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Home My WebLink About09192013 City Council Work Session Notes - Enterprise Fund Budget .. r_______________.____.____________.___! ------ -- --------------- . r / y(ii,, r WORK SESSION NOTES ON P.fi- 020 1y--A(i5 1 I li._________ :_._. ._.__.= _, __ _ _ , 1 :purpose: i11 r, 4 4 JL 5�-S ---,Ft) • ' 2 Ae--1 (2'44et. idif ., 1,--41 -fa)---.±5. J \-(r ,Present: - -- y.ounu.1 .Member ' re 111:. / I / A 'tet - t \.1 .)C"' C:aileci by: , ,-, :--..- _ Time —71 ��t� AO / '"7):-;-a****-:-•:---4--• - --• =: .;- i- :- ' Rem:: on 9/1)4A.‘cw \\-6,Ak....,,w,e,, ,i3O„._ 6,...-_-- Frsi,kciA ivwk--- V5 1 1\- \] \%iAc_ Qi\isz.-;' co - AN ,10A-L.... .....2§,<.- ._., \400 0-J)0---w_zt-- '?Peke• Dt ec OV ) v.)/ ,'' C,Hieiv t e (L°. 4"---5 enAA , ku,L w tv\v,,,kait Pcovc aA4- ui' A* '-ck (49 bvctri-e_,(4 7tev- , . 1 0-5 P.6,sow-IAA e_((, r • LO ,S C; // (/// 3 F/14---z City of Seward Harbor Fund Pages 51-65 Preliminary Budget book 2014—2015 Biennial Budget Part 2: Harbor,SMIC,Electric,Water,Wastewater _ 1 Revenue Highlights Expense Highlights • Includes 2.6%rate increase in 2014 and 2015 • Increases power costs to account for new Z-float • Transient moorage budget estimate more accurate given • Annual debt service costs$703K/yr(bonds)vs.$575K recent track record of new S.Harbor;increase> $75k passenger fees,and$29K 50-ton lift • Assumes passenger transit fees of$575K each year;falls short • 50-Ton lift debt will retire 2015 by$128K of paying all harbor bonded debt • Annual Motor Pool contribution$57,810 • Assumes one-half of raw fish tax from GF$260K • No staffing changes requested Other Highlights • Ending cash projected$2.2 Million • Capital Repair/Replacement Fee to MRRF=est.$160K Harbor Cl P • Harbor contributes$139,103(2015);$117,469(2014); Page 142 Preliminary Budget book $138,250(2013);$102,199(2012)to MRRF • 61%of all Harbor assets paid for by grants,up from 58%in 2012 • Outstanding debt at end of 2015:$5,182,698 Harbor (p. 142) Harbor Capital Improvement Plan Highlights Capital Improvement Plan Highlights • Removed projects completed in 2013 • 2015 Proposed Projects: • 2014 Proposed Projects: •Replace A,B,C,S floats-$6.1 Million(50/50 City/State) •D-float replacement-$2.36M(50/50 City/State) •50-ton boat lift wash down pad-$500K(50/50 City/State) •Harbormaster restrooms-$130K(State grant) •5-ton crane-$150K(City) •NE fish cleaning station-$579K(State grant) •Replace trash dumpsters-$70K(City) I i Highlights • No GF subsidy in 2014;$27,520 in 2015 SMIC Fund • No debt exists in SMIC Fund Pages 67-78 Preliminary Budget book • New depredation/amortization on new$20 Million breakwater project • Some harbor allocated costs shift to SMIC 250-Ton cost center due to new washdown pad • 89%of SMIC assets purchased with grant funds,up from 80%in 2012 SMIC (p. 143) Capital Improvement Plan Highlights SMIC C I P • 2014 Proposed Projects •Breakwater,dredging&new docks($20 Million for phase 1 in 2014/2015;total project cost estimate$100 Million) Page 143 Preliminary Budget book •Ship transfer system-$4 Million(State/Fed/City) • 2015 Proposed Projects •North Dock Repairs-$750K(City) •Improve drainage&fence storage area-$1.5 Million(Federal) Revenue Highlights • CPI-only Rate increase 2.6%in 2014 and 2015 E I e ct r i e Fund • Revenue budget does not increase 2.6%due to reduced fuel costs Pages 79-98 Preliminary Budget book • Assumes Special Contracts do not transition to Large General Service,although existing contracts transition to LGS Pa Expense Highlights \r' Other Highlights • Purchased power costs down due to duced fuel costs • $2.1 Million cash on hand ending 2015 • Chugach has locked in fuel contra ;expect less volatility as • Outstanding debt at end of 2015:$5,275,000 a result • Annual MRRF contributions:$87K in 2015;$452K in 2014; • Increased budget for routine generator testing(higher fuel $600,280 in 2013;$0 in 2012;$0 in 2011 and$0 in 2010. costs) • Third operator position remains for 2014/2015;equivalent salary/benefits to be charged to generator grant I Electric (p. 144) Capital Improvement Plan Highlights • 2014 Proposed Projects Electric Cl P •Lake Drive(Stoney Creek)-$150K(City) •Camelot Underground,Ph II-$100K(City) Page 144 Preliminary Budget book •Transformer renovation @ Substation,Ph II-$200K(City) • 2015 Proposed Projects •Meter relay and view screen-$20K(City) •Lagoon at the harbor—underground-$450K(City) •Jesse Lee—underground-$30K(City) •SMIC—underground-$105K(City) Highlights Water Fund • CPI-only Rate increase 2.6%in 2014 and 2015 • $45,803 deficit cash for 2014 year Pages 99-108 Preliminary Budget book • $68,724 deficit cash for 2015 year • Projected revenues>2.6%because actuals have been higher than projected in earlier budget • Adds public works project manager in 2015(split 1/3 between Water,Sewer,Streets) • Increased contracted services to engineer water projects • Third Avenue Water Line debt payments begin 2013; $155K/yr. , Other Highlights • $1.2 Million cash on hand ending 2015 • Assumes$1.9 Million receivable from SMH enterprise fund Water Cl P repaid to Water Fund in 2014,with$900K to MRRF • Assumes using$400K cash in 2014 to construct Maple Street Pages 145 Preliminary Budget book Water Extension(concurrent with Sewer Extension) • Outstanding debt at end of 2015:$1,691,325 • No MRRF contributions in 2014(other than$900K from SMH loan repayment)and no MRRF contribution in 2015 due to annual cash deficits. 2013-$198,883;2012- $208,527;2011 - $0;2010-$0. Water (p. 145) Capital Improvement Plan Highlights • 2014 Proposed Projects •Maple Street Water Line Extension-$400K(City) Wastewater Fund •Gateway Tank Roof-$300K(State) •Water Storage Tank-$4.5 Million(State) Pages 109-117 Preliminary Budget hook •Refurb Lowell Canyon 400K gallon tank and remove 200K gallon tank from service-$575K(State) •Mobile generator for water wells-$175K(City) • 2015 Proposed Projects •Abandon wells at Fort Raymond-$250K(City) •New production well#7-$650K(City) � • L Highlights • Rate increases of 5.2%in both 2014 and 2015 • $612,000 cash on hand ending 2015 Wastewater CI P • Debt Serviceri •Lowell Point Sewer debt matured 2013 Page 146 Preliminary Budget Book •Dairy Hill Sewer debt matures 2014 •New proposed Maple Street Extension debt:$400K in 2015 •Annual$76,840 Lowell Pt.Sewer loan from GF •Outstanding debt at end of 2015:$1,448,172 • New public works project manager position in 2015 • MRRF contributions of$36,596 in 2015;$57,867 in 2014; 2013-$0;2012- $0;2011 -$0;2010-$0 Wastewater (p. 146) Capital Improvement Plan Highlights • 2014 Proposed Projects(City funded) •Maple Street Water Sewer Line extension-$400K The E n d •Replace blowers at Lowell Pt.treatment plant-$70KNimammommio •Secure Spruce Creek sewer-$90K •Lowell Pt.sludge disposal-$490K •#1 standby generator-$150K • 2014 Proposed Project(Pursue State funding) •Additional SMIC lagoon-$3M • 2015 Proposed Projects(City funded) •Forest Acres lift station engineering-$92K •SMIC piping for bypass(eng/design)-$501( •Double wall fuel tanks-$150K Changes to Preliminary 2014 and 2015 Biennial Budget Book as of 09/18/13 (These are changes proposed by administration. As more changes are received from departments, Council and public, the book totals and individual line items will be adjusted and updated as needed, with copies for Council members and online for the public.) • Split costs of periodic appraisals for leased property 50/50 between GF-Community Development and Boat Harbor. No change for 2014; 2015 reduces Harbor Dept. Contract Services line$15,000 and adds $15,000 to Community Development Contract Services. • Adds $15, 000 each 2014 and 2015 for temp animal control assistant; this cost was inadvertently left out of the budget book at Monday's presentation. • CIP-Water, p. 145: Exchanges one project under Critical Capital needs list for one project under High Risk Capital needs list, as follows: I. Critical Capital Needs 1. Water storage tank(500K gallons) 2. Refurbish Lowell Canyon 400k gallon tank 3. Remove 200k gallon tank 4. Mobile generation for water wells II. High Risk Capital Needs 1. Gateway tank roof 2. Abandon wells at Fort Raymond 3. New production well#7 • CIP Wastewater, p 146: Adds one new project and re-orders remainder under Critical Capital Needs heading, as follows: 1. Maple St. Wastewater 2. Replace blowers at Lowell PT. plant 3. Secure Spruce Creek sewer 4. Lowell Pt. sludge removal 5. 2014 Proposed Project(Pursue State funding) Additional SMIC lagoon -$3M 6. SMIC bypass valving 7. Forest Acres lift station engineering 8. #1 standby generator • Harbor:The proposed $60K Motor Pool oil truck is a flat bed, also available for other uses as needed, replaces existing 100k+ mile rig, will continue to tow existing oil tank trailer • Electric: Includes projected costs to move into Annex, but not savings on utilities expense; expect some net cumulative savings to Electric Fund Admin and Engineering budget (dept. 5410), to be re-evaluated at mid-cycle.