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Roseville Finance Commission
<br />Agenda Item
<br />For 2019, overall operational costs are expected to increase by 4.9%. Costs associated with assigned
<br />personnel are expected to increase at inflationary levels to accommodate wage & benefit -related
<br />increases. The increase in `Other Services & Charges' is mostly attributable to higher wastewater
<br />treatment costs.
<br />The single largest operating cost to the sanitary sewer operation is the wastewater treatment costs paid
<br />to the Metropolitan Council Environmental Services Division (MCES). The MCES has informed us that
<br />we can expect an 8.1 % increase in wastewater treatment costs for 2019 reflecting both higher wastewater
<br />flows and treatment costs. This will require a commensurate increase in sewer usage fees for all sanitary
<br />sewer customers. Interest earnings for 2019 are expected to be minimal due to low cash balances
<br />projected throughout most of the year.
<br />The revised 20 -Year Capital Improvement Plan (CIP) identifies added infrastructure replacement costs
<br />in the coming years which will also require a 5.0% increase in the sanitary sewer base fee.
<br />Storm Drainage Operations
<br />The City provides for the management of storm water drainage to prevent flooding and pollution control,
<br />as well as the street sweeping program. The following table provides a summary of the 2018 and 2019
<br />(proposed) Budget excluding capital:
<br />2018 2019 $Increase
<br />Bud et Budget ecrease
<br />Revenues
<br />Customer Charges $ 1,830,720 $ 1,933,460 $ 102,740
<br />Interest Earnings 20,000 - (20,006
<br />Total $ 1,850,720 1 $ 1,933,460 1 $ 82,740
<br />Expenses
<br />Su lies & Materials 84,400 84,400 - 0.0%
<br />Other Services & Charges 267,700 308,300 40,600 15.2%
<br />Total $ 760720 1 $ 818350 1 $ 57630 1 7.6%
<br />Page 3 of 10
<br />2018
<br />2019
<br />$Increase
<br />% Increase
<br />Bud get
<br />Bud et
<br />Oecrease
<br />ecrease�
<br />Revenues
<br />Customer Charges
<br />$ 5,323,000
<br />$
<br />5,899,335
<br />$
<br />576,335
<br />10.8%
<br />Interest Earrings
<br />5,000
<br />-
<br />5,000
<br />-100.0%
<br />Total
<br />$ 5,328,000
<br />$
<br />5,899,335
<br />$
<br />571,335
<br />10.7%
<br />Expenses
<br />Personnel Services
<br />$ 477,550
<br />$
<br />491,720
<br />$
<br />14,170
<br />3.0%
<br />Supplies & Materials
<br />46,150
<br />46,150
<br />-
<br />0.0%
<br />Other Services & Charges
<br />3,530,150
<br />3,716,465
<br />186,315
<br />5.3%
<br />Total
<br />$ 4,053,850
<br />$
<br />4,254,335
<br />$
<br />200,485
<br />4.9%
<br />Net Available for Capital
<br />$ 1,274,150
<br />$
<br />1,645,000
<br />For 2019, overall operational costs are expected to increase by 4.9%. Costs associated with assigned
<br />personnel are expected to increase at inflationary levels to accommodate wage & benefit -related
<br />increases. The increase in `Other Services & Charges' is mostly attributable to higher wastewater
<br />treatment costs.
<br />The single largest operating cost to the sanitary sewer operation is the wastewater treatment costs paid
<br />to the Metropolitan Council Environmental Services Division (MCES). The MCES has informed us that
<br />we can expect an 8.1 % increase in wastewater treatment costs for 2019 reflecting both higher wastewater
<br />flows and treatment costs. This will require a commensurate increase in sewer usage fees for all sanitary
<br />sewer customers. Interest earnings for 2019 are expected to be minimal due to low cash balances
<br />projected throughout most of the year.
<br />The revised 20 -Year Capital Improvement Plan (CIP) identifies added infrastructure replacement costs
<br />in the coming years which will also require a 5.0% increase in the sanitary sewer base fee.
<br />Storm Drainage Operations
<br />The City provides for the management of storm water drainage to prevent flooding and pollution control,
<br />as well as the street sweeping program. The following table provides a summary of the 2018 and 2019
<br />(proposed) Budget excluding capital:
<br />2018 2019 $Increase
<br />Bud et Budget ecrease
<br />Revenues
<br />Customer Charges $ 1,830,720 $ 1,933,460 $ 102,740
<br />Interest Earnings 20,000 - (20,006
<br />Total $ 1,850,720 1 $ 1,933,460 1 $ 82,740
<br />Expenses
<br />Su lies & Materials 84,400 84,400 - 0.0%
<br />Other Services & Charges 267,700 308,300 40,600 15.2%
<br />Total $ 760720 1 $ 818350 1 $ 57630 1 7.6%
<br />Page 3 of 10
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