ADMINISTRATION - Joe Huss, Finance Director
Title
ADOPT 2018 STORM DRAINAGE UTILITY FUND BUDGET
Background
The proposed 2018 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 no fee increase and no additional staffing requests. 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. The proposed budget includes $1,308,000 in operating revenue and $1,486,580 in operating expenses. Five-year projections for the Storm Drainage Fund indicate operating deficits over the next five years, with potential rate increases possibly implemented in 2019. The proposed budget also includes $430,000 in capital projects and equipment for 2018, and another $1.8 million in capital projects budgeted for 2019 through 2022. Fund reserves would see declining balances to below $200,000 by 2022, indicating a need for a fee increase. Depending on the accuracy of capital spending projections, a rate increase could be necessary as early as 2019 to maintain an adequate working capital balance in the fund.
Recommendation
By motion, adopt the resolution contained herein.
Body
WHEREAS, the proposed Storm Drainage Utility Enterprise Fund Budget for the fiscal year commencing January 1, 2018 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 2018 appropriations attached hereto are approved.
3. That the 2018 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, 2017.