ADMINISTRATION - Joe Huss, Finance Director
Title
ADOPT 2021 STORM DRAINAGE UTILITY FUND BUDGET
Background
The proposed 2021 Storm Drainage Utility Fund Budget was reviewed by Council at the November 2 Workshop. At that Workshop, staff presented Council with a proposed budget that included a fee increase of $1.00/quarter ($4.00/year). Based upon the discussion that took place at that Workshop, staff has brought forward for Council consideration the same budget that Council discussed on November 2.
As an enterprise fund, the utility is designed to recover the cost of maintaining the City’s storm drainage system, which includes over 100 miles of storm sewer pipes, and almost 80 miles of ditches as well as numerous catch basins, outfalls, manholes, weirs, culverts, and ponds. The system serves roughly 23,000 parcels throughout Blaine. The storm sewer operation functions as a division of the City’s Public Works Department under the direction of the Water Resources Manager and Public Works Director.
The division has an authorized staffing level of 6.5 fulltime equivalent (FTE) positions, which in addition to the WR Manager includes ½ FTE for supervision, 1 Working Foreman, and 4 Public Service Workers. For 2021 a request to add the position of Assistant Public Works Director (APWD) has been discussed with the council. The proposal is to charge 25% of that position to the General Fund and each of the three utility funds. If approved, that would bring to 6.75 the number of FTE in the Storm Sewer Utility Fund.
Revenues
Total revenues are expected to increase in the 2021 fiscal year. Charges for service revenues are expected to increase $166,000 from 2020 projected levels as a result of a recommended $4 annual rate increase. All other revenues are expected to remain the same for 2021.
Expenditures
Budgeted operating expenses (less depreciation) in 2021 will increase by $62,000 over 2020 appropriations.
• Personal services allocation are expected to decrease by $11,700 compared to 2020 budgeted values. Most of the difference can be attributed to reduced overtime to match historical costs.
• Supplies are expected to remain similar to what was budgeted in 2020, which represents full activity. For 2020, supplies are projected to be $66,600 below budget due to storm maintenance not being completed as a result of the COVID-19 pandemic.
• Contractual services appropriation totals $174,450, which includes ditch maintenance/inspections, pond maintenance/inspections, raingarden maintenance, and the annual system assessment program (10 miles per year).
• The budget for capital equipment is set at $143,000 and consists of $60,000 for a new truck (replacing a 2003 vehicle), $55,000 for a CAT Forestry Tool which provides safe access for ditch maintenance, $24,000 for Skid-Loader upgrade (trade-in program), and $4,000 for a plate compactor used in catch basin and sinkhole repairs.
• Capital projects totaling $1,070,000 consists of $500,000 for the city hall parking lot slip line. Initially, $50,000 was budgeted in 2020 to conduct a study as to the cause of storm drainage issues in the parking lot. It is expected that the study would be completed in 2021 and a course of action will then be known. Other capital appropriation requests include $370,000 for construction of a regional pond in Aurelia Park; $75,000 for Larson site wash-down containment; $75,000 for work on the Lexington Ave ditch (Erskine pond); and $50,000 for a City-wide Park Volume Reduction study.
Long-term Outlook
The attached budget model outlines the resources required to operate and maintain the city’s storm drainage system over the next five years under the proposed 2021 budget and five-year outlook. The five-year model in general, and the capital plan in particular, is based on recommendations from the surface water management plan. The five-year plan has been modified for 2021 and revenues as modeled reflect a $4 annual rate increase on residential properties for 2021 and a $1/year increase from 2022-2025.
Recommendation
Adopt the following resolution.
Attachments
Budget Summary
Body
WHEREAS, the proposed Storm Drainage Utility Enterprise Fund Budget for the fiscal year commencing January 1, 2021 has been prepared by the City Manager; and
WHEREAS, the City Council has examined, studied, and reviewed said proposed Storm Water Utility Enterprise Fund Budget; and
WHEREAS, the City Council has, after due consideration and deliberation, made such amendments and adjustments in the proposed Storm Water Utility Enterprise Fund Budget as they consider necessary, desirable, or expedient.
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Blaine as follows:
1. That the proposed Budget for the Storm Water Utility Fund attached hereto is approved.
2. That the 2021 appropriations attached hereto are approved.
3. That the 2021 funding sources identified and attached hereto are approved.
4. That the City Manager is authorized and directed to implement and to administer, within the budgetary funding limits and within adopted City policy and relevant State and City laws and regulations, said approved Storm Drainage Utility Enterprise Fund Budget.
PASSED by the City Council of the City of Blaine this 16th day of November, 2020.