2020-01-22 CC Packet - Laserfiche WebLink

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purposes. The actual cash on hand at year end 2018 was $266,237. This means that there is an available balance of $240,000 available for capital projects. In 2020, the downtown storm water project associated with the street reconstruction and water main is estimated to cost $341,000. We also have a matching amount of $33,000 for our $100,000 Storm Water grant from the Metropolitan Council for the expansion of the LaMotte Park sprinkler system. After 2020, there are no major projects planned in the next 10 years. Scenario 1: With the above expenses included, we are projected to go below our target cash amount of $25,000in 2020, and actually go negative in cash for 2025 and beyond. In Scenario 1, we never get back to our minimum cash balance amount. Scenario 2: Staff projects a 4% increase in storm water fees on all users starting in 2020. With that assumption, we drop below our cash target in 2020, but get back over our 25% minimum cash balance in 2021. The cash balance keeps rising until it 2024 when we can start to address backyard ponding issues. Scenario 3: Staff projects a 5% increase in storm water fees on all users starting in 2020. With that assumption, we drop below our cash target in 2020, but get back over our 25% minimum cash balance in 2021. We can also start to address backyard ponding issues in 2021. In all scenarios, we are now formally budgeting for our sediment removal from ponds and ditches. Staff presents this information in anticipation of discussions for setting enterprise fund rates for future years. We need to annually evaluate our rates based on any increases passed on to us from MS4 requirements. We should be able to make these adjustments annually without a significant impact to residents.