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Utility Funds Budget Summary
<br /> 601 602 603
<br /> Proposed 2015 Budget Water Fund Sewer Fund Storm Fund
<br /> Operating Revenues 324,000 395,000 103,000
<br /> Operating Expenses 367,400 427,143 108,200
<br /> Operating Income (Loss) (43.400) (32,143) (5,200)
<br /> Nonoperating Revenue(Expense) 97,000 65,000 1,000
<br /> Change in Net Position 53,600 32,857 (4,200)
<br /> Operating Income/Loss
<br /> Operating Income/Loss in the Utility Funds indicates the extent to which operating revenues
<br /> are financing operating expenses, including depreciation. Operating revenues include user
<br /> charges and fees. Nonoperating revenues include connection charges, area charges,special
<br /> assessments and interest income. These revenues accumulate in the fund over time and
<br /> provide capital for replacement of major infrastructure,including water and sewer mains,
<br /> water storage and distribution facilities, and sewer lift stations. Future connection and area
<br /> charges are limited by the amount of available developable land in the City.
<br /> Utility Funds Analysis
<br /> Operating Income/(Loss)
<br /> 2011 2012 2013 Budget 2014 Proposed 2015
<br /> Water (95,967) (28,890) (160,218) (62,000) (43,400)
<br /> Sewer (100,825) (58,689) (92,054) (66,400) (32,143)
<br /> Storm (9,448) 1,768 (5,792) (9,400) (5,200)
<br /> ' (206,240) (85,811) (258,064) (137,800) (80,743)
<br /> Depreciation 328,689 338,697 339,701 340,000 342,000
<br /> Utility Rates
<br /> The City has been posting a loss in the utility funds for more than five years. The loss does not
<br /> exceed the amount of depreciation included in operating expenses. However, revenues
<br /> accruing in the fund as a result of depreciation expense are also used to infrastructure and
<br /> equipment replacement programs. The City Council may wish to consider an incremental
<br /> increase in the water and sewer rates to keep pace with inflation. This will allow the City to
<br /> complete major infrastructure rehabilitation projects without bonding.
<br /> A comparison of water and sewer rates with similar size cities in the metropolitan area is shown
<br /> on the following page. While utility systems may be affected by varying circumstances unique
<br /> to the community, the survey indicates that Centerville's rates are modest in comparison.
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