2004 AGN JUN 28 I02 - Laserfiche WebLink

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year is a decrease of $2.6 million in power plant operations due to renegotiation of payments to contract operator for Administrative Services and Emission Reduction Credits. The Electric Utility will continue to provide power to City facilities at no cost to the General Fund, thereby absorbing a cost of approximately $650,000. The revenue estimate of $41,619,636 reflects a conservative 5% increase from the current fiscal year. The Electric Utility has budgeted $2.6 million to fund depreciation (future replacement cost of plant and equipment). The Electric Utiiity is proposing a balanced budget thereby not needing to draw down reserves during this fiscal year. Water/Wastewater Utilitv The Water Utility is estimating its revenue for FY 2004/05 at $7,008,155, and appropriations at $12,929,177 of which $5,921,022 is for Capital Improvements to be funded from bond proceeds, reimbursements from State agencies for percholorate treatment expenses and reserves. The revenue estimate is an increase of 18% over the FY 2003/04 budget. This increase is primarily due to an increase in water sales by 5% and connection fees by 18%. The Water Utility is not proposing a rate increase in FY 2004/05. The Water Utility has budgeted $525,000 to fund depreciation (future replacement cost of plant and equipment). The Water Utility will draw approximately $2 miliion from retained earnings to fund one-time capital improvement projects. The Wastewater Utility is estimating its revenue for FY 2004/05 at $8,561,642 and appropriations at $9,201,007 of which $2,173,555 is for Capital Improvements. $688,231 will be drawn from Bond Funds to pay for a portion of the capital improvement project costs. The Wastewater revenue estimate for FY 2004/05 reflects a 10% increase over the FY 2003/04 budget which is a result of capacity charges from new home developments. The Wastewater Utility has budgeted $710,000 to fund depreciation (future repiacement cost of plant and equipment). Capital Proiect Funds The budget for the capital projects will be presented to the City Council on July 6, 2004. Redevelopment Agencv The Redevelopment Agency will submit a separate staff report and resolution relative to their budget. Based on their budget, with the current revenue projections, not all of the project areas are able to cover the ERAF payment, necessitating a loan from the General Fund in the aggregate amount of $87,095. The ERAF payment is due in May of 2005. Should tax increment revenues exceed projections the loan amount will be decreased accordingly. FINANCIAL IMPACT This entire report is concerned with the financial impact and therefore not duplicated in this section. Exhibit A reflects the proposed General Fund appropriations by Department and Exhibit B reflects the Revenue and Expenditure Summary by Fund and exctudes the Redevelopment Agency and the Capitai Project Fund, whose budgets will be presented under a separate staff report and resolution. ENVIRONMENTAL IMPACT None