FYE 14 Budget prelim - City of Norman

CITY OF NORMANSEWER MAINTENANCE FUNDBUDGETHIGHLIGHTSBackgroundThe Sewer Maintenance Fund is an enterprise fund established October 1, 2001, to accountfor revenues from the Sewer System Maintenance Rate (SMR) and the sewer portion of the CapitalImprovement Charge (CIC) of $.50 per month. It is also used to account for all expenditures relatedto major maintenance of the water reclamation system (capital improvement projects accomplishedthrough contracts with private construction vendors as well as maintenance projects accomplishedby the Sewer Line Maintenance Division). The Sewer Maintenance Fund receives a subsidy fromthe “parent” Water Reclamation (Wastewater) Fund in an amount reflecting the cost of the basiclevel of sewer system maintenance afforded by sewer user fees.The sewer CIC and SMR are intended to provide a higher level of maintenance, keeping thesewer system in good repair over the long term.FYE 14 BudgetStatement of Revenues and ExpendituresRevenues have been estimated based on actual year to date receipts in FYE 13 extrapolatedfor a full year.FYE 14 expenditure projections are based upon line-item analysis. Salaries and benefits arebased on current authorized staffing levels.FYE 14 total expenditures are $10,815,090 of which % or $7,312,247 is subsidized by theWater Reclamation Fund.A “worst things first” approach continues to be the basis for determining the priority ofprojects subject to the approval of the Water Reclamation Implementation Committee. (See CIPFYE 14 – 18 for listing of projects)All line items have been reviewed on multiple occasions by department staff, FinanceDepartment staff and the City Manager.Reserve PolicyEnterprise funds by policy, reserve portion of Fund Balance as follows:• Operating Reserve equal to 8% of the annual operating cost• Capital Reserve equal to the annual average of the next 5-year capital expenditure plan.ANNUAL BUDGET92