Complete Document - City of Auburn

City of AuburnWater and Sewer Department Financing StructureThe operations of the City of Auburn’s Water and Sewer Department are not financed by theGeneral Fund, as are the other City departments’ activities. The Sewer Maintenance Division and SewerGeneral Operations are budgeted within a separate City Sewer Fund. The Sewer Fund’s revenuesources include sewer service charges, sewer tap fees and access fees, special sewer charges andinvestment income. The Sewer Fund budget begins on the next page of this document.The Water Divisions’ operations are financed by the City of Auburn Water Works Board, a legalentity separate from the City. The City Council appoints the members of the Water Works Board. TheCity has a contract with the Water Board to provide management services to the Board. The head of theCity’s Water and Sewer Department supervises the operation of the water treatment plant anddistribution system as well as the meter reading team and water source planning efforts. The City’sFinance Director is responsible for the Water Revenue Office, which includes the customer servicerepresentatives, billing and collection, accounting and financial reporting functions. The City’s HumanResources department provides employee and risk management services to the Water Board. The city’sInformation Technology Department provides computer hardware and software support services and GISservices to the Water Board.The Water Works Board sets the water rates and deposit amounts to be charged to itscustomers, establishes policies for its operations and approves a separate budget. The budget approvedby the Water Board for fiscal years 2003 and 2004, which includes a 5% rate increase in FY 04, issummarized below:City of Auburn Water Works BoardBiennial Budget - FY 03 & FY 04ActualBudgetAudited UnauditedFY 01 FY 02 FY 03 FY 04RevenuesWater sales to customers $ 4,072,367 $ 4,514,796 $ 4,276,000 $ 4,404,000Impact fees 305,500 515,000 220,000 220,000Fire protection fees 102,303 107,240 100,000 110,000Consumer penalties & collection fees 71,558 105,107 59,000 62,000Tapping fees 66,835 126,865 50,000 50,000Service initiation fees 58,940 67,483 35,000 40,000Sale of electricity 31,641 31,641 32,000 33,000Investment income 426,693 279,725 525,000 540,000Other revenues 15,674 71,584 30,000 30,000Total revenues 5,151,511 5,819,441 5,327,000 5,489,000ExpensesWater treatment and distribution 1,213,675 1,133,164 1,212,752 1,244,482Water system maintenance 494,298 510,692 659,825 701,934Meter reading 148,428 168,229 189,057 209,783Operations administration 220,542 234,743 314,679 323,786Customer service, billings & collections 310,644 343,736 353,198 364,090Revenue office administration 99,968 93,545 143,943 150,269Depreciation and amortization* 934,827 1,011,276 1,123,456 1,123,456Interest and fiscal charges 432,993 1,062,039 939,968 923,084Other general operations 441,283 359,088 470,104 473,983Total expenses 4,296,658 4,916,512 5,406,982 5,514,867Net income $ 854,853 $ 902,929 $ (79,982) $ (25,867)* Depreciation and amortization are non-cash expenses.234