2008-09 Final Budget - City of St. George

ENTERPRISE FUNDS:
Review of Water Services Fund:
This fund is responsible for providing potable and irrigation water to City residents.
The Washington County Water Conservancy District has increased our wholesale
water cost by approximately 8% for the next fiscal year. This budget includes an
average 10% increase in water charges. Reductions have been made where
possible, however, there are several major capital projects that are needed.
$4,600,000 has been included again this year for the west side project which will
allow us to mix regional water from Quail Lake with our Gunlock well water to meet
federal mandates for arsenic levels. Irrigation Division improvements are planned to
be $1,585,000 to allow us to extend new availability for reuse water and complete
irrigation wells. Roughly $500,000 for the new water line on the Mall Drive bridge
and approximately $400,000 for other system improvements are planned.
$2,000,000 is budgeted for a new storage tank in the Sun River area.
Review of Energy Services Fund:
This fund is responsible for providing electrical service to City residents north of the
Virgin River. Those residents south of the river are served by Dixie REA. This
department has generation, distribution, and resource management responsibilities.
Fund balances are satisfactory and therefore no rate increase is recommended for
this year. In future years rates may have to be adjusted as the cost to secure
needed resources appears to be increasing. Major projects for 2008-2009 include:
$45,000,000 for one new gas turbine unit at the Millcreek generating station and
$1,653,000 for finishing the Green Valley project.
Review of the Municipal Building Authority Fund:
This MBA fund is used to account for the issuance of lease-purchase bonds for
various City projects. Projects leased under this fund include the Blackrock at
Sunbrook nine holes, the Police Department building, and renovation of the
Woodward School on which the School District pays debt service. Total
recommended expenditure is $496,858.
Review of Wastewater Collection and Treatment Fund:
This fund is responsible for collecting sewage from homes and businesses in the
community and transporting it to the treatment plant. The treatment plant treats
sewage from our City, Washington, Santa Clara and Ivins. This fund has adequate
balances and no fee increase is proposed. No new positions were requested this
year. Major projects include: $750,000 in system upgrades in Dixie Downs and
approximately $500,000 for other small improvement projects.
Review of the Golf Course Operation Fund:
This fund is responsible for the operation of the City-owned golf courses: Dixie Red
Hills, Southgate Golf Club, St. George Golf Club, Sunbrook Golf Club, and the
Southgate driving range and practice facility. Revenues from this fund have met
projections for the current fiscal year but still are not covering operational costs and
debt service. A fee increase of 3% to 4% for all categories of green fees is
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