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Home My WebLink AboutMinutes - 6/23/1994 - Finance and Personnel Committee � � �� M B M 0 x A ft D U M T0: Finance Committee FROM: Gerald R. Peterson, City Administrator �� -��2� DATE: June 23, 1994 RE: Water & Sewer Rate Discussion Follow-Up It is my understanding that the Finance Committee wishes to review additional information about specific line items in the Water Fund and the Sewer Fund budgets prior to having further discussion about adjustments to water and sewer rates. � Water Fimd Total revenues in the Water Fund for the 1994-95 budget year are estimated to be $674,600. Water sales account for $610,000 of this total with $18,000 estimated from a $.10 per thousand gallon increase, to become effective November 1, 1994 (to appear �n first bill in January, 1995). Annualized revenue from this proposed increase are estiraated to be $53,000. Account 4�510, Contractual Services. The current budger. of :�46,300 is an increase from the $24,300 budgeted last year. The 3ncrease is attributed to: (a) a $7,000 increase in water testing service cost� dtze to changed requirements and funding by the Illinois Environmental Protection Agency, and, (b) the inclusion of $15,000 to perform an engineering study to evaluate needed repairs to water plant ��1 in con3unction with addressing and resolving potential problems with the underground gasoline storage tanks ad3acent to the plant. � Water & Sewer Rates Page 2 Account ��527, Materials and Supplies. The current budget of $68,500 �-- is ar� increase from the $13,000 budgeted last year. The increase is a result of: (a) eliminated account ��536 (Repair & Maintenance of Buildings) and transfer $1,500 expenditure to this account. (b) eliminated account ��546 (Repair & Maintenance of Equipment) and transfer $2,000 expenditure to this account. (c) eliminated account ��554 (Repair & Maintenance of System) and transfer $27,000 expenditure to this account. (d) Add new $25,000 expenditure for compliance with federal mandate to treat water for lead levels whcih exceed federal standards through the addition of chemicals polyortho phosphate. Account ��620, Transfer Utility Bond and Interest. The �current budget of $55,160 is compared to $42,364 budgeted last year, and reflects the issuance of a new lower interest bond which defeased two outstanding revenue bond issues and changed the payment schedule. The current budget should be revised to reflect a $47,854 expenditure ($7,306 expenditure reduction). Sewer Fund Total revenues in the Sewer Fund for the 1994-95 budget year are � estimated to be $1,254,400. Sewer sales account for $890,000 of this total, with $28,000 estimated from a $.15 per thousand gallon increase to become effective November 1, 1994 (to appear on first bill in January, 1995). Annualized revenue from this increase are estimated to be $85,000. Account 4�537, Repair & Maintenance of Vehicles. The current budget of $12,000 compares to last years budget of $5,000. The increase is attributable to: (a) the inclusion of $7,000 for ma3or semi-trailer/tanker repairs. Account 4�546, Repair & Maintenance of Equipment. The current budget of $25,000 compares to a budget of the same amount last year. The DirEctor of Public Works recommended eliminating this account and combining expenditures with other accounts. This was not appro�=ed. Accont ��620, Transfer Utility Bond & Interest. The current hudget of $379,883 compares to $342,672 last year, and reflects the issuance of a new lower interest bond which defeased two outstanding revenue bond issues and a changed payment schedule. Capital cast for South Wastewater Treatment Plant dechlorination is budgeted at $115,000. Committee sought cost for building treatment for existing plant (500,000 gallons per day) and incremental cost � for adding treatment for 1,000,000 gallons. Estimate from Baxter & Woodman to construct dechlorination for 500,000 g is �75,000-85,000; construction costs for next for 1,'000,000 g is $30,000-40,000. A compliance schedule for constructing dechlorination equipment approved as part of the City's operating permit is attached. . � •r '�E�`ry��j� �� e�k'� a� i� Page 5 ��e � NPDES Permit No. IL0066257 Saecial Conditions � SPECIAL CONDITI N F. Fecal Coliform limits for this discharge point are effective May thru October. Sampling of fecal Coliform concentrations are only required during this time period. Any use of chiorine to achieve tlie fecal coliform limitation or to control slime growths or odors etc. shall not exceed tlie limit o( .05 mg/1 (daily maximum) total residual cf�lorine in tfie effluent. Tfiis limitation and associated sampling sliall become effective 24 months from tl�e eFfective date of tliis permit. Sampling is required on a daily grab basis during tlie chlorination process. Reporting shall be submitted witfi the (OMR's) on a monthly basis. If the permittee is chlorinating for any purpose during the montlis of November tliru April , a monthly average limit of .75 mg/1 total residual cl�lorine si�all be in effect until the .05 mg/1 daily maximum becomes effective. Sampling shall be daily grab and reported on tl�e (OMR's) on a monthly basis. In order for the permittee to achieve the above limit, it will be necessary to construct eitl,er alternate means of disinfection or installation of de—clilorination equipment in accordance witli the following schedule: � � i1qp 1. Plans and specifications G months from effective date of this permit � ��V�� submitted to IEPA 1�� reb'�� 2. Arrange financing 9 months from effective date of tfiis permit� a �ci9� a�' ' 3. Commence construction 10 montf�s from effective date of this permit �� a i�q`� 4. Interim report 16 monttis from effective date of this permit 'SeP � f�q�j � 5. Complete construction 22 months from effective date of this permit � M"`�� jS 6. Obtain operational level 24 monlhs from effective date of tliis permit� I�a��a 1� Compliance dates set out in this Permit may be superseded or supplemented by compliance dates in judicial orders, Pollution Control Board orders. This pe rn�it may be modified, with Public Notice, � to include such revised compliance dates. The permittee shall operate the de—chiorination facilities in a manner to ensure continuous compliance with the total residual chlorine limit, and not to the extent .that will result in violations of other permitted effluent characteristics, or water quality standards. REP RO TING The permittee shall submit a report no later than fourteen (14) days following the completion dates indicated for each numbered item in the compliance schedule, indicating, a) tl�e date tlie item was completed, or b) that the item was not completed, the reasons for non completion and tlie anticipated completion date. SPECIAL CONDITION 7. The permittee shall record monitoring results on Discharge Monitoring Report forms using one such form for each discharge each month. The completed Discharge Monitocing Report forms shall be submitted to IEPA no later than tlie 15th day of the following monlh, unless otlierwise specified by the permitting autiiority. Discharge Moritoring Reports shall be mailed to the IEPA at the following address: Illinois Environmental Protection Agency Division of Water Pollution Control 2200 Churchill Road P.O. Box 19276 Springfield, Illinois 62794-9276 Attention: Compliance Assurance Section � • FINANCE CONII�IITTEE MEETING June 6, 1994 Members Present: Chairman Locke, Greg Bates, David Lawson Others Present: Mayor Cuda �- Staff Present: City Administrator Peterson and City Clerk Althoff Chairman Locke called the meeting to order at 7:01 P.M. The meeting was called, as per council's direction, to discuss the committees original recommendation to increase water and sewer rates which were included as part of the approved budget for the fiscal year 1994-95. City Administrator Peterson gave a summary review of the sequence of events and actions leading up to this meeting. Several options were discussed addressing budget corrections. - Passing the ordinances raising the rates - Bsing capital outlay - Raising the rates slowly over a 3 year period - Using the $100 increase in water and sewer connection fees assigned to Building and Zoning - Cutting expenses Chairman Locke indicated he would not support a rate increase under any circumstance at this time and recommended the $100,000 needed for the dechlorination tank be funded through capital expenditures. � Further discussion followed. Chairman Locke asked City Administrator Peterson to redo the Budget without the rate increase included and to delineate any extraordinary expenses we might postpone and any projects that might span a two year period. Chairman Locke called for a five minute recess at 8:30P.M. City Administrator Peterson and City Clerk Althoff were excused at this time. The meeting resumed at 8:37p.m. Further discussion followed as to balancing the budget without a water and sewer increase. Meeting adjourned at 9:OOpm Respectfully submitted, �-- �._ --:� �� C�� P ela Altho f C ty Clerk \ Terry Locke, Committee Chairman �