CCR2006209.
AMENDED
COMMON COUNCIL - CITY OF MUSKEGO
RESOLUTION #209-2006
APPROVAL OF 2007 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 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 sewer usage rates for 2007:
Residential Users:
Single Family Home
Duplex: 3 Bedroom Unit
Duplex: 2 Bedroom Unit
Duplex: 1 Bedroom Unit
$164.38 per quarter/$657.52 per year
$164.38 per quarter
$123.29 per quarter
$82.19 per quarter
Industrial and Commercial Users (Including Multifamily with three or more units):
Based on actual metered water use:
$6.30 per 1,000 gallons plus a connection charge of $65.85 per quarter,
. with a minimum charge of $657.52 per year per building.
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 #209-2006 which
was adopted by the Common Council of the City of skego~ y ~ ii, . t.c
C erk- reasurer
. 11/06jmb
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CITY OF MUSKEGO
SEWER UTILITY BUDGET
2007
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Contents
CONTENTS
Schedule Paqe
Statement of income and expense 1 1-2
Detailed schedule of operating expenses 2 3
Schedule of capital outlay 3 4
Schedule of changes in utility working capital:
2006 Projected 4 5
2007 Budget 5 6
Schedule of construction funds 6 7
Sewer Rate Design 7 8
Schedule 1 Schedule 1
. CITY OF MUSKEGO SEWER UTI. 1. . 12/12/06
STATEMENT OF INCOME AND EXPENSE
2007 BUDGET
2006 2007 2007
2005 Sept. 30, 2006 2006 Adopted Proposed Adopted Account
Actual Actual Proiected BudQet Budoet Budoet Number
Operatino revenues
Sewer service charges $ 4,527,280 4,005,098 5,327,408 5,442,942 5,659,281 4801/4810
Miscellaneous revenues 13,592 6,709 11,986 10,803 11,300 4820/4822/4823/4824
Total operating revenues 4,540,872 4,011,807 5,339,394 5,453,745 5,670,581
Operatino expenses
Operation and maintenance:
Milwaukee Metropolitan Sewerage District:
Contract amortization 316,477 61.01.6405/6406/6407
Capital charge 2,276,219 2,614,057 2,614,057 2,620,460 2,355,320 61.02.6071
User charge 609,881 332,387 665,575 627,300 678,887 61.03.6072
Town of Norway
Capital charge 75,000 75,000 75,000
User charge 196,533 124,849 255,003 315,000 275,510 61.10.6068
Facilities plan 17,934
Supervision and labor 349,533 248,522 377,910 377,910 396,442 61.11.5101/5102
Supplies and expense 19,224 17,066 22,985 22,985 22,985 Schedule 2
Maintenance:
Amortization - Odor control & manhole rehabilitation 44,231 44,231 44,231 44,231 61.16.5428
Odor control 9,871 13,738 21,000 21,000 21,000 61.16.5426
Building and structures 9,938 8,379 10,000 10,000 10,000 61.15.5415
General plant equipment (safety equipment) 7,204 5,577 10,000 10,000 10,000 61.15.5425
Sewerage collection system 69,446 30,231 50,000 50,000 50,000 61.16.5411
I & I reduction 8,730 60,726 100,000 100,000 100,000 61.16.5427
Electricity 76,309 68,128 115,000 115,000 115,000 61.20.5910
Transportation expense 11,278 10,424 15,000 16,963 21,500 61.21.5306
4,022,808 3,534,085 4,375,761 4,405,849 4,175,874
Customers' account expenses:
Accounting and collection 60,637 39,928 59,014 59,014 58,781 63.40.5101
Meter expense 29,345 28,000 28,000 28,000 63.40.5101
89,982 39,928 87,014 87,014 86,781 63.40.5101
#DIV/O!
General expenses:
Office salaries 65,637 39,928 59,014 59,014 58,781 63.40.5101
Employees' pensions and benefits 148,434 113,923 181,728 181,728 192,345 63.41.5201/5202/5203/5204/5229/
Unemployment compensation 2,000 2,000 2,000 63.42.6020
Office supplies and expenses 87,911 59,379 89,384 98,221 92,999 Schedule 2
Outside services 115,323 43,691 93,872 178,882 177,525 Schedule 2
417,305 256,921 425,999 519,845 523,649
Total operation and maintenance 4,530,096 3,830,935 4,888,773 5,012,708 4,786,304
Depreciation 923,956 985,811 958,291 1,039,500 64.50.6705
Total operating expenses 5,454,052 3,830,935 5,874,585 5,970,999 5,825,804
Net operating income (loss)
(forward) (913,179) 180,872 (535,191) (517,254) (155,223)
. SCh.1.2
CITY OF MUSKEGO SEWER UTILITY
STATEMENT OF INCOME AND EXPENSE
(concluded)
2007 BUDGET
2006 2007 2007
2005 Sept. 30, 2006 2006 Adopted Proposed Adopted Account
Actual Actual Proiected Budaet Budaet Budaet Number
Net operating income (loss)
(forwarded) $ (913,179) 180,872 (535,191) (517,254) (155,223)
Add non- operatina income
City subsidies 587,007 231,205 4950
Interest from investments 340,572 40,368 130,000 130,000 130,000 4531/4910
Interest income on RCA's and special assessments 44,124 42,989 42,989 52,749 64,551
Sewer Connection Fees 73,000 79,500 50,000 76,250
Total non-operating income 1,044,703 83,357 483,694 232,749 270,801
Income before non-operating expenses 131,524 264,228 (51,497) (284,505) 115,578
Deduct non-operatina expenses
Interest charges on long-term debt 234,670 78,155 154,560 154,997 147,618 65.60.7010
Amortization of debt discount 42,729 51,276 54,544 51,276 65.61.7015
Amortization of extraordinary property losses 65.62.6401
Total non-operating expenses 277,399 78,155 205,835 209,541 198,894
Net income (loss) before capital contributions $ (145,875) 186,073 (257,332) (494,046) (83,316)
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Schedule 1
2.
. SC.2 .
Schedule 2
3.
12/12/06 CITY OF MUSKEGO SEWER UTILITY
DETAILED SCHEDULE OF OPERATING EXPENSES
2007 BUDGET
2006 2007 2007
2005 Sept. 30, 2006 2006 Adopted Proposed Adopted Account
Actual Actual Projected Budget Budget Budget Number
Operation and maintenance:
Supplies and expense:
Operating supplies $ 2,278 1,241 2,485 2,485 2,485 61.12.5702
Chemicals 11,446 9,325 14,000 14,000 14,000 61.12.5750
Water expense 5,500 6,500 6,500 6,500 6,500 61.22.5915
$ 19,224 17,066 22,985 22,985 22,985
General expense
Office supplies and expenses:
Supplies $ 7,075 3,943 7,000 7,200 7,200 63.42.5701
Other general expense 2,043 49 2,000 3,000 3,000 63.42.6056
Telephone and communications 9,605 6,560 17,005 21,048 11,790 63.42.5430/5606
Insurance 62,213 43,266 53,538 57,132 63,743 63.42.6102/6101/6104
Contingency 67.00.6601
Computer expense 6,975 5,560 9,841 9,841 7,266 63.42.5509
$ 87,911 59,379 89,384 98,221 92,999
Outside services:
City administrative charge $ 23,373 11,686 23,372 23,382 21,684 63.43.6057
Accounting 15,443 7,875 20,500 20,500 20,500 63.43.5810
Legal 29,430 5,613 20,000 40,000 40,000 63.43.5805
Engineering 29,158 15,425 15,000 30,000 30,000 63.43.5815
Other outside services 17,919 3,093 15,000 60,000 60,341 63.43.5801
Amortization - mapping 63.43.5824
Computer software modification 5,000 5,000 63.43.5509
$ 115,323 43,691 93,872 178,882 177,525
. SC.2 .
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Schedule 3
. . scae3
4.
12/12/06 CITY OF MUSKEGO SEWER UTILITY
SCHEDULE OF CAPITAL OUTLAY
2006
Estimated 2006 2007 2007
Total Adopted Proposed Adopted
A1C# Description Cost BudQet Budget Budget
1. 2002 Proiects
Janesville Box Culvert (A) $ 175,548 134,110
2. 2004 Proiects
Facility plan - Muskego share of MMSD (A) 40,000 40,000 50,000
2020 Facility plan (A) 134,710 145,000 65,000
Future projects (A) 50,000 50,000
$ 174,710 235,000 165,000
3. 2005 Proiects
Oversizing on land purchases (A) 10,000
Woods Rd Forcemain 20" Sandy Beach (E) 106,176
Future Projects (A) 50,000
$ 106,176 60,000
4. 2006 Proiects
Rain gages (A) 16,000 16,000
Truck (A) 7,339 #DIV/O!
SCADA Renovations (A) &(C) 272,853 188,000
SCADA software and hardware programing (A) 55,000
Variable frequency drive for Woods Road (D) 17,600 13,000
Future Projects
$ 313,792 #DIV/O!
5. 2007 Projects
Truck (C) 23,500
Variable frequency drive for Woods Road (D) 18,526
Flow Monitors (C) 75,000
Oversizing & Land Purchases (C) 10,000
$ 127,026
Totals $ 770,227 #DIV/O! 292,026
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
Note D: Finance with replacement funds
Note E: Finance with reserve capacity assessment funds
Schedule 4
. . SChedule.
5.
12/12/06 CITY OF MUSKEGO SEWER UTILITY
SCHEDULE OF CHANGES IN UTILITY WORKING CAPITAL
2006 PROJECTED
NONTIF
Operation Reserve
and Special Equipment Capacity
Maintenance Redemption Replacement Assessment Construction 2006
Fund Fund Fund Fund Fund Total Budoet
Funds provided
From operations:
Net income (loss) for the year $ (257,332) (257,332) (494,046)
Add charges to income not requiring funds:
Depreciation 985,811 985,811 958,291
Amortization:
Debt discount 51,276 51,276 54,544
Manhole Rehabilitation 44,231 44,231 44,231
Less:
Other
Funds provided from operations 823,986 823,986 563,020
Increases in:
Collection of special assessments 52,608 532,570 585,178 496,767
Other contributed capital collections
Total funds provided 876,594 532,570 1,409,164 1,059,787
Funds applied
Principal payments on debt 75,000 75,000 75,000
Debt discount and issue costs
Capital outlay (Schedule 6) 17,600 752,627 770,227 716,110
Total funds applied 75,000 17,600 752,627 845,227 791,110
Interfund transfers - net
Interest earnings (35,000) 23,000 12,000
Equipment replacement (26,350) 26,350
Sewer Connection fees (79,500) 79,500
Funds used for debt retirement
Trnasfer for debt retirement reserve (142,619) 142,619
RCA funds used to finance MMSD capital charge 422,309 (422,309)
Total transfers 138,840 142,619 49,350 (342,809) 12,000
Increase (decrease) in working capital 940,434 142,619 31,750 189,761 (740,627) 563,937 268,677
Workino capital. beqinnino of year 6,534,071 465,901 559,662 1,663,397 794,898 10,017,929 8,744,641
Workino capital. end of year i 7,474,505 608,520 591,412 1,853,158 54,271 10,581,866 9,013,318
2006 Budgeted Working Capital, end of year $ 5,819,466 608,519 597,801 1,987,532 9,013,318
. S.5 Schedule 5 .
6.
12/12/06 CITY OF MUSKEGO SEWER UTILITY
SCHEDULE OF CHANGES IN UTILITY WORKING CAPITAL
2007 BUDGET
NON TIF
Operation Reserve
and Special Equipment Capacity
Maintenance Redemption Replacement Assessment Construction
Fund Fund Fund Fund Fund Total
Funds orovided
From operations:
Net income (loss) for the year $ (83,316) (83,316)
Add charges to income not requiring funds:
Depreciation 1,039,500 1,039,500
Amortization:
Debt discount 51,276 51,276
Manhole Rehabilitation and Mapping Projects 44,231 44,231
Less:
Other
Funds provided from operations 1,051,691 1,051,691
Increases in:
Collection of special assessments 36,898 609,000 645,898
Other contributed capital collection- RCA Landfill 350,000 350,000
Total funds provided 1,088,589 959,000 2,047,589
Funds aoolied
Principal payments on debt 260,000 260,000
Capital outlay (Schedule 6 for Construction Fund) 18,526 273,500 292,026
Total funds applied 260,000 18,526 273,500 552,026
Interfund transfers - net
Interest earnings (30,000) 30,000
Equipment replacement (26,350) 26,350
Sewer Connection fees (76,250) 76,250
Transfer to Construction Fund (220,000) 220,000
Transfer for debt retirement reserve (3,333) 3,333
RCA funds used to finance MMSD capital charge 588,830 (588,830)
Total transfers 232,897 3,333 56,350 (512,580) 220,000
Increase (decrease) in working capital 1,061,486 3,333 37,824 446,420 (53,500) 1,495,563
Workina caoital. beainnina of year 7,474,505 608,520 591,412 1,853,158 54,271 10,581,866
Workina caoital, end of year $ 8,535,991 611,853 629,236 2,299,578 771 12,077,429
$265K due 5/1/08P
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Reserve
176,667
26,051
409,135
611,853
. SC.6 Schedule 6 .
7.
12/12/06
SCHEDULE OF CONSTRUCTION FUNDS
PROJECTED 2006 AND 2007
Actual 2006 Projected 2007 Projected
Balance Projected Balance Projected Balance
Project 12/31/2005 Revenues Costs Transfers 12/31/2006 Revenues Costs Transfers 12/31/2007
Debt issue and working capital funds:
Janesville Road Box Culvert 127,464 175,548 48,084 0 0
Oversizing on land purchase 10,000 10,000 10,000
Truck 7,339 7,339 23,500 23,500
2020 Facility plan 45,000 134,710 89,710 65,000 65,000 - Note 2
Facility plan - Muskego share of MMSD 40,000 40,000 50,000 50,000 - Note 1
SCADA Renovation (Radio Study)
Woods Rd Forcemain 20" Sandy Beach 137,158 106,176 (30,982) (0) (0)
Future projects 100,000 (60,000) 40,000 50,000 10,000
Flow Monitors 75,000 75,000
Rain gages 16,000 16,000
SCADA Renovations 272,854 272,854
SCADA software and hardware programing
Variable frequency drive for Mc Shane 17,600 17,600 18,526 18,526
Transfer from replacement funds 17,600 (17,600) 18,526 (18,526)
Transfer from working capital funds 375,276 (371,005) 4,271 220,000 (223,500) 771
Transfer from reserve capacity assessment funds
Unallocated debt proceeds and
interest earnings 12,000 (12,000)
TOTAL $ 794,898 29,600 770,227 54,271 238,526 292,026 771
Note 1 - The facilities plans should be capitalized and amortized over the period of benefit - starting in 2008thru 2035.
Note 2 - The facilities plans should be capitalized and amortized over the period of benefit - starting in 2007thru 2020.
City of Muskego
Sewer Rate Design - wI 3% Increase
. 2007 Budget
1. Estimated Revenue Reauirement (Based on the year 2006 Budaet)
AaaltiOns:
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.)
RCA funds used
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 (000) billed
3. Number of laterals - (connections)
4. Estimated annual number of aallons used bva averaae residential customer
5 Inflow I Infiltration based on an eiaht year averaae provided bv Ruekert & Mielke. Inc.
6. Rate components
Tvpe of Charae Model Formula
. Connection Charge 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 $ 5,624,280.99 X 34.46%
7,358
Consumption Charge $ 5,624,280.99 X 65.54%
585,536
7. Averaae annual residential charae
Schedule 7
8.
Data
$ 4,786,304
1,039,500
26,350
407,257
6,259,411
(588,830)
5,670,581
(46,300) (A)
$ 5,624,281
585,536
7,358
62,605
3446%
= Connection Charge
= Consumption Charge
$ 263.40 Connection Charge
$ 6.30 Consumption Charge
Consumption charge per 1,000 gallons
Estimated number of gallons used by a average residential customer per year 62,605
$ 6.30
Average residential annual consumption charge $ 394.12
Average residential annual connection charge $ 263.40
Total average residential annual sewer usage charge $ 657.52
(A) Interest income
Penalties and other income 46,300
Additional use of fund balance
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(A) 46,300