FY2023 Adopted Budget

WASTEWATER FUND The Wastewater Fund accounts for the business-like operations of the City’s wastewater/sewer utility. The wastewater utility operates the City’s waste treatment plant, the sewage lift stations, the sanitary sewer collection system, and the wastewater monitoring operations. The Wastewater Fund is primarily supported through user fees. The wastewater operations have been undergoing a major transformation over the last few years. The City completed a major expansion of the South Wastewater Treatment Plant during fiscal year 2015, and all of the City’s sewage treatment operations were consolidated at the South Plant. The project cost was $55 million and was funded from $41.4 million from state and federal grants, $8.6 million from Local Option Sales Tax revenue, and $5 million from Wastewater user fees. A project to demolish and remove the North Treatment Plant and establish wetlands and a park was started in fiscal year 2015 at an estimated cost of $6 million with the assistance of a State sales tax flood mitigation grant. The Wastewater Fund provided a $6 million loan to the Capital Projects Fund for the demolition of the North Wastewater Treatment Plant in fiscal year 2015. The loan was repaid with the State sales tax flood mitigation grant, and the final loan payment was made in fiscal year 2022. Fund Balance: The Wastewater Fund’s unassigned fund balance at fiscal year 2021 year-end was higher than fiscal year 2020 by approximately $1,088,916 or 9.4% This increase was primarily due a $950,000 interfund loan payment from the sales tax flood hazard mitigation grant program. In fiscal years 2022, unassigned fund balance is expected to increase by $2,154,948 or 17%. This increase is stemming from the retirement of the 2016C Sewer Revenue Refunding Bonds which releases the bond issue’s debt reserve of $936,000 and also due to the final receipt of the sales tax flood mitigation grant loan payments of $425,000. In fiscal year 2023, the unassigned fund balance is budgeted to decrease by $211,729 or 1.43% primarily due a decrease in estimated Wastewater Charges.

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