CCR2005204.
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COMMON COUNCIL - CITY OF MUSKEGO
RESOLUTION #204-2005
APPROVAL OF 2006 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 2006.
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 8th DAY OF November ,2005
SPONSORED BY:
PUBLIC UTILITIES COMMITTEE
Ald. Eric Schroeder
Ald. Eileen Madden
Ald. Patrick Patterson
This is to certify that this is a true and accurate copy of Resolution #204-2005 which
. was adopted by the Common Council of the City of Muskego.
11/05jmb
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CITY OF MUSKEGO
WATER UTILITY BUDGET
2006
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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:
2004 Projected 4 5
2005 Budget 5 6
Schedule of construction funds 6 7
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I.
11/03/05 CITY OF MUSKEGO WATER PUBLIC UTILITY
STATEMENT OF INCOME AND EXPENSE
2006 BUDGET
Change Balances
2005 2006 2006
2004 Sept. 30, 2005 2005 Adopted Proposed Adopted Account
Actual Actual Proiected Budaet Budaet Budaet Number
Ooeratina revenue
Sales of water:
Sales to general customers $ 891,065 799,812 1,033,070 951,335 1,056,511 1,056,511 4803/4804/4805/4806/4920
Private fire protection 25,508 19,473 25,900 25,508 25,900 25,900 4815
Public fire protection 325,594 325,594 328,035 325,594 335,362 335,362 4816
Other operating revenue 65,219 32,708 48,370 50,875 60,103 60,103 4807/4821/4820
Rental of Water property - tower lease 72,743 55,983 74,945 74,945 78,692 78,692 4825
Total operating revenue 1,380,129 1,233,570 1,510,320 1,428,257 1,556,568 1,556,568
Ooeratina exoenses
Operation and maintenance:
Source of supply expense 3,568 5,409 11,749 4,957 40,457 40,457 schedule 2 2.
Pumping expense 89,593 79,685 113,462 99,081 130,732 130,732 schedule 2 2.
Water treatment expense 29,640 23,647 43,228 37,565 55,126 55,126 schedule 2 2.
Transmission and distribution expense 139,698 85,393 147,307 168,679 170,176 170,176 schedule 2 3.
Customer accounts expense 35,548 28,398 40,344 30,683 37,356 37,356 schedule 2 3.
Administrative expense 338,143 215,527 334,016 254,122 315,416 315,416 schedule 2 3.
Total operation and maintenance 636,189 438,059 690,106 595,087 749,263 749,263
Depreciation 364,232 442,555 451,573 514,406 514,406 04.03.6705
Taxes 373,410 400,364 423,745 405,424 472,304 472,304 04.08.6805
Total operating expenses 1,373,831 838,423 1,556,406 1,452,084 1,735,973 1,735,973
Net operating income (loss) 6,298 395,147 (46,086) (23,827) (179,405) (179,405)
Add non-ooeratina income - interest 46,184 19,960 49,359 30,000 50,000 50,000 4910/4531
Income before non-operating expenses 52,482 415,107 3,273 6,173 (129,405) (129,405)
Deduct non-ooeratina exoenses
Interest on advances from municipality and revenue bonds 320,371 150,841 312,637 302,486 301,429 301,429 04.27.7010
Amortization of debt discount and expense 16,477 15,403 15,403 15,403 14,251 14,251 04.28.7015
Total non-operating expenses 336,847 166,244 328,040 317,889 315,680 315,680
Net income (loss) before capital contributions $ (284,366) 248,863 (324,767) (311,716) (445,085) (445,085)
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Schedule 2
2.
11/03/05 CITY OF MUSKEGO WATER PUBLIC UTILITY
DETAILED SCHEDULE OF OPERATION AND MAINTENANCE EXPENSES
2006 BUDGET
2005 2006
2004 Sept. 30, 2005 2005 Adopted Other Account
Actual Actual Projected Budget Labor Expenses Total Number
Source of supply:
Operation labor $ 2,003 534 749 1,457 1,457 1,457 06.00.5101
Operating supplies and expenses 62 2,788 8,000 1,000 6,000 6,000 06.02.5702
Maintenance of water source plant 1,503 2,087 3,000 2,500 33,000 33,000 06.05.5702 (See Sch. 3, #2)
Total source of supply 3,568 5,409 11,749 4,957 1,457 39,000 40,457
Pumping expenses:
Operation labor 41,530 42,063 46,335 40,930 44,218 44,218 06.20.5101
Fuel or power purchased 40,055 28,592 51,500 46,500 66,500 66,500 06.22.5910/5735
Operation supplies and expense 2,130 383 1,500 1,500 1,500 1,500 06.23.570215749
Maintenance of pumping plant 5,877 8,647 14,127 10,151 11,514 7,000 18,514 06.25.5410/5101/5702
Total pumping expenses 89,593 79,685 113,462 99,081 55,732 75,000 130,732
Water treatment expenses:
Operation labor 9,773 8,324 10,878 16,993 17,976 17,976 06.30.5101
Chemicals 19,364 14,091 27,000 16,000 30,000 30,000 06.31.5750
Operating supplies and expenses 350 350 2,000 1,000 1,000 06.32.5702
Maintenance of water treatment plant 503 882 5,000 2,572 1,150 5,000 6,150 06.35.5410/5101/5702
Total water treatment expenses 29,640 23,647 43,228 37,565 19,126 36,000 55,126
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Schedule 2
3.
11/03/05 CITY OF MUSKEGO WATER PUBLIC UTILITY
DETAILED SCHEDULE OF OPERATION AND MAINTENANCE EXPENSES
(CONCLUDED)
2006 BUDGET
2005 2006 Budget
2004 Sept. 30, 2005 2005 Adopted Other Account
Actual Actual Projected Budget Labor Expenses Total Number
Transmission and distribution expenses:
Operation labor $ 45,847 33,688 42,197 65,531 63,968 63,968 06.40.5101
Operation supplies and expenses 5,767 4,257 9,020 10,300 10,300 10,300 06.41.5415/5702/5870
Maintenance of distribution reservoirs 30,920 5,042 34,005 31,531 4,350 33,997 38,347 06.50.570215101
Maintenance of mains 12,342 10,794 17,911 21,398 6,963 15,000 21,963 06.51.5410/5101
Maintenance of services 2,322 10,091 10,500 3,735 1,922 7,000 8,922 06.52.5410/5101/5702
Maintenance of meters 11,721 5,352 8,908 12,691 6,646 2,000 8,646 06.53.5410/5101
Maintenance of hydrants 30,558 15,602 24,642 23,493 7,194 15,000 22,194 06.54.5410/5101/5702
Maintenance of other plant 221 567 124 186 186 06.55.5410/5101
Total transmission
and distribution expenses 139,698 85,393 147,307 168,679 91,229 83,297 174,526
Customer account expenses:
Meter reading labor 1,902 2,456 4,083 4,282 4,440 4,440 09.01.5101
Accounting and collecting labor 29,801 21,196 29,257 21,751 24,835 24,835 09.02.5410/5101
Supplies and expense 3,844 4,746 7,004 4,650 8,081 8,081 09.03.5101/5410/5702
Total customer account expenses 35,548 28,398 40,344 30,683 29,275 8,081 37,356
Administrative and general expenses:
Administrative and general salaries 95,368 79,190 110,453 83,838 97,920 97,920 09.20.5101/5102
Office supplies and expenses 15,059 12,684 20,907 21,526 22,202 22,202 09.21.5712-6056
Payroll c1earing/sicklvacation/holiday 5,551 09.22.5101
Outside services 127,865 43,896 93,539 39,848 83,883 83,883 09.23.5510-5865
Property insurance 09.24.6103
Injuries & Damages 11,028 6,536 13,071 13,071 19,316 19,316 09.25.6101
Employee pensions and benefits 75,253 57,627 75,494 73,356 65,698 65,698 09.26.5201
Regulatory commission expense 114 500 1,000 1,000 1,000 09.28.6066
Miscellaneous general expenses 5,805 3,991 8,402 6,834 9,108 9,108 09.30.5228-6070
Transportation expense 7,764 5,938 11,650 10,649 89 12,200 12,289 09.33.5101/5405/5735
Maintenance of general plant & Contingency 4,000 4,000 4,000 09.35.6067
Total administrative and
general expenses 338,143 215,527 334,016 254,122 98,009 217,407 315,416
Total operation and
maintenance expenses $ 636,189 438,059 690,106 595,087 294,828 458,785 753,613
11/03105
.RAFT WORKING COPY
1
. 2005 Capital Additions
Janesville Road box culvert relocation
Wells #4,5 & 6 Radium Compliance & Well Abandonment
lakewood Meadows Community Well Acqu & Conversion
Water facilities study & NW Water Study
Well #9 Construction
Meters
Truck-Pick Up replacement
SCADA Radio Study/Upgrade
Oversizing Related to land Purchase
Elevated Storage
Oversizing-CCV (Champion Village)
2. 2006 Capital Additions:
Hillendale Booster (assessable)
Lake Lore/Tudor Oaks WM extension(assessable)
Kenwood Place oversizing
Well #13-test Well & Eng
Well #2 Pressure Tank Cleaning(expensed)
lakewood Meadows -Testing before iwell becomes operational .
Meters (A)
Truck-Pick Up replacement (A)
Well #9 Pump house (C)
Future Projects as determined by Facility Plan (A)
lakewood WM-Phase 2- oversizing (A)
Pioneer Center Feasibility Stud~request withdrawn (A)
Municipal Well Interference with Private Wells amortize over # of years(A)
Well #13 Land Acquisition
Grand Total
x
Notes:
(A) - Financed by borrowings.
(B) - Financed by working capital.
(C) - Anticipated to be financed by a borrowing
.
(A)
(A)
(C)
Incude in Opertaions in 2006
(A)
(A)
(A)
(C)
(A)
(A)
(A)
(C)
(C)
(C)
(C)
I ncude in Opertaions in 2006
(C)
(A)
Schedule 3
4.
$
CITY OF MUSKEGO WATER PUBLIC UTILITY
SCHEDULE OF CAPITAL OUTLAY COSTS
PROJECTED 2005 and 2006
Estimated
2005 2005 2006 2006
Total Adopted Proposed Adopted
Cost Budget Budget Budget
12,337 85,755 87,000
2,465 49,500
28,653 350,000 50,000
34,800 23,957
53,249 368,000 16,751
100,000 100,000
18,759 21,000
11,069 11,000 135,000
0
0
393,836 0
655,168 1,009,212 288,751
5,271
10,000
400,000
400,000
260,000
90,000
30,000
0 100,000
0 15,000
0 400,000
20,000
30,000
1,745,000
o
5,000
240
20,000
28,865
69,376
$ 724,544 1,009,212 2,033,751
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Schedule 4
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5.
11/03/05 CITY OF MUSKEGO WATER PUBLIC UTILITY
SCHEDULE OF CHANGES IN UTILITY WORKING CAPITAL
2005 PROJECTED
Operation
and Debt
Maintenance Construction Depreciation Service 2005
Fund Fund Fund Fund Total Budqet
Funds provided
From operations:
Net income (loss) for year $ (12,130) (312,637) (324,767) (311,716)
Add charges to income not
requiring funds:
Depreciation 20,000 422,555 442,555 451,573
Amortization 15,403 15,403 15,403
Amortization On water tower 24,505 24,505 24,505
Transfer working capital to other funds
Proceeds from borrowing 600,000 600,000 350,000
Increases in collection of
special assessments and WCA's 254,577 254,577 43,000
Total funds provided (applied) 12,375 600,000 20,000 379,898 1,012,273 572,765
Funds applied
Principal payments on debt 374,417 374,417 403,131
Capital outlay 724,544 724,544 1,009,212
Total funds applied 724,544 374,417 1,098,961 1,412,343
Interfund transfers - interest earninqs (47,859) 16,000 2,500 29,359
Increase (decrease) in
working capital (35,484) (108,544) 22,500 34,840 (86,688) (839,578)
Workinq capital. beqinninq of year 778,354 1,002,392 104,265 905,047 2,790,058 2,440,739
Workinq capital. end of year $ 742,870 893,848 126,765 939,887 2,703,370 1,601,161
2005 Budgeted Working Capital, end of year $ 813,560 56,902 125,300 605,399 1,601,161
. . Schedule 5 .
6.
11/03/05 CITY OF MUSKEGO WATER PUBLIC UTILITY
SCHEDULE OF CHANGES IN UTILITY WORKING CAPITAL
2006 BUDGET
Operation
and Debt
Maintenance Construction Depreciation Service
Fund Fund Fund Fund Total
Funds provided
From operations:
Net income (loss) for year $ (143,656) (301,429) (445,085)
Add charges to income not
requiring funds:
Depreciation 20,000 494,406 514,406
Amortization 14,251 14,251
Amortization on water tower 24,505 24,505
Transfer working capital to other funds
Proceeds from borrowing 1,200,000 1,200,000
I ncreases in collection of
special assessments 243,564 243,564
Total funds provided (applied) (119,151) 1,200,000 20,000 450,792 1,551,641
Funds applied
Principal payments on debt 403,131 403,131
Capital outlay 2,033,751 2,033,751
Total funds applied 2,033,751 403,131 2,436,882
Interfund transfers - interest earninqs (23,000) 3,000 20,000
Increase (decrease) in
working capital (142,151) (833,751) 23,000 67,661 (885,241)
Workinq capital, beqinninq of year 742,870 893,848 126,765 939,887 2,703,370
Workinq capital, end of year i 600,719 60,097 149,765 1,007,548 1,818,129
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Schedule 6
7.
11/03/05 CITY OF MUSKEGO WATER PUBLIC UTILITY
SCHEDULE OF CONSTRUCTION FUNDS
PROJECTED 2005 AND 2006
Actual Projected Projected
Balanæ 2005 Balanæ 2006 Balanæ
Project 12/31/04 Revenues Costs Transfers 12/31/05 Revenues Costs Transfers 12/31/06
Meters 100,000 100,000 100,000 100,000 100,000
SCADA Radio Study/Upgrade 11,000 11,069 69 135,000 135,000
Wells #4, 5 & 6 Radium Compliance & Well Abandonment 50,000 50,000 2,465 (97,535)
Janesville Road box culvert relocation 86,083 12,337 13,254 87,000 87,000
Kenwood Place oversizing 260,000 260,000
lakelorelTudor Oaks community well study/acquisition 1,275 10,000 8,725
lakelorelTudor Oaks WM-exlension-assmt roll 400,000 400,000
Drill Well #13-Test Well & Eng 90,000 90,000
Well #13 -land Acquisition 28,865 28,865
Water Facility Plan-update started in 2005 26,114 34,800 8,686
Pioneer Center Feasibility Study 240 240
Future Projects as determined by Facalities Plan 20,000 20,000 20,000
Expenses Incurred as relates to Private Wells 20,000 50,000 30,000 30,000
Truck 21,000 18,759 12,759 15,000 15,000
Hillendale Booster Station 5,271 5,271 400,000 400,000
lakewood Meadows Community Well Acqu & Conversion 5,290 350,000 28,653 (276,637) 50,000 50,000
lakewood Meadows-Testing 30,000 30,000
lakewood Meadows-WM- Phase 2 - oeversizing 5,000 5,000
Well #2 Pressure Tank Painting
Well #9 Pumphouse 200,000 200,000 400,000 200,000
Well #9 Construction 366,540 53,249 (296,540) 16,751 16,751
Oversizing-CCV (Champion Village) 335,090 393,836 58,746
Transfer from general working capital
Proceeds from borrowing 1,200,000 (1,200,000)
Unallocated debt proceeds and
interest earnings 16,000 359,097 375,097 (315,000) 60,097 (2)
Total $ 1,002,392 616,000 724,544 893,848 1,200,000 2,033,751 60,097
(1) (1)
Notes:
(1) Balance represents the issuanæ of
new debt and the interest earnings on
Construction Funds for the year.
(2) Represents excess borrowed funds
and related interest eamings available
for debt serviæs reductions or financing
Mure water projects.