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CCR2016085-Attachment W W Wa P 20 Tu W182 S8200 ater Prop 17 Dis esday, O Racine Ave Waukesha (262 r U pos Bu stributed October 1 enue, Musk County, Wi 2) 679-4100 Utili sed udge d 1Th, 2016 kego, WI 53 isconsin 0 ity d et 6 3150-0749 Schedule Statement of income and expense 1 Schedule of capital outlay 2 Schedule of changes in utility working capital: 3 Water Fund Definitions 4 CONTENTS Schedule 1 2016 2017 2017 Change 2015 Aug 31, 2016 2016 Adopted Proposed Adopted From 2016 Actual Actual Projected Budget Budget Budget Budget Operating revenue Sales of water: Sales to general customers $1,288,744 658,523 1,337,800 1,360,595 1,349,050 - -0.85% Private fire protection $41,613 20,942 42,000 45,500 42,500 - -6.59% Public fire protection $469,237 78,780 485,500 510,000 486,000 - -4.71% Other operating revenue $64,150 28,195 61,900 60,400 62,400 - 3.31% Rental of Water property - tower lease $118,293 32,431 115,000 103,625 108,800 - 4.99% Total operating revenue 1,982,038 818,870 2,042,200 2,080,120 2,048,750 - -1.51% Operating expenses Operation and maintenance: Source of supply expense 6,447 5,741 12,708 9,878 13,867 - 40.38% Pumping expense 150,612 87,628 176,354 175,496 180,252 - 2.71% Water treatment expense 25,197 22,805 28,461 28,621 30,269 - 5.76% Transmission and distribution expense 147,290 97,649 152,600 129,162 146,924 - 13.75% Customer accounts expense 22,732 13,042 28,950 29,418 29,315 - -0.35% Administrative expense 344,296 268,606 362,748 378,448 393,613 - 4.01% Total operation and maintenance expenses 696,573 495,470 761,821 751,023 794,241 - 5.75% Depreciation $786,369 - 800,000 771,000 810,000 - 5.06% Taxes $551,989 16,666 578,533 578,333 582,753 - 0.76% Total operating expenses 2,034,931 512,136 2,140,354 2,100,356 2,186,994 - 4.12% Net operating income (loss) (52,893) 306,734 (98,154) (20,236) (138,244) - 583.17% Add non-operating income - interest $25,576 $13,001 $25,397 $22,961 $24,261 $0 5.66% Income before non-operating expenses (27,317) 319,735 (72,757) 2,725 (113,983) - -4282.36% Deduct non-operating expenses Interest on advances from municipality and revenue bonds $199,308 94,876 180,266 182,165 170,655 - -6.32% Amortization of debt discount and expense $0 - - - - - #DIV/0! Total non-operating expenses 199,308 94,876 180,266 182,165 170,655 - -6.32% Net income (loss) before capital contributions $ (226,625) 224,859 (253,023) (179,440) (284,638) - 58.63% CITY OF MUSKEGO WATER PUBLIC UTILITY STATEMENT OF INCOME AND EXPENSE 2017 BUDGET Schedule 2 Estimated 2016 2016 2017 2017 Total Adopted Proposed Adopted Funding Cost Budget Budget Budget 1.2016 Capital Additions: Meters (A) 75,000 75,000 Truck - 25% DPW Replacement (A) - 46,250 - - Truck - 50% Water / Sewer (A) 13,405 17,500 Well #4 Abandonment (A) 30,374 30,000 Building - Roof, Garage Doors & Wash Station (A) - 630,000 Water Painting - Mercury (A) & (B) - 350,000 - - - - $ 118,779 1,148,750 - - 2.2017 Capital Additions: Meters (B) 50,000 50,000 Truck - 25% DPW Replacement (A) - - Truck - 50% Water / Sewer (B) 16,000 16,000 Gas Pump (B) 6,000 6,000 Building - Roof, Garage Doors & Wash Station (A) 499,568 499,568 Water Tower Painting - Mercury (A) & (B) 350,000 350,000 Scada Maintenance (B) 5,000 5,000 - - 926,568 926,568 Grand Total $ 118,779 1,148,750 926,568 926,568 Notes: (A) - Financed by borrowings. (B) - Financed by working capital / Depreciation Fund (C) - Anticipated to be financed by a borrowing (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 2016 AND 2017 BUDGET Schedule 3 Operation and Debt Maintenance Construction Depreciation Service Fund Fund Fund Fund Total Funds provided From operations: Net income (loss) for year $ (113,983) - - (170,655) (284,638) Add charges to income not requiring funds: Depreciation 140,500 - 20,000 649,500 810,000 Amortization - - - - - Amortization on water tower - - - - - Transfer working capital to other funds - 329,583 (329,583) - - Proceeds from borrowing - 500,000 - - 500,000 Increases in collection of special assessments - - - 55,000 55,000 Total funds provided (applied) 26,517 829,583 (309,583) 533,845 1,080,362 Funds applied Principal payments on debt - - - 481,384 481,384 Capital outlay 926,568 926,568 Paid to utility for implicit cash subsidy - - - - - Total funds applied - 926,568 - 481,384 1,407,952 Interfund transfers - interest earnings (2,100) 500 100 1,500 - Increase (decrease) in working capital 24,417 (96,485) (309,483) 53,961 (327,590) Working capital, beginning of year 75,684 96,485 388,965 1,457,928 2,019,062 Working capital, end of year $100,101 - 79,482 1,511,889 1,691,472 132.26% -100.00% -79.57% 3.70% -16.22% CITY OF MUSKEGO WATER PUBLIC UTILITY SCHEDULE OF CHANGES IN UTILITY WORKING CAPITAL 2017 BUDGET Schedule 4 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 2017 BUDGET