2006 Water Comprehensive Plan - City of Bellevue

INTRODUCTIONThe Waterworks Utility is the financial consolidation of the Sewer, Storm & Surface Water andWater Utilities of the City of Bellevue for debt rating and coverage purposes as established inOrdinance No.'s 2169, 2845, 3158 and 4568. It pledges the strengths and revenues of thethree separate Utilities for the common financial good while keeping each Utility financiallyseparate for budgeting, rate-setting, revenues, expenditures, debt and accounting.These "Financial Policies" apply uniformly to the Sewer, Storm & Surface Water and WaterUtilities with few, unique exceptions which are identified separately. This update reflectschanges consistent with current long-range financial planning, particularly with regard torenewal and replacement funding, the use of debt and rate policies. They supersede theFinancial Policies, which were adopted under Resolution No. 5967 in 1995.These policies do not stand-alone. They must be taken in context with the other major City andUtilities documents and processes. For instance, each Utility has its own Comprehensive Plan,which documents its unique objectives, planning, operations and capital needs. TheseComprehensive Plans have historically had a 20-year planning horizon. Future ComprehensivePlans will need to evaluate long term renewal and replacement of aging facilities, much of whichwere constructed in the 1950's and 1960's during periods of high growth rates and areapproaching the end of their useful life. Life cycle costs should be considered in planning thefuture capital facilities and infrastructure needs.The City has a seven-year City-wide Capital Investment Program (CIP) Plan which is updatedwith each biennial budget cycle. All major City capital projects are included. Generally, they aredescribed as over $25,000; involving new physical construction, reconstruction or replacement;and involving City funding. The CIP identifies the level and source of funding for each project.The CIP includes specific sections for each Utility which identify near-term capital projectsconsistent with each current Utility Comprehensive Plan and several projects of general scopeincluding renewal and rehabilitation, capital upgrades, response to growth and other systemneeds.I. GENERAL POLICIESA. Fiscal StewardshipThe Waterworks Utility funds and resources shall be managed in a professionalmanner in accordance with applicable laws, standards, City financial practicesand these Financial Policies.Discussion:It is incumbent on Utility management to provide professional fiscal management ofutility funds and resources. This requires thorough knowledge of and conformance withthe City financial management processes and systems as well as applicable laws andstandards. It also requires on-going monitoring of revenues and expenses in order tomake decisions and report to City officials, as needed, regarding the status of Utilitiesfinancing. Independent financial review, analysis and recommendations should beundertaken as needed.2-14