Loading...
The URL can be used to link to this page
Your browser does not support the video tag.
CCR2020084-Attachment
Water Utility Proposed 2021 Budget Distributed Tuesday, October 13Th, 2020 W182 S8200 Racine Avenue, Muskego, WI 53150 Waukesha County, Wisconsin (262) 679-4100 Schedule Page Statement of income and expense 1 1 Schedule of operation and maintenance expenses 2 2 - 3 Schedule of capital outlay 3 4 Schedule of changes in utility working capital 2020 Budget 4 5 2021 Budget 5 6 Schedule of contruction funds 6 7 Water Fund Definitions 4 8 CONTENTS Schedule 1 Page 1 2020 2021 2021 $ Change % Change 2019 Aug 31, 2020 2020 Adopted Proposed Adopted From 2020 From 2020 Actual Actual Projected Budget Budget Budget Budget Budget Operating revenue Sales of water: Sales to general customers $1,363,016 720,334 1,375,400 $1,381,520 $1,391,820 $0 10,300 0.75% Private fire protection 48,565 24,557 48,750 45,750 49,000 $0 3,250 7.10% Public fire protection 495,398 88,526 510,000 508,000 515,000 $0 7,000 1.38% Other operating revenue 51,879 $19,930 46,250 $55,750 53,500 $0 (2,250) -4.04% Rental of Water property - tower lease 108,606 39,420 114,000 114,000 119,000 $0 5,000 4.39% Total operating revenue 2,067,464 892,768 2,094,400 2,105,020 2,128,320 - 23,300 1.11% Operating expenses Operation and maintenance: Source of supply expense 14,258 1,585 4,175 9,797 9,971 - 174 1.77% Pumping expense 171,301 84,780 172,810 179,529 187,658 - 8,129 4.53% Water treatment expense 36,088 25,069 36,150 36,612 39,597 - 2,985 8.15% Transmission and distribution expense 232,818 104,252 197,420 230,365 241,070 - 10,706 4.65% Customer accounts expense 33,550 19,734 32,010 31,109 34,778 - 3,669 11.79% Administrative expense 447,961 299,237 415,525 476,006 468,224 - (7,782) -1.63% Total operation and maintenance expenses 935,977 534,657 858,090 963,417 981,298 - 17,881 1.86% Depreciation 851,412 - 855,000 835,000 860,000 $0 25,000 2.99% Taxes 510,322 18,464 519,150 549,078 530,360 $0 (18,717) -3.41% Total operating expenses 2,297,711 553,120 2,232,240 2,347,495 2,371,658 - 24,163 1.03% Net operating income (loss) (230,247) 339,647 (137,840) (242,475) (243,338) - (863) -0.36% Add non-operating income - interest 50,589 22,814 46,067 51,261 39,134 $0 (12,127) -23.66% Income before non-operating expenses (179,658) 362,461 (91,773) (191,214) (204,204) - (12,990) -6.79% Deduct non-operating expenses Interest on advances from municipality and revenue bonds 111,173 44,354 86,845 86,845 80,373 $0 (6,472) -7.45% Total non-operating expenses 111,173 44,354 86,845 86,845 80,373 - (6,472) -7.45% Net income (loss) before capital contributions $ (290,832) 318,107 (178,618) (278,059) (284,577) - (6,518) -2.34% CITY OF MUSKEGO WATER PUBLIC UTILITY STATEMENT OF INCOME AND EXPENSE 2021 BUDGET Schedule 2 Page 2 2020 2021 Proposed Budget 2019 Aug 31, 2020 2020 Adopted Other Actual Actual Projected Budget Labor Expenses Total Source of supply: Operation labor $ 948 472 925 2,197 2,171 - 2,171 Operating supplies and expenses 2,671 1,106 2,250 2,600 - 2,800 2,800 Maintenance of water source plant 10,640 7 1,000 5,000 - 5,000 5,000 Total source of supply 14,258 1,585 4,175 9,797 2,171 7,800 9,971 Pumping expenses: Operation labor 52,025 20,956 46,300 51,659 57,921 - 57,921 Fuel or power purchased 95,888 47,256 100,000 100,000 - 105,000 105,000 Operation supplies and expense 2,103 1,851 2,050 1,600 - 2,100 2,100 Maintenance of pumping plant 21,286 14,716 24,460 26,271 20,637 2,000 22,637 Total pumping expenses 171,301 84,780 172,810 179,529 78,558 109,100 187,658 Water treatment expenses: Operation labor 1,168 601 $1,150 3,834 2,793 - 2,793 Chemicals 30,263 15,529 27,000 27,500 - 27,500 27,500 Operating supplies and expenses 1,452 979 1,500 5,000 - 5,000 5,000 Maintenance of water treatment plant 3,205 7,960 6,500 277 4,304 - 4,304 Total water treatment expenses $ 36,088 25,069 36,150 36,612 7,097 32,500 39,597 CITY OF MUSKEGO WATER PUBLIC UTILITY DETAILED SCHEDULE OF OPERATION AND MAINTENANCE EXPENSES 2021 BUDGET Schedule 2 Page 3 2020 2021 Proposed Budget 2019 Aug 31, 2020 2020 Adopted Other Actual Actual Projected Budget Labor Expenses Total Transmission and distribution expenses: Operation labor $ 55,689 27,530 55,100 61,685 61,617 - 61,617 Operation supplies and expenses 14,483 13,059 21,500 21,750 - 22,250 22,250 Maintenance of distribution reservoirs 2,096 1,470 16,470 25,203 278 25,000 25,278 Maintenance of mains 61,493 7,213 32,500 46,055 8,687 31,000 39,687 Maintenance of services $48,109 $7,230 $12,200 $33,429 $2,721 31,000 33,721 Maintenance of meters 7,012 6,782 8,000 4,774 5,616 3,000 8,616 Maintenance of hydrants 43,253 39,812 50,000 35,807 25,682 22,500 48,182 Maintenance of other plant 683 1,157 1,650 1,661 1,420 300 1,720 Total transmission and distribution expenses 232,818 104,252 197,420 230,365 106,020 135,050 241,070 Customer account expenses: Meter reading labor 4,021 2,510 4,035 3,496 5,084 - 5,084 Accounting and collecting labor 14,696 7,387 11,875 13,013 13,593 - 13,593 Supplies and expense 14,833 9,837 16,100 14,600 - 16,100 16,100 Total customer account expenses 33,550 19,734 32,010 31,109 18,678 16,100 34,778 Administrative and general expenses: Administrative and general salaries $131,119 $118,659 $144,900 141,907 139,406 - 139,406 Office supplies and expenses 94,174 29,375 50,000 99,985 - 93,850 93,850 Payroll clearing/sick/vacation/holiday - 28,020 - - - - - Outside services 40,560 32,209 53,000 75,000 - 56,000 56,000 Property insurance - - - - - - - Injuries & Damages 16,300 8,350 16,350 19,865 - 19,700 19,700 Employee pensions and benefits 148,900 76,377 135,475 117,948 - 138,468 138,468 Miscellaneous general expenses 3,801 1,267 4,800 7,300 - 7,300 7,300 Transportation expense 13,107 4,980 11,000 14,000 - 13,500 13,500 Maintenance of general plant & Contingency - - - - - - - Total administrative and general expenses 447,961 299,237 415,525 476,006 139,406 328,818 468,224 Total operation and maintenance expenses $ 935,977 534,657 858,090 963,417 351,930 629,368 981,298 CITY OF MUSKEGO WATER PUBLIC UTILITY DETAILED SCHEDULE OF OPERATION AND MAINTENANCE EXPENSES (Concluded) 2021 BUDGET Schedule 3 Page 4 Estimated 2020 2020 2021 2021 Total Adopted Proposed Adopted Funding Cost Budget Budget Budget 1.2020 Capital Additions: Meters (B) 150,000 150,000 Truck (Water & Sewer) (B) 16,734 19,000 Bobcat Skid-Steer Loader Trailer (Water & Sewer) (B) 4,757 5,000 Well Rehap (B) 200,000 200,000 Water Study (carryover) (B) 336 - $ 371,827 374,000 - - 2.2021 Capital Additions: Meters (B) 150,000 - Truck (Water & Sewer) (B) 20,000 - Replacement Truck (accident Water & Sewer) (B) 27,500 - Well Rehap (B) 150,000 - Apollo Building - Pavement & Gutters (B) 90,000 - Scada (B) 35,640 - - - 473,140 - Grand Total $ 371,827 374,000 473,140 - Notes: (A) - Financed by borrowings. (B) - Financed by working capital / Depreciation Fund (C) - Anticipated to be financed by a Sewer Utility Subsidy (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 2020 AND 2021 BUDGET Schedule 4 Page 5 Operation and Debt Maintenance Construction Depreciation Service 2020 Fund Fund Fund Fund Total Budget Funds provided From operations: Net income (loss) for year $ (178,618) - - - (178,618) (277,817) Add charges to income not requiring funds: Depreciation 725,000 - 20,000 110,000 855,000 835,000 Amortization - - - 86,845 86,845 86,845 Transfer working capital to other funds (371,827) 371,827 - - - - Proceeds from borrowing/stimulas grant - - - - - - Receipts from utility for implicit cash subsidy - - - - Increases in collection of - - - - - - special assessments and WCA's - - - 60,646 60,646 40,000 Total funds provided (applied) 174,555 371,827 20,000 257,491 823,873 684,028 Funds applied Principal payments on debt - - - 236,956 236,956 236,656 Capital outlay 371,827 - 371,827 374,000 Paid to utility for implicit cash subsidy - - - - - - Total funds applied - 371,827 - 236,956 608,783 610,656 Interfund transfers - interest earnings (16,500) - 6,750 9,750 - - Increase (decrease) in working capital 158,055 - 26,750 30,285 215,090 73,372 Working capital, beginning of year 375,879 - 448,765 616,498 1,441,142 1,294,185 Working capital, end of year $ 533,934 - 475,515 646,783 1,656,232 1,367,557 CITY OF MUSKEGO WATER PUBLIC UTILITY SCHEDULE OF CHANGES IN UTILITY WORKING CAPITAL 2020 PROJECTED Schedule 5 Page 6 Operation and Debt Maintenance Construction Depreciation Service Fund Fund Fund Fund Total Funds provided From operations: Net income (loss) for year $ (284,577) - - - (284,577) Add charges to income not requiring funds: Depreciation 775,000 - 20,000 65,000 860,000 Amortization - - - 80,373 80,373 Amortization on water tower - - - - - Transfer working capital to other funds (473,140) 473,140 - - - Implicit cash subsidy from Sewer Utility - - Proceeds from borrowing - - - - - Increases in collection of special assessments - - - 50,000 50,000 Total funds provided (applied) 17,283 473,140 20,000 195,373 705,796 Funds applied Principal payments on debt - - - 266,805 266,805 Capital outlay 473,140 - 473,140 Paid to utility for implicit cash subsidy - - - - - Total funds applied - 473,140 - 266,805 739,945 Interfund transfers - interest earnings (11,495) - 4,875 6,620 - Increase (decrease) in working capital 5,788 - 24,875 (64,812) (34,149) Working capital, beginning of year 533,934 - 475,515 646,783 1,656,232 Working capital, end of year $539,722 - 500,390 581,971 1,622,083 1.08% #DIV/0! 5.23% -10.02% -2.06% CITY OF MUSKEGO WATER PUBLIC UTILITY SCHEDULE OF CHANGES IN UTILITY WORKING CAPITAL 2021 BUDGET Schedule 6 Page 7 Actual Projected Projected Balance 2020 Balance 2021 Balance Project 12/31/19 Revenues Costs Transfers 12/31/20 Revenues Costs Transfers 12/31/21 Meters - - 150,000 150,000 - - 150,000 150,000 - Transportation Equipment - - 16,734 16,734 - - 47,500 47,500 - Apollo Building - - - - - - 90,000 90,000 - Skid Loader - - 4,757 4,757 - - - - - Scada Maintenance - - - - - - 35,640 35,640 - Well Rehab - - 200,000 200,000 - - 150,000 150,000 - Water Study - - 336 336 - - - - - Transfer from working capital (includes MNSD reimbursements) - 371,827 - (371,827) - 473,140 - (473,140) - Transfer from depreciation fund - - - Future Projects - - - - - - - - - Subsidy from Sewer Utility - - - - - - - - - Proceeds from borrowing - Net Refunding - - - - - - - - - Unallocated debt proceeds and interest earnings - - - - - - - - - - Total $ - 371,827 371,827 - - 473,140 473,140 - - PROJECTED 2020 AND 2021 CITY OF MUSKEGO WATER PUBLIC UTILITY SCHEDULE OF CONSTRUCTION FUNDS Schedule 7 Page 8 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 2021 BUDGET