HomeMy WebLinkAbout03/12/2024 - Regular - Additional Doc-Utilities Funding 101HARD
Council Meetin
Utilities Funding 101
03. 12.2
Note: This is intended to illustrate the project estimates and potential fur
Discussion Overview
Local Utility Funding Options
Water, Sewer, Storm Rate Revenue
Capital Facility Charges
Real Estate Excise Tax (REET)
Other Sources (Property Tax, Sales Tax)
Rates
Water charges a fixed base rate plus consumption -based
charges for water.
POMC 13.04.010
Sewer charges are comprised of fixed rate
POMC 13.04.020
Storm Drainage charges are comprised of fixed rate
POMC 13.06.808
Rates are set to achieve city goals:
Meet obligations (Operations, Debt, Capital Et Reserves)
Fund Capital Improvement Programs
Promote Conservation (water)
IF
Capital Facility Charges (GEC's)
Water Capital Facility Charge POMC 13.04.030
(1) The water capital facility charge is designed to mitigate the impact of new d nds
on the existing water system and to require new users to pay their fair share of tie
value of the water system including, but not limited to, water supply, treatment,
transmission, storage and distribution facilities, charges a fixed base rate plus
consumption -based charges for water.
Sewer Capital Facility Charge POMC 13.04.040
(1) The sewer capital facility charge is designed to mitigate the impact of new demands
on the existing sewer system and to require new users to pay their fair share of the
value of the sanitary sewer system.
Storm Drainage Capital Facility Charge POMC 13.06.150
(1) The storm drainage capital facility charge is designed to mitigate the impact of new
demands on the storm drainage system and to require new or expanded development to
pay its fair share of the value of the storm drainage system including, but not limited to,
storm drainage transmission, storage, management, filtration, and dispersal facilities in
compliance with the City's NPDES permit.
No
Real Estate Excise Tax (REET)
The two main REET options for cities and towns are:
• REET 1 ("first quarter percent") - Any city or town may levy a 0.25% real
estate excise tax primarily for capital projects and limited maintenance.
• REET 2 ("second quarter percent") - Additional 0.25% real estat excise
tax primarily for capital projects and limited maintenance, but many only
be imposed by cities that are fully planning under GMA.
Capital Projects
Other Sources
Property Tax:
Sales Tax: One-time Transfers to support Marina Pump Station
Grants/Loans:
Washington State Department of Commerce: Public Works Board
The Public Works Board (Board) is authorized by state statute (RCW 43.155). Its purpose is to
loan and grant money to counties, cities, and special purpose districts to repair, replace;
create infrastructure.
Washington State Department of Ecology
Washington State Department of Health: Drinking Water Revolving Fund(DWSRF)
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Fund 411 Water- Operations
2023-2024 Current
2023-2024 Amended
Fund: 411 - Water Operating
Biennial Budget
Biennial Budget
Ord. 018-23
Beginning Fund Balance
$
3,838,287
$
3,838,287
Revenue
$
7,661,013
$
7,858,613
Expense
$
7,675,732
$
9,903,362
Ending Fund Balance
$
3,823,568
$
1,793,538
Water Main Replacements
Smart Meter Program
Asset Management
Fund 421 Storm Drainage- Operations
2023-2024 Current
2023-2024 Amended
Fund: 421- Storm Drainage Utility
Biennial Budget
Biennial Budget
Ord. 018-23
Beginning Fund Balance
$
1,410,718
$
1,410,718
Revenue
$
3,490,182
$
3,490,182
Expense
$
4,505,504
$
4,580,574
Ending Fund Balance
$
395,396
$
320,326
Storm Drainage Catch Basin Maintenance
Asset Management
Fund 431 Sewer- Operations
2023-2024 Current
2023-2024 Amended
Fund: 431 - Sewer Operating
Biennial Budget
Biennial Budget
Ord. 018-23
Beginning Fund Balance
$
5,908,675
$
5,908,675
Revenue
$
11,397,425
$
11,397,425
Expense
$
11,109,664
$
12,062,934
Ending Fund Balance
$
6,196,436
$
5,243,166
Sewer Main Replacements
South Kitsap (SKWRF Payments)
Asset Management
General Sewer Plan
Fund 413 Water Capital Construction
WCIP#3 Well #11 -Design &t Construction Completion $8,616,700
WCIP#10 Melcher Booster Completion $501,050
WCIP#23 390 Zone Low Pressure Completion
WCIP#19a Water Main- SR166Bay Water Design
WCIP#19 Water Main Replacement-Sroufe Completion
WCIP#19 Water Main Replacement-Annual-FY24
Well # 7 Pre -Construction Design
Pottery Ave (Water) Non -Motorized
413 -Total Expenses $10)606)750
$14,000
$100,000
$525,000
$250,000
$500,000
$100,000
Fund 423 Storm Capital
Storm Property Purchase
Annual Capital Contribution (2 -years)
423 -Total Expenses $800,000
5600,000
5200,000
Fund 433 Sewer Capital Construction
SCIP#1 Marina Project Completion
SCIP #2 Bay Street Lift Station
SCIP #3 McCormick Sewer Lift Station #2
SCIP#SB South Sidney (Ruby) Design Work
SCIP#7 Sewer Main Replacement -SR 166 Bay Sewer Design
C090-21 Sewer Controls
Pottery Ave (Sewer) Non -Motorized
Annual Capital Contribution-FY24
433 -Total Expenses $16,690,900
$13,351,900
si\000,000
$1,000'
$703,000
$130,000
$805,000
$500,000
$200,000
Questions