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CCR2021107-Water Budget Attachment Water 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 Schedule of capital outlay 2 2 Schedule of changes in utility working capital 2022 Budget 3 3 Water Fund Definitions 4 4 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 revenue Sales of water: Sales to general customers $1,529,893 756,379 1,402,700 $1,391,820 $1,334,250 $0 (57,570) -4.14% Private fire protection 50,056 26,702 50,000 49,000 51,500 $0 2,500 5.10% Public fire protection 516,252 93,783 520,000 515,000 525,000 $0 10,000 1.94% Other operating revenue 43,933 $14,953 46,000 $53,500 46,500 $0 (7,000) -13.08% Rental of Water property - tower lease 114,037 41,391 119,000 119,000 125,000 $0 6,000 5.04% Total operating revenue 2,254,171 933,209 2,137,700 2,128,320 2,082,250 - (46,070) -2.16% Operating expenses Operation and maintenance: Source of supply expense 10,870 3,547 8,200 9,971 9,843 - (128) -1.28% Pumping expense 169,953 110,100 192,200 187,658 189,782 - 2,124 1.13% Water treatment expense 57,858 24,845 51,000 39,597 55,620 - 16,023 40.46% Transmission and distribution expense 175,415 198,676 239,050 241,070 265,748 - 24,678 10.24% Customer accounts expense 29,567 19,627 35,100 34,778 34,895 - 117 0.34% Administrative expense 414,411 284,606 413,020 468,224 442,895 - (25,329) -5.41% Total operation and maintenance expenses 858,074 641,400 938,570 981,298 998,783 - 17,485 1.78% Depreciation 870,064 - 875,000 860,000 880,000 $0 20,000 2.33% Taxes 501,281 17,355 505,360 530,360 530,106 $0 (254) -0.05% Total operating expenses 2,229,419 658,755 2,318,930 2,371,658 2,408,889 - 37,231 1.57% Net operating income (loss) 24,752 274,454 (181,230) (243,338) (326,639) - (83,301) -34.23% Add non-operating income - interest 44,762 20,584 30,337 39,134 26,634 $0 (12,500) -31.94% Income before non-operating expenses 69,514 295,038 (150,893) (204,204) (300,005) - (95,801) -46.91% Deduct non-operating expenses Interest on advances from municipality and revenue bonds 85,582 41,418 79,230 80,373 70,905 $0 (9,468) -11.78% Total non-operating expenses 85,582 41,418 79,230 80,373 70,905 - (9,468) -11.78% Net income (loss) before capital contributions $ (16,068) 253,620 (230,123) (284,577) (370,910) - (86,333) -30.34% CITY OF MUSKEGO WATER PUBLIC UTILITY STATEMENT OF INCOME AND EXPENSE 2022 BUDGET Schedule 2 Page 2 Estimated 2021 2021 2022 2022 Total Adopted Proposed Adopted Funding Cost Budget Budget Budget 1.2021 Capital Additions: Meters (B) 150,000 150,000 Truck (Water & Sewer) (B) 20,000 20,000 Replacement Truck (accident Water & Sewer) (B) 27,500 27,500 Well Rehap (B) 150,000 150,000 Apollo Building - Pavement & Gutters (B) 90,000 90,000 Scada (B) 35,640 35,640 - - $ 473,139 473,140 - - 2.2022 Capital Additions: Meters (B) 200,000 - Truck (Water & Sewer) (B) 23,000 - Well #12 Abandonment (B) 50,000 - Well Rehap (B) 150,000 - Scada (B) 12,500 - - - 435,500 - Grand Total $ 473,139 473,140 435,500 - 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 2021 AND 2022 BUDGET Schedule 3 Page 3 Operation and Debt Maintenance Construction Depreciation Service Fund Fund Fund Fund Total Funds provided From operations: Net income (loss) for year $ (370,910) - - - (370,910) Add charges to income not requiring funds: Depreciation 815,000 - 20,000 45,000 880,000 Amortization - - - 70,905 70,905 Amortization on water tower - - - - - Transfer working capital to other funds (435,500) 435,500 - - - Implicit cash subsidy from Sewer Utility - - Proceeds from borrowing - - - - - Increases in collection of special assessments - - - 50,000 50,000 Total funds provided (applied) 8,590 435,500 20,000 165,905 629,995 Funds applied Principal payments on debt - - - 306,402 306,402 Capital outlay 435,500 - 435,500 Paid to utility for implicit cash subsidy - - - - - Total funds applied - 435,500 - 306,402 741,902 Interfund transfers - interest earnings (7,250) - 2,250 5,000 - Increase (decrease) in working capital 1,340 - 22,250 (135,497) (111,907) Working capital, beginning of year 648,162 - 490,765 1,121,373 2,260,300 Working capital, end of year $649,502 - 513,015 985,876 2,148,393 0.21% #DIV/0! 4.53% -12.08% -4.95% CITY OF MUSKEGO WATER PUBLIC UTILITY SCHEDULE OF CHANGES IN UTILITY WORKING CAPITAL 2022 BUDGET Schedule 4 Page 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 2022 BUDGET