City Commission

OTTAWA CITY COMMISSION STUDY SESSION AGENDA Monday, June 12, 2023 - 4:00 pm Ottawa City Hall - 101 S. Hickory In accordance with Kansas Open Meetings Act (KOMA), the Citizens may attend in person, VIA ZOOM or submit comments meeting can be viewed live on Channel 23 and via Facebook Live (300 words or less) for the City Commission. To submit your public or listened to by dialing: 1-312-626-6799 and entering meeting comment or to request the meeting Zoom link to give a public ID 919 2144 9005#. To view on YouTube: https:// comment, email publiccomments@ottawaks.gov no later than www.youtube.com/@ottawaksgov 2:00 pm on June 12, 2023; all emails must include your name and If you need this information in another format or require a address. reasonable accommodation to attend this meeting, contact the Participants who generate unwanted or distracting noises may be City’s ADA Coordinator at 785-229-3621. Please provide advance muted by the meeting host. If this happens, unmute yourself when notice of at least two (2) working days. TTY users please call 711. you wish to speak. PUBLIC COMMENTS Subject to the above restrictions, persons who wish to address the City Commission regarding items on the agenda may do so as that agenda item is called. Persons who wish to address the City Commission regarding items not on the agenda and that are under the jurisdiction of the City Commission, may do so at this time when called upon by the Mayor. Comments on personnel matters and matters pending in court or with other outside tribunals are not permitted. Speakers are limited to three minutes. Any presentation is for informational purposes only. The Governing Body will take comments under advisement. ITEMS TO BE PLACED ON THE REGULAR CITY COMMISSION AGENDA (Click on the item to access the attachment) I. Minutes (Pp. 2 - 3) A. June 5, 2023 Study Session ITEMS FOR PRESENTATION AND DISCUSSION * I. Continued Discussion of City Commission Rules of Procedure - Brian Silcott (Pp. 4 - 6) II. 2024 Budget Overview - Utilities - Melanie Landis / Dennis Tharp (Pp. 7 - 18 ) A. Water B. Wastewater C. Electric D. Stormwater III. Comments by City Manager IV. Comments by City Commissioners V. Comments by Mayor ANNOUNCEMENTS I. June 19, 2023 Study Session - 4:00 pm, City Hall II. June 21, 2023 Regular Meeting - 10:00 am, City Hall ITEMS ALREADY PLACED ADJOURN *All presentation materials to be reviewed at the study session (including PowerPoint) must be emailed to presentations@ottawaks.gov and gmathews@ottawaks.gov by 10:00 am the Thursday prior to the meeting. 6.12.23 Agenda Pkt Page #1  Back to Agenda Study Session Minutes Ottawa, Kansas Minutes of June 5, 2023 The Governing Body met at 4:00 pm this date at City Hall with the following members present and participating to wit: Mayor Crowley, Mayor Pro Tem Skidmore, Commissioner Caylor, Commissioner Graves and Commissioner Clayton. A quorum was present. Mayor Crowley called the meeting to order. Public Comments The Governing Body heard from Aaron Bien, 126 N. Poplar, regarding building and zoning requirements for various businesses. Minutes to Review The Governing Body reviewed minutes from the May 3, 2023 Regular Meeting, May 8, 2023 Study Session, May 15, 2023 Study Session, May 17, 2023 Regular Meeting, May 17, 2023 Special Call Meeting, May 22, 2023 Study Session and May 24, 2023 Special Call Meeting. The Governing Body agreed by consensus to place these items on the next Regular Meeting agenda on June 7, 2023. City Commission Rules of Procedure The Governing Body heard from City Manager Brian Silcott, who discussed citizen comment rules for City Commission meetings and provided the following information: • Many cities adopt criteria for citizens addressing the Governing Body during both citizen commentary periods and on specific agenda items and public hearings • Purpose of the citizen comment procedure is to ensure that all parties present are given equal opportunity to speak and be heard by the elected officials of their communities • Draft proposal is based upon the Code of Meeting Procedures for Kansas Cities • Governing Body may update the procedure as desired and to further ensure efficiently conducted meetings • Adoption of the procedure would take effect at the following meeting The Governing Body agreed by consensus to place this item on the next study session agenda. City Manager's Comments City Manager Brian Silcott updated the Governing Body on current projects. Commissioner's Comments Commissioner Clayton invited the community to Thursday's Ottawa Main Street Madness event. Mayor Pro Tem Skidmore thanked the city crews for their excellent work on the parks and cemeteries. Mayor's Comments Mayor Crowley had no comment. Recess Mayor Crowley made a motion, seconded by Commissioner Graves, to recess into executive session at 4:22 pm for a period of 20 minutes for the purpose of attorney/client consultation with the City Manager and Finance Director. The justification for the closed session is to engage in 6.12.23 Agenda Pkt Page #2 confidential and privileged communication with the board’s attorney by K.S.A. 75-4319(b)(12). The open meeting is to resume in this room at 4:42. The Mayor declared the meeting duly recessed. Reconvene Mayor Crowley made a motion, seconded by Commissioner Clayton, to reconvene into open session. The motion was considered, and upon being put, all present voted aye. The Mayor declared the meeting duly reconvened at 4:42 pm. Adjournment There being no further business to come before the Governing Body, the Mayor declared the meeting duly adjourned at 4:42 pm. Melissa Reed, City Clerk 6.12.23 Agenda Pkt Page #3  Agenda Item: New Business I City of Ottawa City Commission Meeting Back to Agenda June 12, 2023 TO: Mayor and City Commission SUBJECT: City Commission Meeting Rules of Procedure INITIATED BY: City Manager AGENDA: New Business Recommendations: It is recommended the City Commission consider adopting a formal set of citizen comment rules for City Commission meetings. Background: This item was presented and discussed at the June 6, 2023, study session. Comments received included incorporating the existing language contained on the agenda coversheet regarding public comments. The Commission as for the item to be presented at the June 12 and June 19 study sessions to provide an as an opportunity for the public to comment on the proposed rules. Many cities adopt criteria for citizens addressing the governing body during both citizen commentary periods and on specific agenda items and public hearings. The purpose of citizen comment procedures is to ensure that all parties present are given equal opportunity to speak and be heard by the elected officials of their communities. Having adopted procedures also assists the presiding officer in maintaining order during the discussion of controversial issues. The agenda coversheet includes the following information on public comments. How to use publiccomments@ottawaks.gov to send email comments to the City Commission. Comments are limited to 300 words and should be sent at least two (2) hours before a study session and three (3) hours before a regular meeting. Because the submittals are subject to the Kansas Open Meetings (KOMA) & Records (KORA) Act, all emails must include the name and address of the email sender. Zoom/Virtual attendees wishing to address the City Commission are subject to the following rules: “Participants who generate unwanted or distracting noises may be muted by the meeting host. If this happens, unmute yourself when you wish to speak.” Analysis: The purposed protocols before you are based upon the Code of Meeting Procedures for Kansas Cities. Please review the attached draft copy of the rules of meeting procedure. The specific procedures contained in the draft proposal are outlined below and pertain to virtual and in-person attendees and participants: 1. An individual shall not address the City Commission without first having been recognized by the Presiding Officer. 2. Upon being recognized, the individual should proceed to the front of the room to use the podium and state his or her full name, residential address, and the topic to be discussed. 3. Speakers shall be limited to a presentation of three minutes unless such period of time is extended by a vote or consensus of the City Commission. 4. An individual will not be given an opportunity to speak a second time on the same issue until all others wishing to make a presentation on the subject have had an opportunity to do so. 5. When a person(s) becomes unruly, the Presiding Officer may declare said person(s) in the audience to be out of order and if necessary, may rule that the individual(s) has forfeited the opportunity to speak further. A person(s) may be excluded from the meeting for breach of the Peace committed at the meeting. Clapping and cheering are inappropriate and shall be considered out of order. 6. These rules of procedure are intended to augment the Code of Meeting Procedures for Kansas 6.12.23 Agenda Pkt Page #4  Cities which has been adopted by the City Commission. Where inconsistencies or conflict may exist between these rules and the Code of Meeting Procedures for Kansas Cities, these rules shall prevail. Financial Considerations: There is no financial impact from the consideration of this procedure. Legal Considerations: Approve as to form. The formal establishment of meeting procedures and protocol, while not required, promotes order and civility in the conduct of governing body meetings. The governing body may update the procedures as desired and to further ensure efficiently conducted meetings. If adopted the procedure would take effect at the following meeting. Recommendations/Actions: It is recommended the City Commission review and comment on the proposed rules of meeting procedures to be incorporated/reviewed at the June 19, 2023, study session. Attachments: Ottawa City Commission Meeting Rules of Procedure (1-page) 6.12.23 Agenda Pkt Page #5  OTTAWA CITY COMMISSION MEETING RULES OF PROCEDURE Officially adopted by the Ottawa City Commission on ____________ INTRODUCTION It is the purpose of these procedures to encourage public participation in an orderly manner, which gives everyone a reasonable opportunity to present his or her point of view for consideration of the City Commission. The public is invited to speak on issues before the City Commission during public hearings and during citizen comments. Items on the agenda or other topics can be discussed during general audience participation. Individuals may request that an item be placed on the City Commission agenda by submitting a request in writing to the City Clerk or City Manager who will forward the request to the Mayor and City Commission for consideration. Individuals may also request that an item be placed on the agenda by contacting a member of the City Commission or by speaking to the item during citizen comment at a regular City Commission meeting. If your presentation concerns a specific complaint or suggestion, you may find it more convenient and may receive faster service if you call the appropriate City department head during regular business hours. If you have contacted the department and for some reason the results were not satisfactory, please contact the City Manager’s office. A time limit is established to be sure everyone has an opportunity to speak and that presentations do not become repetitious. While the City Commission wishes to give everyone an opportunity to express his or her point of view, it is neither necessary, nor advisable for every member of a group to address the City Commission. In those cases where a group is in attendance, it is suggested that one or two spokespersons be selected. The City Commission attempts to make informed decisions based on all the information available rather than simply on the number of people who offer the same information or arguments. RULES OF PROCEDURE 1. An individual shall not address the City Commission without first having been recognized by the Presiding Officer. 2. Upon being recognized, the individual should proceed to the front of the room to use the podium and state his or her full name, residential address, and the topic to be discussed. 3. Speakers shall be limited to a presentation of three minutes unless such period of time is extended by a vote or consensus of the City Commission. 4. An individual will not be given an opportunity to speak a second time on the same issue until all others wishing to make a presentation on the subject have had an opportunity to do so. 5. When a person(s) becomes unruly, the Presiding Officer may declare said person(s) in the audience to be out of order and if necessary, may rule that the individual(s) has forfeited the opportunity to speak further. A person(s) may be excluded from the meeting for breach of the Peace committed at the meeting. Clapping and cheering are inappropriate and shall be considered out of order. 6. These rules of procedure are intended to augment the Code of Meeting Procedures for Kansas Cities which has been adopted by the City Commission. Where inconsistencies or conflict may exist between these rules and the Code of Meeting Procedures for Kansas Cities, these rules shall prevail. 6.12.23 Agenda Pkt Page #6  MEMORANDUM Back to Agenda TO: HONORABLE CITY COMMISSION BRIAN W. SILCOTT, CITY MANAGER FROM: DENNIS THARP, UTILITIES DIRECTOR, AND MELANIE LANDIS, FINANCE DIRECTOR SUBJECT: WATER UTILITY 2024 BUDGET REVIEW DATE: JUNE 12, 2023 The City owns and operates a water utility which includes production and distribution. Operations and capital improvements are funded through the collection of user fees for water services. This memo is being provided as an overview of the proposed 2024 Water Utility budget discussion. The following table outlines the proposed budget for 2024 in the far-right column. The Water Utility staff has reviewed each line item in this budget and made adjustments to the expected 2023 column as well as designed the 2024 budget to be able to accomplish the needs of the utility while giving consideration to growing the fund balance to an appropriate level. WATER FUND (030) 2022 2023 2023 2024 Actual Budget Estimate Budget Proposed BEGINNING FUND BALANCE $ 1,556,812 $ 959,979 $ 1,049,045 $ 430,690 TOTAL REVENUE $ 2,797,855 $ 3,069,280 $ 3,136,150 $ 3,503,980 2022 2023 2023 2024 Actual Budget Estimate Budget Proposed WATER PRODUCTION $ 1,193,400 $ 1,732,170 $ 1,499,839 $ 1,380,385 WATER DISTRIBUTION $ 882,342 $ 995,864 $ 979,034 $ 853,500 WATER PROJECT $ 105,264 $ 135,000 $ 135,000 $ 135,000 WATER NON-OPERATING $ 24,734 $ 26,000 $ 34,250 $ 26,000 TRANSFERS TO OTHER FUNDS $ 1,099,882 $ 1,106,382 $ 1,106,382 $ 1,103,745 TOTAL EXPENDITURES $ 3,305,622 $ 3,995,416 $ 3,754,505 $ 3,498,630 ENDING FUND BALANCE $ 1,049,045 $ 33,843 $ 430,690 $ 436,040 6.12.23 Agenda Pkt Page #7 ITEMS OF NOTE FOR THE WATER UTILITY 2024 BUDGET • Rate increases were adopted in January 2023 due to low projected fund balance: o 2023 – 10% plus $2 base charge increase o 2024 – 8% plus $2 base charge increase o 2025 – 6% plus $2 base charge increase o 2026 – 4% o 2027 – 4% • Fund Balance is slow to recover and does not meet target fund balance of 20% of total annual expenditures until 2027; • Revenue estimates include planned rate increases; • Annual tower rent from Sprint ends mid-year 2023; • CIP project planned for 2024 shown as deferred to 2025 as result of low fund balance; • If rate increases perform better than calculated, then consideration will be given to earlier replacement of deferred projects and equipment/vehicle purchases. • Results and impact of the current compensation study were not available at the time of budget preparation and the 2024 impact will be drawn from the reserve/fund balance. PLANNED CAPITAL PROJECTS (CIP) On May 15th, the City Commission reviewed a draft Capital Improvement Program. After further budget review was completed, a change has been made to move the planned 2024 capital project of a 12” water line replacement from 17th to 19th and Elm to 2025. The draft CIP has been updated to reflect the change. NOTABLE OPERATIONS IMPROVEMENTS BUDGETED BY COST CENTER Within the operational budget for the water utility, the below items are improvements being made to the water system in 2024, denoted by cost center. Water Production (3001) Covers for upflow clarifiers $ 48,500 New pH meter/turbidimeter $ 15,000 Repairs on NE Tower/NE Boost Bypass $ 25,000 TOTAL WATER PRODUCTION $ 88,500 Water Distribution (3002) Fire hydrant inventory replacement $ 30,000 TOTAL WATER DISTRIBUTION $ 30,000 Water Project (3007) AMI Meter Replacement program (annual) $ 135,000 TOTAL WATER PROJECT $ 135,000 Staff is available to answer questions from the City Commission about the proposed Water Utility 2024 Budget. 6.12.23 Agenda Pkt Page #8  WATER FUND (030) 2022 2023 2023 2024 Actual Budget Estimate Budget Proposed BEGINNING FUND BALANCE $ 1,556,812 $ 959,979 $ 1,049,045 $ 430,690 LEASE & RENTAL INCOME $ 19,326 $ 19,400 $ 9,664 $ - CHARGES FOR SERVICE $ 2,769,645 $ 3,044,380 $ 3,113,536 $ 3,494,480 INVESTMENT INCOME $ 4,022 $ 4,000 $ 8,000 $ 8,000 OTHER REVENUE $ 4,863 $ 1,500 $ 4,950 $ 1,500 TOTAL REVENUE $ 2,797,855 $ 3,069,280 $ 3,136,150 $ 3,503,980 2022 2023 2023 2024 Actual Budget Estimate Budget Proposed WATER PRODUCTION $ 1,193,400 $ 1,732,170 $ 1,499,839 $ 1,380,385 WATER DISTRIBUTION $ 882,342 $ 995,864 $ 979,034 $ 853,500 WATER PROJECT $ 105,264 $ 135,000 $ 135,000 $ 135,000 WATER NON-OPERATING $ 24,734 $ 26,000 $ 34,250 $ 26,000 TRANSFERS TO OTHER FUNDS $ 1,099,882 $ 1,106,382 $ 1,106,382 $ 1,103,745 TOTAL EXPENDITURES $ 3,305,622 $ 3,995,416 $ 3,754,505 $ 3,498,630 ENDING FUND BALANCE $ 1,049,045 $ 33,843 $ 430,690 $ 436,040 6.12.23 Agenda Pkt Page #9  MEMORANDUM Back to Agenda TO: HONORABLE CITY COMMISSION BRIAN W. SILCOTT, CITY MANAGER FROM: DENNIS THARP, UTILITIES DIRECTOR, AND MELANIE LANDIS, FINANCE DIRECTOR SUBJECT: WASTEWATER UTILITY 2024 BUDGET REVIEW DATE: JUNE 12, 2023 The City owns and operates a wastewater utility which includes collection and treatment. Operations and capital improvements are funded through the collection of user fees for services. This memo is being provided as an overview of the proposed 2024 Wastewater Utility budget discussion. The following table outlines the proposed budget for 2024 in the far-right column. The Wastewater Utility staff has reviewed each line item in this budget and made adjustments to the expected 2023 column as well as designed the 2024 budget to be able to accomplish the needs of the utility while giving consideration to keeping the fund balance at an appropriate level. WASTEWATER FUND (036) 2022 2023 2023 2024 Actual Budget Actual Budget Proposed BEGINNING FUND BALANCE $ 2,370,560 $ 2,109,797 $ 2,552,288 $ 2,087,510 TOTAL REVENUE $ 3,194,838 $ 3,228,220 $ 3,320,753 $ 3,471,805 2022 2023 2023 2024 Actual Budget Actual Budget Proposed WASTEWATER TREATMENT $ 771,595 $ 1,150,630 $ 1,208,219 $ 1,133,655 SEWER MAINTENANCE $ 658,248 $ 1,188,365 $ 1,140,215 $ 1,163,000 WASTEWATER NON-OPERATING $ 32,259 $ 52,437 $ 55,562 $ 52,440 TRANSFERS TO OTHER FUNDS $ 1,551,008 $ 1,379,961 $ 1,381,536 $ 1,289,690 RESERVE FOR FUTURE PROJECTS $ 500,000 $ - $ 500,000 TOTAL EXPENDITURES $ 3,013,110 $ 4,271,393 $ 3,785,532 $ 4,138,785 ENDING FUND BALANCE $ 2,552,288 $ 1,066,624 $ 2,087,509 $ 1,420,530 6.12.23 Agenda Pkt Page #10 ITEMS OF NOTE FOR THE WATER UTILITY 2024 BUDGET • Rate increases were adopted in January 2023 due to low projected fund balance: o 2023 – 5% plus $1 base charge increase o 2024 – 5% plus $2 base charge increase o 2025 – 5% plus $2 base charge increase o 2026 – 5% plus $2 base charge increase o 2027 – 5% plus $2 base charge increase • Revenue estimates include planned rate increases; • Results and impact of the current compensation study were not available at the time of budget preparation and the 2024 impact will be drawn from the reserve/fund balance. PLANNED CAPITAL PROJECTS (CIP) On May 15th, the City Commission reviewed a draft Capital Improvement Program. The proposed capital projects for the Wastewater Utility are reflected below. There are several improvement projects not reflected as the available funds over the next five years do not allow capacity at this time. CAPITAL IMPROVEMENT PROGRAM (2024 - 2028) Department Project Name 2024 2025 2026 2027 2028 Total WASTEWATER WESTSIDE SEWER INTERCEPTOR DESIGN & CONSTRUCTION $ 500,000 $ 4,000,000 $ 4,500,000 WASTEWATER PLANT PUMP & VFD UPGRADES $ 250,000 $ 250,000 WASTEWATER UTILITY TOTAL $ - $ 250,000 $ 500,000 $ 4,000,000 $ - $ 4,750,000 NOTABLE OPERATIONS IMPROVEMENTS BUDGETED BY COST CENTER Within the operational budget for the Wastewater utility, the below items are improvements being made to the Wastewater system in 2024, denoted by cost center. Wastewater Treatment (3601) Influent pump $ 60,000 TOTAL WASTEWATER TREATMENT $ 60,000 Wastewater Collection (3602) Insituform - continuation of program $ 500,000 TOTAL WASTEWATER COLLECTION $ 500,000 Staff is available to answer questions from the City Commission about the proposed Wastewater Utility 2024 Budget. 6.12.23 Agenda Pkt Page #11  WASTEWATER FUND (036) 2022 2023 2023 2024 Actual Budget Actual Budget Proposed BEGINNING FUND BALANCE $ 2,370,560 $ 2,109,797 $ 2,552,288 $ 2,087,510 LICENSES & PERMITS $ 42,159 $ 43,000 $ 43,000 $ 43,000 CHARGES FOR SERVICE $ 3,143,985 $ 3,178,920 $ 3,265,533 $ 3,416,805 INVESTMENT INCOME $ 7,187 $ 6,300 $ 12,000 $ 12,000 OTHER REVENUE $ 1,507 $ - $ 220 $ - TOTAL REVENUE $ 3,194,838 $ 3,228,220 $ 3,320,753 $ 3,471,805 AVAILABLE RESOURCES $ 5,565,398 $ 5,338,017 $ 5,873,041 $ 5,559,315 2022 2023 2023 2024 Actual Budget Actual Budget Proposed WASTEWATER TREATMENT $ 771,595 $ 1,150,630 $ 1,208,219 $ 1,133,655 SEWER MAINTENANCE $ 658,248 $ 1,188,365 $ 1,140,215 $ 1,163,000 WASTEWATER NON-OPERATING $ 32,259 $ 52,437 $ 55,562 $ 52,440 TRANSFERS TO OTHER FUNDS $ 1,551,008 $ 1,379,961 $ 1,381,536 $ 1,289,690 RESERVE FOR FUTURE PROJECTS $ 500,000 $ - $ 500,000 TOTAL EXPENDITURES $ 3,013,110 $ 4,271,393 $ 3,785,532 $ 4,138,785 ENDING FUND BALANCE $ 2,552,288 $ 1,066,624 $ 2,087,509 $ 1,420,530 6.12.23 Agenda Pkt Page #12  MEMORANDUM Back to Agenda TO: HONORABLE CITY COMMISSION BRIAN W. SILCOTT, CITY MANAGER FROM: DENNIS THARP, UTILITIES DIRECTOR, AND MELANIE LANDIS, FINANCE DIRECTOR SUBJECT: ELECTRIC UTILITY 2024 BUDGET REVIEW DATE: JUNE 12, 2023 The City owns and operates an Electric utility which includes production and distribution. This fund also includes the Broadband Utility and Utility Administration. Operations and capital improvements are funded through the collection of user fees for services. This memo is being provided as an overview of the proposed 2024 Electric Utility budget discussion. The following table outlines the proposed budget for 2024 in the far-right column. The Electric Utility staff has reviewed each line item in this budget and made adjustments to the expected 2023 column as well as designed the 2024 budget to be able to accomplish the needs of the utility while giving consideration to keeping the fund balance at an appropriate level. ELECTRIC FUND (037) 2022 2023 2023 2024 Actual Budget Estimate Budget Proposed BEGINNING FUND BALANCE $ 4,189,629 $ 4,677,770 $ 5,235,051 $ 4,768,349 TOTAL REVENUE $ 18,572,564 $ 16,833,805 $ 17,338,118 $ 18,019,586 2022 2023 2023 2024 Actual Budget Estimate Budget Proposed ELECTRIC PRODUCTION $ 11,500,477 $ 11,409,385 $ 10,646,210 $ 11,189,650 ELECTRIC DISTRIBUTION $ 1,997,319 $ 2,627,440 $ 2,416,575 $ 3,057,685 ELECTRIC WAREHOUSE $ 399,016 $ 511,985 $ 578,465 $ 742,400 ELECTRIC PROJECT $ 137,970 $ 150,000 $ 150,000 $ 150,000 ELECTRIC ADMINISTRATION $ 1,052,986 $ 1,254,350 $ 1,337,650 $ 1,339,000 ELECTRIC NON-OPERATING $ 13,222 $ 6,000 $ 6,250 $ 6,000 BROADBAND $ 115,693 $ 221,325 $ 160,970 $ 224,125 TRANSFERS TO OTHER FUNDS $ 2,326,710 $ 2,508,700 $ 2,508,700 $ 2,502,700 RESERVE FOR FUTURE PROJECTS $ 500,000 $ - $ 500,000 TOTAL EXPENDITURES $ 17,543,394 $ 19,189,185 $ 17,804,820 $ 19,711,560 ENDING FUND BALANCE $ 5,218,799 $ 2,322,390 $ 4,768,349 $ 3,076,375 6.12.23 Agenda Pkt Page #13 ITEMS OF NOTE FOR THE ELECTRIC UTILITY 2024 BUDGET • Rate increases were adopted in January 2023 due to low projected fund balance: o 2023 – 6% o 2024 – 6% o 2025 – 6% o 2026 – 6% o 2027 – 6% • Revenue estimates include planned rate increases; • Results and impact of the current compensation study were not available at the time of budget preparation and the 2024 impact will be drawn from the reserve/fund balance. • Electric Capital Reserve fund balance as of 6/1/2023 = $1,002,575 PLANNED CAPITAL PROJECTS (CIP) On May 15th, the City Commission reviewed a draft Capital Improvement Program. The proposed capital projects for the Electric Utility are reflected below. There are several improvement projects not reflected as the available funds over the next five years do not allow capacity at this time. NOTABLE OPERATIONS IMPROVEMENTS BUDGETED BY COST CENTER Within the operational budget for the Electric Utility, the below items are improvements being made to the Electric system in 2024, denoted by cost center. Electric Production (3703) Overhaul C.T. pump Unit 3 exciter ($50k) $ 50,000.00 Replace Unit 3 Exciter $ 50,000.00 Ground Transformers $ 100,000.00 TOTAL ELECTRIC DISTRIBUTION $ 200,000.00 Electric Distribution (3704) Digger Derrick annual reserve for future purchase (Year 1 of 3) $ 150,000.00 K-68 by-pass light replacement $ 400,000.00 TOTAL ELECTRIC PRODUCTION $ 550,000.00 Electric Warehouse (3705) Racking for inventory (2nd Phase) $ 35,000.00 Concrete & asphalt west side of the warehouse (Phase 1) $ 200,000.00 TOTAL ELECTRIC WAREHOUSE $ 235,000.00 Staff is available to answer questions from the City Commission about the proposed Electric Utility 2024 Budget. 6.12.23 Agenda Pkt Page #14  ELECTRIC FUND (037) 2022 2023 2023 2024 Actual Budget Estimate Budget Proposed BEGINNING FUND BALANCE $ 4,189,629 $ 4,677,770 $ 5,235,051 $ 4,768,349 LICENSE & PERMITS $ 202,032 $ 200,400 $ 200,400 $ 200,400 CHARGES FOR SERVICE $ 17,736,648 $ 16,396,405 $ 16,886,718 $ 17,568,186 INVESTMENT INCOME $ 16,272 $ 8,000 $ 22,000 $ 22,000 OTHER REVENUE $ 460,468 $ 65,000 $ 65,000 $ 65,000 BROADBAND - CHARGES FOR SERVICE $ 157,143 $ 164,000 $ 164,000 $ 164,000 OTHER FINANCING SOURCES $ - $ - $ - $ - TOTAL REVENUE $ 18,572,564 $ 16,833,805 $ 17,338,118 $ 18,019,586 2022 2023 2023 2024 Actual Budget Estimate Budget Proposed ELECTRIC PRODUCTION $ 11,500,477 $ 11,409,385 $ 10,646,210 $ 11,189,650 ELECTRIC DISTRIBUTION $ 1,997,319 $ 2,627,440 $ 2,416,575 $ 3,057,685 ELECTRIC WAREHOUSE $ 399,016 $ 511,985 $ 578,465 $ 742,400 ELECTRIC PROJECT $ 137,970 $ 150,000 $ 150,000 $ 150,000 ELECTRIC ADMINISTRATION $ 1,052,986 $ 1,254,350 $ 1,337,650 $ 1,339,000 ELECTRIC NON-OPERATING $ 13,222 $ 6,000 $ 6,250 $ 6,000 BROADBAND $ 115,693 $ 221,325 $ 160,970 $ 224,125 TRANSFERS TO OTHER FUNDS $ 2,326,710 $ 2,508,700 $ 2,508,700 $ 2,502,700 RESERVE FOR FUTURE PROJECTS $ 500,000 $ - $ 500,000 TOTAL EXPENDITURES $ 17,543,394 $ 19,189,185 $ 17,804,820 $ 19,711,560 ENDING FUND BALANCE $ 5,218,799 $ 2,322,390 $ 4,768,349 $ 3,076,375 6.12.23 Agenda Pkt Page #15  MEMORANDUM Back to Agenda TO: HONORABLE CITY COMMISSION BRIAN W. SILCOTT, CITY MANAGER FROM: MICHAEL HAEFFELE, PW DIRECTOR, AND MELANIE LANDIS, FINANCE DIRECTOR SUBJECT: STORMWATER UTILITY 2024 BUDGET REVIEW DATE: JUNE 12, 2023 The City owns and operates a Stormwater Utility. Operations and capital improvements are funded through the collection of monthly user fees for services. This memo is being provided as an overview of the proposed 2024 Stormwater Utility budget discussion. The following table outlines the proposed budget for 2024 in the far-right column. The Stormwater Utility staff has reviewed each line item in this budget and made adjustments to the expected 2023 column as well as designed the 2024 budget to be able to accomplish the needs of the utility while giving consideration to keeping the fund balance to an appropriate level. STORMWATER FUND (029) 2022 2023 2023 2024 Actual Budget Estimate Budget Proposed BEGINNING FUND BALANCE $ 1,345,858 $ 959,178 $ 1,508,516 $ 1,463,525 TOTAL REVENUE $ 482,922 $ 480,700 $ 485,500 $ 486,000 2022 2023 2023 2024 Actual Budget Estimate Budget Proposed PERSONNEL SERVICES $ - $ 94,950 $ - $ - CONTRACTUAL SERVICES $ 121,181 $ 176,750 $ 155,900 $ 163,250 COMMODITIES $ 18,478 $ 34,200 $ 45,200 $ 62,700 CAPITAL EXPENSES $ 38,595 $ - $ 1,200 $ - CAPITAL IMPROVEMENTS $ 97 $ 30,000 $ 85,000 $ - TRANSFERS $ 141,912 $ 145,368 $ 243,193 $ 242,705 TOTAL EXPENDITURES $ 320,264 $ 481,268 $ 530,493 $ 468,655 RESERVE FOR FUTURE PROJECTS $ 500,000 ENDING FUND BALANCE $ 1,508,516 $ 958,610 $ 1,463,523 $ 980,870 6.12.23 Agenda Pkt Page #16 ITEMS OF NOTE FOR THE STORMWATER UTILITY 2024 BUDGET • Rates have no planned or approved increases • Large planned projects will deplete the fund balance over the next 5-7 years • Discussion continues regarding replacement of the Stormwater Coordinator position. Results and impact of the current compensation study were not available at the time of budget preparation and, if the position were filled, the 2024 impact will be drawn from the reserve/fund balance. PLANNED CAPITAL PROJECTS (CIP) On May 15th, the City Commission reviewed a draft Capital Improvement Program. The proposed capital projects for the Electric Utility are reflected below. There are several improvement projects not reflected as the available funds over the next five years do not allow capacity at this time. CAPITAL IMPROVEMENT PROGRAM (2024 - 2028) Department Project Name 2024 2025 2026 2027 2028 Total STORMWATER DESIGN AND CONSTRUCT SKUNK RUN IMPROVEMENTS $ 340,000 $ 340,000 STORMWATER REPLACE PUMP STATIONS $ 750,000 $ 750,000 STORMWATER OAK AND POPLAR STORM SEWER - 5TH STREET TO 8TH STREET $ 75,000 $ 750,000 $ 825,000 STORMWATER CEDAR - 9TH STREET TO 11TH STREET / STORM SEWER (WIDENING) $ 1,200,000 $ 1,200,000 STORMWATER UTILITY TOTAL $ - $ 1,090,000 $ 1,275,000 $ 750,000 $ - $ 3,115,000 NOTABLE OPERATIONS IMPROVEMENTS BUDGETED BY COST CENTER Within the operational budget for the Stormwater utility, the below items are notable operations costs being made in 2024. • On-going annual reserve of funds for future replacement of street sweeper Staff is available to answer questions from the City Commission about the proposed Stormwater Utility 2024 Budget. 6.12.23 Agenda Pkt Page #17  STORMWATER FUND (029) 2022 2023 2023 2024 Actual Budget Estimate Budget Proposed BEGINNING FUND BALANCE $ 1,345,858 $ 959,178 $ 1,508,516 $ 1,463,525 LICENSES & PERMITS $ 3,784 $ 4,200 $ 4,000 $ 4,500 CHARGES FOR SERVICE $ 475,670 $ 470,000 $ 475,000 $ 475,000 INVESTMENT INCOME $ 3,468 $ 6,500 $ 6,500 $ 6,500 OTHER REVENUE $ - $ - $ - $ - TRANSFERS IN $ - $ - $ - $ - TOTAL REVENUE $ 482,922 $ 480,700 $ 485,500 $ 486,000 2022 2023 2023 2024 Actual Budget Estimate Budget Proposed PERSONNEL SERVICES $ - $ 94,950 $ - $ - CONTRACTUAL SERVICES $ 121,181 $ 176,750 $ 155,900 $ 163,250 COMMODITIES $ 18,478 $ 34,200 $ 45,200 $ 62,700 CAPITAL EXPENSES $ 38,595 $ - $ 1,200 $ - CAPITAL IMPROVEMENTS $ 97 $ 30,000 $ 85,000 $ - TRANSFERS $ 141,912 $ 145,368 $ 243,193 $ 242,705 TOTAL EXPENDITURES $ 320,264 $ 481,268 $ 530,493 $ 468,655 RESERVE FOR FUTURE PROJECTS $ 500,000 ENDING FUND BALANCE $ 1,508,516 $ 958,610 $ 1,463,523 $ 980,870 6.12.23 Agenda Pkt Page #18