Memorandum

City of Lawrence

Utilities Department                                            

TO:	David L. Corliss – City Manager Cynthia Wagner - Assistant City Manager Diane Stoddard - Assistant City Manager
FROM: CC:	Dave Wagner – Director of Utilities Mike Lawless – Asst. Director of Utilities Ed Mullins – Finance Director Casey Toomay – Budget Manager
	Philip Ciesielski – Asst. Director of Utilities
Date:	January 22, 2013
RE:	2013 Utilities CIP Budget Study Session - FAQs

1. How much additional revenue did the Utilities Department collect in 2012 compared to the budgeted amount?

Revenues exceeded the 2012 budgeted revenues by approximately $3,252,700 for a total of $34,468,000.

2. How will the Department use the 2012 additional revenue with appropriate City Commission approvals?

The revenue was used for additional operation and maintenance expenditures, to replace aging equipment, and to fund non-bonded construction projects. These items total $3,148,000 as detailed below.

· Costs related to Water Production – $277,000

o Additional Raw Water purchases

o Additional Water Chemicals

o Additional Energy

· Overtime in 2012 - $60,000 over budgeted amount

· Replaced Camel Jetter/Vac Truck - $311,000

(Necessary for Operations and approved by the City Commission on 8/14/2012)

· Estimated Additional Funds to Non-Bonded Construction - $2,500,000             (In addition to the $900,000 budgeted for 2012)

3. What are the projected cash construction projects for 2013 that will use Non-Bonded Construction Funds?

• Iowa & BBP Watermain Relocation - $321,400
• BBP Watermain Relocation from Kasold to east of Crestline - $1,200,000
• O’Connell Road Watermain Extension (SLT Relocations) - $1,962,000