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08-10-1987 - Budget Workshop .~: ; Q u CITY OF EDGEWATER Budget Workshop FY1987-88 August 10, 1987 Mayor Baugh called the budget workshop to order Monday, August 10, 1987 at 6:30 P.M. in the Edgewater Community Center, for the purpose of the Water and Wastewater budget review for fiscal year 1988. ROLL CALL Mayor Earl Baugh Councilman Louis Rotundo Councilman Russell Prater Councilman Neil Asting Councilman David Mitchum City Attorney Jose Alvarez City Clerk Connie Martinez Chief Lawrence Schumaker Present Present Present Present Arrived Later Excused Present Excused Also present: Mrs. Karen Rickelman, Finance Officer and Mr. Terry Wadsworth, Utilities Superintendent. Mr. Wadsworth began by review of his memo regarding a proposal to revise impact fee collection method. He answered questions from the Council about this method. He and Mrs. Rickelman explained this does not change any ordinance, it is a more precise and fair way of enforcing the ordinance. This method is actually col- lecting for exactly what is used. There was a short recess taken to wait for Councilman Mitchum's arrival. Mayor Baugh called the recessed meeting back to order, and brought Councilman Mitchum up to date on what was discussed prior to his arrival. Mr. Wadsworth continued with the major items of his budget. REVENUES Water Sales & Sewer Use Sales - It is suggested to raise the rates from $3.60 a month to $4.25 per month. These funds are to be earmarked for major system improvements. There was discussion about the water line extensions that are planned. Water Connection Fees - Is based on 300 new connections in FY 1988. Sewer Connection Fees - Is based on 120 new sewer connections. There are a few projects existing that are included in this estimate. Interest on Investments - A lot less interest earnings is anticipated because the cash is not available to earn interest on. Appropriated Retained Earnings This represents earnings from prior years, there are two expenses that have been budgeted for this year, one being an elevated tower repair and reconditioning and some costs in proceeding with the capital improvements proposed project. Mr. Wadsworth answered several questions regarding the proposed expenses. EXPENDITURES Water Plant _ Under the Machinery & Equipment category a storage shed is being requested for combustible material to be stored in. A radio for one truck. .. . .. Water & Wastewater Budget ~Workshop Minutes August 10, 1987 ::. .~. o . Wastewater There are two line items that particular attention was drawn to: Repair & Maintenance Services This has included the Flagler Avenue and South Riverside Drive sewer rehabilitation projects. Machinery & Equipment - Includes a sludge hauling vehicle, $25,000. Field Operations Personal Services - Request one additional employee, to intensify our line installation program. Professional Services - Includes design, bidding specifications and permitting of the proposed 12" fire line to the Florida Shores tower. Repair & Maintenance Services - Includes reconditioning of the two tanks. Improvements other than Building - Includes the 12" line for fire protection, and further line extensions. Machinery & Equipment - Includes two radios and two small trucks. Fund 40 - General Expenditures Mr. Wadsworth reviewed three main categories with the Council; Transfer to General Fund, Transfer to Debt Service Fund and Transfer to Capital Improve- ment Fund. Water & Wastewater Development Funds - The only expenditure from this fund is for the principal and interest payments due on the Sun Bank loan. General Comments - Mr. Wadsworth encouraged the Council to consider the rate increase. There was discussion as to the method of doing this. Mr. Wadsworth answered several questions from the Council regarding the line extensions and the proposed number of new fire hydrants. He also was asked questions from members of the audience about the line extensions. Councilman Rotundo questioned the Capital Expenditure Request for a future TV Sewer Line Inspection Truck in the amount of $125,000. This is proposed to be needed in 1991. Mr. Wadsworth informed that after doing a couple of repairs to the sewer system it can be determined whether this will be a justifiable expense and may be cheaper in the long run. This will be evaluated by 1991 before a decision has to be made. Mr. Wadsworth reviewed his equipment requests with the Council, answering questions about each request, from the Council as well as from the audience. Council discussed the option of increasing the water rate. It was agreed to increase the base rate to $4.00 minimum and raise the overage rate to $1.25 per thousand gallons. Mayor Baugh adjourned this budget workshop. (7:55 P.M.) Minutes submitted by: Debbie Sigler z ~ P:-I-- MAYOR ATTE~ ~dnJ~ CITY CLERK/ADMINISTRATOR Approved this 21 s t day of September '~7. {~_ -V <V MAY R -2- ~ ~ r- y.h.1 /t7c'f