2011-07-26_PWETC_AgendaPacket - Laserfiche WebLink

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Storm Drainage Operations The City provides for the management of storm water drainage to prevent flooding and pollution control, as well as street sweeping and the leaf pickup program. The following table provides a summary of the 2011 and 2012 (Proposed) Budget: 2011 2012 D• D• Personnel $318,653 $310,837 Supplies&Materials 52,201 55,301 Other Services&Charges 306,490 27700 Depreciation/Capital 1,10500 1,260,000 Total $ 1,782,344 $ 1,903,938 $ 121,594 6.8% The City expects to have moderate increases in supply and capital-related costs. These will be somewhat offset by lower personnel and other costs. The 20-Year CIP calls for an average capital replacement need of $972,000 annually. In contrast, current storm water rates only provide $310,000 annually. To alleviate this shortfall, the CIP Task Force recommended a one-time base rate increase of 65% in 2012. This would generate an additional $660,000 annually and allow the Storm Water Fund to provide for capital improvements over the next 20 years as well as increased operating costs. The base rate would still need to be increased for future inflationary impacts. Recycling Operations The recycling operation provides for the contracted curbside recycling pickup throughout the City. The primary operating cost is the amounts paid to a contractor to pickup recycling materials. The following table provides a summary of the 2011 and 2012 (Proposed) Budget: 2011 2012 D• D• Personnel $32,769 $31,581 Supplies&Materials 401 400 Other Services&Charges 23,410 24,910 Contract Pickup 43500 46800 Total $491,580 $524,891 $33,311 6.8% The City expects to have moderate increases in contract pickup costs as set forth in the current contract. The contractual agreement with the recycling contractor specifies that the City is to receive a portion of the monies generated from the re-sale of recycled materials. This is expected to generate approximately $90,000 per year and will allow for a relatively small rate increase of only 1.7%. Rate Impacts for 2012 Based on the rate impacts described above, Staff is recommending a rate increase for ALL utility rate categories. With these suggested rate changes, a typical homeowner will pay approximately $163.80 per quarter, an increase of$39.95 or 32.1%. Additional detail is shown in the tables below. 3