CCR2004194.
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COMMON COUNCIL - CITY OF MUSKEGO
RESOLUTION #194-2004
APPROVAL OF 2005 SEWER UTILITY BUDGET AND RATES
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 2005.
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 2005:
Residential Users:
Single Family Home
Duplex: 3 Bedroom Unit
Duplex: 2 Bedroom Unit
Duplex: 1 Bedroom Unit
$138.72 per quarter/$554.88 per year
$138.72 per quarter
$104.04 per quarter
$69.36 per quarter
Industrial and Commercial Users (Including Multifamily with three or more units):
Based on actual metered water use:
$4.93 per 1,000 gallons plus a connection charge of $54.84 per quarter,
with a minimum charge of $554.88 per year per building.
DATED THIS 23rd DAY OF November ,2004
SPONSORED BY:
PUBLIC UTILITIES COMMITTEE
Ald. Eric Schroeder
Ald. Bob Melcher
Ald. Patrick Patterson
This is to certify that this is a true and accurate copy of Resolution #194-2004 which
was adopted by the Common Council of the City of Muskego.
11/04jmb
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CITY OF MUSKEGO
SEWER UTILITY BUDGET
2005
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Statement of income and expense
Detailed schedule of operating expenses
Schedule of capital outlay
Schedule of changes in utility working capital:
2004 Projected
2005 Budget
Schedule of construction funds
Sewer Rate Design
CONTENTS
Schedule PaQe
1 1-2
2 3
3 4
4 5
5 6
6 7
7 8
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CITY OF MUSKEGO SEW ER U. ~ 1.
11/19/04
STATEMENT OF INCOME AND EXPENSE
2005 BUDGET
2004 2005 2005
2003 Aug. 31, 2004 2004 Adopted Proposed Adopted Account
Actual Actual Proiected Budaet Budaet Budaet Number
Operatina revenues
Sewer service charges $ 3,146,699 2,475,838 3,276,751 3,280,575 4,330,821 4,330,821 4801/4810
Miscellaneous revenues 21,339 6,634 7,450 5,600 6,100 6,100 4820/4822/4823/4824
Total operating revenues 3,168,038 2,482,472 3,284,201 3,286,175 4,336,921 4,336,921
Operatina 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 1,343,307 1,105,733 1,105,733 1,088,076 2,220,224 2,220,224 61.02.6071
User charge 555,677 282,752 650,000 650,000 650,000 650,000 61.03.6072
Town of Norway
Capital charge 74,106 307,116 400,000 73,295 73,295
User charge 206,747 145,188 354,754 175,000 341 ,468 341,468 61.10.6068
Supervision and labor 319,509 220,396 330,594 287,511 353,737 353,737 61.11.5101/5102
Supplies and expense 14,420 15,188 18,790 18,790 21,985 21,985 Schedule 2
Maintenance:
Amortization - Odor control & manhole rehabilitation 44,231 44,231 44,231 44,231 44,231 61.16.5428
Odor control 11,182 10,518 21,000 21,000 21,000 21,000 61.16.5426
Building and structures 9,954 8,549 10,000 10,000 10,000 10,000 61.15.5415
General plant equipment (safety equipment) 10,757 1,412 7,500 10,000 10,000 10,000 61.15.5425
Sewerage collection system 44,570 42,537 50,000 50,000 50,000 50,000 61.16.5411
I & I reduction 4,259 7,031 40,000 140,000 140,000 140,000 61.16.5427
Electricity 69,802 54,907 115,000 115,000 115,000 115,000 61.20.5910
Transportation expense 17,950 6,253 9,350 9,350 9,850 9,850 61.21.5306
2,968,842 1,974,569 3,380,545 3,335,435 4,377,267 4,377,267
Customers' account expenses:
Accounting and collection 23,287 36,007 57,965 57,965 60,601 60,601 63.40.5101
Meter expense 19,807 28,000 28,000 28,000 28,000 63.40.5101
43,093 36,007 85,965 85,965 88,601 88,601 63.40.5101
General expenses:
Office salaries 23,287 36,007 57,965 57,965 60,601 60,601 63.40.5101
Employees' pensions and benefits 139,536 117,939 148,482 148,482 168,771 168,771 63.41.5201/5202/5203/5204/5229/
Unemployment compensation 2,000 2,000 2,000 2,000 63.42.6020
Office supplies and expenses 68,958 44,641 78,858 77,424 102,118 102,118 Schedule 2
Outside services 85,177 55,658 130,157 129,760 130,213 130,213 Schedule 2
316,957 254,244 417,462 415,630 463,703 463,703
Total operation and maintenance 3,328,893 2,264,820 3,883,971 3,837,030 4,929,571 4,929,571
Depreciation 856,119 924,462 886,350 970,767 970,767 64.50.6705
Total operating expenses 4,185,012 2,264,820 4,808,433 4,723,380 5,900,338 5,900,338
Net operating income (loss)
(forward) (1,016,974) 217,652 (1,524,232) (1,437,204) (1,563,417) (1,563,417)
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Schedule 1
2.
CITY OF MUSKEGO SEWER UTILITY
STATEMENT OF INCOME AND EXPENSE
(concluded)
2005 BUDGET
2004 2005 2005
2003 Aug. 31, 2004 2004 Adopted Proposed Adopted Account
Actual Actual Proi ected Budget Budget Budget Number
Net operating income (loss)
(forwarded) $ (1,016,974) 217,652 (1,524,232) (1,437,204) (1,563,417) (1,563,417)
Add non- operating income
City subsidies 369,017 307,725 307,725 544,038 617,888 617,888 4950
Interest from investments 218,340 29,218 200,000 200,000 200,000 200,000 4531/4910
Interest income on RCA's and special assessments 62,695 25,252 47,482 17,164 59,627 59,627
Sewer Connection Fees 70,500 68,000 50,000 50,000
Total non-operating income 720,552 362,196 623,207 761,202 927,515 927,515
Income before non-operating expenses (296,422) 579,848 (901,025) (676,002) (635,902) (635,902)
Deduct non-operating exPenses
Interest charges on long-term debt 472,807 227,823 455,646 455,646 430,336 430,336 65.60.7010
Amortization of debt discount 25,932 25,4 71 25,471 23,764 23,764 65.61.7015
Amortization of extraordinary property losses 65.62.6401
Total non-operating expenses 498,740 227,823 481, 117 481 ,117 454,100 454,100
Net income (loss) before capital contributions $ (795,162) 352,024 (1,382,142) (1,157,119) (1,090,002) (1,090,002)
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Schedule 2
3.
11/19/04 CITY OF MUSKEGO SEWER UTILITY
DETAILED SCHEDULE OF OPERATING EXPENSES
2005 BUDGET
2004 2005 2005
2003 Aug. 31, 2004 2004 Adopted Proposed Adopted Account
Actual Actual Projected Budget Budget Budget Number
Operation and maintenance:
Supplies and expense:
Operating supplies $ 1,603 1,135 2,290 2,290 2,485 2,485 61.12.5702
Chemicals 12,816 9,553 12,000 12,000 14,000 14,000 61.12.5750
Water expense 4,500 4,500 4,500 5,500 5,500 61.22.5915
$ 14,420 15,188 18,790 18,790 21,985 21,985
General expense
Office supplies and expenses:
Supplies $ 5,932 3,438 4,800 5,729 5,729 5,729 63.42.5701
Other general expense 779 1,186 2,000 3,000 3,000 3,000 63.42.6056
Telephone and communications 12,406 6,893 16,100 22,445 20,590 20,590 63.42.5430/5606
Insurance 44,865 26,969 46,400 36,692 61,790 61,790 63.42.6102/6101/6104
Contingency 67.00.6601
Computer expense 4,975 6,155 9,558 9,558 11,009 11,009 63.42.5509
$ 68,958 44,641 78,858 77,424 102,118 102,118
Outside services:
City administrative charge $ 25,379 24,198 23,786 23,389 23,842 23,842 63.43.6057
Accounting 12, 125 10,000 20,500 20,500 20,500 20,500 63.43.5810
Legal 12,266 6,383 40,000 40,000 40,000 40,000 63.43.5805
Engineering 12,690 6,782 30,000 30,000 30,000 30,000 63.43.5815
Other outside services 22,716 4,565 10,000 10,000 10,000 10,000 63.43.5801
Amortization - mapping 63.43.5824
Computer software modification 3,730 5,871 5,871 5,871 5,871 63.43.5509
$ 85,177 55,658 130,157 129,760 130,213 130,213
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Schedule 3
4.
11/19/04 CITY OF MUSKEGO SEWER UTILITY
SCHEDULE OF CAPITAL OUTLAY
2004
Estimated 2004 2005 2005
Total Adopted Proposed Adopted
AlC# Description Cost Budoet Budget Budget
1. 2002 Proiects
Janesville Box Culvert (A) $ 135,215 134,731 134,731
McShance Underground Storage Unit (B &C) 35,731 100,000
$ 35,731 235,215 134,731 134,731
2. 2003 Proiects
Martin Drive extension (A) $ 40,202 29,798
Truck (A) 21,261 23,500
Oversizing on land purchase (A) 10,000
$ 61.463 63,298
3. 2004 Proiects
Chamberlain Hill Oversizing (A) 71,249 85,000
NW Sewer Study (A) 8,007 50,000 40,879 40,879
20/20 Facility plan (A) 50,000 50,000 50,000
Future projects (A) 50,000 50,000 50,000
$ 79,256 235,000 140,879 140,879
4. 2005 Proiects
Oversizing on land purchases (A) 10,000 10,000
Truck (A) 21,000 21,000
SCADA Renovations (Radio Study 50%) (A) 11,000 11,000
Woods Rd Forcemain 20" Sandy Beach (C) 1,300,650 1,300,650
Future Projects (A) 50,000 50,000
$ 1,392,650 1,392,650
Note A: Anticipated to be financed with available construction funds
Note B: Anticipated to be financed with 2005 borrowing
Note C: Finance with working capital
. CITY.USKEGO SEWER UTILITY
~ 5.
11/19/04
SCHEDULE OF CHANGES IN UTILITY WORKING CAPITAL
2004 PROJECTED
2004 Projected
NON TIF
Operation Reserve
and Special Equipment Capacity
Maintenance Redemption Replacement Assessment Construction 2004
Fund Fund Fund Fund Fund Total Budaet
Funds provided
From operations:
Net income (loss) for the year $ (1,377,142) (5,000) (1,382,142) (1,157,119)
Add charges to income not requiring funds:
Depreciation 924,462 924,462 886,350
Amortization:
MMSD contract 316,477 316,477 316,477
Debt discount 25,471 25,4 71 25,471
Manhole Rehabilitation 44,231 44,231 44,231
Less:
Other (32,630)
Funds provided from operations (66,501) (5,000) (71,501) 82,781
Increases in:
Collection of special assessments 65,402 291,831 357,233 66,474
Other contributed capital collections
Total funds provided (1,099) 286,831 285,732 149,255
Funds applied
Principal payments on debt 570,000 570,000 570,000
Capital outlay (Schedule 6) 176,450 176,450 534,013
Total funds applied 570,000 176,450 746,450 1,104,013
Interfund transfers - net
Interest earnings (8,000) 52,230 8,000 52,230
Equipment replacement (26,350) 26,350
Sewer Connection fees (68,000) 68,000
RCA funds used to finance MMSD capital charge 245,142 (245,142)
Total transfers 142,792 26,350 (124,912) 8,000 52,230
Increase (decrease) in working capital (428,307) 26,350 161,920 (168,450) (408,487) (954,758)
W orkina capital. beainnina of \/ear 7,721,575 1,536,622 506,154 3,014,240 879,274 13,657,865 8,388,312
W orkina capital. end of \/ear i 7,293,268 1,536,622 532,504 3,176,160 710,824 13,249,378 7,433,554
2004 Budgeted Working Capital, end of year $ 5,011,829 1,620,849 542,947 257,929 7,433,554
Note 1
Note 1 :The 2004 Budget didn not include the NON TIF Reserve Capacity Assessment Fund which was transferred to the Sewer effective 1/1/03.
. . Schedule 5 .
6.
11/19/04 CITY OF MUSKEGO SEWER UTILITY
SCHEDULE OF CHANGES IN UTILITY WORKING CAPITAL
2005 BUDGET
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 $ (1,085,002) (5,000) (1,090,002)
Add charges to income not requiring funds:
Depreciation 970,767 970,767
Amortization:
MMSD contract 316,477 316,477
Debt discount 23,764 23,764
Manhole Rehabilitation and Mapping Projects 44,231 44,231
Less:
Proceeds from long-term debt
Other
Funds provided from operations 270,237 (5,000) 265,237
Increases in:
Collection of special assessments 66,474 308,270 374,744
Other contributed capital collections
Total funds provided 336,711 303,270 639,981
Funds applied
Principal payments on debt 590,000 590,000
Capital outlay (Schedule 6 for Construction Fund) 1,618,260 1,618,260
Total funds applied 590,000 1,618,260 2,208,260
Interfund transfers - net
Interest earnings (71,970) 8,000 63,970
Equipment replacement (26,350) 26,350
Sewer Connection fees (50,000) 50,000
Transfer to Construction Fund (1,300,650) 1,300,650
RCA funds used to finance MMSD capital charge 492,224 (492,224)
Total transfers (956,746) 34,350 (378,254) 1,300,650
Increase (decrease) in working capital (1,210,035) 34,350 (74,984) (317,610) (1,568,279)
Workina capital. beainnina of year 7,293,268 1,536,622 532,504 3,176,160 710,824 13,249,378
Workina capital. end of year $ 6,083,233 1,536,622 566,854 3,101,176 393,214 11,681,099
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11/19/04
Project
Debt issue and working capital funds:
McShane Underground Storage Unit
Janesville Road Box Culvert
Oversizjng on land purchase
Martin Drive Extension
Truck
Chamberlain Hill Oversizjng
NW Sewer Study
2020 Facility plan
SCADA Renovation (Radio Study)
Woods Rd Forcemain 20" Sandy Beach
Future projects
Transfer from working capital
Unallocated debt proceeds and
interest earnings
TOTAL
. Schedule 6 .
7.
SCHEDULE OF CONSTRUCTION FUNDS
PROJECTED 2004 AND 2005
Actual 2004 Projected 2005 Projected
Balance Projected Balance Projected Balance
12/31/2003 Revenues Costs Transfers 12/31/2004 Revenues Costs Transfers 12/31/2005
100,000 35,731 (64,269) 0 0
135,133 135,133 134,731 (402)
10,000 10,000 10,000
70,000 40,202 (29,798)
a 21,261 42,261 21,000 21,000 0
71,249 71,249
0 8,007 8,007 0 40,879 40,879 0
50,000 50,000
11,000 11,000
1,300,650 1,300,650
50,000 50,000
548,636 (3,946) 544,690 1,300,650 (1 ,452, 127) 393,21;3
15,504 8,000 (23,504)
$ 8,000 176,450 710,824 1,300,650 1,618,260 393,214 879,274
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City of Muskego
Sewer Rate Design
2005 Budget
1. Estimated Revenue Reauirement (Based on the vear 2004 Budget)
AaOltions:
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 gallons (000) billed
3. Number of laterals - (connections)
4. Estimated annual number of gallons used by a average residential customer
5 Inflow I Infiltration based on an eight vear average Drovided bv Ruekert & Mielke. Inc.
6. Rate comDonents
TVDe of Charae Model Formula
Connection Charge Net Revenue Reauirement X Inflow and infiltration %
Number of laterals
Consumption Charge Net Revenue Requirement X Billable %
Number of gallons (000) billed
Computation
Connection Charge $ 4,483.058.68 X 34.46%
7,043
Consumption Charge $ 4,483,058.68 X 65.54%
595,541
7. Average annual residential charge
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
1,220.631
200,000
6,100
Unkown
(A) 1.426.731
Schedule 7
8.
Data
$ 4,929,571
970,767
26,350
600,990
6,527,678
(617,888)
5,909,790
(1,426,731) (A)
$ 4.483,059
595,541
7,043
68,007
~
= Connection Charge
= Consumption Charge
= ~ Connection Charge
= $ 4.93 Consumption Charge
68,007
$ 4.93
$ 335.52
$ 219.36
$ 554.88
Use of Fund balance per MRB test
Interest income
Penalties and other income
Additional use of fund balance
(A)
1,220,631
200,000
6,100
Unkown
1,426,731