CCR2006208.
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COMMON COUNCIL - CITY OF MUSKEGO
RESOLUTION #208-2006
APPROVAL OF 2007 WATER 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
Water Utility Budget for the year 2007.
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 rates for water service:
Quarterly Service Charge:
5/8-inch meter
3/4-inch meter
1-inch meter
1 1/4-inch meter
1 1/2-inch meter
2-inch meter
3-inch meter
$23.18
$23.18
$35.54
$49.44
$61.80
$92.70
$154.50
Plus Volume Charge:
First 30,000 gallons used each quarter - $3.06 per 1,000 gallons
Next 90,000 gallons used each quarter - $2.60 per 1,000 gallons
Over 120,000 gallons used each quarter - $2.18 per 1,000 gallons
DATED THIS 20th DAY OF November , 2006
SPONSORED BY:
PUBLIC UTILITIES COMMITTEE
Ald. Eileen Madden
Ald. Tracy Snead
Ald. Tina Schaefer
This is to certify that this is a true and accurate copy of Resolution #208-2006 which
was adopted by the Common Council of the City a uskeg.
"'"
11/06jmb
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CITY OF MUSKEGO
WATER UTILITY BUDGET
2007
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. CONTENTS
Schedule Paqe
Statement of income and expense 1 1
Detailed schedule of operation and maintenance expenses 2 2
Schedule of construction funds 3 4
Schedule of changes in utility working capital:
2006 Projected 4 5
2007 Budget 5 6
Schedule of construction funds 6 7
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. . Schedule 1. 1.
CITY OF MUSKEGO WATER PUBLIC UTILITY
STATEMENT OF INCOME AND EXPENSE
2007 BUDGET
2006 2007 2007
2005 Sept. 30, 2006 2006 Adopted Proposed Adopted Account
Actual Actual Proiected Budaet Budaet Budaet Number
Operatina revenue
Sales of water:
Sales to general customers $ 1,028,079 502,573 1,066,387 1,056,511 1,167,056 1,167,056 4803/4804/4805/4806/4920
Private fire protection 25,989 13,981 27,960 25,900 27,960 27,960 4815
Public fire protection 328,036 335,362 335,362 338,000 338,000 4816
Other operating revenue 48,866 26,558 46,615 60,103 48,100 48,100 480 7/4821/4820
Rental of Water property - tower lease 76,240 58,782 78,692 78,692 82,625 82,625 4825
Total operating revenue 1,507,210 601,894 1,555,016 1,556,568 1,663,741 1,663,741
Operatina expenses
Operation and maintenance:
Source of supply expense 18,115 24,734 35,245 40,457 18,015 18,015 schedule 2 2.
Pumping expense 113,388 86,297 127,135 130,732 132,467 132,467 schedule 2 2.
Water treatment expense 39,301 19,420 37,547 55,126 54,584 54,584 schedule 2 2.
Transmission and distribution expense 157,565 61,915 129,381 170,176 144,604 144,604 schedule 2 3.
Customer accounts expense 32,207 23,974 33,691 37,356 36,013 36,013 schedule 2 3.
Administrative expense 319,421 183,843 313,393 315,416 337,872 337,872 schedule 2 3.
Total operation and maintenance 679,996 400,183 676,392 749,263 723,555 723,555
Depreciation 413,316 458,044 514,406 493,042 493,042 04.03.6705
Taxes 358,043 14,251 396,958 472,304 424,330 424,330 04.08.6805
Total operating expenses 1,451,355 414,434 1,531,394 1,735,973 1,640,927 1,640,927
Net operating income (loss) 55,855 187,460 23,622 (179,405) 22,814 22,814
Add non-operatina income - interest 94,690 17,635 46,000 50,000 52,000 52,000 4910/4531
Income before non-operating expenses 150,545 205,095 69,622 (129,405) 74,814 74,814
Deduct non-operatina expenses
Interest on advances from municipality and revenue bonds 314,182 151,645 303,473 301,429 280,381 280,381 04.27.7010
Amortization of debt discount and expense 17,049 15,845 14,251 14,572 14,572 04.28.7015
Total non-operating expenses 331,232 151,645 319,318 315,680 294,953 294,953
Net income (loss) before capital contributions $ (180,687) 53,450 (249,696) (445,085) (220,139) (220,139)
. . .
Schedule 2
2.
11/13/06 CITY OF MUSKEGO WATER PUBLIC UTILITY
DETAILED SCHEDULE OF OPERATION AND MAINTENANCE EXPENSES
2007 BUDGET
2006 2007
2005 Sept. 30, 2006 2006 Adopted Other Account
Actual Actual Projected Budget Labor Expenses Total Number
Source of supply:
Operation labor $ 774 517 745 1,457 1,515 1,515 06.00.5101
Operating supplies and expenses 2,794 494 1,500 6,000 1,500 1,500 06.02.5702
Maintenance of water source plant 14,546 23,723 33,000 33,000 15,000 15,000 06.05.5702 (See Sch. 3, #2)
Total source of supply 18,115 24,734 35,245 40,457 1,515 16,500 18,015
Pumping expenses:
Operation labor 45,924 32,651 43,648 44,218 46,397 46,397 06.20.5101
Fuel or power purchased 54,225 41,660 66,633 66,500 68,000 68,000 06.22.5910/5735
Operation supplies and expense 1,356 130 1,500 1,500 1,500 1,500 06.23.570215749
Maintenance of pumping plant 11,882 11,856 15,354 18,514 9,570 7,000 16,570 06.25.5410/5101/5702
Total pumping expenses 113,388 86,297 127,135 130,732 55,967 76,500 132,467
Water treatment expenses:
Operation labor 10,507 5,440 7,984 17,976 17,707 17,707 06.30.5101
Chemicals 23,289 12,133 24,000 30,000 30,000 30,000 06.31.5750
Operating supplies and expenses 681 456 800 1,000 1,000 1,000 06.32.5702
Maintenance of water treatment plant 4,824 1,391 4,763 6,150 877 5,000 5,877 06.35.5410/5101/5702
Total water treatment expenses 39,301 19,420 37,547 55,126 18,584 36,000 54,584
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Schedule 2
3.
11/13/06 CITY OF MUSKEGO WATER PUBLIC UTILITY
DETAILED SCHEDULE OF OPERATION AND MAINTENANCE EXPENSES
(CONCLUDED)
2007 BUDGET
2006 2007 Budget
2005 Sept. 30, 2006 2006 Adopted Other Account
Actual Actual Projected Budget Labor Expenses Total Number
Transmission and distribution expenses:
Operation labor $ 62,825 36,401 49,184 63,968 76,723 76,723 06.40.5101
Operation supplies and expenses 5,993 5,992 9,600 10,300 10,300 10,300 06.41.5415/5702/5870
Maintenance of distribution reservoirs 30,038 739 28,505 38,347 2,783 5,000 7,783 06.50.5702/5101
Maintenance of mains 22,040 1,678 12,770 21,963 6,418 15,000 21,418 06.51.5410/5101
Maintenance of services 6,853 728 4,800 8,922 4,044 7,000 11,044 06.52.5410/5101/5702
Maintenance of meters 6,439 9,064 10,929 8,646 3,618 2,000 5,618 06.53.5410/5101
Maintenance of hydrants 22,669 6,634 12,893 22,194 6,197 5,000 11,197 06.54.5410/5101/5702
Maintenance of other plant 708 679 700 186 521 521 06.55.5410/5101
Total transmission
and distribution expenses 157,565 61,915 129,381 174,526 100,304 44,300 144,604
Customer account expenses:
Meter reading labor 2,244 1,417 3,144 4,440 4,599 4,599 09.01.5101
Accounting and collecting labor 21,882 17,530 23,166 24,835 22,676 22,676 09.02.5410/5101
Supplies and expense 8,081 5,027 7,381 8,081 8,738 8,738 09.03.5101/5410/5702
Total customer account expenses 32,207 23,974 33,691 37,356 27,275 8,738 36,013
Administrative and general expenses:
Administrative and general salaries 84,062 63,909 93,347 97,920 106,095 106,095 09.20.5101/5102
Office supplies and expenses 17,575 9,922 21,328 22,202 24,558 24,558 09.21.5712-6056
Payroll c1earing/sicklvacationlholiday 4,946 09.22.5101
Outside services 113,962 35,226 82,010 83,883 87,305 87,305 09.23.5510-5865
Property insurance 09.24.6103
Injuries & Damages 13,071 10,765 21,529 19,316 13,070 13,070 09.25.6101
Employee pensions and benefits 73,521 48,852 71,721 65,698 79,647 79,647 09.26.5201
Regulatory commission expense 114 500 1,000 1,000 1,000 09.28.6066
Miscellaneous general expenses 7,266 4,816 8,608 9,108 8,950 8,950 09.30.5228-6070
Transportation expense 9,850 5,407 12,350 12,289 47 13,200 13,247 09.33.5101/5405/5735
Maintenance of general plant & Contingency 2,000 4,000 4,000 4,000 09.35.6067
Total administrative and
general expenses 319,421 183,843 313,393 315,416 106,142 231,730 337,872
Total operation and
maintenance expenses $ 679,996 400,183 676,392 753,613 309,786 413,768 723,555
. . Schedule 3 . 4.
11/13/06 CITY OF MUSKEGO WATER PUBLIC UTILITY
SCHEDULE OF CAPITAL OUTLAY COSTS
PROJECTED 2006 and 2007
Estimated
2006 2006 2007 2007
Total Adopted Proposed Adopted
Cost Budget Budget Budget
1. 2006 Capital Additions
Janesville Road box culvert relocation (A) 111,717 87,000
Wells #4, 5 & 6 Radium Compliance & Well Abandonment (A)
Lakewood Meadows Community Well Acqu & Conversion (C) 5,532 50,000
Water facilities study & NW Water Study Incude in Opertaions in 2006
Well #9 Construction (A) 15,000 16,751
Lake LorelTudor Oaks WM extension(assessable) (C) 440,560 400,000
Kenwood Place oversizing (C) 132,948 260,000
Well #13-test Well & Eng (C) 93,836 90,000 170,000
Lakewood Meadows -Testing before well becomes operational (C) 30,000 150,000
Municipal Well Interference with Private Wells amortize over # of years (A) 30,000
Future Projects as determined by Facility Plan (e) 20,000 20,000
Well #91#13 Pump house (C) 100,841 400,000 500,000
Hillendale Booster (assessable) (C) 400,000 400,000
Lakewood Meadows WM-Community Well Conv (B) 30,000
Well #14 (B) 2,306
LakeLore Well House (B) 30,851
Meters (A) 100,000 100,000
Truck-Pick Up replacement (A) 7,339 15,000
SCADA Radio Study/Upgrade (C) 95,840 135,000
Oversizing Related to Land Purchase (A)
SE Watermain (A) 28,641
Oversizing-CCV (Champion Village) (A)
$ 1,195.411 2,033,751 1,240,000
2. 2007 Capital Additions:
Well Exploration (C) 40,000
Well #14 Land Acquisition (C) 150,000
Meters (C) 100,000
Truck-Pick Up replacement (B) 37,000
327,000
Grand Total $ 1,195.411 2,033,751 1,567,000
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Notes:
(A) - Financed by borrowings.
(B) - Financed by working capital.
(C) - Anticipated to be financed by a borrowing
. . SChedu.
5. .
11/13/06 CITY OF MUSKEGO WATER PUBLIC UTILITY
SCHEDULE OF CHANGES IN UTILITY WORKING CAPITAL
2006 PROJECTED
Operation
and Debt
Maintenance Construction Depreciation Service 2006
Fund Fund Fund Fund Total BudQet
Funds provided
From operations:
Net income (loss) for year $ 53,777 (303,473) (249,696) (445,085)
Add charges to income not
requiring funds:
Depreciation 20,000 438,044 458,044 514,406
Amortization 15,845 15,845 14,251
Amortization On water tower 24,505 24,505 24,505
Transfer working capital to other funds (250,000) 250,000
Proceeds from borrowing 1,200,000
Increases in collection of
special assessments and WCA's 320,000 320,000 243,564
Total funds provided (applied) (171,718) 250,000 20,000 470,416 568,698 1,551,641
Funds applied
Principal payments on debt 451,314 451,314 403,131
Capital outlay 1,195,411 1,195,411 2,033,751
Total funds applied 1,195,411 451,314 1,646,725 2,436,882
Interfund transfers - interest earninQs (56,000) 15,000 5,000 36,000
Increase (decrease) in
working capital (227,718) (930,411) 25,000 55,102 (1,078,027) (885,241)
WorkinQ capital. beQinninQ of year 810,796 976,033 126,765 911,703 2,825,297 2,703,370
WorkinQ capital. end of year $ 583,078 45,622 151,765 966,805 1,747,270 1,818,129
2006 Budgeted Working Capital, end of year $ 600,719 60,097 149,765 1,007,548 1,818,129
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6.
11/13/06 CITY OF MUSKEGO WATER PUBLIC UTILITY
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SCHEDULE OF CHANGES IN UTILITY WORKING CAPITAL
2007 BUDGET
Operation
and Debt
Maintenance Construction Depreciation Service
Fund Fund Fund Fund Total
Funds provided
From operations:
Net income (loss) for year $ 60,242 (280,381 ) (220,139)
Add charges to income not
requiring funds:
Depreciation 20,000 473,042 493,042
Amortization 14,572 14,572
Amortization on water tower
Transfer working capital to other funds
Proceeds from borrowing 1,525,000 1,525,000
Increases in collection of
special assessments 235,000 235,000
Total funds provided (applied) 60,242 1,525,000 20,000 442,233 2,047,475
Funds applied
Principal payments on debt 476,151 476,151
Capital outlay 1,567,000 1,567,000
Total funds applied 1,567,000 476,151 2,043,151
Interfund transfers - interest earninqs (46,684) 684 6,000 40,000
Increase (decrease) in
working capital 13,558 (41,316) 26,000 6,082 4,324
Workinq capital. beqinning of year 583,078 45,622 151,765 966,805 1,747,270
Workinq capital. end of year ~ 596,637 4,306 177,765 972,887 1,751,595
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Schedule 6
7.
11/13106 CITY OF MUSKEGO WATER PUBLIC UTILITY
SCHEDULE OF CONSTRUCTION FUNDS
PROJECTED 2006 AND 2007
Actual Projected Projected
Balance 2006 Balance 2007 Balance
Project 12/31/05 Revenues Costs Transfers 12/31/06 Revenues Costs Transfers 12/31/07
Meters 100,000 100,000 100.000 100,000
SCADA Radio Study/Upgrade 9.428 95,840 86.412
Janesville Road box culvert relocation 87,000 111,717 24,717
Ken'M>od Place oversizing 132,948 132,948
LakeLorelTudor Oaks community well study/acquisition 545 (545)
LakeLorelTudor Oaks WM-extension-assmt roll 440,560 440,560
Drill Well #13- Test Well & Eng 6.255 93,836 87,581 170,000 170.000
Future Projects as determined by Facalities Plan 60.000 60.000
Lakewood Meadows WM-Community Well Conv 30.000 30,000
Well #14 2.306 2,306
LakeLore Well House 30.851 30.851
Racine Ave Oversizing
Lakewood Condos Oversizing
Truck 15,000 7,339 29.339 37,000 37,000
Hillendale Booster Station 400.000 400,000
Lakewood Meadows Community Well Acqu & Conversion 70,333 5,532 (64,801)
Lakewood Meadows-Testing 150,000 150.000
Well #14 Land Acquisition 150,000 150.000
Well #9113 Pumphouse 200.000 100.841 (99,159) 500,000 500.000
Well #9113 Construction 52.235 15.000 (37,235)
SE Watermain 28.641 28,641
Transfer from general working capital 250.000 (250.000)
Proceeds from borrowing 1.525.000 (1,525,000)
Unallocated debt proceeds and
interest earnings 435,237 15.000 (441,615) 8,622 684 (5.000) 4,306 (2)
Total $ 976.033 265.000 1.195,411 45,622 1,525,684 1.567,000 4.306
(1) (1 )
Notes:
(1) Balance represents the issuance of 684
new debt and the interest earnings on
Construction Funds for the year.
(2) Represents excess borrowed funds
and related interest earnings available
for debt services reductions or financing
future water projects.