt discount 25,932 25,932 27,500
Manhole Rehabilitation 44,231 44,231 44,055
Less:
Interest on advance to City (A) (80,208) (80,208) (75,100)
Contrbuted capital
Funds provided from operations 363,735 363,735 220,349
Increases in:
Collection of special assessments 90,719 90,719 93,757
Collection of advance to the City (A) 163,269 163,269 163,271
Other contributed capital collections
Total funds provided 617,723 617,723 477,377
Funds applied
Principal payments on debt 605,000 605,000 605,000
Capital outlay (Schedule 6) 1,078,269 1,078,269 2,123,533
Total funds applied 605,000 1,078,269 1,683,269 2,728,533
Interfund transfers - net
Interest earnings (22,000) 8,000 14,000
Other (26,350) 26,350
Total transfers (48,350) 34,350 14,000
Increase (decrease) in working capital (35,627) 34,350 (1,064,269) (1,065,547) (2,251,156)
Workina capital, beainnina of vear 5,502,552 1,620,849 474,247 1,856,211 9,453,859 8,779,527
Workina capital, end of vear i 5,466,925 1,620,849 508,597 791,942 8,388,312 6,528,371
2003 Budgeted Working Capital, end of year $ 4,831,190 869,639 508,757 318,784 6,528,370
Sche ,
6.
11/04/03 CITY OF MUSKEGO SEWER UTILITY
SCHEDULE OF CHANGES IN UTILITY WORKING CAPITAL
2004 BUDGET
Operation
and Special Equipment
Maintenance Redemption Replacement Construction
Fund Fund Fund Fund Total
Funds provided
From operations:
Net income (loss) for the year $ (1,157,619) (1,157,619)
Add charges to income not requiring funds:
Depreciation 886,350 886,350
Amortization:
MMSD contract 316,477 316,477
Debt discount 25,471 25,471
Manhole Rehabilitation and Mapping Projects 44,231 44,231
Less:
Interest on advance to City (32,630) (32,630)
Contrbuted capital
Funds provided from operations 82,280 82,280
Proceeds from debt
Increases in:
Collection of special assessments 66,474 66,474
Collection of advance to the City
Other contributed capital collections
Total funds provided 148,754 148,754
Funds applied
Principal payments on debt 570,000 570,000
Capital outlay (Schedule 6 for Construction Fund) 534,013 534,013
Total funds applied 570,000 534,013 1,104,013
Interfund transfers - net
Interest earnings (8,000) 8,000
Other (26,350) 26,350
Total transfers (34,350) 34,350
Increase (decrease) in working capital (455,596) 34,350 (534,013) (955,258)
WorkinQ capital. beQinninQ of year 5,466,925 1,620,849 508,597 791,942 8,388,312
WorkinQ capital. end of year i 5,011,329 1,620,849 542,947 257,929 7,433,054
) ')
Schedule 6 ) \
7.
11/04/03 CITY OF MUSKEGO SEWER UTILITY
SCHEDULE OF CONSTRUCTION FUNDS
PROJECTED 2003 AND 2004
Actual 2002 Actual 2003 Projected 2004 Projected
Balance Actual Balance Projected Balance Projected Balance
Project 12/31/2001 Revenues Costs Transfers 12/31/2002 Revenues Costs Transfers 12/31/2003 Revenues Costs Transfers 12/31/2004
Debt issue and working capital funds:
GIS Mapping 560 865 305 (305)
Generator North Shore Lift Station 6,255 8,122 1,867
Manhole Rehab 3,574 3,934 1,581 1,221 (1,221)
North Cape / Ryan 113,575 116,152 2,577
McShane Underground Storage Unit 630,137 2,085,468 2,429,904 964,299 1,250,000 983,289 (166,711) 100,000 100,000 0
Janesville Road Box Culvert 56,000 2,644 88,644 142,000 6,762 (24) 135,214 135,215 (0)
Oversizing on land purchase 10,000 10,000 10,000 10,000
Sewer Camera Equipment 162,825 162,825
Martin Drive Extension 70,000 70,000 40,202 29,798 29,798
Land Purchase - Lift Station 1,739 1,739
Truck 26,000 26,000 31,191 5,191 0 23,500 23,500 0
Chamberlain Hill Oversizing 85,SOO 85,500
NW Sewer Study 16,826 16,826 0 50,000 50,000 0
2020 Facility plan 50,000 50,000
Future projects 50,000 SO,OOO
Transfer from working capital 1,500,000 (1,167,572) 332,428 184,501 516,929 (259,000) 257,929
Unallocated debt proceeds and
interest earnings 24,257 24,257 14,000 (38,257)
TOTAL $ 972,366 3,609,725 2,725,880 1,856,211 14,000 1 ,078,269 791 ,942 534,013 257,929
.
) ) )
Schedule 7
8.
11/04/03 CITY OF MUSKEGO SEWER UTILITY
2004 BUDGET
SEWER UTILITY SPECIAL DEBT SERVICE FUND
2003 2004 2004
2002 Adopted Aug.31 , 2002 2003 Proposed Adopted
Actual Budget Actual Projected Budget Budget
Revenues
Regulation and compliance revenues -
initial construction fee $ 80,000 50,000 45,000 57,500 55,000 55,000
Public improvement revenues - special assessments
and RCA fees 852,921 430,000 383,935 465,902 439,000 439,000
Commercial revenues - interest earned 63,607 100,000 42,000 29,053 29,053
Total revenues 996,528 580,000 428,935 565,402 523,053 523,053
ExPenditures 11,000 11,000
Excess of revenues over expenditures 996,528 580,000 428,935 565,402 512,053 512,053
Other financina sources (uses)
Transfer to Utility - City service revenues (304,000) (293,698) (293,698) (293,698) (241,227) (241,227)
Excess of revenue and other
financing sources over
expenditures and other uses 692,528 286,302 135,237 271,704 270,826 270,826
Fund balances. beainnina of year 3,362,233 3,765,196 4,054,761 4,054,761 4,326,465 4,326,465
Fund balances. end of vear i 4,054,761 4,051,498 4,189,998 4,326,465 4,597,291 4,597,291
City of Muskego
Sewer Rate Design
2004 Budget
/""""' 1. Estimated Revenue Reaulrement IBased on the vear 2004 Budaetl
Aaaltlons:
Operation and maintenance expenses
Depreciation
Replacement Fund - DNR requirement
Mortgage Revenue Bond compliance requirements
Rate of return of average investment rate base - ( Exhibit C 1.)
Reductions - City subsidies
Gross revenue requirement
Rate Stabilization component - use of interest income. other income and operating reserves
Net Revenue Requirement per Budget
2. Estimated number of aallons 10001 billed
3. Number of laterals -Iconnectlonsl
4. Estimated annual number of aallons used bv a averaae residential customer
5 Inflow I Infiltration based on an elaht vear averaae provided bv Ruekert & Mielke. Inc.
6. Rate components
TVDe of Charae
Connection Charge
Model Fonmula
Net Revenue Reauirement X Inflow and infiltration %
Number of laterals
Consumption Charge Net Revenue Reauirement X Billable %
Number of gallons (000) billed
Computation
.-
Connection Charge $ 3,298.600.50 X 34.46%
6.870
Consumption Charge $ 3,298.600.50 X 65.54%
582.585
7. Averaae annual residential charae
Estimated number of gallons used by a average residential customer per year
Consumption charge per 1.000 gallons
Average residential annual consumption charge
Average residential annual connection charge
Total average residential annual sewer usage charge
(A) Use of Fund balance per MRB test
Interest income
Penalties and other income
Additional use of fund balance
944.038
217.164
5.100
359.400
1.525,702 (A)
,--
Schedule 8
9.
Data
$ 3.837,029
886,350
26,350
618,611
5.368,340
(544,038)
4.824,302
(1.525,702) (A)
$ 3.298,600
582,585
6,870
67,510
~
= Connection Charge
= Consumption Charge
= ~ Connection Charge
= $ 3.71 Consumption Charge
67.510
$ 3.71
$ 250.52
$165.49
$416.00
Use of Fund balance per MRB les
Interest income
Penalties and other Income
Additional use of fund balance
(A)
944.038
217.164
5.100
359.400
1,525.702