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Sewer Fund
<br /> Sewer revenues are expected to increase by four percent in FY 2019/20 and increase by three
<br /> percent in FY 2020/21 reflecting the annual Consumer Price Index (CPI) increase in local city sewer
<br /> fees. However,a majority of the customers' sewer fees are the regional sewer fees charged by
<br /> DSRSD.The Budget assumes DSRSD fees will increase by three percent in FY 2019/20 and two
<br /> percent in FY 2020/21.
<br /> Expenses in the Sewer Fund are increasing by 14 percent in FY 2019/20 and two percent in FY
<br /> 2020/21. Similar to the Water Operations & Maintenance fund,the increase in FY 2019/20 is primarily
<br /> related to a newly created Sewer Repair and Replacement Fund that will be used to fund annual
<br /> repair and replacement projects for the Sewer Enterprise that had been budgeted in the Sewer CIP
<br /> fund.There is also $127,000 in a contingency account to fund the Sewer Operating Fund's portion
<br /> of up to 3.0 FTE positions: Instrument Technician and 2.0 FTE Utility Operators. The City Manager will
<br /> decide during the year whether to fill any of those positions.
<br /> As show in the table below,the SewerOperating Fund is expected to end FY 2019/20 with a positive
<br /> operating fund balance of$7.9 million as shown in the table below,equaling 52.8 percent of the
<br /> Sewer Fund's FY 2019/20 budgeted operating expenses.The operating reserve policy adopted by
<br /> the City Council in November 2016 targets the Sewer Fund operating reserves equal to 35 percent of
<br /> operating expenses.Thus,operating reserves exceed the target.
<br /> The following table summarizes the Sewer Operations and Maintenance Fund for the four years
<br /> ending FY 2020/21.
<br /> Sewer(O&M) Actual Mid-Year Projected Projected
<br /> 2017/18 2018/19 2019/20 2020/21
<br /> Beginning Balance,July 1 $6,489,334 $6,846,889 $7,613,313 $7,866,540
<br /> Revenues 14,629,984 14,929,500 15,507,500 15,922,500
<br /> Net Transfers (1,085,171) (1,101,700) (359,000) (856,000)
<br /> Expenses
<br /> DSRSD 9,859,372 10,000,000 10,300,000 10,500,000
<br /> All other expenses 3,327,887 3,061,376 4,595,273 4,742,555
<br /> Total Expenses 13,187,259 13,061,376 14,895,273 15,242,555
<br /> Ner incorreS357: 5 55 i2^, 57 ;227 ($176,055)
<br /> Ending Balance,June 30 $6,846,889 $7,613,313 $7,866,540 $7,690,484
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