ENTERPRISE FUNDS
Following recommendations in the 2004 Black & Veatch rate study, staff is recommending revenue increases of 4% for water and 9% for wastewater for 2005. This proposed increase will continue to provide revenue for the operating and capital costs of the Utilities Department and address the various bond and State Revolving Loan payment commitments. As a note, in 2003, Black and Veatch completed Water and Wastewater Master Plans through 2025. The aforementioned rate study determined future revenue requirements for the adjusted capital improvement plan for these two utilities.
A 2% increase in both residential and commercial solid waste fees is recommended for 2005. This increase in rates will provide revenue for operating the residential, commercial, and recycling divisions of this fund.
The Downtown 2000 parking garage has been a popular addition to the downtown area, serving the new Lawrence Arts Center and the central downtown area. The completion of the planned retail and residential projects associated with this Tax Increment Financing (TIF) project will undoubtedly result in increased use of the downtown parking system and result in appropriate revenue strength for this fund. Following City Commission direction, an increase in overtime parking fines was implemented in 2004 to increase revenue.
Following the master plan for this utility, and a previously approved rate plan, the rate charged for stormwater fees will not increase and remain at $4.00 per equivalent residential unit (ERU). The initial rate of $2.00 per ERU was established in April, 1997. In the fall of 2000, a rate study was completed, and the City Commission adopted an ordinance establishing subsequent rate increases of $1.00 per ERU in 2002 and $1.00 per ERU in 2003. With these rate increases, two (2) priority stormwater projects are in the construction process in 2004. Maintenance of the stormwater system is a priority, including meeting the NPDES permit requirements.
Using the pro forma developed in establishing the Eagle Bend Golf Course as a guide, a greens fee increase for 2005 anticipates approximately the same number of rounds being completed in 2005 as 2004 (38,000). The fees represent a $.50 increase in greens fees in 2005.