Page 29 - Approved Annual Budget FY 2019-2020_Flat

Wastewater Depreciation Fund
This section also includes the working capital summaries for Wastewater Depreciation Fund, which was established for the
sole purpose of replacing fixed assets. Funding for this fund is based on 40% of the monthly depreciation cost and is
transferred in from the Wastewater Fund revenues.
As in the case with the Water Fund, about twenty years ago the MPUB began setting aside 50% of actual
depreciation from the Wastewater Fund in order to accumulate monies to be used for asset replacement. This
level of funding depreciation was reduced to 40% as of October 1, 2018. This year it is estimated the Wastewater
Fund will transfer $3.3M into this fund. $2.6M has been budgeted to provide for replacements and projects (page
150) leaving an estimated fund balance of $12.2M.

Wastewater Capital Improvement Fund
Resources for this fund are primarily provided by transfers from the Wastewater Fund. Expenditures are
budgeted at $2.4M. The individual projects to be undertaken are presented in page 151 of this budget document.
Fund balance is projected at $3.7M by year-end.

Wastewater Revenue Bond Construction Funds
$2.2M has been budgeted for one capital project this year. Fund balance is estimated to be $80K by year end.

Wastewater Revenue Bond Fund- Clean Water
With anticipated revenue bond proceeds in the Clean Water funding (Series 2012, 2013, 2013A, 2013B, 2015 &
2015A) in the amount of $7M, the City is undertaking several projects with a budget of $7.4M. The estimated
ending fund balance is $2.

Sanitation Depreciation Fund
This section also includes the working capital summary for Sanitation Depreciation Fund, which was established for the sole
purpose of replacing rolling stock and equipment. Funding is provided by charging rental to the Sanitation Fund.

The Sanitation Fund is charged rental for rolling stock acquired by this replacement fund at an annual amount
equal to annual straight-line depreciation with a 15% add-on to provide for inflation. Rental income this year
amounts to $2.5M. The cost of replacements this year is $2.5M, leaving working capital at $11M at year-end.

Palm View Golf Course Depreciation Fund
This section also includes the working capital summary for Palm View Golf Course Depreciation Fund, which was
established for the sole purpose of replacing fixed assets. Funding has been provided by the Palm View Golf Course Fund.

The Palm View Golf Course Fund will transfer in $150K with appropriations in the amount of $91K leaving
$347K in working capital at year-end.
Convention Center Depreciation Fund

This section also includes the working capital summary for Convention Center Depreciation Fund, which was established for
the sole purpose of renovation of facility. Funding has been provided by the Convention Center Fund.

Fund will continued to be built up. $250K will be transferred into this fund with no planned expenditures.
The ending fund balance is estimated to be $2.1M.

Performing Arts Depreciation Fund
This section also includes the working capital summary for Performing Arts Depreciation Fund, which was established for
the sole purpose of renovation of facility. Funding has been provided by the Performing Arts Center Fund.

Fund will continued to be built up. $250K will be transferred into this fund with no planned expenditures.
The ending fund balance is estimated to be $1M.

Executive Summary Page xviii