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07-31-2012 City Council Study Session Packet City of Grand Island Tuesday, July 31, 2012 Study Session Packet City Council: Larry Carney Linna Dee Donaldson Scott Dugan John Gericke Peg Gilbert Chuck Haase Vaughn Minton Mitchell Nickerson Bob Niemann Kirk Ramsey Mayor: Jay Vavricek City Clerk: RaNae Edwards 7:00 PM Council Chambers - City Hall 100 East 1st Street Grand Island Study Session - 7/31/2012 Page 1 / 54 City of Grand Island Tuesday, July 31, 2012 Call to Order This is an open meeting of the Grand Island City Council. The City of Grand Island abides by the Open Meetings Act in conducting business. A copy of the Open Meetings Act is displayed in the back of this room as required by state law. The City Council may vote to go into Closed Session on any agenda item as allowed by state law. Invocation Pledge of Allegiance Roll Call A - SUBMITTAL OF REQUESTS FOR FUTURE ITEMS Individuals who have appropriate items for City Council consideration should complete the Request for Future Agenda Items form located at the Information Booth. If the issue can be handled administratively without Council action, notification will be provided. If the item is scheduled for a meeting or study session, notification of the date will be given. B - RESERVE TIME TO SPEAK ON AGENDA ITEMS This is an opportunity for individuals wishing to provide input on any of tonight's agenda items to reserve time to speak. Please come forward, state your name and address, and the Agenda topic on which you will be speaking. Grand Island Study Session - 7/31/2012 Page 2 / 54 City of Grand Island Tuesday, July 31, 2012 Study Session Item -1 Presentation of 2012 - 2013 Solid Waste Budget Staff Contact: Terry Brown, Manager of Engienering Services Grand Island Study Session - 7/31/2012 Page 3 / 54 Solid Waste Division FY2013 Budget PUBLIC WORKS DEPARTMENT SOLID WASTE DIVISION Landfill on Husker Hwy @ Hall / Buffalo County Line Grand Island Study Session - 7/31/2012 Page 4 / 54 Enterprise Fund Receive no funding from General Fund All revenues generated from tipping fees One of the few Divisions with competition Serves residents and non- residents PUBLIC WORKS DEPARTMENT SOLID WASTE DIVISION Grand Island Study Session - 7/31/2012 Page 5 / 54 Notable Items From This Year Landfill Tier II NMOC emission rate testing completed Must be completed every five years Cell 3 construction activities/preparation Cell 3 expansion project will likely occur 2014 or 2015 PUBLIC WORKS DEPARTMENT SOLID WASTE DIVISION Grand Island Study Session - 7/31/2012 Page 6 / 54 FY 2013 Budget PUBLIC WORKS DEPARTMENT SOLID WASTE DIVISION Grand Island Study Session - 7/31/2012 Page 7 / 54 FY 2013 Budget Personnel - $850,252 Operations - $950,650 Capital - $955,000 PUBLIC WORKS DEPARTMENT SOLID WASTE DIVISION Grand Island Study Session - 7/31/2012 Page 8 / 54 FY 2013 Budget (Capital Expenditures) Landfill compactor - $790,000 Storm water pumps - $120,000 V-plow - $25,000 Concrete Improvements - $20,000 PUBLIC WORKS DEPARTMENT SOLID WASTE DIVISION Grand Island Study Session - 7/31/2012 Page 9 / 54 FY 2013 Budget PUBLIC WORKS DEPARTMENT SOLID WASTE DIVISION 2012-2013 DOLLAR SUMMARY OF FTE CHANGES Dept No. Department Name FTE Amount Solid Waste Fund 505 Temporary/Seasonal Positions (0.80) (35,485) Temporary/Seasonal Positions 0.15 3,152 Equipment Operator 1.00 62,454 Total Solid Waste 0.35 30,121 Grand Island Study Session - 7/31/2012 Page 10 / 54 2013 Budget FTE Requests/Changes Solid Waste Yard Waste Site Attendant (Seasonal) Request to increase this season position’s FTE count by .15 in order to have the Yard Waste site open to the public on Wednesday’s. Currently, the site is open Monday, Tuesday, Thursday, Friday and Saturday approximately nine months per year. It is confusing to the general public that the site isn’t open on Wednesday and the increased traffic through the main transfer station gate on Wednesday is detrimental to operations. The overall increase of .15 FTE to this position equated to a budget increase of $3,152.00. Grand Island Study Session - 7/31/2012 Page 11 / 54 Equipment Operator Position (Full time) Eliminate the part time Equipment Operator position (.5 FTE) and the seasonal/summer worker position (.3 FTE) and add this full time position. By doing this, we would be able to more adequately handle the daily workload at the Transfer Station and Landfill, which would allow for other tasks to be completed in a timelier manner. With our current staffing level, the summer/seasonal worker can only complete the most basic tasks such as mowing, trimming, etc., and the part-time equipment operator can only work a maximum of 20 hours per week. By adding another full-time equipment operator, other tasks such as Cell 3 Construction activities, composting, etc. would be much more achievable. We are also now subject to new environmental regulations that require daily observations and actions be carried out by the equipment operators in order to stay in compliance with our various environmental permits, which also takes time and effort away from the essential daily operations. By eliminating the part time equipment operator position and the seasonal/summer worker position, the net budgetary increase to add the full-time equipment operator position would be $17,121.00 because it would allow overtime costs to be cut by $13,000.00. Jeff Wattier Grand Island Study Session - 7/31/2012 Page 12 / 54 Highlights of FY 2013 Budget Net FTE Increase of .35 and $17,121 Decreased 2013 overtime budget by $13,000 due to FTE increase Program Budget Increase of 2.78% for 2013 $1,800,397 (personnel and operations) $48,621 more than FY 2012 No rate or fee changes proposed Last rate increase occurred October 1st, 2004 PUBLIC WORKS DEPARTMENT SOLID WASTE DIVISION Grand Island Study Session - 7/31/2012 Page 13 / 54 Questions? PUBLIC WORKS DEPARTMENT SOLID WASTE DIVISION Grand Island Study Session - 7/31/2012 Page 14 / 54 City of Grand Island Tuesday, July 31, 2012 Study Session Item -2 Presentation of 2012 - 2013 Utilities Department Budget Staff Contact: Tim Luchsinger, Utilities Director Grand Island Study Session - 7/31/2012 Page 15 / 54 Council Agenda Memo From:Timothy Luchsinger, Utilities Director Meeting:July 31, 2012 Subject: Presentation of Electric and Water Enterprise Fund Budgets for 2012-2013 Item #’s:2 Presenter(s): Tim Luchsinger, Utilities Director Background The proposed budgets for Electric Utility Enterprise Fund 520 and Water Utility Enterprise Fund 525 have been developed for the City’s Fiscal Year 2012-13 by Department management and financial staff. Discussion These budgets will be presented for preliminary discussion by Council. Included in the presentation will be future issues such as emission control systems at the Platte Generating Station and possible financial and rate impacts. The presentation will also include a discussion of rates to suburban water utility customers. Conclusion This item is presented to the City Council in a Study Session to allow for any questions to be answered and to create a greater understanding of the issue at hand. It is the intent of City Administration to bring this issue to a future council meeting for the Grand Island Study Session - 7/31/2012 Page 16 / 54 UTILITIES2013 BUDGET OVERVIEWElectric Department – Fund 520Water Department – Fund 525Grand IslandStudy Session - 7/31/2012Page 17 / 54 UTILITIESBudget GuidelinesConservative (low) revenue forecastWeather dependent Ensure debt service coverageConservative (high) operating costsGeneration fuel/purchased powerAllow potential production capacityMaintain adequate cash reservesManage controllable operating expenses and capital expendituresGrand IslandStudy Session - 7/31/2012Page 18 / 54 UTILITIESCash Reserve GuidelinesCash Reserve ConsiderationsWorking CapitalReplacement PowerAsset ReplacementCapital Improvement ReserveDebt Service ReserveElectric Fund - $21,000,000Water Fund - $4,000,000Grand IslandStudy Session - 7/31/2012Page 19 / 54 UTILITIESELECTRIC DEPARTMENTFUND 520Grand IslandStudy Session - 7/31/2012Page 20 / 54 UTILITIES$0$10,000,000$20,000,000$30,000,000$40,000,000$50,000,000$60,000,000$70,000,000$80,000,000$90,000,000$100,000,0002009 2010 2011 2012 (Projected) 2013 (Budget)Electric Department - Fund 520ExpendituresRevenuesCash BalanceCapital ExpendituresGrand IslandStudy Session - 7/31/2012Page 21 / 54 UTILITIES$0$10,000,000$20,000,000$30,000,000$40,000,000$50,000,000$60,000,000$70,000,000$80,000,000$90,000,000$100,000,0002009 2010 2011 2012(Projected)2013 (Budget)Electric Department - Fund 520Capital ExpendituresFuel, purchase power, debt serviceAdmin and OperatingGrand IslandStudy Session - 7/31/2012Page 22 / 54 UTILITIESElectric Capital ImprovementsTotal Capital Budget - $14,965,000Additional Substation - $3,000,000Bond paymentsDistribution materials - $3,665,000Power Plant Maintenance/Improvements - $5,025,000Air Quality Control Expenditures - $3,560,000Substation ImprovementsGrand IslandStudy Session - 7/31/2012Page 23 / 54 UTILITIESCross State Air Pollution RuleFinal Rule signed on July 6, 2011Effective January 1, 2012 – stayed December 31, 2011PGS NOXreduction of 44%PGS SO2reduction of 21%Monetary Impact$4 million capital expense for PGSAbsorbed through cash reservesInstall low NOXsystem October, 2012Grand IslandStudy Session - 7/31/2012Page 24 / 54 UTILITIESMercury and Air Toxics StandardsOriginal Mercury Rule vacated in 2008Final Rule March 2012Three year compliance windowCapital cost estimate $35M to $40MAdditional annual operating costs $2M to $2.5MTotal annual cost impact estimate $4.5M to $5MGrand IslandStudy Session - 7/31/2012Page 25 / 54 UTILITIES$0$5,000,000$10,000,000$15,000,000$20,000,000$25,000,000$30,000,000$35,000,000$40,000,000$45,000,0002009 2010 2011 2012(Projected)2013(Budget)2014(Budget)2015(Budget)2016(Budget)2017(Budget)Electric Department - Fund 520Capital ExpendituresCapital Expenditures less Air QualityGrand IslandStudy Session - 7/31/2012Page 26 / 54 UTILITIESWATER DEPARTMENTFUND 525Grand IslandStudy Session - 7/31/2012Page 27 / 54 UTILITIES$0$2,000,000$4,000,000$6,000,000$8,000,000$10,000,000$12,000,000$14,000,0002009 2010 2011 2012 (Projected) 2013 (Budget)Water Department - Fund 525RevenuesExpendituresCash BalanceCapital ExpendituresGrand IslandStudy Session - 7/31/2012Page 28 / 54 UTILITIES$0$2,000,000$4,000,000$6,000,000$8,000,000$10,000,000$12,000,000$14,000,0002009 2010 2011 2012(Projected)2013 (Budget)Water Department - Fund 525Capital ExpendituresUranium Removal OperationAdmin and OperatingGrand IslandStudy Session - 7/31/2012Page 29 / 54 UTILITIESWater Capital ImprovementsTotal Capital Budget - $3,680,000Merrick Co. main extension (UP) - $1,750,000Bond payments - $220,000Wasmer cell relocationUPRR crossing replacementCentral NE Regional Airport upgradeGrand IslandStudy Session - 7/31/2012Page 30 / 54 UTILITIESSUBURBAN WATER RATESGrand IslandStudy Session - 7/31/2012Page 31 / 54 UTILITIESSuburban Water CustomersGrand IslandStudy Session - 7/31/2012Page 32 / 54 UTILITIES74 Suburban customers65 Residential9 Commercial/industrialApproximately 170 customers will be added from Merrick Co. extension by end of 2012City of Alda is contractually included withinGrand Island corporate limit ratesGrand IslandStudy Session - 7/31/2012Page 33 / 54 UTILITIESGrand IslandStudy Session - 7/31/2012Page 34 / 54 UTILITIESMinimum monthly consumption charge is $7.48 plus residential meter fee of $2.50Average monthly suburban residential consumption is $12.9446% of residential customers have a average monthly consumption charge of less than $1074% of residential customers have a average monthly consumption charge of less than $13Grand IslandStudy Session - 7/31/2012Page 35 / 54 UTILITIESSuburban Water Rate for Nebraska Water Systems over 10,000 populationMUD (Omaha) NoneLincoln NoneKearney NoneBeatrice NoneHastings 139% of rateFremont 125% meter + 122% of rateNorth Platte 320% meter feeColumbus 200% of rateNorfolk 200% meter + 200% of rateScottsbluff 200% of minimum chargeGrand IslandStudy Session - 7/31/2012Page 36 / 54 UTILITIESSuburban Rate OptionsIncrease of consumption rateIncrease of meter feeCombination of consumption rate and meter feeNo changeGrand IslandStudy Session - 7/31/2012Page 37 / 54 2010-2011 2011-2012 2011-2012 2012-2013 ACCOUNT ACTUAL BUDGET PROJECTED BUDGET ENTERPRISE DEPARTMENT 520 - ELECTRIC UTILITY ACCRUED EXPENSES METER READING EXPENSE 90200 241,675 242,600 235,000 242,500 RECORDS & COLLECTION 90300 597,196 524,000 597,000 524,000 RECORDS & COLLECTION-MIS 90301 320,298 312,300 312,300 312,300 CASH OVER & SHORT 90310 5 - - - UNCOLLECTABLE ACCOUNTS 90400 67,026 83,135 68,000 70,050 ADMINISTRATIVE SALARIES 92000 266,809 285,500 210,000 216,500 OFFICE SUPPLIES & EXPENSE 92100 27,573 23,750 34,000 35,000 OUTSIDE SERVICES EMPLOYED 92300 1,161,334 1,045,000 1,075,000 1,125,000 INSURANCE 92400 313,014 403,750 394,200 406,000 INJURIES & DAMAGES 92500 392,426 223,250 175,000 180,250 EMPLOYEE BENEFITS 92600 1,329,466 1,544,000 1,205,000 1,250,000 MISCELLANEOUS GENERAL 93000 148,485 171,000 126,000 130,000 UTILITY OFFICE RENT 93101 7,370 7,370 7,370 7,370 MAINTENANCE OF GENERAL PROPERTY 93200 147,704 227,500 27,000 30,000 GENERAL ADMINISTRATIVE SERVICE EXPENSE 5,020,381 5,093,155 4,465,870 4,528,970 DEPRECIATION-PLANT 40310 5,963,894 6,050,000 5,985,000 5,992,500 DEPRECIATION-TRANSMISSION 40340 523,222 560,000 530,000 528,000 DEPRECIATION-DISTRIBUTION 40350 2,676,360 2,800,000 2,755,000 2,760,000 DEPRECIATION-GENERAL 40360 687,184 750,000 655,000 700,000 MERCHANDISE MATERIAL 41510 51,431 130,000 165,000 130,000 MERCHANDISE LABOR 41520 29,714 110,000 105,000 110,000 NON-UTILITY PROPERTY 41710 301 550 345 375 INTEREST 2000 LONG TERM DEBT 42755 - - - - INTEREST 2001 LONG TERM DEBT 42765 1,452,742 824,472 708,505 - INTEREST 2012 LONG TERM DEBT 42775 - - 214,190 419,163 AMORTIZATION OF DEBT EXPENSE 42800 26,923 23,288 88,901 35,584 DEPOSIT INTEREST EXPENSE 43100 499 600 625 650 OPER SUPERVISION & ENG - BURDICK STEAM 50010 129,154 185,000 100,000 103,000 OPER SUPERVISION & ENG - PGS 50020 339,969 431,250 325,000 335,000 GENERATION FUEL - BURDICK STEAM 50110 77,240 1,375,000 62,500 63,000 GENERATION FUEL - PGS 50120 11,165,764 9,500,000 10,020,272 10,280,000 STATION LABOR & MATERIAL - BURDICK STEAM 50210 261,531 280,000 260,000 267,800 STATION LABOR & MATERIAL - PGS 50220 1,301,184 1,353,750 1,275,000 1,313,250 GENERATION PRODUCTION - BURDICK STEAM 50510 378,194 403,750 370,000 381,100 GENERATION PRODUCTION - PGS 50520 1,574,339 1,500,000 1,575,000 1,622,250 OPERATION SUPPLIES - BURDICK STEAM 50610 141,712 171,000 130,000 133,900 OPERATION SUPPLIES - PGS 50620 467,977 420,000 470,000 484,100 MAINT SUPER & ENG - BURDICK STEAM 51010 - 37,500 - - MAINT SUPER & ENG - PGS 51020 170,339 162,250 125,000 250,000 MAINT OF STRUCTURES - BURDICK STEAM 51110 111,194 127,500 72,250 74,500 MAINT OF STRUCTURES - PGS 51120 698,881 690,000 700,000 721,000 MAINT OF BOILER PLANT - BURDICK STEAM 51210 44,531 57,000 75,000 77,250 MAINT OF BOILER PLANT - PGS 51220 1,511,160 1,625,000 1,635,000 2,114,050 MAINT OF GENERATION EQUIP - BURDICK STEAM 51310 115,422 240,000 145,000 149,500 MAINT OF GENERATION EQUIP - PGS 51320 1,273,342 1,520,000 1,275,000 1,563,250 OPER SUPERVISION & ENG - BURDICK CT'S 54630 123,975 162,775 97,250 101,000 GENERATION FUEL - BURDICK CT'S 54730 168,560 126,000 98,000 126,000 GENERATION PRODUCTION - BURDICK CT'S 54830 368,485 395,000 375,000 386,250 OPERATION SUPPLIES - BURDICK CT'S 54930 54,913 72,000 60,000 61,800 MAINT SUPER & ENG - BURDICK CT'S 55130 - - - - MAINT OF STRUCTURES - BURDICK CT'S 55230 408 1,500 3,500 3,600 MAINT OF GENERATION EQUIP - BURDICK CT'S 55330 38,096 212,500 100,000 103,000 PURCHASED POWER-NPPD 55500 207,790 258,000 239,566 - PURCHASED POWER-WAPA 55510 1,113,694 1,226,000 1,114,000 1,114,000 Grand Island Study Session - 7/31/2012 Page 38 / 54 2010-2011 2011-2012 2011-2012 2012-2013 ACCOUNT ACTUAL BUDGET PROJECTED BUDGET PURCHASED POWER-OPPD 55520 7,486,200 8,813,000 8,313,114 10,994,000 PURCHASED POWER-PPGA 55530 3,451,292 8,343,918 4,888,851 6,596,803 PURCHASED POWER-WIND 55540 477,001 505,000 495,408 594,000 PURCHASED POWER-MEAN 55550 1,968 - 64,367 - PURCHASED POWER-TENASKA 55560 - - 160,000 1,520,000 OPER SUPERVISION & ENG-TRANS 56000 176,195 171,000 330,000 340,000 LOAD DISPATCHING-TRANS 56100 1,484,341 1,919,000 1,430,501 1,897,000 MAINT OF SUBSTATION-TRANS 57000 75 10,000 200 250 OPER SUPERVISION & ENGINEERING-DIST 58000 60,295 62,500 105,000 108,250 LOAD DISPATCHING-DIST 58100 222,306 213,750 260,000 268,000 OPER OF SUBSTATION-DIST 58200 14,558 23,750 5,000 5,250 OVERHEAD LINE-DIST 58300 303,300 355,000 300,000 309,000 METER OPERATING-DIST 58600 142,325 242,250 110,000 113,500 MAINT OF SERV ON CUST PROP-DIST 58700 170,246 158,400 190,000 196,000 OFFICE SUPPLIES-DIST 58800 886,662 831,250 925,000 952,750 MAINT OF STATION EQUIP-DIST 59200 712,852 725,000 725,000 746,750 MAINT OF LINES-DIST 59300 341,172 305,000 500,000 515,000 MAINT OF UNDERGROUND LINES-DIST 59400 321,244 325,000 330,000 340,000 MAINT OF TRANSFORMER-DIST 59500 67,161 66,500 65,000 67,000 MAINT OF METERS-DIST 59700 - 1,000 500 500 MAINT OF MISC PLANT-DIST 59800 12,125 21,375 575,000 595,000 TOTAL OPERATING EXPENSE 49,581,442.61 56,874,378 51,682,845 58,663,925 ACCRUED ADMIN & OPERATING EXPENSES 54,601,824 61,967,533 56,148,715 63,192,895 TOTAL CAPITAL EXPENSES 11,110,652 21,816,594 39,951,000 18,525,000 ACCRUED & CAPITAL EXPENSE 65,712,475 83,784,127 96,099,715 81,717,895 OTHER USES OF FUNDS - IN LIEU OF TAX 40800 689,459 500,000 595,291 575,000 LESS DEPRECIATION (9,850,659) (10,160,000) (9,925,000) (9,980,500) FINAL ACCRUED EXPENSE 56,551,275 74,124,127 86,770,006 72,312,395 ACCRUAL RECONCILIATION (3,249,558) - - - TOTAL APPROPRIATION 53,301,717 74,124,127 86,770,006 72,312,395 Baseload Fuel (Coal) 14% Peaking Fuel & Power Purchases 27% Capital - Trans/Dist 11%Capital - Generation 12% Debt Service 3% Operating Expenses, Taxes, & Fees 33% Electric Department Appropriation Grand Island Study Session - 7/31/2012 Page 39 / 54 2010-2011 2011-2012 2011-2012 2012-2013 ACCOUNT ACTUAL BUDGET PROJECTED BUDGET ACCRUAL REVENUE MERCHANDISE SALES 41500 209,743 250,000 475,000 250,000 REVENUE NON-UTILITY PROPERTY 41700 - - - - INTEREST & DIVIDEND 41900 425,196 500,000 415,000 375,000 MISC NON-OPERATING 42100 185,570 1,000 1,000 1,000 GAIN ON DISPOSITION OF PROP 42110 19,739 - - - RESIDENTIAL SALES 44000 17,644,323 18,115,745 18,700,000 19,750,000 DUSK TO DAWN SALES 44020 138,922 140,000 140,000 142,000 COMMERCIAL & INDUSTRIAL SALES 44200 34,256,264 35,397,191 36,300,000 38,350,000 WHOLESALE ENERGY - NPPD 44700 472,562 220,137 225,000 225,000 WHOLESALE ENERGY - OPPD 44710 - - - - WHOLESALE ENERGY - MEAN 44720 2,346,198 880,549 1,500,000 1,520,000 INTERDEPARTMENTAL SALES 44800 1,936,424 2,086,396 1,850,000 1,875,000 FORFEITED DISCOUNTS 45000 129,432 122,000 125,000 126,800 SERVICE SALES 45100 10,530 11,000 11,500 11,750 RENT FROM PROPERTY 45400 125,528 80,000 80,000 80,000 TOTAL ACCRUAL REVENUE 57,900,431 57,804,018 59,822,500 62,706,550 BOND & LOAN PROCEEDS - - 18,510,000 - ADJUSTED ACCRUAL REVENUE 57,900,431 57,804,018 78,332,500 62,706,550 ACCRUAL RECONCILIATION - - - - TOTAL REVENUE 57,900,431 57,804,018 78,332,500 62,706,550 TOTAL REVENUE & BOND PROCEEDS 57,900,431 57,804,018 78,332,500 62,706,550 OPERATING EXCESS (DEFICIT)15,709,366 5,496,485 31,513,494 8,919,155 CAPITAL EXPENDITURES (11,110,652) (21,816,594) (39,951,000) (18,525,000) BEGINNING FUND BALANCE 30,106,068 34,704,782 34,704,782 26,267,276 ENDING UNRESTRICTED BALANCE 27,693,178 11,743,137 23,517,162 13,928,832 ENDING RESTRICTED BALANCE 7,011,605 6,641,536 2,750,114 2,732,598 Grand Island Study Session - 7/31/2012 Page 40 / 54 Utilities DepartmentCapital Improvement BudgetFiscal Year 2012-13Electric Fund 520Budget ProjectedBudgetBudget Budget Budget BudgetFY 2011-12FY 2011-12Line items FY 2012-13FY 2012-13FY 2013-14FY 2014-15FY 2015-16FY 2016-17Administration$0$25,490,0002001 Revenue Bond Payment $0 $0 $0 $0 $0$4,794,594$700,0002012 Revenue Bond Payment $1,875,000 $1,705,000 $1,725,000 $1,750,000 $1,675,000$0 $0 2014 Revenue Bond Payment $0 $1,190,000 $1,225,000 $1,260,000 $1,300,000$4,794,594 $26,190,000 Administration Subtotal $1,875,000 $2,895,000 $2,950,000 $3,010,000 $2,975,000Transmission$7,100,000 $6,000,000 Transmission line Improvements $200,000 $5,000,000 $3,000,000 $0 $1,000,000$0 $10,000 Additional Substation $3,000,000 $0 $0 $4,500,000 $0$0 $25,000 Equipment & Vehicles $50,000 $30,000 $30,000 $0 $0$100,000 $20,000 PCC improvements $800,000 $0 $0 $0 $0$225,000 $300,000 Substation Upgrades $350,000 $0 $50,000 $0 $100,000$7,425,000 $6,355,000 Transmission Subtotal $4,400,000 $5,030,000 $3,080,000 $4,500,000 $1,100,000Distribution$1,200,000 $1,200,000 Overhead Material $1,200,000 $1,200,000 $1,250,000 $1,300,000 $1,400,000$1,400,000 $1,200,000 Underground Material $1,400,000 $1,400,000 $1,400,000 $1,400,000 $1,400,000$547,000 $380,000 Equipment & Vehicles $660,000 $300,000 $300,000 $300,000 $300,000$175,000 $100,000 Outside Contractors $100,000 $100,000 $100,000 $100,000 $100,000$45,000 $45,000 Storeroom Improvements $126,000 $100,000 $100,000 $100,000 $100,000$100,000 $81,000 Distribution Improvements $179,000 $219,000 $215,000 $288,000 $158,000$3,467,000 $3,006,000 Distribution Subtotal $3,665,000 $3,319,000 $3,365,000 $3,488,000 $3,458,000Production$5,500,000 $4,120,000 PGS Improvements $4,440,000 $1,500,000 $1,500,000 $2,500,000 $1,500,000$0 $0 PGS Air Quality Control $3,560,000 $21,000,000 $12,000,000 $3,500,000 $1,000,000$130,000 $30,000 Equipment & Vehicles $85,000 $60,000 $60,000 $85,000 $60,000$250,000 $0 Burdick Steam Units $250,000 $100,000 $100,000 $100,000 $100,000$250,000 $250,000 Burdick Gas Turbines $250,000 $500,000 $100,000 $100,000 $350,000$6,130,000 $4,400,000 Production Subtotal $8,585,000 $23,160,000 $13,760,000 $6,285,000 $3,010,000Electric Total $21,816,594 $39,951,000$18,525,000 $34,404,000 $23,155,000 $17,283,000 $10,543,000Air Quality Control Expenditures $3,560,000 $21,000,000 $12,000,000 $3,500,000 $1,000,000Total Capital Less Air Quality Control $14,965,000 $13,404,000 $11,155,000 $13,783,000 $9,543,000Grand IslandStudy Session - 7/31/2012Page 41 / 54 2010-2011 2011-2012 2011-2012 2012-2013 ACCOUNT ACTUAL BUDGET PROJECTED BUDGET ENTERPRISE DEPARTMENT 525 - WATER OPERATIONS ACCRUED EXPENSES METER READING 78100 78,796 83,000 80,500 82,250 CUSTOMER BILLING & ACCOUNTING 78200 196,956 195,000 200,000 204,000 DATA PROCESSING 78250 160,149 156,150 156,150 159,250 UNCOLLECTABLE ACCOUNTS 78400 5,315 5,000 5,000 5,500 OFFICE SUPPLIES 79300 6,573 7,125 10,000 10,250 SPECIAL SERVICES 79500 95,643 125,000 100,000 105,000 INSURANCE 79800 9,009 13,000 11,000 11,250 INJURIES & DAMAGES 79900 3,740 10,450 5,000 5,250 EMPLOYEE BENEFITS 80010 138,170 153,000 145,000 148,000 PENSIONS 80020 14,007 16,625 15,000 15,500 MISCELLANEOUS 80100 33,604 47,500 25,000 25,500 MAINT OF GENERAL PROPERTY 80200 48,091 66,500 50,000 52,250 UTILITY OFFICE RENT 80300 5,442 3,630 3,630 3,630 BACKFLOW PROTECTION PROGRAM 81000 79,851 85,500 90,000 150,000 GENERAL ADMINISTRATIVE SERVICE EXPENSE 875,349 967,480 896,280 977,630 DEPRECIATION-SUPPLY 50310 65,914 70,000 68,500 70,500 DEPRECIATION-PUMPING EQUIP 50320 20,220 21,000 20,220 20,825 DEPRECIATION-DISTRIBUTION 50340 462,812 483,000 487,500 502,000 DEPRECIATION-GENERAL 50350 91,985 100,000 87,500 90,500 INTEREST EXPENSE - 2012 BONDS 53000 - - 28,002 81,754 INTEREST EXPENSE - 1999 BONDS 53030 63,474 123,357 39,032 - AMORT OF DEBT EXPENSE 53100 2,410 1,818 4,339 2,000 MERCHANDISE-MATERIAL 61610 58,468 75,000 70,000 70,000 MERCHANDISE-LABOR 61620 63,812 65,000 65,000 65,000 OPERATION SUPPLIES 70300 19,774 16,625 21,500 30,000 MAINT OF WELLS & STRUCTURES 70500 84,972 38,000 50,000 102,000 OPERATION LABOR 72200 166,951 172,500 170,000 185,500 POWER FOR PUMPING 72300 378,761 385,000 385,000 405,547 MAINT OF PUMPING EQUIP 72700 114,143 125,000 97,500 111,500 PURIFICATION SUPPLIES 74300 84,779 900,000 425,000 906,000 MAINT OF PURIFICATION EQUIP 74600 26,821 27,000 20,000 33,000 OPERATION SUPERVISION & ENG 75100 168,603 161,500 160,000 175,250 OFFICE EXPENSE-DIST 75200 1,859 10,000 45,000 102,000 OPERATION OF MAINS 75300 175,846 180,000 180,000 195,600 OPERATION OF METERS 75400 108,342 114,000 110,000 124,200 MAINT OF DIST MAINS 75800 178,892 261,250 175,000 190,500 MAINT OF FIRE HYDRANTS 75900 206,984 235,770 215,000 231,500 OPERATIONS TOTAL 2,545,821 3,565,820 2,924,093 3,695,176 ACCRUED ADMIN & OPERATING EXPENSES 3,421,169 4,533,300 3,820,373 4,672,806 TOTAL CAPITAL EXPENSES 2,622,147 10,657,000 8,978,320 3,680,000 ADJUSTED ACCRUED EXPENSES 6,043,317 15,190,300 12,798,693 8,352,806 OTHER USES OF FUNDS - IN LIEU OF TAX 53300 54,683 95,000 67,995 73,670 LESS DEPRECIATION (640,932) (674,000) (663,720) (683,825) FINAL ACCRUED EXPENSE 5,457,068 14,611,300 12,202,968 7,742,651 ACCRUAL RECONCILIATION (1,231,490) - - - TOTAL APPROPRIATION 4,225,578 14,611,300 12,202,968 7,742,651 Grand Island Study Session - 7/31/2012 Page 42 / 54 2010-2011 2011-2012 2011-2012 2012-2013 ACCOUNT ACTUAL BUDGET PROJECTED BUDGET ACCRUAL REVENUE WATER TAP FEES 52000 6,434 4,525,000 2,010,000 2,422,000 WATER MAIN CONTRIBUTIONS 52010 900,963 - - - RENT FROM PROPERTY 52200 - - - - INTEREST & DIVIDEND 52400 27,654 40,000 30,000 30,500 MISC NON-OPERATING 52600 135,756 125,000 125,500 124,800 GAIN ON DISPOSITION-PROP 52610 - - - - METERED SALES 60100 4,115,419 4,677,323 4,375,000 4,991,578 PRIVATE FIRE PROTECTION 60400 39,838 39,000 39,000 39,000 INTERDEPARTMENTAL SALES 60800 83,499 102,570 71,000 72,000 SALE OF WATER SERVICES 61400 4,005 4,000 4,000 4,100 MERCHANDISE SALES 61600 154,700 150,000 145,000 145,000 TOTAL ACCRUAL REVENUE 5,468,269 9,662,893 6,799,500 7,828,978 BOND & LOAN PROCEEDS - 3,000,000 3,725,000 ADJUSTED ACCRUAL REVENUE 5,468,269 12,662,893 10,524,500 7,828,978 ACCRUAL RECONCILIATION (900,963) - - - TOTAL REVENUE 4,567,306 12,662,893 10,524,500 7,828,978 TOTAL REVENUE & BOND PROCEEDS 4,567,306 12,662,893 10,524,500 7,828,978 OPERATING EXCESS (DEFICIT)2,963,876 8,708,593 7,299,852 3,766,327 CAPITAL EXPENDITURES (2,622,147) (10,657,000) (8,978,320) (3,680,000) BEGINNING FUND BALANCE 4,280,021 4,621,750 4,621,750 2,943,282 ENDING UNRESTRICTED BALANCE 4,109,019 2,167,231 2,271,285 2,431,197 ENDING RESTRICTED BALANCE 512,730 506,112 671,996 598,412 Capital - Production 1% Capital - Distribution 44% Debt Service 3% Power for Pumping Water 5% Operating Expenses, Taxes, & Fees 47% Water Department Appropriation Grand Island Study Session - 7/31/2012 Page 43 / 54 Utilities DepartmentCapital Improvement BudgetFiscal Year 2012-13Water Fund 525Budget ProjectedBudgetBudget Budget Budget BudgetFY 2011-12FY 2011-12Line items FY 2012-13FY 2012-13FY 2013-14FY 2014-15FY 2015-16FY 2016-17Administration$350,000 $1,095,000 1999 Revenue Bond $0 $0 $0 $0 $0$570,000 $0 2012 Revenue Bond $220,000 $225,000 $225,000 $230,000 $230,000$920,000 $1,095,000 Administration Subtotal $220,000 $225,000 $225,000 $230,000 $230,000Distribution$650,000 $990,000 Water Districts $250,000 $250,000 $250,000 $250,000 $300,000$83,000 $50,000 Equipment & Vehicles $60,000 $130,000 $50,000 $88,000 $128,000$754,000 $0 Distribution Improvements $760,000 $450,000 $1,000,000 $450,000 $850,000$5,200,000 $3,300,000 Trunk line expansion $2,350,000 $600,000 $250,000 $800,000 $350,000$6,687,000 $4,340,000 Distribution Subtotal $3,420,000 $1,430,000 $1,550,000 $1,588,000 $1,628,000Production$3,000,000 $3,543,320 Well field improvements $40,000 $40,000 $0 $0 $0$0 $0 Equipment & Vehicles $0 $0 $0 $0 $0$50,000 $0 Pumpstation improvements $0 $100,000 $0 $0 $0$3,050,000 $3,543,320 Production Subtotal $40,000 $140,000 $0 $0 $0Water Total $10,657,000 $8,978,320$3,680,000 $1,795,000 $1,775,000 $1,818,000 $1,858,000Grand IslandStudy Session - 7/31/2012Page 44 / 54 City of Grand Island Tuesday, July 31, 2012 Study Session Item -3 Presentation of 2012 - 2013 Golf Course Budget Staff Contact: Todd McCoy Grand Island Study Session - 7/31/2012 Page 45 / 54 Grand Island Study Session - 7/31/2012 Page 46 / 54 Grand Island Study Session - 7/31/2012 Page 47 / 54 Golf Course Revenues 2012- 2013 Green Fees: $ 330,000 Equipment Rental: $ 170,000 Golf Improvements: $ 63,000 Golf Pro Commissions: $ 32,000 Co-Pay Health Ins: $ 5,259 Other Revenue: $ 1,000 Sales Tax: $ 39,000 Total Golf Course Revenues $ 640,259 Grand Island Study Session - 7/31/2012 Page 48 / 54 Golf Course 2012-2013 Budget Personnel - $301,878 Operations - $303,800 Capital - $65,000 Total Expenditures - $670,678 Grand Island Study Session - 7/31/2012 Page 49 / 54 Enterprise Fund Capital Requests 2012-2013 Budget  2012 Budget 2012 Forecast 2013 Budget GOLF COURSE Asphalt Around Clubhouse Area $ -$ - $ 20,000 Greens Sand Top Dresser $ -$ - $ 15,000 2 Demo or Used Utility Vehicles $ -$ - $ 30,000 GOLF COURSE TOTAL $ -$ - $ 65,000 GENERAL FUND 2012/2013 PROPOSED BUDGET Grand Island Study Session - 7/31/2012 Page 50 / 54 Golf Course Capital Needs Irrigation System $470,000 2013 Fencing $ 20,000 2014 Chemical Sprayer $ 12,000 2014 Golf Carts $ 125,000 2015 Shed for Carts $ 75,000 2015 Upgrade or replace clubhouse ????? Grand Island Study Session - 7/31/2012 Page 51 / 54 Irrigation Operating System $470,000 The current Irrigation Operating System at Jack Rabbit Run Golf Course was installed in 1976. Due to the age, the system is costly to repair with parts difficult or impossible to find. The irrigation system is the heart of a golf course. Replacement of the outdated system will improve efficiencies in watering and staffing. Grand Island Study Session - 7/31/2012 Page 52 / 54 Jack Rabbit Golf Course Irrigation System Grand Island Study Session - 7/31/2012 Page 53 / 54 Irrigation System Funding Options General Fund Finance through: Cash Reserves-Interest Free Loan to Golf Course Debt Financing-General Obligation Bonds Repayment of Loan-20 year @ 3.5% - $34,972 annual payment Future Capital Purchases Option Dissolve Golf Course Fund-move operations into Parks and Recreation Division Capital requests through Capital Improvement Projects 400 Fund Grand Island Study Session - 7/31/2012 Page 54 / 54