CIP FY 26-30 Final - Flipbook - Page 19
Stormwater Utility Fund
The Stormwater Utility Fund primarily supports projects related to the enhancement and expansion
of the City’s stormwater infrastructure. Stormwater utility fees are collected monthly from every
parcel within the City and are used to fund this vital service. Stormwater funding is restricted, and
the primary purpose of the Stormwater Utility Fund is to support capital projects that improve
stormwater management. These projects may involve construction of new stormwater facilities,
maintenance of existing systems, or implementation of stormwater best management practices.
Stormwater Funding Analysis:
Stormwater Fund projections are based upon current FY 2024/25 estimated revenues with an annual
8% increase in the FY 2026/30 revenue stream. The total FY 2026/30 Stormwater revenue estimate is
$5,460,451or 90.6% of the total revenue needed to fund all the projects and other expenses of this fund.
Considering inflation, commodities and services a 5% expenditure increase has been applied for FY
2026/30. This fund currently transfers $260,000 a year to the Transportation Fund and $74,000 to the
General Fund for administrative services. The fund and these transfers are unsustainable with the
current rates. To ensure transparency and objectivity, an independent consulting company has been
contracted to conduct the rate study, thus the reason for the 8% projected increase in revenue. Even
with an 8% rate increase, this Fund is not able to sustain itself. Once new rates are adopted, if the City
wants to maintain the ability to continue to support quality projects, the City should implement an
annual CPI increase to avoid financial struggles within the fund.
Over the next five years, the total estimated cost of stormwater projects and operating expenses is
$6,027,743, including transfers, with a projected ending fund balance of a deficit of ($248,033). The
City does recognize the need for sufficient revenues and resources to accommodate necessary future
projects. In order to complete all planned projects, the City must increase revenue. The most fiscally
responsible option to address the funding shortfall and to allow for future stormwater projects is to
raise stormwater rates that have remained the same since 2014, with a current monthly rate at $6 for
residential properties and $12 for commercial properties.
Storm w ater Fund
Fund Balance, BOY
Estim ated
Proposed
Projected
Projected
Projected
Projected
FY 24-25
FY 25-26
FY 26-27
FY 27-28
FY 28-29
FY 29-30
$
Revenue
826,696
$
895,000
Interest Earnings
514,746
$
(71,002)
900,000
$
972,000
(266,267)
$
1,049,760
(276,636)
$
1,133,741
(77,303)
1,224,440
31,000
34,000
35,020
36,071
37,153
38,267
926,000
934,000
1,007,020
1,085,831
1,170,894
1,262,707
1,752,696
1,448,746
936,018
819,563
894,257
1,185,405
Operating Expenditures
475,000
550,748
578,285
607,200
637,560
669,438
Transfers out
260,000
334,000
334,000
334,000
334,000
334,000
CIP Projects
502,950
635,000
290,000
155,000
-
430,000
1,237,950
1,519,748
1,202,285
1,096,200
971,560
1,433,438
Total Revenue
Total Funding Available
Less:
Total Expenditures
Net Operating Incom e
(Loss)
Fund Balance, EOY
(311,950)
$
514,746
(585,748)
$
(71,002)
(195,265)
$
(266,267)
(10,369)
$
(276,636)
199,334
$
(77,303)
(170,730)
$
NOTES:
1. Beginning Fund Balance in FY 2024/25 ties with ACFR for FY 2023/24 year-end balance
2. CIP Expenditure projections for FY 2025/26 – FY 2029/30 are based on estimated costs for CIP projects
3. Assumes that project budgets are fully spent each year going forward
4.
15
(248,033)
