FYE 14 Budget prelim - City of Norman

CITY OF NORMANWATER RECLAMATION FUNDBUDGETHIGHLIGHTSBackgroundThe Water Reclamation Fund is an enterprise fund established to account for the resourcesutilized to provide water reclamation collection, conveyance and treatment to the customers of theCity of Norman.The City operates a water reclamation treatment facility with a design capacity of 12 milliongallons. On November 3, 2001, the Norman Utilities Authority (NUA) adopted an updatedWastewater Master Plan, which proposes to expand system wide treatment capacity to 21.5 MGDby the year 2040. Currently, there are approximately 477 miles of sewer lines included in the totalsystem. The Water Reclamation Utility is undertaking an aggressive program to rehabilitateexisting neighborhood sewer lines and mains, and to construct new sewer mains in north and eastNorman.A five-year financial forecast is found in this section. The purpose of a five-year forecast isto project existing conditions into the future, given certain assumptions, in order to determine futurefinancial viability, to identify financial strengths and weaknesses and to provide a base for remedialor supportive financial policy action.FYE 14 BudgetStatement of Revenues and ExpendituresFYE 14 sewer user fee revenues have been estimated based on actual year-to-date receiptsin FYE 13. Water reclamation rates, effective since November 1, 1996 are as follows:Single Family/ Duplex$3.90 base plus $1.60 per 1,000 gallons of treated waste waterSewer line maintenance revenues and expenditures are reported in the Sewer MaintenanceFund. Additional sewer system capital improvement projects are reported in the Sewer Excise TaxFund and the Sewer Sales Tax Fund.FYE 14 expenditure projections are based upon line-item analysis within the Utility.Salaries and benefits are based on current authorized staffing levels. All line items have beenreviewed on multiple occasions by department staff, Finance Department staff and the CityManager.Levelized Rate PolicyUtility rates are set at a level to meet the average net income requirements over a five-yearperiod without the need for interim adjustments and to meet all reserve requirements at the end ofthe five-year period.ANNUAL BUDGET88