Utility Operations (Water/Sewer, Garbage, Stormwater)

Goal: User rates and system development charges will finance all operations, capital and debt service for utility functions.

Goal: A rate study of utility rates and system development charges will be completed at least every 5 years to determine if applicable rates and miscellaneous charges meet operating costs, debt obligations and provide adequate reserve levels.

All costs of providing utility services including maintenance, depreciation, and debt service requirements shall be financed through user rates.  Capital construction will primarily be financed by system development charges, or favorable rate governmental loans or revenue bond proceeds, if needed.  Annual review of the user rates will be done by staff or an independent consultant by July 1st each year.

Goal: To mitigate current and future revenue shortfalls and unanticipated expenses, retained earnings of at least 90 days of operating expenses will be maintained in the water/sewer utility.  

Revenue bond ordinances require retained earnings, cash and investments in the water/sewer bond reserve fund will be equal or greater to the highest annual debt service requirement.  Interest earnings that accumulate in this fund above the highest annual debt service may be transferred periodically to the water/sewer operating fund.   

Goal: Cash and investments of a minimum of $500,000 should be retained for emergency capital repairs or other unforeseen events in the Water/Sewer Capital Reserve Fund. 

Water/sewer system development charges are accumulated in the Water/Sewer Capital Reserve fund for future capital construction.  Below is the balance of available capital: