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<br /> <br /> <br /> <br /> <br /> <br /> 2. Interest Earned. A 50 percent ($50,000) decrease in interest income is predicted due to <br /> record-low interest rates. <br /> <br /> <br /> Expenditures <br /> 1. Group Medical. Although two of the three health plans offered by TML-IEBP are <br /> expected to have relatively speaking very minimal increases, the budget does not increase <br /> the City's allocation to compensate. The result is a small erosion of an important benefit <br /> that helps make up for an uncompetitive wage scale when recruiting and retaining <br /> employees. <br /> <br /> 2. Fuel - Volatility of fuel prices declined over during FY 2008-2009 (see full discussion <br /> under "General Fund" section above) and the proposed expenses reflect lower fuel prices. <br /> Over the previous 12 months, the Water and Sewer Fund purchased 21,992 gallons of <br /> unleaded gas and 7,115 gallons of diesel. <br /> <br /> <br /> 3. Electrical - The water and sewer systems continuously utilize numerous pumps, some of <br /> which are quite large, and these pumps require large amounts of electricity to run. As <br /> noted in the "General Fund" section above, the City's five-year agreement with CAPP <br /> will minimize the volatility and amount of our electrical charges. <br /> <br /> 4. Chemicals - The water and wastewater treatment processes require a large amount of <br /> chemicals. The City recently received responses to its request for proposals for annual <br /> contracts to provide the various chemicals and are slightly less than FY 2009-2010. <br /> <br /> 5. Personnel. As noted earlier, the City is a very lean operation for a service organization, <br /> where 70-75 percent of expenses would not be unusual for personnel but in water and <br /> sewer this category accounts for only 24.3 percent. The proposed budget does not <br /> include elimination of any of the 71 full-time positions. <br /> <br /> <br /> Capital <br /> <br /> There is very little capital in the proposed budget and much of what is included are projects that <br /> were part of the FY 2009-2010 budget but will remain incomplete by the end of the fiscal year <br /> and carried forward. These projects include: <br /> <br /> 1. Lake Crook fishing pier replacement <br /> 2. New warehouse <br /> 3. Radio read meter program <br /> 4. Replacement of the sub-floor at the water treatment plant <br /> 5. Implementation of phase II of the water system SCADA system <br /> 6. Cox Field airfield improvements <br /> <br /> <br /> <br /> <br /> <br /> 8 <br />