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3. Budget DiscussionCity of Kalispell Post Office Box 1997 • Kalispell, Montana 59903-1997 • Telephone (406) 758-7700 • FAX (406) 758-7758 REPORT TO: Honorable Mayor and City Council FROM: Chris A. Kukulski, City Manager SUBJECT: Preliminary Budget Discussions MEETING DATE: April 24, 2000 BACK GROUND: The staff has been working hard over the past 45 days to get the budget prepared for Council's review. What a process. I must admit that budgeting in Montana is quite a bit different than my experiences in Michigan. The purpose for this discussion Monday night is two fold; 1st it is to get you up to speed on the revenue situation as a result of SB 184 and 2"d is to get your direction on some issues that in my opinion need to be redirected. First - it appears that NO ONE in the State of Montana clearly understands the ramifications of SB 184. However, after lengthy discussions that Amy and I have had with the Department of Revenue and several of the other City Managers and Finance Directors throughout the state we are all coming up with the same interpretations: Revenue Discussion 1. SB -184 caps taxable revenue to whatever your revenue was in the previous year. What does this mean? Even though the market values of real property is increasing every year, the States complex formula combining the re -appraisals to lower taxable values results in a flat tax situation for the city. The only way to pay for inflationary increases in cost (30% fuel and oil, 2.5% salaries etc.) is through new construction or annexation. If salaries are increased by 2.5% annually you need $125,000 to cover this inflationary cost (CPI-U in West Region was 3.6% past 12 months). So any new money resulting from construction is needed to pay for inflationary cost rather than the additional manpower and equipment demands created by the growth. If this trend continues, drastic changes will need to be made in our service levels. The City's growth through new construction and annexation was $86,000 for last year, most of this growth took place in the three increment districts. 2. Manpower - The City is fortunate to be in a growth mode. Efficiencies have been developed in order to provide services to a growing community without adding large numbers of staff. Unfortunately, we are beginning to hit the wall and some departments need additional manpower in order to continue providing quality services. 3. Capital Replacement - Making this situation worse is the fact that we have a very poor capital replacement program. If we can fund capital in the budget we do, however there are NO moneys set aside to replace equipment in the general fund. When fire trucks cost upwards of $250,000 and dump trucks are costing $90,000 it is difficult to find the money to make replacements with one or two budget cycles. 4. How are other cities dealing with this dilemma? Most are moving costs out of the general fund and into a special revenue fund. Some cities like Whitefish have adopted a Resort Tax which has resulted in lower property taxes and higher over all revenue which grows and shrinks with the economy. Some are instituting right-of-way fees to utility companies which use the public's right-of-way. I believe that we are the only first class city not utilizing a franchise fee for the cable industry (est. $75,000 annually). TIF/Enterprise Funds Over the past eighteen years the Downtown Tax Increment District has paid for the replacement of a number of water and sewer mains. Though these expenditures are perfectly legal they are subsidizing our enterprise funds. Enterprise funds are expected to be self sufficient, stand alone operations that cover their costs through primarily utility rates and tap fees similar to a private business without profit. I believe that revenues derived from TIF districts should be focused toward redevelopment activities and infrastructure projects that are not of an enterprise nature (streets, storm drains, sidewalks etc.). We have two years left in the Downtown TIF and we have two projects of very high priority. # 1 - Streetscape project which will transform the core business district into a more pedestrian oriented environment which will help to secure economic growth as requested by the downtown business association. #2 - City Hall Expansion/renovation project has been delayed year after year. Last year the city council decided that this project must be completed before the end of the TIF. Architects Design Group has verified that we are approx. 7,500 sq ft short of space today and are in need of an additional 10,000 sq ft over the next ten years. 2. Currently we have three water/sewer projects included in TIF budgets. Water Sewer Hwy 93 South - $920,000 Hwy 93 North - $600,000 Hwy 93 South - $1,415,000 These projects need to be completed, the question is "should they be paid for through Tax increment or should they be funded by there own enterprise account"? 3. Water Rates - in order to cover the debt payments on the Hwy 93 water projects and to pay for the roofreplacement on the reservoir, we would need to increase water rates 0.37 cents per 1,000 gallons (29%). I have already cut $140,000 in equipment replacement and we are recommending the privatization of our mowing services in the water and sewer departments, in order to reduce cost and summer FTE's. See attached water rate spread sheet. The water funds replacement account has a balance of approx $735,000. 1 would propose using a significant amount of this money to automate our water/sewer meter system. We currently write meter reading into a book which is latter entered into the computer (labor intensive and prone to mistakes). Worse is the fact that several thousand of our meters have not been replaced and as a result we are losing tens of thousands of dollars to water meters that are in -accurate. This account needs to remain healthy as it is your only funding mechanism for replacing water mains. Because the capital improvements are not being completed at the same time we could phase in a rate increase over the next two or three years. 4. Sewer Rates - The Hwy 93 south sewer project is estimated to cost approx 1.42 million. In order to bond for this project sewer rates would need to be increased 0.54 cents per 1,000 gallons. I would also propose utilizing replacement funds in the sew account to pay for 50% of the cost associated with upgrading the meter system. Both water and sewer derive their revenues from the same meter reading. 5. Solid Waste - The solid waste department is unfunctional without dependable equipment. The solid waste study that was conducted in the late 1990's commended the department on its efficiency and quality of service. However the study was critical of our capital replacement program. This has caught up with us over the past 12 months. We are seeing an incredible amount of labor and parts going into keeping our fleet of trucks on the road. In fact, last month four of six trucks were out of commission at the same time. We have one truck on order with a second to be included in the upcoming budget. These vehicles are approx. $160,000 a piece. The only way to fund the new truck in the proposed budget was to finance the rig. This is acceptable however it leaves no money for future replacements. I am recommending a $10 increase in the residential rate. We currently charge $60.00/yr vs Evergreen's $80.00/yr. Evergreen restricts the number of bags allowed per week while we do not have these limitations. Commercial rates are almost identical to Evergreen's. This will not completely resolve our dilemma but it will get us through this year without bankrupting the enterprise account. ** See attachments RECOMMENDATION: If the staff can get some clear direction from the Council regarding these issues we will be able to pull together the remaining lose ends of the budget. Budget work sessions are scheduled for throughout the month of May. FISCAL EFFECTS: As discussed above ALTERNATIVES: As suggested by the Council. Resp tfully submitted L ti Chris A. Kukulski City Manager Report compiled April 21, 2000 DETAIL OF ESTIMATED REVENUE/CASH AVAILABLE GENERAL FUND +1.5mills 74.66 mills 67.66 mills 69.54 mills 69.54 mills 69.54 mills FY97/98 FY98/99 FY99/00 FY99/00 FY00/O1 ACTUAL ACTUAL BUDGET ESTIMATED BUDGET PROPERTY TAXES: Real Property Taxes $1,486,000 $1,352,215 $1,404,860 $1,404,860 $1,404,860 Mills transferred fm G.O. Bond $32,000 Personal Property $87,205 $89,811 $79,139 $87,677 $68,490 Penalty & Interest $9,505 $6,313 $6,500 $6,500 $6,500 Light Vehicle Tax-2% (full effect SB260-FY20 $128,667 $141,577 5116,559 $120,000 $100,780 SUBTOTAL LICENSES AND PERMITS MV: Flat fees $13,135 $12,100 $12,100 $9,865 $9,865 Plate fees $55,173 $56,697 $56,697 $65,218 $65,218 Title fees $3,301 $3,338 $3,338 $3,600 $3,600 SUBTOTAL BUSINESS LICENSES: Alcohol Beverage $18,598 $21,823 $21,823 $21,823 $21,823 General and occupational $2,616 $2,137 $2,137 $2,137 $2,137 Amusement $500 $650 $650 $650 S650 Signs permits $0 $3,110 $3,200 $1,500 $1,500 Excavation Permits $325 $250 $250 $250 $250 Zoning fees $14,900 $24,000 $24,000 $24,000 Animal licenses $1,043 $920 $900 $1,000 $1,000 SUBTOTAL $23,082 INTERGOVERNMENTAL REVENUE: Supreme court grants- accounting system $17,500 Hwy safetry reimb/Troops grant for training'99 $9,030 $12,455 $11,000 $11,359 $0 Sign & Signals reimbursements $15,000 $20,000 STATE SHARED REVENUE DUI task force reimbursement $8,145 $10,400 $10,400 $10,400 $10,400 Personal Property Reimb. H.B. 20 $24,165 $25,335 $21,991 $21,596 $19,860 Personal Property Reimb. S.B.417 $5;769 $24,976 $21,477 $21,477 $19,467 Personal Property Reimb. S.B.184 $0 $0 $30,249 $29,836 $49,023 Corporation Tax ($10,643) $72,446 $68,602 $26,432 $27,432 Video Machine apport. $983,208 $941,287 $950,000 $990,000 $1,030,000 Gaming Machine Permits $43,925 $45,025 $45,025 $46,000 $46,000 Liquor Tax Apportionment $78,249 $74,733 $74,733 $75,000 $75,000 Wine Tax Apportionment $2,279 $2,576 $2,576 $2,576 $2,576 Beer Apportionment $55,973 $70,849 $70,849 $70,000 $70,000 M.V. Ad Valorem Tax $5,676 $3,461 $3,461 $2,875 $2,875 Live Card Game Permit, keno & bingo $3,283 $1,727 $1,727 $3,500 $3,500 SUBTOTAL $1,209,059 $1,285,270 $1,312,090 $1,326,051 $1,393,633 4/21/002:16 PM GENERAL FUND DETAIL OF ESTIMATED REVENUE/CASH AVAILABLE FY97/98 FY98/99 FY99/00 FY99/00 FY00/01 ACTUAL ACTUAL BUDGET ESTIMATED BUDGET CHARGES FOR SERVICES: Sale of Maps, etc. $32 $458 $500 $1,200 $1,000 Administrative chg. $461,700 $522,561 $517,624 $513,250 $536,209 Board of Adjustment $0 $350 $1,000 $500 $500 Police services $7,124 $7,271 $7,000 $7,000 $7,000 Central Garage $137,000 $141,000 $116,000 $116,000 $129,550 Public works charges -,garage $16,116 $25,659 $10,000 $2,500 $2,500 DPW fees- banners, etc. $900 $1,050 $1,050 $1,050 $1,050 Pool $50,979 $64,795 $65,000 $65,000 $65,000 Parks usage fee $5,693 $6,025 $6,000 $6,500 $6,500 Pick-nic in the Park $5,919 $6,900 $13,000 $13,185 $13,000 Recreation fees + scholarship $23,370 $24,698 $24,728 $27,000 $32,000 Basketball $8,655 $11,052 $13,665 $15,000 $14,800 Ice Skating $426 $56 $100 $115 $0 Tennis $6,096 $7,423 $6,880 $5,500 $0 Day Camp/Outdoor Programs $33,696 $36,660 $36,660 $32,000 $51,500 Senior Programs/Independent living $12,690 $14,361 $18,000 $15,500 $17,000 SUBTOTAL FINES AND FORFEITURES: City Court fees $31,733 $28,782 $28,782 $28,782 $28,782 City Court Fines $380,963 $323,190 $358,000 $338,000 $400,000 SUBTOTAL MISC. REVENUE Joint Venture Mall income $0 $10,656 $0 $0 $0 IDB fees for refinancing Mall Note $0 $17,570 $17,275 $0 Golf Course $15,121 $15,477 $15,477 $15,477 $15,477 Auction proceeds, mist. collections $7,473 $1,163 $1,000 $5,896 $4,500 Fire Equipment Fund raiser $0 $0 $0 $0 $19,000 Rent on City Property $11,175 $11,700 Donations-Kidsport $9,125 $11,838 $24,000 $24,000 $37,955 Sale of Land -Lions Park right of way $90,000 Intercap leases-S87,603 $4,599 $26,282 $87,603 $87,603 $0 SUBTOTAL INVESTMENT REVENUE: $126,713 $83,940 $83,940 $75,000 $75,000 TOTAL GENERAL REVENUE $4,361,250 $4,362,758 $4,497,822 $4,499,639 $4,696,329 CASH AVAILABLE JULY 1ST $1,052,592 $880,370 $898,869 $898,869 $809,547 Designated ( Fire Truck'00) retirement liability $137,397 $137,397 $137,397 $26,358 Equity Transfer in (out) (G. 0. Bond) ($103,361) $12,461 $0 $0 $9,000 Prepaid Expenditure (CMAQ Grant match) ($11,308) $11,308 $0 $0 TOTAL AVAILABLE FOR BUDGET $5,310,481 $5,381,678 $5,545,396 $5,535,905 $5,541,234 RECOMMENDED EXPENDITURES $4,298,808 $4,345,412 $4,781,342 $4,700,000 $4,804,240 CASH CARRY OVER (year end) $1,011,673 $1,036,266 $764,054 $835,905 $736,994 23.40% 23.85% 15.98% 17.79% 15.34% 4/21/002:18 PM CITY OF KALISPELL TAXABLE VALUATION CHANGE COMPARED TO CPI AND MILL LEVY FY Taxable valuation * % chg Mills levied Consumer Price Index % ch TIF valuation % chg 1999/2000 21,338,655 0.793% 114.25 2 $ 3,110,343 -20.837% 1998/1999 $21,170,715 -1.409% 111.16 1.7 $ 3,929,012 0.888% 1997/1998 $21,473,297 3.239% 116.16 1.4 $ 3,894,447 7.157% 1996/1997 $20,799,501 2.845% 116.16 2.30 $ 3,634,332 3.424% 1995/1996 $20,224,154 4.293% 108.00 3.00 $ 3,514,011 24.511% 1994/1995 $19,391,590 1.559% 107.50 3.30 $ 2,822,247 -14.317% 1993/1994 $19,093,874 14.578% 107.00 2.63 $ 3,293,832 16.918% 1992/1993 $16,664,525 1.946% 114.22 2.99 $ 2,817,205 7.105% 1991/1992 $16,346,409 4.097% 114.77 3.01 $ 2,630,321 2.022% 1990/1991 $15,703,078 0.303% 117.39 4.28 $ 2,578,179 -8.765% 1989/1990 $15,655,702 0.977% 117.90 5.40 $ 2,825,857 19.581% 1988/1989 $15,504,294 -0.329% 115.57 4.82 $ 2,363,125 28.546% 1987/1988 $15,555,491 -5.182% 114.28 4.14 $ 1,838,343 98.473% 1986/1987 $16,405,644 4.091% 1 114.28 1 3.65 1 $ 926,245 -34.686% The average annual percentage change in taxable value for the last 14 years is 2.27% while the Consumer Price Index increased an average of 3.19%. During the same period the City's Mill levy decreased 2.7%. The increased gambling revenue allowed this to happen. * General Fund, Comp. Ins.,Health, Retirement, G.O. Bond, Revolving and Gov't Study Funds. TIF valuation is for the Downtown Urban Renewal District. The average annual increase is 9.3%. CITY OF KALISPELL WN 4-. O bA Ln O O 0 t h N (14 M 00 L" cd M W) 01 00 w C N N N N N N N b-0 69 6Fi 69 64 69 69 69 W) o 0 0 0 bq l� W) O O W) Ln U N V O [— 0 0 0 V •--� �O �D DD a0 � N ~ 69 69 69 64 6R3 69 Ff-i to UO � M N �i' •-+ N N N N N 69 69 69 69 69 69 69 O V) V O V a1 O �n O\ 00 l� N kn In 00 N �"' M •--� �� N M O N N N N N 3 64 69 69 69 &S 69 69 M N_ N N =_ � N o N M O N OMO M O N V V N M N 41 L' M 01 ll:� oo N O M "lt M M M N M ~ 69 69 69 b9 FR 69 69 O c 01 V1 M V l� N M V to Ln M N N k N N N N N N N 6<3 69 69 69 69 64 u O O VO O O O N — — N M M 0 0 0 bD O In O, O 00 U N N V M 1.0 O 0 V M O M 00 --� al N vj a r- 00 t Vl N C, O 5 69 64 6931 69 69 69 (fl Cl O, oo � �o kn V 9)c,11C rnrno, w 00 t- �c V m a O\ C� a\ rn a, o, 0 00 PI bA O EC U CA CS DOWNTOWN TAX INCREMENT Cash on Hand 7/1/99 Bond Reserve Taxes rec. FY00 (Real & Personal) Personal Property Reimb. Interest Earnings - est. Loan Repayments Available Anticipated Expenditures FY (see detail) REVISED 4/4/00 FY2000 FY2001 $1,664,458 $1,954,627 $1,559,898 $286,579 $86,500 S 12.732 $735,504 $906,125 $80,000 $12,732 FY2002 $1,674,649 $123,046 $735,504 $125,994 $75,000 $9,432 $3,610,167 / $3,688,988 $2,743,625 ($1,655,540) / ($2,014,339) ($2,743,625) Cash Carroyover -July 1, 2000 JL2L4,627 1 674 649 0 Expenditure Detail: Future years expenditures: Debt Service $259,050 $283,625 Administration $258,217 $275,000 Director - .5 fte $30,671 $35,000 Parking (carryover) $75,000 $0 City Hall /construction or purchase $565,401 $500,000 Urban Design contract services (carryover) $30,000 $30,000 Studies / Surveys (carryover) $0 $0 Corners Hwy93 & Hwy 2 $0 $0 Commercial Loans $50,000 $50,000 2nd Street West Project $96,000 $0 Facility Plan -Public Works $5,000 $0 Water projects $0 $0 Reconstruct 1 st Ave. E., 6th to 12th St. $0 $450,000 Traffic Signal-1 st Ave. W & 3rd St. -Post office $0 $0 Overlays/chip seal $110,000 $140,000 Alley Paving-20 blocks $50,000 $0 Storm -reconstruct & raise -1st Ave. E. to 5th Ave. W./Center St. $0 $0 Alley -reconstruct concrete -2nd Alley E./1 st to 4th St. $80,000 $0 Sidewalks ($77,932 carryover fy99) $75,000 $150,000 Parks Dept. Downtown beautification $30,000 $30,000 Hwy 93 South project $0 $0 Streetscape Improvements requested $250,000 $750,000 Hockaday rehab $50,000 $50,000 Redevelopment Activity $0 $0 Total expenditures requested by year $2,014,339 $2,743,625 WATER Bond coverage - proposed budget Water service charge Miscellaneous revenue Total operating revenue Less operating expenses before deprec FY2001 est. $975,000 rate $20,000 misc $995,000 billing $89,114 operating $790,231 total m&o $879,345 Available for debt service $115,655 maximum debt service current bonds $107,977 current. coverage 107.11 % need $107,977 x 1.25% 13$ 4,971 shortfall ($19,316) 2% rate increase needed current rate $1.26 new rate $1.29 sprinkling $ .75 sprinkling $ .77 2000 SRF Loan 15 year $2,137,000 -4% new debt 19$ 0 new max debt 29$ 8,811 Hwy 93 SO. $920,000 Roof reservoirs $400,000 coverage available 38.71% HWY 93 no Water Main $600,000 plus bond issue costs and reserves needed $298,811 x 1.25% $373,514 available $89,155 shortfall ($284,359) 29% increase needed current. rate $1.26 new rate $1.63 sprinkling $ .75 sprinkling $ .97 2000 SRF Loan 15 year $1,100,000 -4% new debt 10$ 0,462 new max debt 20$ 8,439 Roof reservoirs $400,000 HWY 93 no Water Main $600,000 coverage available 55.49% plus bond issue costs and reserves needed $208,439 x 1.25% $260,549 available $89,155 shortfall ($171,394) 18% increase needed current rate $1.26 new rate $1.49 4/21/009:43 AM sprinkling $ .75 sprinkling $ .88 PROGRAM OF SERVICES 5210 WATER FUND REVENUE PROJECTION CASH: Operating * Replacement Acct. Metered Water Sales *Hookup Fees(Replacement acct) Installation Charges Misc. Water Tower Rental Board of Investments Loans Revenue Bond 2000 issue Interest Earnings Decr.(Increase) in accounts receivable Total Available Water Billing Water Operating Debt Service -1996 Revenue Bond Capital Outlay *Capital Outlay -replacement funds Depreciation -Unfunded ,'99,'00,'01 Total Operating Expenditures Bond Construction Debt Service -new issue Grand Total Add back unfunded Deprec/Replacement Cash Carry Over Operating Cash *Replacement Cash Account ACTUAL BUDGET ESTIMATED PROPOSED FY98/99 FY99/00 FY99/00 FY00/01 $335,052 $421,595 $421,595 $631,799 $736,174 $783,227 $783,227 $739,803 $957,217 $940,000 $975,000 $975,000 $47,053 $50,000 $80,000 $65,000 $16,315 $15,000 $15,000 $15,000 $777 $500 $1,475 $1,000 $4,800 $4,800 $4,800 $4,800 $0 $40,000 $34,333 $0 $2,137,000 $71,223 $70,000 $70,000 $70,000 ($13,246) $0 $0 $0 $2,155,365 $2,325,122 $2,385,430 $4,639,402 $88,337 $75,934 $75,000 $89,114 $725,405 $753,261 $675,776 $790,231 $108,888 $108,856 $105,038 $112,459 $27,913 $325,000 $34,590 $231,600 $0 $290,000 $123,424 $195,000 $139,325 $140,000 $140,000 $140,000 $1,089,868 $1,693,051 $1,153,828 $1,558,404 $2,137,000 $0 $0 $0 $1,089,868 $1,693,051 $1,153,828 $3,695,404 $139,325 $140,000 $140,000 $140,000 $421,595 $228,844 $631,799 $474,195 $783,227 $543,227 $739,803 $609,803 4/21/009:44 AM PROGRAM OF SERVICES EXPENDITURE DETAIL FUND: WATER 5220....BOND CONSTRUCTION 447.. 430550 ACTUAL BUDGET STAFF'S ACCOUNT FY98/99 FY99/00 FY00/01 430592 920 Reservoir Roofs $400,000 430595 950 NO. Main Water Improvements $600,000 430598 950 Hwy 93 SO. Water Improvements $920,000 430550 950 Bond Issue Costs $25,000 $1,945,000 Bond Construction Detail: 920 Reservoir Roofs - $400,000 Roof Replacement for reservoir #1 & #2. Old roofs are leaking and allow entry of contaminants. Identified as possible source of coliform contamination that required the City to issue a boil water order last June. 950 NO. Main Water Improvements - $600,000 In conjunction with MDT improvement of Main Street in Kalispell, the City intends to replace its obsolete 18-inch diameter water main and a parallel service main. These new improvements include: 20-inch diameter water main, 10-inch diameter water main, valves, hydrants and appurtenant structures from the intersection of Main Street and Sunset Boulevard south to the intersection of Main Street and Center Street. The estimated construction cost of these improvements is $602,203.00 950 Hwy 93 SO. Water Improvements - $920,000 In conjunction with MDT improvement of US highway 93 from Ashley Creek to Kalispell, the City intends to install water improvements within the highway right of way. These improvements include water mains, valves, hydrants, utility crossings, and appurtenant structures to extend utilites from their present terminus south to approximately the intersection of US Highway 93 and Cemetery Road. The estimated construction cost of these facilities is $920,800.00. CITY OF KALISPELL SEWER Bond coverage - proposed budget FY2001 est. SEWER service charge $2,200,000 Miscellaneous revenue SO Total operating revenue $2,200,000 Less operating expenses before deprec. billing $88,123 Sewer $311,406 WWTP $1,203,695 total m&o $1,603,224 Available for debt service $596,776 Maximum debt service current bonds S648,673 current coverage 92.00% need 648,673 x 125% $810,841 shortfall (S214,065) 10% rate increase needed current rate $2.98 per thousand new rate $3.28 per thousand 2000 revenue bond 15 years $1,581,100 @ 4% new bond new max debt coverage available needed $789,901 x 125% available shortfall 18% increase needed current rate new rate $141,228 $789,901 75.55% $987,376 $596,776 ($390,600) $2.98 per thousand $3.52 per thousand 4/21/0010:06 AM PROGRAM OF SERVICES EXPENDITURE DETAIL FUND: SEWER 5320.... BOND CONSTRUCTION 454.. 430695 ACTUAL BUDGET STAFF'S ACCOUNT FY98/99 FY99/00 FY00/01 430695 950 Hwy 93 SO. Sewer Improvements $1,415,000 43055o Bond Issue Costs $25,000 $1,440,000 Bond Construction Detail: 950 Hwy 93 SO. Sewer Improvements - $1,414,900.00 In conjunction with MDT improvement of US Highway 93 from Ashley Creek to Kalispell, the City intends to install sewer improvements within the highway right of way. These improvements include sewage collection gravity mains, pressure force mains, pumping facilities, and appurtenant structures to extend utilities from their present terminus south to approximately the intersection of US Highway 93 and Cemetery Road. The estimated construction cost of these facilities is $1,414,900.00. CITY OF KALISPELL 5310 SEWER/WWTP FUND REVENUE/CASH FLOW PROJECTION ACTUAL BUDGET ESTIMATED PROPOSED FY98/99 FY99/00 FY99/00 FY00/01 CASH:Operating Sewer/WWTP $341,720 $518,719 $518,719 $761,401 *** WWTP Capital Improvement $1,451,057 $1,581,022 $1,529,013 $1,724,013 ** WWTP Equipment Repl/Evergreen $1,125,170 $1,089,880 $1,089,880 $1,248,528 * SANITARY sewer Replacement $454,618 $459,685 $459,685 $495,073 Subtotal Cash $3,372,565 $3,649,306 $3,597,297 $4,229,015 REVENUE and sources of cash: SEWER SERVICE -billed $2,188,211 $2,140,000 $2,195,000 $2,200,000 Decrease (Increase) A/R, Comp. Abs. ($10,329) Other receivables *** Hookup-WWTP $54,118 $70,000 $130,000 $130,000 * Hookup -Sewer $35,226 $50,000 $80,000 $80,000 Misc. Revenue $327 $3,500 $0 $0 Interest -operations $120,967 $100,000 $140,000 $140,000 ** Interest-WWTP/Evrgn $70,107 $55,000 $72,000 $72,000 *** Interest-WWTP capital improve $75,847 $60,000 $65,000 $65,000 * Interest -Sanitary Replacement $25,886 $25,000 $26,500 $26,500 Board of Investment Loan $0 $40,000 $34,333 $0 Sewer Revenue Bond $1,581,500 *** Loans & repayments $5,080 $0 $0 $0 Subtotal Revenue $2,565,440 $2,543,500 $2,742,833 $4,295,000 Total Available $5,938,005 $6,192,806 $6,340,130 $8,524,015 EXPENSES and uses of cash: SANITARY operating/debt/capital/depr. $497,984 $560,941 $412,372 $626,087 * Sewer Replacement funds $61,125 $276,112 $71,112 $220,000 Debt Service -new Issue $0 $0 $0 $0 Bond Construction $0 $0 $0 $1,581,500 Billing Costs S92,287 $87,617 $87,617 $88,123 WWTP operating/capital $1,611,906 $1,751,925 $1,706,662 $1,763,358 ** WWTP Replace/Evergreen $405,397 $312,579 $216,079 $127,500 Subtotal Expenses $2,668,699 $2,989,174 $2,493,842 $4,406,568 Add unfunded depreciation to cash $80,000 $80,000 $80,000 $80,000 CASH CARRY OVER: Sewer Fund - operating ILL2112 i4L 1-401 izQ,3_,$"- *** WWTP Capital Improvement $1,581,022 $1,711,022 $1,724,013 $1,919,013 ** WWTP Equipment Repi/Evergreen $1,089,880 $1,135,028 $1,248,528 $1,495,755 * Sewer Replacement $459,685 $258,573 $495,073 $381,573 Total $3,649,306 $3,586,359 $4,229;015 $4,500,174 Rate $2.98 per 1000 gallons $2.65 bi-monthly billing costs - flat fee generates approximately $95,000 4 1/0010:07 AM PROGRAM OF SERVICES 5510 SOLID WASTE FUND REVENUE PROJECTION ACTUAL BUDGET ESTIMATED BUDGET FY98/99 FY99/00 FY99/00 FY00/01 CASH: operating $267,274 $322,888 $322,888 $246,332 *Replacement Account $127,939 $134,068 $134,068 $91,577 Decrease in Receivables $9,605 * Loan payback -parking $6,129 $6,009 $6,009 $0 Refunds ($11,504) Inception of lease wash bay $0 $145,000 $145,000 $0 Inception of lease -truck $160,000 Assessments $416,737 $416,737 $427,350 $430,000 Assessments + $10 residential $50,000 Penalty & Interest $3,378 $3,000 $3,000 $3,000 Interest Earnings $20,500 $20,000 $20,000 $20,000 Total Available $840,058 $1,047,702 $1,058,315 $1,000,909 EXPENDITURE PROJECTION Garbage Service $338,981 $371,723 $371,723 $457,371 Capital Outlay -financed $0 $145,000 $145,000 $160,000 Capital Outlay -operations $55,625 $25,000 $54,837 $10,000 Capital Outlay -replacement $0 $160,000 $148,500 $0 Debt Service/Washbay $0 $55,000 $346 $54,629 Debt Service/Truck $50,000 *Replacement Funded 2000 $45,000 $100,000 $100,000 $0 Total Expense $439,606 $856,723 $820,406 $732,000 Cash Carry Over: Operating $322,888 $210,902 $246,332 $177,333 *Replacement Account $134,068 $80,077 $91,577 $91,577 Total $456,9567 7, 1 Carryover for operating cash needs to be equivalent to six months of M & O as we only receive assessments twice a year in December and June. The carryover amount should reflect the second half tax receipts just received. i11%1 mn".in nR,r CITY OF KALISPELL 4/Gl/VVL..IV r1V1