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CCR2021106-Sewer Budget Attachment
Sewer Utility Proposed 2022 Budget Distributed Tuesday, October 12Th, 2021 W182 S8200 Racine Avenue, Muskego, WI 53150 Waukesha County, Wisconsin (262) 679-4100 Schedule Page Statement of income and expense 1 1-2 Schedule of capital outlay 2 3 Schedule of changes in utility working capital: 2022 Adopted Budget 3 4 Sewer Fund Definitions 4 5 CONTENTS Schedule 1 Page 1 2021 2022 2022 $ Change % Change 2020 Aug. 31, 2021 2021 Adopted Proposed Adopted From 2021 From 2021 Actual Actual Projected Budget Budget Budget Budget Budget Operating revenues Sewer service charges $ 6,333,825 3,128,358 6,340,000 6,285,000 6,340,000 - 55,000 0.88% Miscellaneous revenues 13,339 5,800 11,000 10,500 10,500 - - 0.00% Total operating revenues 6,347,164 3,134,158 6,351,000 6,295,500 6,350,500 - 55,000 0.87% Operating expenses Operation and maintenance: Milwaukee Metropolitan Sewerage District: Capital charge 3,836,352 3,643,231 3,643,231 3,633,028 3,800,000 - 166,972 4.60% User charge 1,399,002 673,473 1,400,000 1,385,421 1,410,000 - 24,579 1.77% Town of Norway - Capital charge - - - - - - - 0.00% User charge 182,967 96,598 250,000 300,000 300,000 - - 0.00% Supervision and labor 454,471 317,213 485,000 513,898 525,393 - 11,495 2.24% Supplies and expense 46,176 39,158 52,000 49,000 59,000 - 10,000 20.41% Maintenance: - Amortization - - - - - - - Odor control 211 - 10,000 40,000 40,000 - - 0.00% Building and structures 15,123 8,683 15,000 17,000 17,000 - - 0.00% General plant safety equipment 5,553 4,534 7,500 7,500 7,500 - - 0.00% Sewerage collection system 143,212 57,206 125,000 125,000 125,000 - - 0.00% I & I reduction - 5,307 30,000 100,000 100,000 - - 0.00% Electricity 148,144 110,446 155,000 160,000 170,000 - 10,000 6.25% Transportation expense 7,606 5,981 20,000 20,000 20,000 - - 0.00% 6,238,817 4,961,830 6,192,731 6,350,847 6,573,893 - 223,046 3.51% Customers' account expenses: Accounting and collection 61,926 43,997 69,500 58,961 71,881 - 12,920 21.91% Meter expense 36,198 - 40,000 40,000 40,000 - - 0.00% 98,124 43,997 109,500 98,961 111,881 - 12,920 13.06% General expenses: Office Salaries 67,087 44,241 74,900 64,561 77,481 - 12,920 20.01% Employee pensions and benefits 250,317 $158,866 254,537 278,689 292,091 - 13,402 4.81% Unemployment compensation - - 2,000 2,000 2,000 - - 0.00% Office supplies and expenses 78,527 43,380 76,400 81,650 79,525 - (2,125) -2.60% Outside services 78,375 56,966 115,000 144,850 145,035 - 185 0.13% 474,306 303,453 522,837 571,750 596,132 - 24,382 4.26% Total operation and maintenance 6,811,247 5,309,280 6,825,068 7,021,559 7,281,906 - 260,348 3.71% Depreciation 627,679 - 700,000 $950,000 $725,000 - (225,000) -23.68% Total operating expenses 7,438,926 5,309,280 7,525,068 7,971,559 8,006,906 - 35,348 0.44% Net operating income (loss) (forward) (1,091,762) (2,175,122) (1,174,068) (1,676,059) (1,656,406) - 19,652 -1.17% CITY OF MUSKEGO SEWER UTILITY STATEMENT OF INCOME AND EXPENSE 2022 BUDGET Schedule 1 Page 2 2021 2022 2022 $ Change % Change 2020 Aug. 31, 2021 2021 Adopted Proposed Adopted From 2021 From 2021 Actual Actual Projected Budget Budget Budget Budget Budget Net operating income (loss) (forwarded) $ (1,091,762) (2,175,122) (1,174,068) (1,676,059) (1,656,406) - 19,652 -1.17% Add non-operating income Interest from investments 95,817 900 50,000 285,000 30,000 - (255,000) -89.47% MMSD I&I Subsidy 552 - - 500,000 800,000 - 300,000 60.00% Interest income on RCA's and special assessments 37,214 71,956 71,956 25,700 40,200 - 14,500 56.42% Sewer Connection Fees 21,500 (500) 25,000 25,000 25,000 - - 0.00% Total non-operating income 155,083 72,356 146,956 835,700 895,200 - 59,500 7.12% Income before non-operating expenses (936,679) (2,102,765) (1,027,112) (840,359) (761,206) - 79,152 -9.42% Deduct non-operating expenses I&I MMSD Program - - - 500,000 800,000 - 300,000 60.00% Total non-operating expenses - - - 500,000 800,000 - 300,000 #DIV/0! Net income (loss) before capital contributions $ (936,679) (2,102,765) (1,027,112) (1,340,359) (1,561,206) - (220,848) 16.48% CITY OF MUSKEGO SEWER UTILITY STATEMENT OF INCOME AND EXPENSE (Concluded) 2022 BUDGET Schedule 2 Page 3 2021 Estimated 2021 2022 2022 Total Adopted Proposed Adopted Description Funding Cost Budget Budget Budget 1.2021 Capital Projects Lift Station Upgrades (C ) 50,000 50,000 Apollo Building - Pavement & Gutters (C ) 90,000 90,000 Truck (Water & Sewer) (C ) 27,500 27,500 Replacement Truck (accident Water & Sewer)(C ) 20,000 20,000 - - $ 187,500 187,500 - - 2.2022 Capital Projects Lift Station Upgrades (C ) - - 60,000 - Scada Security (C ) - - 12,500 - Truck (Water & Sewer) (C ) 23,000 - Generator (C ) - - 75,000 - - - - - $ - - 170,500 - $ 187,500 187,500 170,500 - Note A: Anticipated to be financed with available construction funds Note B: Anticipated to be financed with borrowings Note C: Finance with working capital Note D: Finance with replacement funds Note E: Finance with reserve capacity assessment funds Note F: Reimbursement from MMSD Note G: Reimbursement from Franklin Grand Total CITY OF MUSKEGO SEWER UTILITY SCHEDULE OF CAPITAL OUTLAY Schedule 3 Page 4 Non-TIF Operation Reserve and Special Equipment Capacity Maintenance Redemption Replacement Assessment Construction Fund Fund Fund Fund Fund Total Funds provided From operations: Net income (loss) for the year $ (1,561,206) - - - - (1,561,206) Add charges to income not requiring funds: Depreciation 725,000 - - - - 725,000 Amortization: Debt discount - - - - City building/equipment contributions 70,350 - - - - 70,350 MMSD Funding 800,000 - 800,000 Less: Other - Implicit Cash Subsidy to Water Utility - - - - - - Funds provided from operations 34,144 - - - - 34,144 Increases in: Collection of special assessments 4,500 - - 400,000 - 404,500 Other contributed capital collection- RCA Landfill - - - - - - Total funds provided 38,644 - - 400,000 - 438,644 Funds applied Principal payments on debt - - - - - - Capital outlay (Schedule 6 for Construction Fund) - - - - 170,500 170,500 Total funds applied - - - - 170,500 170,500 Interfund transfers - net Interest earnings (5,000) - 5,000 - - - Equipment replacement (26,350) - 26,350 - - - Sewer Connection fees (25,000) - - 25,000 - - Transfer to Construction Fund (170,500) - - - 170,500 - Transfer for debt retirement reserve - - - - - - RCA funds used to finance MMSD capital charge - - - - - - Total transfers (226,850) - 31,350 25,000 170,500 - Increase (decrease) in working capital (188,206) - 31,350 425,000 - 268,144 Working capital, beginning of year 4,174,219 - 968,561 9,732,058 - 14,874,838 Working capital, end of year $ 3,986,013 - 999,911 10,157,058 - 15,142,982 -4.51% 0.00% 3.24% 4.37% 0.00% 1.80% CITY OF MUSKEGO SEWER UTILITY SCHEDULE OF CHANGES IN UTILITY WORKING CAPITAL 2022 BUDGET Schedule 4 Page 5 FUND DESCRIPTION Operations and Maintenance Required to fund, at a minimum, 3 months of operations and maintenance costs. Special Redemption Accounts as a reserve for a percentage of annual principal and interest payments, as required by the debt covenants. Equipment Replacement Fund Used for significant mechanical equipment replacements as required by the DNR. Non-TIF - RCA Includes reserves established to account for capacity assessment levies restricted to finance related capital and/or debt service costs. Construction Accounts for borrowed funds or interfund transfers from working capital to cover the cost of capital projects. MMSD Capital Charge Funding 77.83% = Utility rates & 22.17% = Reserve Capacity Assessments (Prior to 2007, 27.83% was funded by positive tax increments from TID's #2-#7) CITY OF MUSKEGO SEWER UTILITY WORKING CAPITAL FUND DESCRIPTIONS 2022 BUDGET