Title
Recommending a 2018 Budget Amendment No. 1 to record the decrease in financing from the contract changes for wholesale water revenues and to increase spending and financing for the demolition of the Highland Reservoir, technology improvements, and repairs to infrastructure.
Body
WHEREAS, Resolution 17-1980 approved Amendment No. 2 to Contract For Water Service with the City of Roseville to adjust fees and charges paid by Roseville in order to reflect modifications identified in the November 1, 2017 Cost of Service Study; and the amount needed in 2018 to fund this rate change is $533,889; and
WHEREAS, Resolution 18-584 approved Amendment No. 2 to Contract For Water Service with the City of Little Canada to adjust fees and charges paid by Little Canada in order to reflect modifications identified in the November 1, 2017 Cost of Service Study; and the amount needed in 2018 to fund this rate change is $39,873; and
WHEREAS, the total amount needed to fund these fee and rate changes included in wholesale contract rates for 2018 is $573,762, which will be financed from use of fund balance; and
WHEREAS, in its 2017 budget, the Board of Water Commissioners did authorize spending for the demolition of the Highland Reservoir for $910,000, technology improvements to our Customer Information System (CIS) and Supervisory Control and Data Acquisition software (SCADA) for $120,000, repairs to the Fridley Station and the exterior of the McCarron’s Treatment Plant for $175,000, and a dike study for $25,000, for a total of $1,230,000; and
WHEREAS, contracts for these services were not fully executed by the end of the fiscal year 2017 and not expended or encumbered; and
WHEREAS, the total amount needed in 2018 to fund this reduction in revenues and increase in spending is $1,803,762 which will be financed from use of fund balance; and
WHEREAS, the Board of Water Commissioners recommended approval of the amendment to the 2018 Adopted Budget at the Water Board Meeting on April 10, 2018; therefore, be it
RESOLVED, that the City Council of the City of Saint Paul, upon recommendation of the Mayor does hereby recommend amendment to the Saint Paul Regional Water’s 2018 Adopted Budget, resulting in an increase of spending and financing of $1,230,000 to the 2018 Adopted Budget, resulting in an amended budget of $69,120,652 and does recommend approval by the Saint Paul City Council.