COM 0689.004 1996-1998 - Laserfiche WebLink

Home

Sewer Utility Capital Fund Fund Structure To facilitate sewer utility financial analysis two funds have been established. The first is a Capital Fund, used to finance the construction of utility capital improvements. The second is an Operating Fund. The Operating Fund is used to meet annual obligations of the utility including annual capita( costs such as debt service. The purpose of the two Funds is to clearly show capital monies (such as SRF loans, bond proceeds, etc.) are used solely for the planning, design and construction of facilities, not annual operations. Similarly, through the Operating Fund it can be shown that annual revenues are sufficient to meet annual operation, maintenance and replacement costs. To provide for the continuing capital needs of the County, adequate financing sources must be available to the utility. A proposed plan for financing the CIP shown in Table 3 is summarized in this section and shown in Table 4. Additional detail, showing the proposed funding source for each project, is shown in Table 5. Source of Funds Obligations of the sewer utility Capital Fund can be met from a combination of available funds on hand, transfers from the Operating Fund, sewer assessment fees, proposed bonds and loans, anticipated grant funds/contributions, and interest income. Funds on Hand The Eleele expansion constructed in fiscal year 1994 was funded from revenues remaining from the 1992 G.O. Bond issue. The Lihue expansion was funded with a State Revolving Loan. Funds for both these projects were assumed to be spent during fiscal years 1994 and 1995, leaving a zero beginning balance for fiscal yeaz 1996. Transfer from the Operating Fund No transfers are planned to occur from the Operating Fund based on this study. The Capital Fund is solely supported from capital related revenue sources. If the Operating Fund had excess revenues, they could be made available to finance capital improvements. There are no excess operating funds projected during the study period. Sewer Assessment Fees Revenues generated from the proposed new County-wide sewer assessment fees (discussed in more detail later) for wastewater treatment capacity are shown in this revenue category. These revenues are available to fund the capital projects listed in [he capital improvement program. Our analyses indicates that a charge of $3,900 for a new single family dwelling could be supported and we have assumed aphased-in approach to reach the full charge by fiscal year 2000. (discussed in more detail later). Non-residential new connections would pay proportionally greater amounts. We estimate annual revenues based on the phased-in amount and 60 new connections per year. Revenues generated from new customers resulting from the sewer extension projects in the CIP are included for a total of $2,204,000 during the shady period. 12