Minutes 08/12/1986 - Laserfiche WebLink

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,-. NOTE: The actual Sewer Fund status in FY88-89, contract prices and the interceptor buy-in cost will determine whether a bond issue will be needed to cover any portion of the Phase III costs. If our revenue and expenditure estimates are close there will be sufficient money in the Sewer Fund (including the Certificate of Deposit and interest) to pay for the Phase III costs without having to sell bonds or adjust sewer rates through FY88-89. It is recommended that the Sewer Fund balance be monitored closely from now to July I, 1988, at which time a decision would be made as to whether a bond issue is needed to meet the City's financial obligations as outlined in Phase III above. A bond referendum could be scheduled for November 1988, for an amount to be determined at that time. Phase IV .-- The facilities planned under this phase of the program are in the distant future; therefore, the financing of this phase of the improvements are not included in this plan. Summary Actual expenditures in the Sewer Fund were less than projected for FY85- 86. This coupled with an increase in revenue for the same period resulted in an increase of estimated surplus in the Sewer Fund as of June 30, 1986, of $215,012 over previous estimates. This increased surplus along with a decrease in the projected cost of expanding the City's Plant and the overall decrease in the program cost has made possible a financing plan that can be accomplished without selling bonds or adjusting sewer rates for the next several years unless revenue drops because of a cut back in water usage for various reasons or if the cost of the named improvements exceed our estimates by a large margin. If Council authorizes the expansion of the City's Plant as recommended, we will proceed with the project on a schedule for completion in July 1987. Immediately after completion of the expansion project we will begin the necessary tests to determine the type facilities and cost that will be required to provide color removal to meet State standards and will submit a report and recommendation to Council as to financing and implementation of the project to meet the January 1, 1989, deadline for color removal as required by the State. - Attached is a schedule of estimated revenues, expenditures, transfers and estimated surplus for both the Water and Sewer Funds through FY89-90. 3 _. ;-)~~ .j ;) J