2020-07-22 CC Packet - Laserfiche WebLink

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'ei lill rxro utmfn Saa�u,f��fr,v LF, ^,aaw ssrr3 tr bd til➢/ftf c8 1 (u"v e,:r M>1429-vU1421) 8629 Memorandum Date: July 22, 2020 To: Honorable Mayor and City Council Members Through: Mark R. Statz, City Administrator/City Engineer From: Bruce DeJong, Finance Director Item: Storm Water Cash Flow Discussion City staff have reviewed the fund cash flow estimate in light of the $58,480 change order to the Downtown Street Reconstruction project. Staff has consistently pointed out that we will fully use the cash during 2020 in several of the funds that are used to pay for the project, and we have a plan in place to return those funds to a positive balance by 2021. Please remember that Centerville does not have a history of charging storm water construction costs to the Storm Water fund. Previous projects dating back to 2009-2014 have had all storm water costs charged to the Street Reconstruction fund. Because of the massive nature of this street project and the City Council desire to pay for this by using cash reserves, staff allocated estimated costs between the Street Reconstruction, Water, and Storm Water funds on a reasonable basis. The Storm Water fund can handle up to $50,000 of the additional cost if we hold off on the Ditch Maintenance and Backyard Drainage expenditures currently budgeted for 2021. No specific projects have been identified at this time, so the expenditures are speculative and no residents are expecting anything particular project at this time. In conjunction with the 5% rate hike approved this year should allow the fund to end up with a positive fund balance at the end of 2021. The way to do it is to: $19,375 Use the entire Estimated Fund Balance for 2020 $26,850 2021 No Ditch Maintenance $ 5,000 2021 No Backyard Drainage --------------------------------------------- $51,225 Available through 2021 without going negative at year end 2021.