HomeMy WebLinkAboutOrdinance No. 2461-2010the ciyof
KENAI. ALASKA
AN ORDINANCE OF THE COUNCIL OF THE CITY OF KENAI, ALASKA INCREASING
ESTIMATED REVENUES AND APPROPRIATIONS BY $34,000 IN THE WATER AND
SEWER FUND FOR THE PERFORMANCE OF A UTILITY RATE STUDY.
WHEREAS, the City last conducted a Utility Rate Study in 2003; and,
WHEREAS, the Alaska Department of Environmental Conservation recommends utility
rate studies at least every five years and provides additional points in the municipal
matching grant program application evaluation for entities with current rate studies;
and,
WHEREAS, based upon budgeted cost, the cost of water service significantly exceeds
the revenue generated through current user rates; and,
WHEREAS, it is in the best interest of the utility that the rate for utility service reflect
the cost for providing the service.
NOW, THEREFORE, BE IT ORDAINED BY THE COUNCIL OF THE CITY OF KENAI,
ALASKA, that estimated revenues and appropriations be increased as follows:
Water Sewer Fund
Increase Estimated Revenues:
Appropriation of Fund Balance
PASSED BY THE COUNCIL OF THE CITY OF KENAI, ALASKA, this 20th day of
January, 2010.
ATTEST:
Increase Appropriations:
Water Professional Services
Sewer Professional Services
CITY OF KENAI
ORDINANCE NO. 2461 -2010
PAT PORTER, MAYOR
New Text Underlined' [DELETED TEXT BRACKETED
Suggested by: Administration
$34,000
$17,000
17,000
$34,000
Carol L. Freas, City Clerk
Introduced: January 6, 2010
Approved by Finance: L Adopted: January 20, 2010
Effective: January 20, 2010
KENAII ALASKA
MEMO:
A new rate study will provide the following information:
'Village with a Past, Gc y with a Future"
210 Fidalgo Avenue, Kenai, Alaska 99611 -7794 G„
Telephone: 907 283 -7535 FAX: 907 283 -3014 IIII'°I
1. Determine if expense revenue allocations are accurate
2. If existing rates are sufficient to provide for:
a. systems obsolescence
b. anticipated capital expenditures
c. future systems operation costs
3. Proposed future rate structure (if appropriate)
TO: City Council
FROM: Rick Koch
DATE: December 29, 2009
SUBJECT: Ordinance 2461 -2010, Funding for Utility Rate Study
The purpose of this correspondence is to recommend your approval of the above referenced
ordinance.
While preparing the applications for the ADWF and ACWF loan programs it was necessary to
calculate the performance of the City of Kenai's water utility and sewer utility separately.
The 2010 Water Sewer Fund Operating budget shows anticipated revenues over expenses of
$50,123. My analysis which calculated the financial performance of the individual water and
sewer utilities showed that in FY 2010 the water utility will operate at an anticipated deficit of
$101,104, and the sewer utility will operate at an anticipated surplus of $151,226.
The City has not conducted a utility rate study since 2003, and ADEC recommends that a study
be performed every five years. The water and sewer utilities have absorbed significant
operating cost increases since the last increase in user fees approximately five years ago.
Attached find the summary financial performance for the water and sewer utilities as contained
in the FY 2010 budget.
1`
1992
CURRENT DEBT INFORMATION
Does your community have a debt ceiling? If so, what is it? N/A
How much remains available? N/A
What is your current level of bonded indebtedness? 0
Please indicate the date, rating and amount of your last bond sale,
Date: Rating. Amount:
CURRENT CLEAN WATER FINANCING
Please provide the following information regarding your current annual water utilities
budget.
Operating revenues: 52,228
TOTAL Revenues: 1,363,448
Nance
ACWF Foun 02
7/01
Operating expenses:
USER FEES
I certify the above information is correct and current.
Rick Koch
Page2 of 2
City Manager
Title
September 8, 2009
Date
1,212,222
er fee eted: 1,311,220 Annua debt service: 0
ther non operating expenses: 0
TOTAL Expenses: 1,212,222
Reserves: 1,017,145
If User Fees are intended to repay any portion of this loan, please submit:
Existing ordinance that authorizes the collection of user fees
Current fee structure
Pertinent portions of your budget documents
Most recent State single audit.
Most recent rate study or rate analysis
Also, please complete the following:
Number of existing residential and commercial users:
Number of proposed residential and commercial users•
How much will this loan repayment increase user fees? For example, how much will the
average residential users monthly fee increase? This loan will not increase
user fees.
CURRENT DEBT INFORMATION
Does your community have a debt ceiling? If so, what is it? N/A
How much remains available? N/A
What is your current level of bonded indebtedness? 0
Please indicate the date, rating and amount of your last bond sale.
Date: Rating: Amount'
CURRENT DRINKING WATER FINANCING
Please provide the following information regarding your current annual water utilities
budget.
Operating revenues. 52,228 Operating expenses:
User fees collected: 464,560
Name Title
ture
ADWF Form 02
7/97
service:
her non- operating expenses:
TOTAL Expenses:
Reserves:
USER FEES
1 certify the above information is correct and current.
Rick Koch City Manager
Page 2
September 8, 2009
Date
617,892
0
617,892
1,017,145
If User Fees are intended to repay any portion of this loan, please submit:
Existing ordinance that authorizes the collection of user fee
Current fee structure
Pertinent portions of your budget documents
Most recent State single audit
Most recent rate study or rate analysis
Also, please complete the following:
Number of existing residential and commercial users:
Number of proposed residential and commercial users.
How much will this loan repayment increase user fees? For example, how much will the
average residential users monthly fee increase? This loan will not increase
user fees